10 Reasons Why Your Business Systems Fail!

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Poor performance and frustration within an organization are symptoms of broken systems or processes. A law of physics states that all things, including business systems, naturally tend to break down over time.

You will periodically need to repair, improve, or elevate your business systems to a higher level of functioning. For example, the carpenter could sharpen his saw blade, buy a new blade with carbide tips, or even replace the saw with one that has a bigger motor--each takes him to a higher level of performance.

Stand back for a moment and look at your under performing system. Have you made any faulty assumptions? It is possible that your understanding of either the problem or the solution is wrong. You may need to re-examine your logic or perhaps drill-down to find the root cause of the problem; the apparent cause is frequently incorrect.

Discover the Cause of System Failure

Here are ten possible reasons why you are experiencing system breakdowns in your organization:

1. Managers do not have sufficient customer or worker input during the system development process. (You haven't listened carefully to what your customers or employees want or need. Ask again!)
2. The system is not in writing or lacks clarity, ownership, measurement, or reporting. (Your system is haphazard, ever changing, and passed on by word-of-mouth. Get it formalized!)
3. The system is too slow or produces too many defects, both of which drive up costs. (Your system suffers from poor design, inadequate training, or no measurement and feedback. Take steps to eliminate defects and delay!)
4. The system is overloaded and cannot handle the demand. (In-baskets are full or things are stacked up waiting to be worked on. Increase the capacity of the system. Eliminate the bottleneck!)
5. The system lacks focus. It is too broad, far reaching, or complex; it has more than one purpose or objective. (Break the system into smaller, more manageable subsystems. Reduce and simplify!)
6. The system is dependent upon other systems that are not performing well. (Use the "5-Why Analysis" to identify the true problem system; then go fix it first!)
7. Data and feedback are used to punish people rather than to improve performance. (Most problems are your fault for not creating a good system in the first place. Provide effective training. Look first for faulty systems, not faulty people!)
8. The new system is not carefully deployed. (Workers lack preparation or training. They don't have the desire to discontinue the old system or the patience to let the new system succeed. They may fear change or worry about having their performance measured. Deploy new systems with preparation, sensitivity, and encouragement. Let people know what's in it for them!)
9. Information about system performance is based on gut feelings or bad data and does not reflect the true condition. (Your gut is good at sensing a problem, but not so good at diagnosing the problem. Get the facts--MEASURE!)
10. Managers fail to face the brutal facts about system failures. (Confront the truth about problems that emerge from personal frustration, customer complaints or financial data. Get real, and get going!)

Do This Now

While in the Zone tomorrow, think about the most frustrating part of your business. What system does that frustration point too--lead generation, customer service, collections, production--or perhaps a more specific subsystem? Then, run the system past the ten reasons for failure described above. You will discover where to focus your improvement efforts.

Wishing You Prosperous Times,
Ron

P.S. - Trade your poor performing systems for high performing systems. Check out my eCourse, Box Theory^TM: Double Your Profit with High-Performance Systems and Process. Learn how to create systems that get the results you are after. It's the most important business skill you will ever learn!