How Good are the Components of Your Business Systems?
System components are the physical ingredients that go into your business processes. They include forms, checklists, reports, software, equipment, tools, websites, people, and so forth. As I work with small business, I find that many necessary components are missing or of poor quality, seriously degrading system performance.
For example, system operators don't have a checklist, website offers aren't clear or compelling, forms are completed incorrectly due to vague instructions, needed supplies aren't ordered on time, or an in-demand pallet jack is shared by two work areas.
These little things make a big difference over time and often go unnoticed by business owners. They increase costs and reduce customer satisfaction. Are there any missing pieces to your business systems--pieces that are costing you money?
Details Matter!
A single word on a vendor door-hanger (system component) totally changed one of my days during the recent holidays. Let me explain.
Rocky Mountain Power has a system for informing its customers when power will be shut off for repair work. Part of the system is to place a door-hanger at the homes of affected customers several days before the work is scheduled.
The notice on my door said, "We are working on the electric facilities in your area. A planned interruption is scheduled for Thursday, 12/29/2009 between 8:00 am and 3:00 pm."
On that day, we turned up our heater to 78 degrees to get the house warm before the power was turned off. I went to the local Library to work on my computer, and my wife rearranged her day to accommodate the outage.
When I returned home in the late afternoon, my wife said, "The power was only off for fifteen minutes." "Are you kidding," I replied.
I went back and looked at the door-hanger. Go read it again. It sounds like the power is going to be turned off for about seven hours. On the other hand, maybe it could mean "sometime" between 8:00 am and 3:00 pm--like fifteen minutes! Adding the word "sometime" would have made all the difference." (Better yet, they could have said something like, "thirty minutes to an hour.")
Are You Paying Attention?
Component glitches like this are very common. Trust me. You, too, have little details regarding your system components that cause frustration, lower productivity, annoy customers, and lose you money. More than you may realize!
Employees usually don't complain. They just try to make the most of the situation. Customers don't voice their complaints as much as we'd like; they just take their business elsewhere.
I could call Rocky Mountain and tell them of this problem. I politely tell many companies I do business with how they might improve their systems. I can't help myself. It's the burden of a Systems Thinker. However, I can tell you, I also get blown off by 90% of company representatives. They are too busy to deal with my silly issues.
Rocky Mountain Power has a monopoly and doesn't have to listen. BUT YOU DO! Pay attention to the little details that bother employees and customers. Fix the piece of equipment. Upgrade your website. Create a checklist. Improve the wording on a form. Buy a second palette jack. You will benefit more than you can see, but the loose change you save from little improvements will add up to big dollars!
Pick one system in your company today, and carefully evaluate each component. You'll be surprised!
Wishing You Prosperous Times,
Ron
P.S. I explain hundreds of tips on how to refine and improve your business processes. Check out my eCourse, Box Theory: Double Your Profit with High-Performance Systems and Processes.