Business Systems and Processes.

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Manage By the Numbers!

Mini-Course Day 9: “Fast Start to Systems Thinking”

In 1891, a British scientist named William Thompson, also known as Lord Kelvin, said, “When you can measure what you are speaking about, and express it in numbers, you know something about it. But when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind.”

Managerial accounting is the art and science of managing by the numbers. It requires a thorough understanding of both leading indicators (real-time system performance) and lagging indicators (monthly financial statements). By measuring results and providing frequent feedback to managers and teams, it is possible for you to improve the performance of your organization in a dramatic way.

Business Accounting Includes System Measurement

Accounting isn’t just for managing payables, receivables, and so forth. It is your primary system to measures the effectiveness of all your business processes—the operations of your organization. Its essential purpose is to help you maximize sales throughput and profit—the lifeblood of your business.

Your accounting system is the “brain” of your organization. It reduces large quantities of data into useful information. Numbers reveal your strengths and weaknesses. They tell you what went wrong in the past and what you can do now to improve the future.

“Managing by the numbers” replaces gut feelings and opinions with business intelligence. It provides the seeds of solutions to problems and is the basis for making vital and informed decisions. You can know the financial effect of a decision before you ever spend a dollar! Good decisions will save or earn you far more than the cost of acquiring the information. So don’t skimp on your accounting system!

“You cannot manage what you cannot measure” (Peter Drucker, business authority).
“Anything that can be measured can be improved” (Michael Dell, Dell Computers).

With business systems and processes, the types of measures you will apply include productivity, quality, timeliness, cycle time, resource utilization, and costs. In Box Theory™, we use a simple “Balanced Scorecard,” developed by two professors at Harvard Business School, to establish measures and set target goals.

What are Your Key Performance Indicators?

A few key performance indicators (KPIs) drive the “economic engine” or your organization. If these results are good, everything else tends to fall into place. You should decide what those key numbers are for your company and watch them closely.

Key numbers may include ratios like profit per square foot of space, profit per customer visit, sales leads per day, sales conversions per presentation, defective units per thousand produced, and so forth. You get the idea. In this ratio, focus on your most important results (numerator) and your most expensive resources (denominator). What are the one or two KPIs that drive the success of your organization?

Select your measurements carefully, and only measure what you will use. Establish process measurements that let you know every day how you stand in relation to your goals. Keep in mind that the earlier your measurement system catches a problem, the sooner corrections can be made. Begin now to manage your company by the numbers; let measurable results drive improvement of your vital business systems and processes.

By the way, if you are not a numbers person, or don’t have a numbers person in your organization, get one now! In this highly competitive world, you have to manage by the numbers to be successful.

“In God we trust. All others, bring data” (W. Edwards Deming, Total Quality Management).

The Box Theory™ Way relies on data for teaching, improving, and making important decisions. You will learn about baseline data, benchmark data, trend data, diagnostic data and other ways to look at a problem. Numbers are the language of improvement.

Now get this, just by measuring your business systems or processes—without making any changes to them—your performance will increase. Sweet!

My Box Theory™ eCourse will help you know what to measure and how to measure, and Box Theory™ Gold software has a built-in report wizard for creating fully-formatted measurement reports in seconds. Your performance data will also show up on the system dashboard.

Other valuable information and articles, such as how to do a sales break-even analysis, are available from within the Box Theory™ Business Systems Academy. Please check out our numbers on the pricing page (now for FREE), and let’s get going today. This could be the start of something big.

Oh, and one last reminder, tomorrow is the final day of the 10-Day Fast-Start Mini-Course. If you are ready to get going, I hope you will take advantage of the special pricing (free) before time runs out. Until then…

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Mini-Course, “Fast-Start to Systems Thinking”

*****Special Alert: My Retirement is Your Gain*****

To give back to the entrepreneurial community, I HAVE DECIDED TO GIVE AWAY MY VALUABLE SYSTEMS-BUILDING SOFTWARE, ecOURSE, AND OTHER INFORMATION ABSOLUTELY FREE. By filling out the form on this page, you will go directly to a download page. This is not hype. There is no catch. You will receive a software product and a “college equivalent” eCourse on how to develop effective business systems and processes. Customers have been paying for this software and eCourse for fourteen years (see What Cutomers Are Saying).

I will show you how to eliminate business frustrations and make more money by creating remarkable systems and processes that boost customer loyalty, profitability and growth. The application of these strategies has proven to be of great worth for owners of many small and mid-size businesses. Put me to the test!

You will learn the following, and much more:

  • How to become a Systems Thinker and raise your business I.Q. by 80 points—OVERNIGHT.
  • What six elements are found in every great business system.
  • How you can remove waste and inefficiency, and build a results-driven organization.
  • Why good systems and processes are the essential ingredient to start, grow, fix or franchise (replicate) your business.

You have nothing to lose and everything to gain. I will not be trying to sell you because you are getting everything for FREE, much more than I have described here. I won’t be contacting you; however, you can contact me for help with the software or your business at any time. Please browse around my website. If you have any questions, email me, Ron Carroll, at

I hope you enjoy and benefit from this FREE offer. It was a labor of love for me to develop. Becoming a Systems Thinker and using the Box Theory™ methodology will be one of the best decisions you have ever made.

I’ll be cheering you on from my quiet fishing hole in the mountains of Utah.

I want to learn how to create remarkable business systems …

Just Retired
Gone Fishing
Your Lucky Day

It's time for me to focus on other things. Many hours and dollars have gone into my software and written materials over the last fourteen years. Now it's time to give back. This is not a gimmick. There is nothing to buy. I give it all to you for free. If you use the software and apply the principles, you can create a remarkable company. See Below. Have fun!

Turn Your Business Into Money-Making Systems!

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Welcome to the #1 website for helping owners of small to midsize businesses create customer-pleasing, waste-removing, profit-boosting business systems and processes.

Michael Gerber, "E-Myth"

Michael Gerber

"Organize around business functions, not people. Build systems within each business function. Let systems run the business and people run the systems. People come and go but the systems remain constant."

W. Edwards Deming, Total Quality Management

W. Edwards Deming

"If you can't describe what you are doing as a process, you don't know what you're doing. . . . 94% of all failure is a result of the system, not people."