Six Qualities of Highly Effective Business Systems!
There is only one way you can create a smooth-running and prosperous business that reaches its full potential. You must develop effective systems and processes that enable you to continually find and keep customers.
Creating effective business systems is the art and science of "business engineering." It requires creativity and innovation as well as logic and organization. System development is your primary task as a business owner. Did you know that? Do you believe that?
Systems: Art and Science
The systems you create must combine six important elements. They include the following:
- Process: Effective systems--in the office or the factory--are well designed, smooth running, evenly paced, and use standardized procedures. They seek to eliminate idle time, mistakes, unnecessary movement, bottlenecks, downtime, and inventory buildup. You make money when your systems are stable, steady and sustained.
- Components: A system must have all of the necessary components to function properly such as checklists, forms, reports, equipment, software, supplies, tools, equipment, people, and other resources. Missing or poor quality system components are a major weakness of most small businesses.
- People: People are often the most important and most expensive system components. Put the right people in the right job with effective training, motivation and accountability. Effective systems leverage ordinary people to produce extraordinary results.
- Quality: Good systems must have minimal mistakes, waste and rework to keep costs down. Products or services must be delivered as promised and free of defects; they must meet or exceed customer specifications and expectations. Any quality considerations that are critical to the customer must be critical to you, or the customer will take their business elsewhere.
- Speed: Efficient business systems have short lead-times and high throughput by squeezing delay, bottlenecks and "speed bumps" out of the process. They run fast enough to deliver on schedule or by deadlines. Speed creates higher employee productivity and work satisfaction, increased capacity for sales, faster invoicing and cash flow cycles, happier customers who will buy again, and overall lower costs.
- Measurement: Renowned business authority Peter Drucker says, "You cannot manage what you cannot measure." Continuous measurement and feedback drive all process improvement. What measurements drive the "economic engine" of your business? Establish process measurements that let you know every day how you stand in relation to your business goals. Strive to better your best!
When you carefully incorporate these six qualities into your business systems and processes, you will see remarkable results. Costs will go down. Customers will be happier. You will have an organization of excellence and be on track to reach your full potential.
Wishing you Prosperous Times,
Ron
PS - To get the full story, sign up for my Mini-Course, "Fast Start to Systems Thinking" at www.BoxTheoryGold.com.