Let me ask you a few questions? Are there some parts of your business you want to be free of and other parts you want to immerse yourself in? Do you want to own a business that runs like a well-oiled machine and does so with less of you--so that you can take a vacation once in a while? Do you want to own a lean, focused, money-making machine? The key to all of this is to create systems to get the work done and to train people to operate those systems to efficiently and consistently drive results.
If you are like most small business owners, you often feel that you lack control of your business, your time, your finances, and your direction in life. That is frustrating. The hallmark of a systems-driven business is that it runs like clockwork with less input from the owner or executive leader, which allows that person to spend more time doing what they are uniquely gifted at and love to do.
You can own a systems-dependent business that runs like clockwork with or without you. It’s not as difficult or complicated as you may think, and you don’t need to pay an expensive consultant to do it for you. You just need to follow a proven framework, utilize a few simple tools, and stick with it.
Successful small businesses have a proprietary way of doing things that preferentially differentiates them from their competitors. Think of this as their unique way. All small businesses have their own way of doing things. Yours does. But is your way consistently delivering outstanding products or services to your customers without you, the business owner or leader, having to manage every detail?
Franchises are great examples of systems-driven businesses
To be free of the daily burden of operations, you need tools, processes, and systems that allow your business to consistently provide an excellent experience for your customers. Then you hire the best people you can find to run the systems, and you manage those systems instead of doing the work. You are free to work on the business instead of in the business. Franchises do this really well, which is one reason they are way more successful than businesses built from the ground up. How much more successful? Put simply, most small businesses fail within five years and at least 75% of franchises are still in business at that point.
You can apply principles of the franchise model of operations to your business. Which principles depend on your specific situation. Before we get into that, let’s review what franchises do well:
They have a unique, detailed way of doing things that is written down and followed by all
They deliver consistent value to their customers
They use scorecards to keep track of key metrics and they manage to those metrics
They focus on the handful of things that determine their success
They are not dependent on specific people or personalities to drive results--they have systems and processes for that
Franchises are not dependent on who happens to be on their payroll at a given time. How they serve their customers doesn’t change as employees come and go. They are systems-dependent businesses and they hire the best people they can to run those systems.
I know, your business is not a franchise and you probably don’t want it to be. The point is that you can adopt some of the tools that make franchises successful to your business, which will help your business be more successful too.
Why processes are critical to setting you free
Like all businesses, your business has a set of core processes that make it unique. Those processes are perfectly designed to give you the business you’re getting right now--whether those are the results you want or not.
If you are the visionary type, you probably don’t like processes and you certainly don’t want to be the one that creates them, much less hold people accountable. I get that. But processes are critically important to owning a systems-driven business that runs like clockwork without you (or at least with less of you). And unless you have clearly written, fine-tuned processes that are followed by all employees, you won’t have that kind of business.
Don’t worry, I can help.
A typical business will have a handful of core processes. A group of related processes makes up a system. For example, typical core processes are:
HR processes
Marketing processes
Sale processes
Operations processes
Accounting/finance processes
Customer service processes
How your core processes work together is your unique system, your “way.” To take your business to the next level and be free of the burden of operations, you have to identify, simplify, and document your core processes, train your people, and hold them accountable.
Documenting your core processes
Work with your employees to document your core business processes and remember that simplicity is essential; if processes are too long or complex people won’t use them. Follow the 80/20 rule, which means document the 20% that produces 80% of the results. In other words, document at a high level. Documenting to a minute degree is overkill. What we are doing is providing guide posts and streamlining to help our people become consistent and efficient in their work.
Eliminate steps, condense, and use checklists where possible. We should make your processes bulletproof so that no one can screw them up. Simplicity is key. Typically core process documents are 1-10 pages long, with operations processes being the longest.
There are multiple ways to document core processes. Here is a simple, real-life example of a budgeting process:
Step 1 - Accountability
Define accountable area and owners
Communicate accountability
Step 2 - Focus
Define key areas of focus for the year
Communicate areas of focus
Step 3 - Timeline
Agree on budget timeline
Communicate budget timeline
Step 4 - Elicit budget assumptions
Work with each accountable owner to create a budget
Step 5 - Collate, review and validate
Collate all budget assumptions and process through the budget model
Review and validate the budget outputs
Step 6 - Communicate
Share appropriate budget detail with all staff
Step 7- Measure
Measure actual performance against budget
Step 8 - Reforecast
Reforecast each quarter
The simplicity of this budgeting process is brilliant and it represents a great standard for you to strive for as you document your own processes.
Getting people to follow the processes
When your core processes are followed by all employees, it is much easier for you to manage performance, troubleshoot, identify and overcome obstacles, and grow your business. You may not be a process follower yourself and this has likely led your people to believe that you won’t follow these new processes yourself. So why should they follow these processes now?
Since your employees were involved in identifying and documenting core processes, there’s a momentum and energy that has been created regarding following the processes, which you can capitalize on. Do these five things to get people to follow your processes:
Hold a kickoff meeting and demonstrate how excited you are about your new company “way”
Paint a picture of what that “way” looks like and the value it brings to the business and the employees
Retrain your people as needed so they can run the processes and systems
Give your people a voice in tweaking and evolving the processes
Manage people to follow the processes
Owning a systems-driven business is one of the key benefits you’ll receive by implementing and utilizing a business operating system. Other benefits include a clear roadmap to the future, all employees working toward the same goals, delivering consistently great experiences for your customers, less conflict and frustration, faster and more effective decision-making, and a platform for overcoming obstacles.
What is a business operating system?
A business operating system is a unique way of doing things that is built upon proven tools and time-tested methods. It is a comprehensive framework for operating a business that runs like clockwork. Business operating systems get everyone on the same page because expectations, accountability, and metrics for success are baking into everything you do.
One of the best known and most utilized business operating systems is EOS®, the Entrepreneurial Operating System, which is a complete set of simple concepts and practical tools that has helped thousands of entrepreneurs get more of what they want from their business.
At Gyolai Consulting, we help Visionaries experience the relief of getting a grip on their business and free them from the burden of operations.
Visit Gyolai.com to learn more about how we’ve help business owners from around the world save time, make more money, and get their lives back.
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