Why All Businesses Should Use Systems
There are no two right ways to run a business. However, as you may already know, there are plenty of things that can go wrong, which can affect your efficiency and your service or product end results. Keeping an enterprise running healthily day to day can be a little bit like a balancing act.
Plenty of businesses may be able to keep going without any kind of formal process management in place. However, the fact of the matter is, they’re never going to guarantee themselves long-term success. What’s more, without a formal system or business systemisation in place, they are running the risk of their team growing frustrated, unmotivated, and even uninspired. All in all, that’s hardly a combination you need backing your brand from day to day.
So what’s the answer? If you’ve already read some of our guides here at systemHUB, or if you’re only slightly aware of what we do, you probably already know where we’re going. It’s all about creating and implementing systems and processes that anyone can follow without your input — systems which can be followed to the letter to produce fantastic results time after time.
We think it’s important to consider why businesses need solid systems in place. Therefore, in this guide, we will be taking a closer look at what we call SYSTEMology. Could your business benefit from extensive new systems and SOPs? Why document processes at all?
If you’ve read this far into our site, chances are, you probably already know what a system does from a business perspective. However, it is always a good idea to refresh.
- A business system or SOP (standard operating procedure) is a list of instructions on how to keep things running. Think of a system as if it was a page from your company’s ‘operating manual’.
- If your company did have an operating manual, what would some of the chapters be? Building systems for business is all about writing those chapters, one by one.
- Systems will allow your team to follow set procedures and guidelines without your intervention. They help to identify who has what responsibilities, and how a particular end goal can be achieved.
- The whole point of a business system, essentially, is to replicate an ideal end result again and again. Therefore, fine-tuning a great system or SOP can take time and effort.
It’s little wonder why so many big brands and businesses thrive on systems. With so many employees and so many departments, it’s incredible how anyone keeps track. Systems can make sure various departments and teams can look after themselves and tow to the company line. They can, too, strive to reach that perfect end result.
But why should your business consider a systems overhaul? Is it just for bigger enterprises? What benefits can you get out of systems and SOPs on a daily basis?
Having solid business systems isn’t enough. You have to make sure that you package processes and procedures in ways that your team can understand and will actually use.
In all walks of business, process management can help to keep knowledge stored in one place. It’s likely that we will all come across a difficult query or a challenge or two in any given week. How are we to best approach these scenarios without documented knowledge?
Documented systems help to store company knowledge in real-time. That means, with simple access to a database, staff can refer to operating procedures to be able to navigate specific issues. That could be for anything as simple as handling certain customer queries, to fulfilling internal orders. Giving your teams access to the knowledge they need at all times isn’t cheating. It’s giving them a reference point they need to stay on-point with your company message.
A company failing to make use of business systemisation won’t be as lucky. You can, of course, tackle each problem as it arises, but if you are managing several different teams, there’s no guarantee that they will all take the same action. Making knowledge on how to act in specific scenarios open to your staff will ensure everyone is working together. It also takes a lot of supervision off a manager’s plate.
There are two points to running a business:
- To offer customers a fantastic experience
- To make money
It cannot be denied! We will look at the latter point shortly, but for now, let’s focus on the customer. That, ultimately, is what you should be doing in everything you do.
With a clear business framework and process management in place, it’s easier to achieve brilliant results. That end result, of course, is delivering spectacular service or products. Business systemisation will allow you to analyse each step of product or service generation carefully.
A good system should encourage team members to make constant checks and analyses. A thorough SOP will allow staff to understand how each step of a working process comes together. It’s all about building towards a bigger picture that everyone can understand.
What’s more, you will be able to fine-tune your systems. You’ll be able to look back and make edits, where necessary if you feel the customer experience needs to be improved. With access to tweaking each step of your processes, you’ll be able to aim for continued brilliance in everything you do.
Success in business revolves just as much around profit as it does customer satisfaction. But how can systems help to drive down costs and boost profit for any given business?
A good system will give you close access to where your money is going. By listing down and mapping out everything you do to get to your end result, you will be able to plan for expenditure. You’ll also be able to spot ways to cut out steps and to slim down the whole process. This, too, could save you a lot of money in the long run.
Simply being more efficient, and being more reliable, drives up profits. The better the service you offer to customers, the better your reputation becomes. The more customers you serve to this exceptional standard, the more customers you’ll get. That goes for repeat custom, new clients and more besides.
Business systemisation can save you money and help to continue driving profits year on year. You don’t just have to cut back on unnecessary expenditure. You can strive for brilliance time and time again to get valuable repeat custom.
Working with systems allows a business to take full stock of everything which goes on from day to day. That, too, means taking accountability for areas which require improvement. It is always healthy to run a full audit, but it may not be practically possible. Therefore, having systems in place can allow you to make necessary adjustments to your daily running.
For example, how can you be sure that your security strategy is protecting customer and client data enough? Are there ways you can streamline the process? Are there enough safeguards in place? What measures are you using to ensure that data is handled and disposed of in a proper, responsible fashion?
You’ll offer your team complete access to what is expected of them. There will be little room for interpretation when it comes to essential procedures. It will also help staff to identify weak links in processes. This way, you’re always enhancing your reliability and your functionality from day to day. The right systems can help to bolster your business for self-awareness and continued success.
Capture your best business practices and track the progress of your winning moves to make it easier for everyone to scale and replicate those successes.
Finally, let’s consider the benefits of autonomy when working with systems. SYSTEMology is inspired by Michael Gerber’s ‘The E-Myth’, which proposes an ‘entrepreneurial perspective’. Ultimately, Gerber speaks about how important it is to develop a business to work for you. Your business should not be a ‘job’. It should be something that you can develop to create opportunities for others and to create a systems-based model that can continue to look after itself.
Systems enable you to run a business with incredible autonomy. Therefore, you can essentially look to replicate brilliant end results thousands of times over without ever having to interfere. Building a successful business, taking into account the E-Myth, is creating a framework that can continue to profit and produce brilliant results with minimal physical effort.
It can take time to build this level of autonomy. However, some very big brands and household names continue to operate on such a basis. It all starts with creating one system and building from there. We strongly recommend reading The E-Myth when first starting with systems.
All businesses can thrive with systems and SOPs working for them. Any good business framework will have automated procedures and guidelines clearly installed for ongoing success. Think about how this strategy may apply to your company.
Are you interested in getting started with SYSTEMology? Take a look at more of our guides or call our team on 1300 149 301 to learn more. We’re here to help with business process problems, process management and more.