Take Notes
For this, all you need to start with is pen and paper. “In every business, there are five key areas in need of systems: administration, finance, human resources, production and marketing,” Sarden says. “A good start is to use these labels as headings. Then, every time you have a thought as to how something should be done, write it down in the appropriate place. This might be ideas on how the phone should be answered, what will your greeting be? Or what you will say when you go out to see clients? How will you follow up next time?”
As your jotted down procedures take shape, Sarden suggests using them to create checklists. “At first, you’ll be the person ticking these off. Then, as you start to employ people, you can pass the lists on. This way you can be sure that everything is being done exactly you like it—that every client is getting the same experience. At the same time your staff will be secure in the knowledge that, as long they can tick off all the boxes, they’re doing a good job.”
In his books about the E-Myth, Michael Gerber makes the point that a properly systemised business can even reduce your labour costs. When new staff simply have to follow clear instructions, you can employ less experienced—and less expensive—people.
“At a certain level, no one person in the business is an expert,” says Sarden. “Anyone can cover for the receptionist. Everyone can do the day-to-day stuff that keeps the business running.”
“Systems allow staff to proceed with their work with the least disruption,” says Richardson. “That’s why, along with the obvious information on what to do and how to process a customer request for information or an order, it is important to document procedures for ordering stock, maintaining vehicles, employing and managing staff, and so on.”
“Change means systemising to the point where you can enjoy your business, not to be a servant to the system.”
Richardson also recommends the management system includes checking intellectual property and website maintenance. “For instance, if someone isn’t watching, you could lose your domain name,” she says. “This is especially dangerous if you change your ISP (Internet Service Provider), the one which set up your domain name won’t know where you are to remind you when it’s about to expire.
“You also need systems for security, and to back up information. Around 85 percent of the small businesses affected by the 1989 Newcastle earthquake did not go back into business because they had lost too much information. They didn’t have systems in place to back it up off the site.”
Effective systems are detailed and precise, but that doesn’t mean they have to stifle creativity. As your business grows and changes, so should your systems—and who better than the people following the system to help in the refinement process?
“You may start out running your company a certain way, but five people down the track, they will hopefully be doing things better,” says Sarden. “But it is important to decide how these changes are going to be managed.”
“Large organisations will have someone dedicated to updating procedures. Smaller businesses might give the job to someone in admin, or the office manager. You might have a meeting every six or 12 months when everyone has a chance to talk about ideas they’ve had for improving the way things are done, then decide which changes should become part of the system.”
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