Almost every thing we deal with in day-to-day life is based on a series of systems and processes. It is one of those things we take for granted and only pay attention when it doesn’t work the way we want it to. It streamlines getting from point A to B.
For example, all of us buy groceries from entities such as Kroger’s and Walmart. The system is the corporate structure, and their processes facilitate distribution of food to the public. This includes elements such as designating store locations, inventory, and stocking. Not to mention the customer experience of accessing, selecting, and purchasing. This is a highly simplified example but demonstrates how systems and processes are in our everyday life.
Then why do so many small business owners struggle implementing systems and processes? A large entity like a grocery store could not survive without systems and processes and we say you should adopt that same belief – you will not survive without sound systems and processes – no matter what size your business is.
What’s the difference between a system and a process?
A system is the overall “thing”, a combination of parts that form a core – a complex whole. In fact, your entire business is a system in-and-of-itself, and there are multiple other systems that help make up your business run.
The processes are all the related activities (parts) inside the system that work together to make it function and work most efficiently.
Think of a wagon wheel. There are three parts to every wheel, the hub, the rim, and the spokes. The hub (the center core) is your business, the outside rim are your systems, and the spokes holding it together and stabilizing the wheel are your processes. The wheel does not function correctly if any one element is missing. You can have a broken spoke, but the ride is bumpy.
In business the most common systems are team building, marketing and sales, accounting and finance, managing projects, and scaling and growth. The processes would be the strategies or tools used to make each one of these systems run. For example, what strategies do you use in your marketing plan – do you use social media?
Your systems and processes are the essential building blocks of your company. Every facet of your business–on the shop floor, in the warehouse, or in the office–is part of a system that can be managed or improved by applying correct principles.
Wherever you are in your business journey, you need five tools to manage the conversation, the work, your relationships, the money, and something to manage how your business works.
With these systems implemented, and a properly documented business operating manual, at some point, you won’t have to put in the 20-hour days and you will have a business built to scale or sell.
Attend Systems Summits – October 27-28 – Maximizing the Effectiveness of All Your Systems
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