Whether you are aware of it or not, your organization has systems. To put it simply, a business system is how work and activities flow within your business. They can be planned or unplanned. However, there is a huge difference in the degree of effort required with one type of system over the other. In most unplanned systems, effort goes down the drain. Good systems equal good stewardship.
Many people become entrepreneurs because they want more freedom and flexibility with their time. If that’s you, knowing how to create business systems will make you more efficient so that you can accomplish more in less time (and make more money, too.) So, this blog will teach you:
- What are business systems and how to create them
- The best ways to be more efficient in your business
- How to avoid common system failures
What are Business Systems?
A business system is a documented procedure that outlines how to do an activity that helps you achieve your organizational goals. (The key word there is documented: if it’s not in writing, it doesn’t count!) A good business system coordinates all activities so that every worker and team pulls in the same direction towards the organizational vision.
One of the best ways to start understanding business systems is to look at other systems that God designed. For example, consider the human body. The circulatory system pumps blood throughout your body, and every individual organ has to do their job if the goal of delivering nutrients and oxygen to cells is going to be accomplished.
In a business, nonprofit, or church, everything is connected as well. To some degree, every team member and activity will have a ripple effect on others in the organization. That’s why it’s important to have someone who is aware of the organizational ebb and flow at a 30,000-foot view. I call this person the leader manager.
Related: 3 Steps to Developing Business Systems
A System Does Not Operate Itself: The Leader Manager
It is naive to think that logical plans develop by themselves. They are the result of concentrated, intelligent effort. It is equally as naive to think that people can automatically synchronize their efforts into an efficient, working plan. That’s where the leader manager comes into play.
They communicate the overall vision (leader), and then they get people to contribute their best efforts to the work that needs to be done (management).
Through a system, the leader manager allocates responsibilities that make the best use of their team’s available skills. Then, they fit them together in a workable plan with the goal of accomplishing the work in the best manner possible. Ultimately, the result is less chaos and confusion!
(Want to learn more about how to thrive as a Leader Manager? Download my FREE e-book below!)
How to Create Business Systems
1. Process mapping: Identify every activity that your organization is currently doing and record the process. Then, evaluate how you can delegate activities more effectively.
2. Set relevant goals: At the end of the day, what results do you want your business systems to achieve?
3. Document any new activities necessary to achieve those goals.
4. Delegate! Communicate the new system to every team member that’s affected. If your organization is large, delegate the delegation to higher ups in the team.
5. Review: Consistently review your progress based on relevant key performance indicators.
What Causes a System to Fail:
1. People: they either don’t know what to do, were not properly selected, or are simply not motivated.
2. Information: There is a lack of or faulty information, so team members do not know how to fulfill the work. Occasionally, too much information can cause people to become overwhelmed and not understand the system.
3. Design: The leader manager must eliminate tension where the different parts of the system intersect.
4. Direction: There is either not enough direction or too much micromanagement!
This blog only scratched the surface of what it takes to be an organized entrepreneur. If you want to maximize efficiency and create successful business systems, download our free mini-book, “The Leader Manager: How to Guide Your Organization to Success” by filling out the form below.
