 Systems ... Foundations For Growth
By John Lankford
Systems. Everything about us is made up of systems - from our business to our personal lives. As a result, business success is systemic. So is failure.
For instance, think about your own body. It's made up of systems. Some performing functions related to digestion, others in charge of circulation, respiration or immunity. If something goes wrong with any of your body's systems, your overall performance and wellbeing can become compromised. The same is true in business.
Most people don't give a second thought to their body's systems until after there's been some kind of catastrophic breakdown. Unfortunately, that is also true in business.
First, let's define what a system is. I refer to it as "a series of steps designed to achieve a specific outcome." The healthcare industry uses the word "process" instead of "system." Whatever you prefer to call it, a system should be a type of financial health policy to proactively identify all of your company's systems and map out the way they should all work toward the ultimate outcome - success.
An ounce of prevention
Every company, regardless of size, is built with hundreds of systems. If the leaders are not systems experts, there can be a high risk of problems or breakdowns. But don't dismay. Even non-experts can position their organization ahead of the competition by becoming aware of how all their systems work - or don't work - in harmony.
Going back to the anatomical reference, we mentioned some systems the body needs in order to function properly. These systems are governed by ever smaller and more specialized systems in the form of organs, which are composed of tissues, which are made up of cells, and so on and so on. It's the same with your business. You need to keep a pulse on all the systems and their interconnected parts if you don't want your business to flatline.
Why don't more business owners focus on their systems? That's the million-dollar question. Unfortunately, many do not know how vital these systems are to the bottom line. And, among those who do, many would rather avoid the painstaking and tedious task of documenting how to optimally perform every part of every job in the company.
That brings us to the #1 reason people consider buying a business franchise - all of those hundreds of systems are already packaged nicely and have been proven to work. (Competent administration of those systems, however, is of course a separate matter.)
It makes no difference whether you own a Subway franchise or are an entrepreneur running a $2-million dollar company. Your business will operate more effectively if you have:
- Identified all the systems essential to the running of your business;
- Documented every step of every system;
- Saved every system on a computer that is backed up daily;
- Trained every employee how to maintain your profit-generating systems;
- Empowered managers and leaders to hold people accountable for adhering to the systems; and
- Provided positive feedback and recognition to those employees who do support the system.
A pound of cure
Both your body and your business need a fine-tuned organizational alignment. In your business, this can only occur if you have an annual organizational plan that links job descriptions and performance expectations to the effective support and appreciation of the company's systems.
Case in point: Susan and Barbara McCarthy, owners and founders of Sun Country Cleaners, were recognized nationally as the 2010 Enterprising Women Business Owners of the Year. This recognition came on the heels of their having recently surveyed their customer base as to the top reason they return to Sun Country for their cleaning needs. Five thousand people responded that the top reason for returning to Sun Country was the friendliness of the staff. That feedback was a critical step in the company's customer-retention system and most likely one of the reasons that they are one of the fastest growing dry cleaners in Florida.
Businesses like Sun Country and national chains like Subway each have a particular culture. You probably just refer to it as "the way we do things here." But in reality, you really do have a lot of systems already in place. However, note that unless you've done the requisite assessment, training and documentation activities, your systems are basically a collection of habits, some good, some not so good. Systematic approaches will both defeat bad habits and instill good habits in the working structure of your business.
"As leaders and business owners, my sister and I are always looking to continuously improve our business performance. We now have a process in place when a new problem pops its head that is an immediate flag to us that we write a system to prevent the issue from repeating itself. Once the system is written, we then make sure the appropriate employees know what to do next time something similar occurs."
-Susan McCarthy, Sun Country Cleaners
And the result is
Do what your competition probably won't!
- Think about your systems long before they have a chance break down;
- Create an effective one-year operational plan;
- Map out your most frequent systems; and
- Hire the right team.
Think of this process as a successful wellness plan. A well-designed system orchestrating every core part of your operations will have your organization running like a well-oiled machine.
About the Author
John Lankford is the Master Business Coach of Premier Development Solutions. His website is:
http://www.premierdevelopmentsolutions.com.
He can be reached at: John@PremierDevelopmentSolutions.com
or (734) 454-5667. | 
