Systems Run Businesses – People Run Systems

Flow Chart System Improvement

This is something that really stood out for me when I recently revisited the book ‘The eMyth’ by Michael Gerber.

Then this morning whilst reading ‘The End of Jobs’ by Taylor Pearson…

“There are three basic questions to ask?

What’s the system?

What’s the current limit?

What’s the obvious way to improve the limit?

 Once you can identify the components of a system and discover what the limit is, figuring out how to improve it becomes much easier.” 

This is critically important to understand for all businesses, whether you are a start-up entrepreneurial business (best opportunity to get it right from the start), an SME or large well established enterprise.

The better established your systems, the easier it is to test measure

and refine your processes to achieve a better outcome.

Without clear processes (as simple as possible), your results become chaotic and unpredictable. Subject to the whims and personalities of the individuals within your business.

Progress and growth can be easily derailed by the day to day distractions.

If you are going to keep pace with rapid change and take advantage of the opportunities this presents, then you need to constantly question:

  • What you are doing?
  • Why you are doing it that way?
  • How can you do things differently to get a better result?
  • What are the risks to your industry and business model?
  • Where are the opportunities for your business in the changing economy?

Incremental change can have a massive impact overtime, either positively or negatively depending on the change taking place.

You are in control of what goes on in your business. If you just made one small improvement each working day (lets assume you have 4 weeks per year leave), by the end of the year you would have 240 improvements in your business.

Now if you could get your staff to do the same thing to improve the way they work in their role, you can multiply;

240 improvements x the number of staff  

(?) incremental improvements in your business.

What would this mean to your business, culture, morale, bottom-line profits and sale value of your business?