Step 6: Install Operational Systems!
So how much money are you losing relying on your people to do their best and not following company operational systems?
An example of a well systemised business
McDonalds comes to mind. And yes even though everyone quotes McDonalds as being well systemised company - it is very true. They’ve got 50,000 branches worldwide and whilst you might not believe that they produce the highest quality in cuisine, one of the things that make them successful is their systemisation.
How?
Whilst visiting McDonalds one evening, I noticed the customers were happy, the food was of a good standard and it was timely delivered, the staff seemed to just be getting on with it…and I also noticed that the boss wasn’t there – yes - that’s right there was no supervision. I thought: `How do they do it without the owner supervising and making every decision?' I asked a server to show me their secret. He took me behind the counter where they have pictures clearly displaying how to build hamburgers and other menu items.
Good people or good systems?
Wow! A huge company runs smoothly using simple pictures of the finished product. This guarantees consistent quality. Plus the owner doesn't have to be on-site all the time supervising every customer's order. That got me thinking….if McDonalds could do this in their company, why couldn’t every small/ medium sized business do the same.
When customers go along to McDonalds they know what to expect and that’s really the key to their success. I try to avoid fast food, but I have found myself using them because of that known expectation.
My “Ah Ha” Moment
As I comprehended this concept, my personal goal became to replace myself with systems. I finally realized that great people are not going to make my company perform the way I wanted it to.
Why?
When your company is not organised or systemised, your company is constantly out of control and relies on you to put out all the fires and make all the decision. Your great people can't deliver without you telling them what and how to accomplish things. In this condition, you spend full time running around handling problems and directing traffic. Solid and simple systems are the only answer to building an excellent company not dependent on you making everything happen smoothly.
What do Systems do?
1. Produce the Same Results Every Time
2. Meet Customer Expectations
3. Consistent Performance
4. Be Organized & In Control
5. Eliminate On the Job Problems
6. Increase Quality of Work
7. Improve Focus and Direction of Staff
8. Finish Work On-Time
9. Increase Profitability
10. Maximize Return on Time
Effective operational systems will save you and your team both time and money.
Remember…
- Systems run your business…
- People run your systems…
- You lead your people…
Some Tips on developing systems
1. Don’t over complicate systems or people won’t follow them.
2. Do use pictures, photos, videos, tapes etc. This may be as simple as printing a computer screen or videoing someone doing the task at hand. This will make the systems much easier to follow, particularly in a manual work environment.
3. Document your system in a policies and procedures or operations manual in an easy to access format. Communicate and train everyone involved - make sure everyone knows what is expected of them!!
As we discussed in previous articles on Building a Better Business,
- Step one begins with a picture of what you want. It develops into a written plan of action and a shift in the way you work “on” vs. “in” your business.
- Step two is to always make a profit. The only way to make a profit is to know your numbers and make them a top priority in your.
- Step three is to standardise your financial controls and systems.
- Step four is track time and productivity.
- Step five is to install customer service systems.
- Step six is to replace yourself with systems and get your company organised, systemised and in control. Systems get everyone in your company doing things the same way and produce consistent results without your constant supervision and attention.
Where do you start?
The problem with getting organised and systemised is where to start. It seems like a monumental task to organise and systemise your operations. To make it happen takes a commitment of time. I recommend you make a commitment to dedicate four hours a week to systemise your operations. At the beginning this will seem tiresome and endless - but keeping going the return will be worth in the end…and it gets easier.
Systems are the key to a successful Kando Business – a business that works, is profitable and can work without you.
The Steps to create Operational Systems in your business
1. Make a list of services/ products you provide
2. Take each service/ product area and make a list of the top ten or twenty things you want accomplished the same way every time. An idea is to use a flowchart to get started as this will show you how each element of your service fits together.
3. Document how it gets done. Get the team member who is currently doing the job to write down every step in performing a task. The best systems are team-designed by the people who actually do the work and know how to do the actual work best.
4. This person should then get a new person to do the task with the written down steps. If the person currently doing the task has to step in and explain anything to the new person then add or clarify the step etc. Once completed start again with another person until any person can do the task without intervention. It may seem laborious, but it will save time and money in the long run.
5. Measure using key performance indicators. Typically, these will be the top five measures to show system performance. Get these from the person doing the job. Now put the system in a “how to” manual for the company.
6. Training & Implementation. At regular monthly meetings, have the team who created the system present it to the entire company.
7. Follow-Up & Evaluate. After six months, revisit the new systems to insure they are still being used and working well. Review them again and ask for feedback or improvement ideas. Allow the system to change/grow. Ensure the system is self-correcting and can evolve – this does not mean loss of control, but strengthening and maturity.
An excellent company does things consistently and is organized. An excellent company doesn't rely on the owner to make all the decisions and tell everyone what to do. Systems are the only way to insure excellence as your company grows. Without company systems, your company will only grow as big as you can handle the pressure, people, customers, and problems. This will limit your ability to make a profit and get your business to be what you want it to be. Make a commitment to replace yourself with systems and get on the road to entrepreneurial excellence.
In the next article of this series, I discuss
Marketing & Sales Systems
Excellent customer systems help maximise your bottom-line by selecting the best opportunities for your company. Create an on-going marketing and sales programme to build long time repeat loyal customers. Set yourself apart from your competition, differentiate, find your niche market, create customer relationships and seek value-added opportunities.
But for now, take the first step and start working differently – replace yourself with systems.
Let us know your progress.
It’s an exciting journey building a better business. All the Best!
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