How to Save Time and Money by Systemizing Your Business
Over 94% of problems within an organization are caused by the lack of effective systems, according to Dr. W. Edwards Deming, the Father of the Quality Evolution. Systems solve poor cash flow, low profits, unhappy customers, waste, and much more.
As you’ve seen in the past blogs, systemizing properly is critical to growing your company. Here are 8 more tips to building smart systems in your business:
1. Set a leadership example: Demonstrate that systems are important for the company and should not be ignored. They are in place for a reason and not to create bureaucracy or more work for the team.
2. Establish a purpose for every process: Understand and communicate the purpose of every system. Over 15% of people are ‘why people’ – they need to know the reason behind something before they get onboard.
3. Involve people who will use the system in the development process. Systems will work better when designed from the bottom up, not the top down. The people who perform the work will know more about the idiosyncrasies of the process, so they can weigh in on what works and what doesn’t.
4. Involve external stakeholders in the process: Ask your suppliers and customers for input on what systems need improvement. They will provide an outside perspective you might not have considered.
5. Assign an owner to each system: Give responsibility for documentation and updates to one person. Improvements and changes to the system should be managed by that individual.
6. Set a beginning and end point for every process. Set specific start and end points for each process designed. Any open loops leave the process vulnerable to inconsistency as people determine on their own what to do next.
7. Keep the systems simple: The easier the system, the more it will be followed. When systems are overly complex, people skip steps to streamline the process which causes the system to lose integrity.
8. Follow best practices: For every process that must be documented, follow standards so every process document look similar to the people learning them. Develop a process documentation template that is used across your company so every process had the same look and feel.
Now that you have the 8 tips to create systems, choose one or two areas to systemize this week to add more structure and profits to your company. Not sure where to start? Set up a complimentary call using the link on our website and we can help.