Business systems development

Why develop systems

Are you a business owner who has spent years trying to work out the secret of business? Perhaps you’ve attended seminars, read books and magazines or listened to CDs on the subject of business systems and improvement. Afterward you return to your business and get swamped by the never ending stream of events that throw up pressures and challenges every day and never actually get to implement the ideas you saw and heard.

One of the most often repeated words of advice is to ‘systemise’ your business. This is probably the most important project to complete in your business to ensure short and long term success…and it’s simple, yet most business owners avoid it and then miss the secret that systems contain.

Where do you start

Quite simply systemisation starts with documenting how you do what you do. This task may be referred to as completing a systems manual, operations manual or polices and procedures manual. Whatever you call it, the purpose is to capture the collective intelligence or ‘know how’ of everyone in the business. The why, what, when, where, who and how of your business. Your business system!

You will be pleased to know that your business is already full of systems, so you are not about to undertake a project that starts from nothing. Clearly, your business manages to start every day, complete many tasks and activities following several rules and guidelines along the way, and then end every day having completed many of these functions successfully. You may have even made some money along the way. Congratulations…you have systems!

However, whether the business can, or ever will reach its full potential is questionable. Ask your self these questions:

• How much of the day do you (if you’re the owner) spend doing the work of the business? i.e. printing business owner does printing/ hairdressing business owner cuts hair/ dental business owner fixes teeth etc…
• If the owner does not go to work, how much of the business tasks will not be completed…and for how many days could this continue and the business survive
• Is your product or service delivered to a standard identically each and every time to the satisfaction of your customers?
• Does your staff carry out all their tasks exactly how you would like them to be done?

Simple questions…disturbing answers. These are just some of the problems that exist in a business that has not documented their systems. Whilst I said you have systems already they are in fact intangible and un-improvable unless they are written down. When they are written they are able to be studied, reviewed, tested and measured, and improved. Herein lies the secret.
So what does documenting a system entail? Start by choosing a particular process or system within your business. Identify where it starts and write down the steps involved until the end. An example may be: selling your product.

Step 1. The system starts with an inquiry by a potential customer
Step 2. Assessment of needs
Step 3. A quote or invoice
Step 4. A follow up contact/s
Step 5. Sale made
Step 6. Product delivered
Step 7. Payment received, system ends

Very simplistic and generic, but this is the start. Now expand on each of the steps above with about a paragraph of critical elements or procedures involved so that it starts to become individual to your company. After that write the procedures or instructions in detail. Once completed you may have 5-20 pages of procedures which explain all of the actions required and the rules and guidelines which govern the decisions made along the way.

This is a real system. A system which contains many components that can be measured, reviewed and improved at any time. One that can be used to train new staff to ensure they carry out the system exactly as others do; which is as the owner intended, and to the satisfaction of customers.

This example process is one of probably 10-20 that are critical to the success of your business. Others include
• Advertising and marketing systems
• Accounts payable, receivable and payroll systems
• Recruiting, hiring, inducting, training and performance systems
• Customer service and sales systems
• Production, warehousing, inventory and logistics systems
• Safety and quality systems
• Administration, reception and record keeping systems

At this point you’re thinking in one of two ways. Either you’re excited and can see how this will benefit your business, you, your employees, your customers and your suppliers; or you’re thinking about the amount of work this may be and how you’re going to fit it into your day. In addition to this you may be questioning the real benefits which you may receive. I mean writing everything down is so easy that surely the secret must be more complex and difficult than this. Remember, the simple things in life are often the best.

The benefits

Consider that a systemised business with an up to date operations manual will experience…
• Higher productivity through staff not carrying out tasks incorrectly or needing to continually ask for confirmation or clarity
• Greater customer satisfaction and confidence resulting in higher average sale process and increased repeat business
• Better accountability of staff through easier measurement of their performance against the systems
• Ease of movement of staff in, out and around the business
• Less reliance upon key individuals, most of all the owner, as a result of systems being in place and available for training and up-skilling others
• Greater control over the flow of information throughout the business leading to less double handling resulting in a reduction of errors

This list is by no means exhaustive but even if you could just have one of these outcomes imagine the difference it would make to your business. The problem would be in choosing which one you’d like!

So now you’re well on the way to being a market leader in your industry through the implementation of systems. It’s time to reap the personal benefits on offer that are inextricably linked to business benefits. Once you have documented the systems that you are personally managing and involved with it is possible to remove yourself from each responsibility methodically and meticulously without creating a chaos.

Once you are spending less time doing the actual work of the business you are free to do the most important work of all. Commonly referred to as working on it, not in it! Business purpose and cultural development; strategy development and planning; market identification, measurement and product development; development of your team and its collective skills; innovation and improvement; financial planning and investment.

So as you can see there is still lots to do but if these areas of your business are not being focused on, or thought of at all, how can you possibly expect to build a bullet proof, long term, turnkey business that rewards you for the risks, effort and vision you have had in starting this business in the first place.

The traps

Lastly beware the traps of systemisation. The literal task of writing documents, creating folders, files, forms and checklists, manuals and all others contents of a system. You may find yourself quickly developing another problem of just how to organise and deliver the contents in a logical way to the people who will benefit most, your staff. There are many tools available to assist you to control the development of your systems manual, such as software applications. This can and will be a low cost undertaking provided you research the tools and plan the project effectively.

See Also

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Business Process
Policies and Procedures
Procedure

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