A system dependent operation

Imagine your business is fully functional, humming along on its own steam. You are aware of every aspect of your business. You have happy customers, happy staff, and a healthy cash flow. The work is delegated and distributed to the correct skill sets to be accomplished on time and within budget. Your focus is to oversee the entire operation business growth. Is this a dream? A system-dependent business can make this a reality.

 

Build your Business Formula

Every business, including a small business or a large corporation, needs solid systems that are manageable, achievable, and reliable procedures. The most effective and efficient operation is a system-dependent business. Built in processes and procedures are developed over time specifically for your business. The benefit is your business formula develops systems to generate its own power to operation at full capacity.

 

Avoid Gaps in your System

Alternatively, a people-dependent operation has very fragile systems. A common scenario is when a key employee leaves and the owner is unable to step in or a plan for a replacement trained to fill the role. Often the employee is left to develop a system for their specific tasks; this causes gaps for the rest of the business operations. Over time, these gaps create many errors, misinformation, a lack of communication, limited guidelines, stress and frustration within the business structure.

 

Production Line Principle

A system-dependent business came from the industrial age where operations were based on a production line principle; everything uniformly the same on a consistent basis. The structured system was an assembly line where each staff member knew the procedures and could step in and continue the process. Today big box stores like Tim Hortons, Mr. Lube or Walmart use the method of system-dependent operations. The reason - customers know what to expect and staff know what to do.

The purpose of going into business is to get free of a job so you can create jobs for other people.

--e-myth revisited Michael E. Gerber

Each business needs to build their own successful formula that works for them. To find your system begin with your own thought patterns. Our brains look for patterns in consistency, familiarity as well as a level of comfort.

As a business owner you need to take control and develop your own success formula. Establish directions for your staff by developing processes and procedures for staff to follow. It is not necessary to know every aspect of each system; instead, you need guidelines to keep your business running smoothly and to stay on track.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.