Systems and procedures rarely excite business owners initially. However, their perspectives often change once they implement these systems and witness the results. Are you interested in cultivating a team that is both productive and consistently delivers high-quality service? Or perhaps you want a business that operates efficiently and profitably with minimal effort? If so, it’s crucial to prioritize systems and procedures.
Why Business Systems Should Not Be Overlooked.
Business systems are essentially structured routines applied to tasks. Just as parents use morning and bedtime routines to manage stress and ensure they get to work on time, business systems create a similar structure. Despite this, many small business owners neglect them.
There is a common misconception that only large enterprises or franchises require such systems. Owners often say, “We’re small, we communicate directly, and everyone knows their responsibilities”. This might be true initially when it’s just you or a few employees.
But what happens as your business grows, bringing in more customers or new staff members? What happens when employees leave, taking their acquired knowledge with them? How will you manage when you want to delegate or outsource tasks? And what happens when you, as the owner, wish to take a two-week vacation with your family?
If you desire a profitable business that functions efficiently in your presence or absence, it’s time to prioritize business systems.
Initiating the Process.
Here’s the best advice I can offer based on my experience with clients: focus on one procedure at a time. Although you will eventually compile a comprehensive manual, the idea of creating an entire manual can be overwhelming. Instead, set a goal to document, communicate, and implement one system or procedure each week (or another timeframe suitable for you).
This strategy keeps you focused on manageable tasks, allows for incremental changes, and delivers quicker results. Clients often find that each new procedure they develop and implement brings improvements in efficiency, productivity, and profitability.
An 8-Step Guide to Creating Systems.
#1 – Identify Triggers: Most processes begin with specific events in your business. Examples include acquiring a new lead or customer, receiving a bill, needing to hire a new employee, handling customer complaints, scheduling service appointments, ordering supplies, or preparing quotes. Start by listing the various events in your business.
#2 – Prioritize the Events: When documenting procedures, start with those most crucial to your operations. Focus on processes that generate revenue, save time, currently cause poor customer service, or result in duplicated efforts among your team. Essentially, address the issues that require immediate attention or incur costs.
#3 – Document the Process: Once you select a process to document, gather all relevant documents and information, whether in paper, digital, or software form. Write down the steps involved in performing the task. Keep it straightforward and reference supporting documents or programs as needed. The best individuals to document a procedure are those who regularly execute it.
#4 – Refine the Steps: The goal of developing systems is to create repeatable processes regardless of who performs the task. Initial drafts often have missing or unclear steps, making replication difficult. I suggest giving the written process to someone unfamiliar with the task and asking them to follow it based on your documentation. This will help identify gaps, allowing you to refine the procedure for clarity and completeness.
#5 – Measure Success: Determine how you will evaluate the success of your procedure. For example, sales conversion rates can assess a sales process. If you want to improve your business, measuring outcomes is essential – because what gets measured can be improved.
#6 – Formalize the Procedure: Once finalized, type up the procedure, assign a title (and possibly a code), and save it in a computer folder. Ensure all supporting documents are included.
#7 – Communicate and Implement: After completing a procedure, introduce it to those who will use it. Print and review the procedure, discussing how success will be measured. Encourage feedback and suggestions for improvement.
#8 – Monitor and Adapt: Technology and other factors, including innovation, will offer opportunities for improvement. Use feedback, metrics, and other information to enhance procedures. Be willing to adjust your systems when you identify improvement opportunities.
Developing systems takes time, but each documented and implemented procedure will enhance efficiency, productivity, and profitability. As you start to see the benefits and results, you too will come to appreciate systems.
And here is another benefit many of us realized when the pandemic hit — having systems documented made pivoting a lot easier. Here’s a related article you may also find helpful: Business Systems to Build Profit as You Grow
Maximizing Business Potential with Systems.
If you are serious about optimizing your business with systems and need practical, step-by-step instructions, consider my Ultimate Guide for Systems and Procedures. This guide is tailored specifically for small business owners, offering templates and examples to make the process straightforward.
Are You Ready to Propel Your Business to Success?
Would partnering with a business coach help you elevate your business – improve efficiency, grow revenue, and increase profits? Then let’s have a conversation. Click here to schedule a free discovery call today.