Gain Freedom and Maintain Control of Your Business!
Nine Steps to Systemizing Your Business
Many business owners I’ve met work long, hard hours. Why? Because their business doesn’t work...they do. That may sound harsh, but if you are one of those business owners, you keep everything about your business in your head which means you are the only one that can do many of the major tasks. It also means that you’re TRAPPED.
There is a secret, however, that only a handful of entrepreneurs know…the really successful ones…that can change that trapped syndrome. That secret is called “Systemizing Your Business” and it is the leverage you need so your business will run without YOU. Systems seems to be one of the most misunderstood areas of the business, yet systems are fairly easy to implement and can make a huge difference in how smoothly, efficiently and profitably your business runs.
The following 9 Steps provide a framework for systemizing your business. You probably have some of the steps implemented already or at least partially completed.
Step 1: Vision
A vision is the long term goal of your business. It is the grand picture of what your business will be when it is finished. It should be something that can be embraced by all of your team members because it is something with which they can identify.
Step 2: Mission
Your mission states how your business is going to accomplish your vision. It is much more detailed than the vision and it should clearly include who you are, what business you are in, who your customers are and what makes you different from your opposition.
Step 3: Culture Statement
This is a statement that includes the important values in which you believe, and includes values important to your team and customers. Cultural statements can include such things as commitment, ownership, integrity, team work, communication, innovation, customer focus and service consistency. The culture statements are sometimes integrated into the Vision and/or Mission statements. Regardless of where you put them, a business owner needs to be very clear on what values he wants the company to stand for and communicate them.
Step 4: Goals
There is probably a new book written on the importance of goals every single day. The reason, goals are critically important in creating focus and adding some accountability. They also crystallize in everyone’s mind where the company is heading. Goals give both the business owner and the employee's direction and focus; they create movement and momentum.
Step 5: Organizational Chart
It is important that every business lay out an organizational chart even if you are a start up business or you are currently the only person in that business. An organizational chart should identify all the functions in the business that need to be performed. Out of the gate the owner’s name is probably in all the boxes, but as the business grows it provides a roadmap for determining when to add a position or when to begin outsourcing some of the functions.
Step 6: Positional Contract/Job Descriptions
In today’s work environment you really need to take a step beyond a typical job description. A positional contract includes many of the same items that are in a job description including specific roles and responsibilities, but it also spells out more clearly actual performance requirements and can include the vision, mission and values of the business.
Starting a new job is many times a daunting proposition for new team members. Making sure they clearly understand what is expected of them eliminates much of this confusion and helps an individual get a much stronger start. It also provides a great framework for ownership and accountability.
Step 7: KPI
Key performance indicators need to be established for the business in several areas including customer satisfaction, marketing and sales, financial, operations and production, people, innovation and suppliers. Once you have key performance indicators identified for the business it’s equally important that you also identify key performance indicators for each job position. The KPI’s for that job positions should tie directly back to the company’s KPI’s. This will help give everyone a very clear direction and assure that what they are doing is linked to the goals of the company.
Step 8: How to Manuals/Process Definition
This is the step that positions you for the control and freedom most business owners want. The first thing you need to do is develop a flow chart of the functions of your business. The chart should describe in detail and with accuracy exactly what happens in each step or function. Start at the first point of contact with your customer, and then document the flow of work as the customer works their way through your business. Draw a box around the steps of each function, and identify forms or procedures that align with each step.
This is definitely a team exercise because they are the ones doing the work and know the processes intimately. This documentation provides a great outline of what each team member does which feeds positional contracts and provides information for streamlining the operation. Once the processes are documented they can be provided in a manual, online or simply video tape the employees explaining the process. You now have a great orientation or training video.
Step 9: Milestones
Milestones are simply your major landmarks as you move your business toward the goals you have set. They may be such things as opening your first office, opening your first branch or bringing on a sales manger. Milestones indicate that you are making progress towards your growth goals. It is important you have these mapped out and identified because they also provide focus and motivation for your journey.
These steps do not need to be accomplished overnight, but if you systematically implement each of them, you will be surprised at how quickly those long hours melt away and your business begins working without you. If you would like additional information on how to implement these nine steps please don’t hesitate to give us a call.
Good Business to All!
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