What do you think when you hear the term ‘business systemization’? This is one of those ‘buzz words’ you hear a lot , but what does it really mean?
Quite simply business systemization means making your business more efficient to the point where it can run without your input and where it will be better designed to deal with challenges and obstacles. Especially like what we are going through right now. Business systemization then allows you to either step back and loosen the reigns, or it allows you to expand and take on more challenges.
If you run a business, then you should constantly be looking for ways to improve your workflow and to automate and systemize as many processes as possible. This is what’s referred to as ‘business systemization’ and there are several reasons that it’s such an important idea.
You Get More Time Freedom
If you are currently putting in late nights and feeling as though you’re not getting the results you deserve, then that’s a clue that your business isn’t capable of operating without you. By improving the ability of your staff to work independently and putting systems in place, you’ll find your ‘hands on’ time is reduced and as such you can spend more time with your family, travelling or enjoying your hobbies. And isn’t that the point of having your own business?
You Save Time, Money and See Improvements
Systemization can simply be introducing flow charts and checklists that automate the processes that make up your company’s workflow. By using these systems you ensure that you use the same efficient method for every new job and every new client. This is important because it means that every client and customer will be equally satisfied and will know they can rely on you for a certain quality of service.
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Moreover, having systems in place means that you can then assess those systems and find ways to improve them. Once you know the exact checklist your team is following, you can look into slightly altering that checklist and seeing how that impacts on your profits, your overheads and your ratings. If you are all over the place though and you attack each problem in a different way, you’ll never know how to improve.
You Can Expand
If you are dealing with issues as they arise then you will be working ‘in’ your business rather than on it. Instead, use systems and you can take a ‘step back’ from everything and gain the time and perspective to actually improve your business model. Meanwhile, extra efficiency will allow you to spend less time on each job thus meaning you can afford to increase the number of jobs you perform and thus your turnover and profits.
Business systemization is the answer to many business woes and can make a huge difference to your efficiency, happiness and growth. It’s time to apply some systems thinking!
The First Step to Systemizing a Business
So, what does business systemization look like for your business? How do you begin? It all begins with a single step.
Analysis and Reflection
The first step towards business systemization is to analyze and assess your current systems and how they are working. Don’t drop off here. I know this isn’t what you wanted to hear but it must be done. You will be powerless to make any effective change to the way your business runs if you don’t recognize the systems that are already in place and if you aren’t able to find the stress points that are slowing your business down.
This initially requires something of a shift in the way you are thinking about your business. Here, your organization itself can be thought of as a kind of ‘master system’ which is made up of much smaller parts.
You can demonstrate this as a flow chart. So say your business deals with web design, you might have a simple flow chart for your main input > output system that represents your business as a whole. This might look as follows:
Client Gives Instruction > Time Invested in Site Design > Profit > Marketing
A good business model like this should ultimately loop back to the start so that you are perpetually gaining new clients and customers and starting new projects for more profits.
But each of these systems can be broken down into smaller systems and contingencies.
For instance, ‘time invested in site design’ might mean another flow chart, like this:
Initial Meeting and Discussion > Moodboard > Second Meeting > Wireframes > Initial Construction > Feedback > Refinement > Launch
You could then break down the ‘Initial Meeting and Discussion’ further and on and on.
Once you’ve done this, you can then assess each of the miniature systems and look at how much time they’re taking and whether they could and/or should be more efficient. What is taking longer than it should do? What is taking up too many resources? And what other systems are in place as contingencies should everything not go as planned? By asking yourself these questions, you have begun the process of business systemization.
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