Five Myths about Business Systems!
Many business owners and managers use the word "system" from time to time, but don't really understand its full implication. Of those business owners who do understand their importance, very few get around to implementing effective systems in their organization. Why is that? Let's dispel five myths that might be holding you back.
- Systems are for larger companies - It is true that many big companies use system improvement methodologies like Six Sigma, Lean Thinking, Theory of Constraints, and others. The application of these techniques enables them to be more responsive to customers and more profitable. However, true principles apply to all. On a smaller scale, your business can profit in the same way. You, too, can use systems to cut costs and create loyal customers. Systems Thinking is highly beneficial to companies of all sizes!
- Systems cost too much money and take too much time - Developing systems does require a front-end cost and time commitment. However, the cost and time are much less than the waste and rework that result from not having good systems. Building effective systems is your best use of time and money. It is the most important business activity high-level people can do. Good systems pay for themselves many times over!
- The primary purpose of systems is to be better organized - Becoming organized, and doing things in a "systematic" way, is always good, and will improve any business. However, the real power of systems is taking waste out of the business--eliminating defects and delay--by improving system quality and efficiency. Building good business systems is a learned skill that transcends just getting organized. It is the most important business skill you can learn!
- "My company runs smoothly; I don't have much waste" - While many companies run reasonably well, most business owners do not see the hidden waste and fail to recognize abundant opportunities for improvement. Owners and managers often don't know what they don't know. Once you begin to see your business as a Systems Thinker, a whole new world of opportunities opens up. You will discover many ways to improve, please customers, and put more money in your pocket!
- Systems are for production and manufacturing processes - We've all seen the hum of systems in a manufacturing operation; we don't as often think about systems in the office. However, your business is 100% systems--hiring, accounting, customer care, purchasing, custodial, and the list goes on. Principles of quality, efficiency, and measurement apply as much to the office as they do to a plant. Every business system and process is subject to the principles that govern success, and your organization has dozens that you can immediately elevate to higher levels of performance.
Best Medicine for a Sick Economy
Some people believe that systems are a good thing, but not necessarily essential - WRONG! Systems are essential! I repeat: Good systems will improve customer loyalty, put more money in your pocket, and help you to grow, even during a down economy.
If you didn't get serious about becoming a Systems Thinker and learning the Master Skill in 2009, then it's time to get going in 2010! Whether you want to start, grow, fix, or franchise your business, creating effective business systems is the only way to do it right.
Get in The Zone every morning and start working on your business, not just in your business (Michael Gerber).
Have a Merry Christmas and a Prosperous New Year,
Ron
P.S - Get the gift that keeps on giving. Check out my eCourse, Box TheoryTM: Double Your Profit with High-Performance Systems and Processes.