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Friday, 01 October 2010 11:53

Systemisation

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The other day I was in a restaurant with friends. The restaurant itself was owned by another friend of ours who happened to have gone away with her family to the Caribbean for three weeks. Someone at the table asked how on earth she could have managed to do that, given the nature of her business and her family commitments. Like an arrow, the answer came back, “She’s got systems”.

It is perfectly true. When you are running a business, systems are one of the main keys to ensuring that the business allows you to run it in such a way that it lets you lead the life you want to lead. If the main task of the business owner is to create more life for themselves, then becoming systematised has got to be the way forward.

So what is systemisation? Basically, it’s taking a series of steps in a task that is done regularly, recording them and then asking other people in the business to follow that procedure, known as a Standard Operational Procedure (SOP), in future.

Obviously, it’s not quite as simple as that. Neither the tasks nor the systems themselves appear out of thin air. They do, however, appear out of a business’s strategic plan and operational plan, both of which precipitate tasks that are necessary for the development and growth of the business.

What should emerge, from these two strategy documents, are a range of tasks to be done, not just in terms of producing the products that the company is selling, or the services that it is delivering, but across the board, including tasks to do with finance and management, strategic planning tasks, marketing, lead generation and a host of administrative tasks.

SOPs can, and should, be written for regular and irregular tasks and for tasks that recur in specific points in the day, week or year, or for specific events.

Why are systems important? Well, there are three main reasons for this:

Firstly, it stops everyone re-inventing the wheel which, saves time, effort and energy. Once a system has been developed, the procedure published and staff trained in operating that procedure, then it should just happen.

The second key reason is consistency. Systemised tasks should always produce the same end result and this is something that clients and customers like. This is particularly the case with services, where returning customers always know what they are going to receive, and the standard delivered.

Finally, procedures contain within themselves the inherent ability to improve. When a system is not working well enough, or not delivering as it should do, it is normally straightforward to review the system and make changes to it, which should result in consistent improvements to that particular process.

Ultimately of course, one of the most important systems an organisation should have in its armoury is a system for reviewing its own systems. A small business may have a SOP to be followed by the first person to enter the office in the morning, while on the other hand, it may have a complex SOP for delivering workshops to clients.

How do you put this into practice? Well, a simple spreadsheet or word document can often be sufficient, especially for small organisations, but even organisations with more than around four or five staff should probably invest in some of the system software that is available.

There are many references and much research on the subject of systemisation and procedures, but without doubt Michael Gerber and his book “The E-Myth” should be the starting point and required reading for any entrepreneur, business owner or professional.

Last modified on Wednesday, 08 December 2010 21:34

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