A business system can be described as an identifiable process of tasks or actions that are completed in order to perform a specific function with your business. The tasks or actions are typically described in sequential order. However, non-sequential tasks can also be identified and documented as part of your process. A business is comprised of many business systems. Each system typically relates to a specific function that is critical to supporting the mission and objectives of the business.
There exists an important need to understand the systems that make up a particular business. From entrepreneurs to small businesses to large corporations, the identification and documenting of business systems establishes an important platform from which many improvement activities can take place. Most large companies subscribe to this theory at least in part. Often times companies will identify their business systems or processes but may or may not formally document or utilize them as part of internal improvement initiatives. On the other hand, small companies or individual entrepreneurs very rarely spend the time to even document their business processes.
Why is it important to document your systems?
Business system mapping is important to all companies no matter the size or revenue level. Simply put, the advantages of documenting your business systems far outweigh the time expenditure required to do so. Most business owners who commit the time toward documenting their business processes realize as many significant benefits during the process as they do in the follow-up analysis that can be achieved from having a documented process. In other words, simply taking the time to think and identify your business system processes provides tremendous value and benefits.
So why do most small companies fail to properly document and analyze their business system processes?
Most failures can be classified into two classifications. The first classification includes those that fail to get started. The second classification involves business owners who start but fail to document their systems. The majority of small business owners and entrepreneurs fall into the first classification. Most do not get started because they simply do not understand the importance of such a task. And those that may understand or have the intention to do so often never do because of the tremendous workload that comes with managing and growing a business.
Other business owners understand the importance of mapping their business processes and make the activity a priority. Some will complete the task; however, far too many will fail to finish and realize the benefits. Why? The act of documenting your business systems (i.e. process mapping) is NOT easy for the majority of people. It is not that the task is difficult but that it requires a specific, systems-thinking mindset (and knowing a few tricks will help, too). The truth is that the more you practice process mapping, the easier and quicker it becomes or you will decide to solicit the guidance of an experienced process expert.
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What I am referring to is Business Systems
From the beginning of modern capitalism in our society, the most successful companies were those that developed a system, or group of systems, to complete their tasks and meet the needs of their customers. Take Henry Ford and the Ford Company, for example. Mr Ford obviously realized the power of developing and implementing a system that saw his Model T Ford produced quicker and more efficiently as his company grew. His never-ending approach to finding a simpler and more effective method of completing a task pioneered the way for many major corporations, and helped Ford stay competitive in the motor vehicle business.
But, most people in business don't make cars. In fact, they most likely sell clothes, books, time (through a job), commodity goods, intellect (through consulting), and so on. But, what particular business systems could possibly put into practice that will see their organisation become more proficient, easier to manage and produce better results for their customers?
A system can be defined as methods, organisation, or considered principles of procedure (Oxford Dictionary). And throughout your daily activities, there are certain tasks that you do every day or often enough that you have a certain way of doing them.
So, what types of activities could you systemize or create considered principles of procedure for, that will enable your organisation to be more efficient?
Emails - there are most likely a number of emails that arrive in your inbox daily or weekly, that you can create a system for processing them. Set up rules or commands in your email processor that automatically places emails from specific people into topic-related folders. For example, email newsletters into the folder for that email newsletter. As the emails arrive, they will be filtered through this system, and your inbox will not be overly cluttered with emails from many different topics.
Staff training - Do you have a specific approach to how you train new staff? Is it documented the steps that you take to educate the new staff member about your business, its goals, the OH&S discussion? Even if you don't have staff yet, imagine what you must put into a system for when you do. Make a list of all the steps in the staff training process - almost like a checklist. This alone will help you to train your staff in a systematic way that leaves little to no room for forgetting an important part of their induction.
Inventory management - Inventory control and management is a large part of many organisations. There have been numerous software packages created that assist companies in managing their physical stock. If you have large stock levels, then consider investing in these established software systems for the business. If not, then spend some time breaking down those typical steps that are taken in the stock control, stock ordering and quality control procedures. When is the stock checked for minim quantity levels? What is the minimum order of stock for each item? Is there a procedure that checks the stock when it arrives from the manufacturer, ensuring a minimal loss of damaged goods, and ultimately upset customers? A good way to start this is to also make a list of those things that need to be managed and monitored on a regular basis.
Sales process - if you are involved in selling in any way, then you most likely have an approach that works for you already. However, what if there are 4 sales people all selling the same product, and all selling it totally differently? Of course, a human being's personality must be allowed to shine through, but there are going to be specific tasks that every sales person must carry out to maintain the image of the company. Write these tasks down. Spell out exactly what the staff member must do, say, wear, act like, and so on, so that every customer can come to expect the same level of service and approach from each member of your sales team. Create a system that they earn, rather than hoping they will make sales in their own way using their own methods.
The reality is you are already operating a number of systems in your organisation. These are sometimes referred to as habits. The way you manage your files, phone calls and even how you make your tea or coffee are all systems. However, to be truly successful in a business, you need to record and officially structure these systems so that the organisation continues to function without your presence - for example, when you are on holiday.
Then, all your hard work and effort in creating a business that your customers have grown to depend on will not be wasted. Others can continue doing exactly the same thing, in exactly the same way, for many more years to come.
Both Brad Semp & Matthew Tibble are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Brad Semp has sinced written about articles on various topics from Strategic Planning, Education and Email Marketing. Brad Semp uses his Cashmap techniques to lead entrepreneurs and business owners to higher revenues and profits. You can find related Cashmap articles and his popular Cashmap Success newsletter at. Brad Semp's top article generates over 1300 views. Bookmark Brad Semp to your Favourites.
Matthew Tibble has sinced written about articles on various topics from Small Business, Self Improvement and Motivation and Marketing. Matthew Tibble is passionate about helping businesses succeed, & is the author of Business Planning Made Easy - a detailed business planning guide. Matthew Tibble's top article generates over 1300 views. Bookmark Matthew Tibble to your Favourites.
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