As Business Owners Are You?
- Tired of excessive workload?
- Worried that no work gets done in your absence?
- Overtly engaged in fire-fighting operations?
- Frustrated with chasing your employee all the time?
- Failing to enjoy the fruits of business?
Then, the answer is simple. Yes, just simple!
You are badly lacking in Systemization of Business.
Once you commence your Systemization exercise, everything will fall in place.
To put it in plain terms only Systemization of Business can Salvage you and your business!
Connotation Of Systemization Of Business
A system lays down the roadmap for your functions as also for your team. It is neither product dependent nor people dependant but purely Processes dependent.
The acronym of the word ‘SYSTEM’ makes an interesting revelation.
- Save
- Yourself
- Stress
- Time
- Energy
- Money
How Succinct Is The Expression!!
Systemization is the process of designing standard operating procedures (SOPs) to ensure the consistency and efficiency of an organization.
What Is Systemization?
Systemization is the formulation of standard operating procedures to increase an organization’s efficiency and productivity.
- The focus is operations to the point of making each task as well-timed as possible.
- Systemization can also be a way of documenting essential business functions that allow it to run.
- Systemization helps businesses create standardized systems for better operations management and improved processes.
It takes effort, dedication, and time to systematize if you need to free up your time to do more things or become more productive.
Systemization Of Business Involves Process Of
- ORCHESTRATION-creating and implementing systems.
- QUANTIFICATION-tracking and analysing.
- INNOVATION-improve as warranted.
Challenges Of Business Systemization
- Never known how to document.
- Time-consuming.
- The way how actual practice of the system.
- Updating and adapting are onerous.
- Training team in the system.
- Creating and using manuals.
- Alignment of diverse business systems.
Objectives Of Business Systemization
- Enhance VALUE of your business.
- Sharpen your COMPETITIVE EDGE.
- Bolster PROFITS.
- Attain PEACE OF MIND.
- Build up CONFIDENCE of your team.
- Improve propensity for KNOWLEDGE MANAGEMENT.
Rationale Of Systemization
As Business Owner you are the Boss and there’s a sense of pride in it.
Your primary responsibility rests with clients, employees, suppliers, government regulators, and even competitors.
The expectations from all the stakeholders are high. The normal time for leisure and vacations is just limited.
As a matter of fact, here lies your main challenge. You have no option but to…Systematize your Business.
You find a way to handle various tasks using a structure that makes the most out of everyone’s time.
Once you can do more in lesser time, you are empowered to focus on business growth and sustainability!!
Systems For Diverse Business Needs
- Internal Communication
Meetings, emails, zoom calls, and in-person conversations. - Customer Relationships
Basically, how do you turn customers into raving fans for your product or service? - Onboarding & Training
This is how you consistently make sure every new recruit gets fully geared up and stays that way. - Project Management
How do you manage all the smaller projects without having anything fall through the cracks? - Finance & Accounting
Essentially, how you manage your company’s money – everything from cash flow to taxes to budgeting for departments. - Processes & Procedures
That way, efficiency is improved, reducing the incidence of error.
Steps For Systemization
- List all your most recurring functions or tasks.
The list must include how frequently these functions must be performed – daily, weekly, fortnight, or monthly. It is imperative to ensure :
- Preparation of a list of all the individuals tasked to perform various functions.
- Time consumed to complete the functions.
- Any possibility to delegate.
2. Organize the functions according to priority level.
Determine which department or group is responsible for a specific function.
Identify the importance of each function to come up with hierarchical order.
Put the most critical functions on top – those that must be performed at all costs regardless of any condition to keep the company running.
In a nutshell, create mandatory policies that guarantee the performance of every function.
3. Embrace a consistent documentation process.
Documenting operations with utmost consistency will take your business to a new level altogether. Do not skip or ignore even the most minuscule details.
4. Testing the processes
Do a “test run” by performing the functions based on the processes documented to figure out if it works and if it makes sense.
This test run determines the areas that must be modified or removed.
Make sure to do another run every single time you change something.
5. Allow room for improvement.
Be positive and open-minded to make improvements along the way. As an inevitable corollary of your business growth, corresponding responsibilities also rise. Motivate your employees to make suggestions on how to improve the system.
How To Systemize Your Business So You Can Scale Up
Step 1: List Recurring Tasks
- Identify how frequently the tasks will be performed- daily, weekly, or monthly?
- Identify all parties that are involved in the process.
- Determine the duration of each task.
- Determine if the tasks can be delegated.
Step 2: Organize and Prioritize Functions
- Identify the group responsible for the designated function.
- Identify the importance of each function.
- Prioritize the functions according to their importance and role in keeping the business running smoothly.
Step 3: Document Your Processes
- Be as detailed as possible. Provide a step-by-step guide, share screenshots, and use screen-recorded tutorial videos of you performing the tasks with accompanying narration—whatever provides the most clarity.
- Utilize all available resources and consider using free templates you can find online to cut down on some of the time spent writing the processes.
- Consider working with someone who could help in creating a training manual.
Step 4: Process Implementation
- Take the processes for a test drive. You may find areas that could benefit.
- If colleagues ask questions, it’s probably an indication that the processes are not thorough enough and need further explanation.
- Make your processes as airtight as possible to ensure no future mistakes occur.
Step 5: Continue Improving
- Continue making tweaks to your SOPs to improve processes, increasing efficiency and efficacy over time.
- Encourage employees to make suggestions on how to improve the processes.
Strategy To Systemize Your Business
1. Make a Game Plan
List out everything and anything that goes into it.
i.e., Processes, policies, procedures, and best practices.
Then, mark items as high priority or low priority and urgent.
2. Document One Part at a Time
Focus on the highest priority and highest urgency part. Write down exactly how to answer the questions who, what, where, when, and how with as many nitty-gritty details as possible.
You can always revisit how you do things and change your systems down the line. Just be sure to document the new, better way of doing things.
3. Get Team Involvement
Documenting your business requires a considerable amount of work upfront. Bear in mind that systematizing and documenting is a team sport.
4. Team Training on Systems
Train your team to seek their total participation.
5. Delegation of Systems
Delegates all the routine operations amongst your team members.
However, retain the essential and strategic items on your to-do list.
Entrust the main items of operations to the heads of the departments.
You must take over the overall supervision of the way each process delivers. In case you observe any lacuna in the progress, jump in to take the corrective action.
This is the simple way to ensure your business works like a well-oiled machine – even in your absence Thus, you can confidently focus on your essential task of scaling up your business!
Benefits Of Systemizing Business – What You Gain?
Cost Reduction
- By delegating various routine tasks, you’ll be able to more effectively and efficiently prioritize your time.
- This will allow you to focus your energy on income-producing tasks that generate revenue for your business.
Increased Efficiency
- Run your business more efficiently by discovering and removing any unnecessary steps you may be taking.
- Documenting your procedures will help you ensure where you’re wasting resources and, consequently, where you can increase efficiency on a daily basis.
Adopting Concise SOPs
With crystal clear SOP, your team will ultimately boost performance by ensuring congruency and consistency between all team members. Your team will be able to focus on:
- Due diligence
- Project management
- Prioritizing your company’s Mission.
More Free Time
With a systemized business, daily operations will continue to run smoothly, even in your absence. You’ll be able to devote more time and energy to pursue what’s next for your company, be it, securing finance or discovering creative solutions to existing problems.
Improved Communication
Having precise procedures will reduce miscommunications, wasted efforts, and possible arguments and bickering over how and when things should be done.
Rational Time Management
One of the biggest benefits of systemizing your business is the ability to keep your company running with remote control. You will be able to spare time for a vacation, spend time with your family, or plan for the future of your business without fearing any hit to your business.
In Retrospect
It is the SYSTEM that rules the business.
Neither the Management nor its Team.
It is in the best interest of the Business Owners to pay heed to this proposition.
Failing to systemize business can do more harm than good.
To survive and prosper in the midst of fierce competition, perhaps this is the most effective panacea!
ISN’T IT WORTH WORKING ON YOUR BUSINESS RATHER THAN IN YOUR BUSINESS?
MICHAEL GERBER
“Organize around business functions, not people. Build systems within each business function. Let systems run the business and people run the systems. People come and go but the systems remain constant.”