Business Systemisation: How It Can Help You Reduce Costs And Increase Efficiency
What is Business Systemisation?
Business systemisation is a process that helps organisations to identify and document their business processes. All businesses, large or small, should have an official systemised set of operating procedures so that anyone at any point can step into their business, pick up the manual and start running their business with little or no supervision or disruption to their customers.
Systemising a business is done to improve the efficiency and effectiveness of the business processes by eliminating the need for individual staff members needing to rely on supervisors and managers to deliver methods of how to achieve tasks in the businesses. Customisation also helps organisations to implement new business systems and technologies, as well as change or improve the existing ones.
Business systemisation can be used in many different industries, such as manufacturing, retail, finance and healthcare.
Business systemisation as a process helps you to identify and analyse the processes and procedures of your business. It will then help you to document all aspects of these processes, and analyse the efficiency of the tasks your company does on a daily, weekly or monthly basis, improving the ones that are inefficient and implementing them where necessary.
This process is essential for any company that wants to increase efficiency and reduce costs.
The most well-documented story of how systemising a business improved output and efficiency is in Jeffrey Liker’s book The Toyota Way.
"The Toyota Way" reveals the management principles behind Toyota's worldwide reputation for quality and reliability. Drawing on his extensive research on Toyota, Dr Liker shares his insights into the foundational principles at work in the Toyota culture. He explains how the Toyota Production System evolved as a new paradigm of manufacturing excellence, transforming businesses across industries.
How to Start a Business Systemisation Project for Your Company?
Creating an operations manual is a systematic approach to understanding the processes and systems that exist within an organisation, identifying gaps and areas for improvement, and implementing changes.
There are many benefits that come with business systemisation.
1. Frees up time
Setting up an operations manual can seem overwhelming at first, even the simple task of creating a list of the tasks you need to automate can become daunting, however, good processes save you time once they are implemented. With systems, you will automate as many tasks as you can and delegate other tasks when possible so that there is less for you to worry about. Doing this with all the critical parts of your business – sales, marketing, hiring, and customer service for example – will save you many hours in the long term.
2. Focus on high-level tasks
As a business owner, your main objective is to lead the business as a visionary leader however this can become challenging if you are always being dragged into the mundane tasks of business. As a leader, your vision, tenacity, and attitude are what propel the company forward. If you are focusing on small tasks that do not make a difference, you will not have sufficient time or energy to focus on the high-level items that need a CEO’s attention. Systems allow you to spend resources on tasks that make a real difference.
3. Expand your business more quickly
Since processes allow you to focus on high-level tasks that drive value, your business can grow more quickly when you are not scrambling to manage everything on your own. You can also apply systems to your marketing and sales to achieve consistent growth.
4. Train your team to be more accountable
When your team works within a framework, they will know exactly what is expected of them and when. There will not be room for excuses or poor performance. It is impossible to grow if you do not have the systems. You may be in a business where the outgoing employee trains the incoming employee and therefore argue that it is possible however if the outgoing employee is disgruntled with the company or no longer cares then this can cause challenges in service quality and culture. With the right systems in place and team training around those processes, you will feel assured that your team will perform their best.
5. Cost savings
Once systems are created, tested and implemented, they will save you time and money. Your team will know how to resolve customer inquiries instead of having to search for answers, your accountant will have all the information they need to work on your financials each month without needing to search for missing documents. The organisation will create ongoing benefits for you and your team, which adds to your bottom line.
Good systems are replicable, meaning you can use them in all sorts of different situations. Instead of having to build a system or train a new team member 10 times, you can create one robust solution that applies to a variety of situations. Duplicating processes will save you time, money, and energy.
7. Put on autopilot
Systems are available to your team on a 24/7 basis. Well-developed systems that have been trained out well can account for 99% of the issues that will occur within the business meaning that you no longer have to handle the tasks that you do not enjoy, these tasks can be handed off to other members of the team.
8. Attract quality clients
Clients want to work with companies that are organised, deadline-driven, and responsive. The suitable systems allow you to consistently deliver a great experience that customers will love. They will come back to you before going to anyone else since they can rely on your strong processes.
9. Differentiate from other businesses
Clients are attracted to organisation and quality, it can quickly become apparent when a business is not organised. This can affect the reputation of the business causing clients to head towards your competitors. Clients quickly notice the lack of responsiveness and direction that comes with a lack of systems. By establishing strong processes, you will be superior to your competition.
10. Positive customer experience
The most that any business owner could ask for is satisfied customers. When your customers are satisfied, you will feel great knowing that you delivered a top-notch experience. Systems ensure that you can give your best over and over again with the same great results.
The first step in any business systemisation project is to identify the problem that needs to be solved. This can be done by examining the company's current state or by conducting a gap analysis of what the company wants to achieve. The next step is to create a vision of how the company wants its systems and processes to look in the future. This process will allow you to understand what needs to change for this vision to become reality. Once you have identified these changes, it is time to begin implementing them.
How to Maintain & Monitor Your Systems After Implementation?
The implementation of a new system or process is just the beginning. It is important to maintain and monitor it over time to make sure that it is running smoothly. Bailey Dean recommends doing a systems innovation session at least once a year to update any changes in systemisation, technology or the customer experience that may need to be adjusted accordingly in the operations manual.
There are many reasons why you should keep your system up-to-date and monitored, including:
-Businesses need to be able to measure the success of their systems, this can be done using KPIs, tracking ROI or efficiency. It is important to have a consistent method of tracking each system before deciding on whether to adjust or change it.
-To avoid costly mistakes, such as sending out an email campaign with a typo. Simple mistakes can damage a brand, using systems and an operations manual the aim is to reduce these common mistakes. This is why it is important to test any system before you put it into the central circulation.
-To ensure that employees are using the system as intended. Creating the systems is the easy part, making sure the systems are implemented correctly is challenging especially if a team member has been with the company for a long time. The easiest way to deal with this situation is to bring the colleague into the planning and implementation stage of the operations manual.
To ensure that the system has been successfully implemented, it is important to monitor and maintain it. This can be done by tracking the system’s performance and ensuring that any changes made to the system are reflected in the data.
There are a variety of tools available for monitoring systems. The most popular ones are:
- System monitoring software
- Data analytics software
- Business process management software
Depending on what measure of success you have depends on the method you would use for tracking. One must align with the other otherwise you may get misaligned results.
Why You Should Start a Business Systemisation Project
The main reason to do so is that by having a systemised operations manual your business will save time and money. You will also be able to make more informed decisions and have a better idea of what your business is doing.
Some reasons why you should start to systemise your business are:
-It will help you save time and money
-You will have a better idea of what your business is doing
-You can make more informed decisions
-It helps with the future planning of your company
- Improve the efficiency of your business processes
- Create a competitive advantage by improving customer experience
- Reduce costs by eliminating redundant processes
- Improve quality while reducing errors in the workflow
- Ensure compliance with regulations and standards
If you are overwhelmed by systemisation, get in touch with Bailey Dean today.