SYSTEMology

1. Systemise your business to achieve freedom and scalability

SYSTEMology gives you the freedom to choose. You should be able to have a choice in how you run your business. In it. Out of it. Ten hours a week. A hundred hours a week.

Business systemisation is essential for creating a scalable, efficient, and valuable enterprise. By implementing systems, business owners can step away from day-to-day operations, focus on strategic growth, and build a company that works without their constant oversight. This approach not only increases the business's value but also provides the owner with the freedom to choose their level of involvement.

Key benefits of systemisation include:

• Reduced key person dependency
• Improved consistency and quality of outputs
• Increased efficiency and profitability
• Enhanced ability to scale and grow
• Greater attractiveness to potential buyers or investors

Systemisation allows owners to transition from working IN the business to working ON the business, creating space for creativity, innovation, and strategic thinking.

2. Focus on critical systems using the Critical Client Flow (CCF)

Just 20 per cent of the systems you create will provide 80 per cent of your efficiency wins.

The Critical Client Flow (CCF) is a powerful tool for identifying and prioritizing the most important systems in your business. By focusing on the core processes that directly impact client acquisition, service delivery, and retention, you can achieve significant improvements with minimal effort.

Steps to create your CCF:

1. Identify ONE primary target client and ONE primary product/service
2. Map out the client journey from initial contact to repeat business
3. Break down the journey into 7-12 key stages
4. Identify the critical systems within each stage

By concentrating on these essential systems, you can quickly improve your business's efficiency and effectiveness without getting overwhelmed by trying to systemise everything at once.

3. Assign system creation to knowledgeable team members

The truth is the business owner is typically the worst person to be documenting systems.

Delegate system creation to team members who are already performing the tasks efficiently. This approach not only frees up the business owner's time but also ensures that the systems are created by those with hands-on experience and expertise.

Benefits of assigning system creation:

• Leverages existing knowledge within the organization
• Empowers team members and increases engagement
• Produces more accurate and detailed systems
• Allows the business owner to focus on strategic decisions

Use the Departments, Responsibilities & Team Chart (DRTC) to identify key departments, responsibilities, and knowledgeable workers. This visual tool helps organize the systemisation process and ensures that all critical areas of the business are covered.

4. Extract knowledge through a two-person approach

The SYSTEMology method of creating and documenting systems is very similar to my podcast idea. One person shares their knowledge (the knowledgeable worker) and another documents it (your 'systems champion').

Implement a two-person system for extracting and documenting knowledge. This approach makes the process more efficient and less daunting for team members. The knowledgeable worker focuses on sharing their expertise, while the systems champion handles the documentation.

Steps in the extraction process:

1. Identify the system to be documented
2. Determine the best capture method (e.g., screen recording, video, audio)
3. Record the task being completed
4. Create step-by-step documentation
5. Review and refine the system
6. Test the system with other team members

This collaborative approach ensures that systems are created quickly and accurately, without placing an undue burden on any single team member.

5. Organize systems with dedicated software and project management tools

Together, these two tools (systems management and project management software) allow tasks to be assigned with clear, easily accessible instructions that leave no room for confusion.

Use dedicated software to organize and manage your systems effectively. Implementing both systems management and project management tools creates a powerful combination for ensuring that systems are followed and tasks are completed efficiently.

Key features to look for:
Systems management software:

• Central storage for all systems
• Easy access and searchability
• Permission levels for different users
• Ability to attach rich media (videos, images, etc.)
  Project management software:
• Task creation and assignment
• Deadlines and reminders
• Communication tools
• Integration with systems management software

By keeping these tools separate but integrated, you create a flexible and scalable infrastructure for managing your business systems and workflow.

6. Integrate systems by fostering a systems-thinking culture

To change your business culture, to build a business based on systems, it's going to take a firm hand and the willingness to hold people accountable.

Build a systems-thinking culture to ensure that your newly created systems are actually followed and continuously improved. This requires a shift in mindset for both leadership and team members, emphasizing the importance of consistency, accountability, and continuous improvement.

Strategies for fostering a systems-thinking culture:

• Lead by example, consistently using and referencing systems
• Incorporate systems into hiring and onboarding processes
• Reward system adherence and improvement suggestions
• Address resistance promptly and constructively
• Make systems central to problem-solving and decision-making

By embedding systems-thinking into your company culture, you create an environment where efficiency and consistency become second nature, driving long-term success and scalability.

7. Scale your business by documenting all critical departments

Your business as a system is only as strong as its weakest link, therefore, it's vital to document all areas of your business.

Expand systemisation beyond operations to include all critical departments such as finance, human resources, and management. This comprehensive approach ensures that your entire business is running efficiently and consistently, removing key person dependencies across the organization.

Key areas to systemise:

• Finance: invoicing, expense management, financial reporting
• Human Resources: hiring, onboarding, performance management
• Management: meeting rhythms, goal-setting, strategic planning

By systematizing these core functions, you create a solid foundation for scaling your business, making it more resilient and adaptable to growth opportunities.

8. Optimize systems through continuous improvement and measurement

The goal is to reach a point where your core systems are solid and you go through a cycle of identifying problems, fixing them and moving on to the next one.

Implement a continuous improvement process to refine and optimize your systems over time. This ongoing effort ensures that your business remains efficient, competitive, and adaptable to changing market conditions.

Steps in the optimization process:

1. Create a CCF dashboard to measure key performance indicators
2. Regularly review system performance and identify problems
3. Prioritize issues based on impact and urgency
4. Develop and implement solutions
5. Monitor results and adjust as needed

By maintaining a focus on measurement and improvement, you create a dynamic, responsive organization that continually evolves and becomes more efficient over time.

Last updated: November 25, 2024