business systems should be simple
Business systems do not need to be complex to be effective.
One of the biggest mistakes I see businesses make is creating systems that are too complex.
Why Simple Systems?
Many leaders think a through system is a complex system. But here’s the truth – complex systems are not only difficult to administer and expensive to maintain, but they are also the ones not utilized by the people on your team.
What we need is simplicity – systems that anyone can follow and often created using the resources you currently have available.
Key pillars of an effective business system
Effective systems tend to use the resources we already have and are as straightforward as possible. Business Systems break down into 4 key pillars: Planning, People, Process, and Technology. They are created through Planning and People but are made up of a series of Processes that may or may not include Technology to execute them.
A great system isn’t built overnight. It comes through a cycle of improvement that leverages each one of the pillars.
example: Quality Management
Imagine we’re creating a simple Quality Management System. Suppose part of our process involves measuring and recording product sample specifications. A complex system might rely on an experienced team member to check these samples regularly. But a simple system? It would provide clear prompts to flag this step automatically, reminding the operator to take and record the measurements by providing supporting resources in a centralized environment.
How to simplify your systems
1. change management
We much involve people closest and adjacent to the systems we are working on improving. Talking about the ‘Why’ and ‘What’ vs the ‘How’ will ensure everyone stays on the same page.
2. identify value
We need to map our current processes to understand what steps provide value and what steps we can potentially eliminate or automate.
3. Tool Selection
This is where a lot of mistakes can happen. Technology alone will not solve our problems. We must understand and optimize our processes before selecting the best tool to execute them effectively. Technology is only as smart as the input we give it and what we do with the output.
final thoughts
Remember, effective doesn’t have to mean elaborate. Keep it simple, and see how your business grows.
That’s all for today.
See you again next week!
Dave
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