The 5 Steps to Unchaining Yourself from Your Business 5 Steps to Unchaining Yourself from Your ... A large part of business success is being able to ... The 5 Steps to Unchaining Yourself

The 5 Steps to Unchaining Yourself from Your Business

Systemise Your Business to Boost Profits and See your Business Soar!

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TABLE OF CONTENT

Systemising Your Business: Why is it important to systemise your business? ..........................2

Why Do You Need to Systemise .............................................................................................2

The Benefits from Systemising Your Business .........................................................................3

What Areas Do You Need to Systemise? .................................................................................4

How To Create System for Your Business ................................................................................5

Five Easy Steps to Systemise Your Business ............................................................................6

Effective Systems, Effective Businesses .................................................................................10

Is Your Business Like McDonalds? Systemisation in Action ....................................................14

Points To Remember ............................................................................................................16

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SYSTEMISING YOUR BUSINESS

A large part of business success is being able to manage high levels of activity on a daily basis with

consistency and efficiency whilst maintaining quality standards. In order to achieve these aims you want

robust systems in place for all your key operating areas. For example these might include marketing,

finance, people and risk management. A systemised business also has greater intrinsic value to any

potential purchaser of your business.

Why is it important to systemise your business?

"When a small business is systemised the owner has the POWER TO TRANSFORM any small business

into an incredibly effective organisation," wrote Michael E. Gerber, systems expert and the bestselling

author of ‘The E-Myth Revisited’.

Why do you need to systemise?

Save Your Self Time, Energy and Money Instead of being Stressed and Exhausted

1. Save yourself time. You get more done, faster, so you could be out prospecting.

2. Energy. If you have more free time on your hands, maybe a holiday would be good.

3. Money. Systemising means fewer mistakes which mean less money rectifying them.

4. Less Stress. You are more in control so your stress levels will drop naturally.

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5. Less Exhaustion. All of the above means more relaxed, healthier you.

6. Consistency. People know what to expect from you which is comforting in volatile times; they’ll be

more likely to return to you.

The Benefits from Systemising Your Business

Running a company doesn't have to be chaotic. Yes, there are always emergencies and unforeseen

events. However, the majority of all tasks and processes can be systemized and structured. If you ever

run into a business owner that is not stressed out about the operations of his or her company, chances

are he or she has the necessary structures and processes in place that help the business run without

chaos and frantic emergencies.

A structured and systemized business offers many advantages to a business owner and the entire team in the company. They include:

Structure: A well-structured business provides a better foundation for success.

Stability: Systems and processes make sure the business will remain on course even if the unexpected happens.

Control: The tools in this book provide you with the control you need to make good business decisions based on a solid foundation.

Sanity: Once systems and processes are in place, your workload and stress will decrease because your employees are empowered through structure and direction.

Efficiency: If you don't need to re-invent the wheel every time you deal with an issue, the business will run better and more efficiently than ever before.

Effectiveness: With clear systems directions in place, everyone in your business will work more effectively with better, more predictable results.

Motivation: Clear goals and direction will improve the morale for everyone in the business. People know why they are working in your business and what they are working towards.

Business Value: Systems and processes significantly increase the value of any business because it can more easily be transferred to a new owner or duplicated.

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What areas do you need to Systemise?

Many entrepreneurs start out with a great idea and can see some great early profits. However,

many entrepreneurs get caught up in the ride and forget about many of the sound

fundamentals associated with business. This is often because they get caught up in their

business growing, and can often neglect some aspects of their business that they see as less

important.

One aspect of many start-ups that is overlooked is business developing business systems and

business processes. This report shows you three of the most important parts of your business

that you need to systemize. You need to:

Systemise Internal Processes- Your internal processes are essentially always going to be

similar and systemizing your internal processes can save you time and money. By having

internal processes you don't need to waste time doing unnecessary things and you can

save money for the same reason. If your staffs have a manual to follow, you can spend

less money training your staff and spend less money on man hours.

Systemise Your Marketing Processes- If you want your marketing to be successful, you

need to ensure that it is not a hit and miss process. By planning out your marketing you

can save money by integrating measurement and analysis in to your processes.

Systemise telecommunication and IT processes- In business, workers will need to use

the phone and access the internet. However, without clearly delineating how phones

and internet access can and should be used, you may end up with high

telecommunications bill through overuse. Also, training staff on how to use

telecommunications technology can make their work more effective.

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How to Create Systems for your Business?

Your chances of success in systemizing your business, as with any project incorporating change are

captured perfectly in the following model. To be successful in creating systems for your business, you'll

need to understand this. It goes:

Vision + Skills + Incentive + Resources + Action Plan = Successful Project/Change

Your Vision needs to be crystal clear. You should be able to close your eyes and ‘see' your business

operating with robust systems in place. Not make-believe, but ` your team working in your business

with everything working the way you know it should. No vision, or a mish-mash of ideas you're calling a

vision, will result in confusion. You won't be able to inspire or enroll others in your vision because it'll

come across to them like a mobile phone call in a poor reception area.

Without the Skills you need to systemize your business, you're going to be anxious all the time. You'll

know what you want, but just can't get there. You'll either compromise your vision to match your poor

skills or fail all together. The skills you need may be outside your business, in which case you'll need to

find the right consultant or coach to provide them.

By Incentive I'm talking about being clear on what benefits you'll achieve by systemizing your

business. How will this help you, your team, your suppliers and your customers? Can you complete the

sentence, "With systems in my business, we'll be able to… " and know that it would be true? Ill-defined

incentive will result in delays.

Resources are more than people and money. I'm talking about Time, the right tools, the right (skilled)

people, enough money to do it properly (covering both time and invoice cost). Will you be able to

devote enough effort to the project to assure success? If you can't, you'll be staring down the barrel at

frustration. You'll know what you need to have and how you'll benefit from it, you'll have the right skills

and expertise in place, but you'll thoroughly frustrated by lack of resources.

Lastly, you could have all the above in place and achieve nothing but false start after false start through

not having an Action Plan in place to guide you through the project. With no idea of the path to

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success, you'll take wrong turns, miss goals, and have no idea where you are most of the time. Even if

you were on track, you wouldn't know it. You need the plan.

Look at each of the success elements above and assess how strong you are in each of them. Give them a

score out of ten. Now look at what's left. If you scored 4 for Resources, which means you've got a 60%

chance of becoming frustrated through the project. If you scored 60% for Skill, you're likely to be

anxious around 40% of the time, and so on.

So before you get too far down the path towards systemizing your business, step back a bit and check to

see that you have your Vision, Skills, Incentive, Resources and Action Plan all lined up and ready to

go. Only when you have them should you press the Start button.

5 Easy Steps to Systemise Your Business

Step 1: Identify Which Areas Need A System

This first step puts a lot of entrepreneurs off creating systems because it requires time, focus and

thought-most of you would rather be doing than thinking, am I right?

How many of you have said, "It would take me longer to teach you than just do it myself?" I admit, I

have on many occasions. Until I realized that by creating systems you get to delegate and have the

project done YOUR way.

You might have heard of the expression ‘Eat That Frog’ – it’s actually the title of a book by Brian Tracy on

how to tackle procrastination. Tracy says that, in order to overcome procrastination look at your to-do

list and take the biggest, ugliest task-then do it first. That way, your day can only get better!

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In other words, once the first step has been taken, you get a whiff of what the end result will be, and

momentum and anticipation builds.

To create a list of areas which need a system, think about what you do on a daily, weekly, monthly,

quarterly and yearly basis. How are you spending your time? if you need to, carry a notepad around with

you and jot things down as you do them.

Now think about what cracks exist in your current state of chaos. What are you doing that you wouldn’t

need to if you had a system in place? Maybe it's explaining the same thing to an employee for the fourth

time. Maybe it’s an oversight like you forgot to follow up on an enquiry. Or perhaps a client has

complained because last time you gave them X, Y and Z whereas this time they have only received X and

Z.

Step 2: Prioritise the Top Three

Now how do you choose the most important areas where the cracks need sealing? Well, it could be

glaringly obvious something might be costing you a lot of money. Or it could be that you feel like every

aspect of your business needs systemising- from the smaller areas like filing to the broader view such as

financial reporting.

To help resolve this dilemma, you can start by thinking about what your main goal is. Do you want more

clients? If so, marketing is the area that needs your attention first and foremost. Write a list of all the

tasks involved in your marketing (networking, writing press releases, cold calling etc). If your goal is to

address incoming queries to sales conversion, then you need to focus on the tasks and enquiry brings

about.

Step 3: Break It Down and Document it

I have always used Post-It notes or a whiteboard to perform this next step but you can use your

computer or any other method that suits you. The reason I use Post-It notes is because; 1) I am a visual

person and 2) I can shift Post-it notes around and keep track of them better than if used a flow-chart on

the computer, for example.

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Take the first priority you want to work on and list what the process is currently. If you are using Post-It

notes, write each separate task as-is on a separate Post-It note. Then, using a blank surface like a table

or wall, and stick them up in logical order.

Let’s say you want to send out a press release. Think about where that process starts. The outcome of

your press release is presumably to attract more of your ideal clients. Your first task would be to

investigate publications that reach your target market. So you’d write “Research Ideal Publications” on

your first Post-It note and stick it on the wall.

What would happen next? Maybe the ‘how’ behind the research i.e. will you use the internet, word of

mouth, or the telephone. The answer goes on a second Post-It note and placed next to, or underneath

(like a flowchart) the first note on the wall. What would happen next?

Keep going until your process is finished.

You may come across a Yes/No scenario in which case, just turn your Post-It note until it becomes a

diamond shape. Then simply branch off from that.

Once you have read through the process, added to it and re-designed it a little, transfer it to your

computer and document it.

Step 4: Trial Run

It’s time to test-drive your new first-draft system. Firstly, test-drive it by getting someone else to act as

though they are following your system.

The reason why I don’t recommend doing a ‘real’ test-drive is because it could cost you getting your

press release published or getting a new client. You want a friend, team member or colleague to follow

your system and from doing so, it may highlight a few gaps or cracks that you hadn’t thought of before.

You want to change your system while it’s still in draft mode. Doing this will save any potential

disastrous and costly mistakes being made.

So, make a note of the gaps, or cracks that have popped up during your first test drive. Add them into

the process where appropriate and take your second test drive.

Repeat this process until you are completely satisfied all gaps and cracks are filled and smoothed over.

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Step 5: Re-Visit

Like most aspects of your business planning, don’t just allocate your system to a dusty shelf after 3

months. Sure it is probably a well-engrained habit by then; you or anyone else could follow it

blindfolded. But things change. And therefore your system needs to change to accommodate it.

For example, let’s say the editor at the publication you want to send your press release to has left. Her

replacement prefers email press releases a week earlier rather than a hard copy one posted a week

later. Your system needs to reflect this change.

Your system may also need re-visiting if it’s not frequently used i.e. systems for those tasks that only

occur quarterly.

Effective Systems, Effective Businesses

Conscious awareness

Systems exist in every business. The critical question to ask is whether the systems that exist are

intentional or merely the way things have "always" been done? Until time is taken to understand how

existing systems operate, you cannot expect to fully appreciate the issues that need to be taken into

account for any planned improvements.

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Measurable improvement

Once you understand how the existing systems operate you can start to measure their performance.

The simple act of obtaining timely and accurate data from existing systems can very often highlight

some of the key issues requiring attention. Only by measuring current system performance can we

quantify improvements in the future.

"If you can't measure it you cannot improve it".

Repeatable outcomes

When thinking in terms of system improvement we are essentially identifying desired repeatable

outcomes. Quality is largely perceived in response to the consistency of the outcome.

What does this mean? Not everyone would perceive McDonalds as a provider of the highest quality

food. The perceived quality of the food at McDonalds comes from their ability to produce a consistent

product anywhere in the world. This gives customers the confidence of knowing that they will get

exactly what they have come to expect.

If repetition is the mother of skill then systems are the father of consistency.

Start with the end in mind

Once the desired repeatable outcomes have been determined, it is time to focus on measuring system

performance in such a way that provides the greatest insight into what is actually going on within the

process.

If you are unsure what to measure, refer to the flow chart of your process and usually the measurement

points are the links between any two boxes. It is worth noting that the required data should be a natural

output of the system and therefore built into the design. Collating the data should not become an extra

task in itself.

Focus is key

Whilst many systems operate internally, the overall focus must be external with the customer clearly in

mind. Many companies implement new systems to make their life easier but in doing so they frustrate

the customer.

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A common frustration has been the move away from immediate human contact on the telephone.

We've all experienced the automated answering systems that offer long lists of options that seem as if

they were designed purely to raise blood pressure of the caller. In many instances the numerical lottery

is then rewarded with a further wait explaining that everyone is already on the phone so they weren't in

a position to deal with our call anyway.

For all the good implementations of these systems are you might as well ask callers to press the square

root of -1 to speak to a human being. Think long and hard about the effect your seemingly efficient

systems will have on the people who drive your revenue.

Major business asset

Extraordinary systems make a business more predictable and easier for customers to do business with.

Like great employees, the difference between ordinary and extraordinary is that little "extra". Extra time

& thought applied to business systems can make a business extraordinary. Your team and your systems

are two of the most important assets of your business and yet many business owners only ever mention

staff as their most important asset. However, if we think about it logically, at the end of each business

day the staff of any business walks out and there is no cast iron guarantee that they will walk back in the

next day. Systems are the back bone of any successful business and when it comes to an ultimate

business sale can make a huge difference to the value commanded.

Job satisfaction

There is a common misconception that employees don't like a systemised approach to tasks believing

that it removes their ability to make individual decisions. The opposite has been found to be true.

Employees come to work wanting to do a great job and yet poor systems only lead to an inability to do a

great job and countless hours of frustration and re-work.

Simple well thought through systems provide the ability for mundane tasks to be completed quickly and

to a consistently high standard. Therefore team members gain greater job satisfaction because they

know when they are doing a great job and it frees up their innate creativity to apply to new ideas for the

business & ways in which systems and customer service can be further improved.

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Going back to the McDonalds example. How it is that McDonalds can take the misspent youth of any

country and get them to produce a perfect burger every time when their own parents cannot get them

to tidy their bedrooms? The answer is systems. McDonalds offers open days once a year. If you get the

chance why not go along and see the astounding level of systemisation in that particular business.

Manage systems not people

Another misconception is that systems are hard to manage. The truth is they are much easier to manage

than people and in fact well ordered systems lead to far fewer personnel issues and a much more

motivated and focused team of people within the business.

Control charts

The simplest way to manage a system is to recognise that any given system left to natural influences will

operate between certain tolerance levels. Charting the outputs that are being measured allows these

levels to be identified and monitored. There is no point jumping up and down and getting all excited

about natural variances within a system.

The secret is to understand the difference between common and special causes within a system and

respond in the correct way when both are observed. System can then be improved by narrowing down

the variances as the Japanese have done so successfully under the original guidance of Dr W Edwards

Deming. Accept that there is "noise" within in any system and keep your eyes a peeled for real signal

that what is being measured is continuing to improve or decline. A well structured set of accurate

control charts should allow a business to be managed from a high level in very little time each week.

Can I?

Any company that has a desire to perform better can make dramatic improvements to their business by

improving the quality of their systems. This does assume that there is a genuine understanding of the

importance of systems and a top down commitment to make it happen.

It doesn't just end with a customer focused appraisal, some tweaks and measuring output to create

some Excel charts.

The Japanese truly understand the requirement to constantly reappraise each system to better

understand how ongoing improvements can be made. The word they use is "CAN I" which stands for

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"Constant and Never Ending Improvement" - a lesson for life as well as our passion for extraordinary

systems that form the customer focused back bone of every successful growing business. Systems

underpin the way you choose to do business.

Is Your Business Like McDonalds? Systemisation in Action

A lot of people mistakenly believe that ‘The E-Myth’ is about the

electronics age, or email, or ecommerce, but actually E is for

entrepreneurial myth. In The E-Myth Gerber goes through an example of

how McDonalds was able to franchise its business all across the world and

the systems they used to do that.

As a matter of fact, Gerber points out that a new McDonalds franchise

opens somewhere in the world every eight minutes. This is truly

remarkable and only possible because the McDonalds business is

completely systemized.

Every tiny detail that is involved in running a McDonalds is documented in McDonalds’ procedure

manuals. How big the hamburgers should be, what the buns should look like, how thick the patties

should be, they even have a procedure for where the pickles go. Crock recognized that if you place the

pickles in a particular configuration you could keep them from falling off of the hamburger into the

customer’s lap, therefore increasing customer satisfaction.

All of these tiny details are precisely documented in McDonalds’ procedure manuals. The impact of this

careful documentation is twofold. One, it makes McDonalds run like a finely oiled machine. It gives

consistency of experience at every McDonalds that you go to. In fact, I’ve been to McDonalds in Tokyo

and Korea, in Texas, in Tennessee, they’re all the same.

So, the point is if you systemize your business you can give consistency of customer experience. The

other point is you can make your business where it can easily be run by someone else or sold. That’s

what makes McDonalds franchiseable.

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When somebody buys a McDonalds shop they’re buying a turnkey business that makes it possible for

anyone who’s got the money to invest to buy a McDonalds and be successful on a very predictable

schedule. The great thing about McDonalds in this regard is that they have so much data, because

they’ve sold so many hamburgers they know exactly what’s going to happen the moment you buy the

franchise.

How does all this gibberish about McDonalds apply to your internet business? Well, the same two ideas

apply. If you are able to completely procedurize and systematize your business you can easily do two

things. The first thing you can easily do is you can easily outsource the work in your business.

If you’ve carefully documented the procedures, for example, for transcribing and posting a blog post

then you can outsource the transcription and posting of a blog post.

The second thing you can do is someday sell your business. After all, you would expect a website to

typically be worth about 10 times the amount of money that it earns in a month. Some people say 12,

some people say 14, but you get the idea. That value goes up tremendously if the business doesn’t

depend on you actually running it.

There’s actually a third benefit, and that is if you have a successful business and you’ve got it carefully

documented, that successful business can be duplicated, exactly in the McDonalds case. You can change

these businesses and duplicate them yourself or you can document the way you are running your

business and sell that as an eBook that can help people understand how to successful run a business.

So, run your business like McDonalds and just like Ray Crock you will love the results.

Points To Remember:

Concentrate on what you do best and outsource the rest so that you can get on

and grow your business.

Consider what your business does best, stick with it and recruit and outsource skills

to help you achieve your goals!

Many businesses deliver mediocre levels of performance because they fail to

operate effective systems and processes.

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