We’ve Got A System For That

too many systems!!!!Ever been amazed when something you thought was happening isn’t? Ever blow up on an employee because “there’s a system for that”? If you created a system, or even bought a system or borrowed a system, then it should be working, right? Once you have a system, you can put the plane on autopilot and cruise towards your destination of greater profits and no headaches, right?

Yeah, right…

Ok, so that sounds ridiculous. Yet so many business owners create a system once and never revisit it. It’s as though the system is a decree; “I hereby decree that this system, no matter how old, antiquated, or inadequate will be our system for doing this task until the end of time.”

Or there’s this one, “I’ve got a system (or six) for that. Why can’t you follow it. It’s right here in one of these six binders. Anyone can plainly see there is a boatload of information on that.” Again, how asinine does this sound as you read it? Yet I see it over and over again (see the picture above which is a real picture of an office with SIX different policies on the same subject! SIX!!!)

Both of these instances happen far too often, yet both are completely unacceptable. If you created your system 20 years ago, it may be time to look at it anew. Ask these questions of an old system:

1. Does it still function as efficiently as it once did? If not, why not? How could it be improved?
2. Do I have problems with this system working sporadically? Could these be resolved?
3. Are other businesses doing it differently with more success? How can I emulate that?
4. Is this system causing other systems to back up or function less effectively?

On the other hand, some businesses TOTALLY RECREATE a system every now and then and end up with 6 different “systems” for the same protocol or operation. Hmm, kinda defeats the purpose of a system doesn’t it?! Here are some ideas to avoid this pitfall:

1. If a system has some kinks that can be ironed out, rewrite the existing system. Don’t recreate the wheel and leave the old wheel laying around for new employees to be unknowingly roll out ten years from now.

2. If the system has been proven ineffective, destroy it completely and replace it with a system that works. Leaving an old, dysfunctional system around is a recipe for disaster.

People will leave your company, even the good ones, and you don’t want old renditions of your systems surfacing in your business again. They needed to be removed for a reason; having them come back could spell months of unnecessary work and could cost you big time.

Remember: The entire concept behind an effective business system is that ANYONE can use it.

One Final Thought: Everything can’t be systematized

Don’t Squash Creativity

by Brian on May 9, 2010
in Innovation

Your business is your baby.  You’ve nurtured it from the beginning, and you may be a bit reluctant to hear any ideas that aren’t your own.  I can hear you now, “I listen to other people’s ideas all the time!”  Yeah, you may be placating your team members or employees, but I’m always surprised by the amount of great ideas that staff have that often go unheard.  And it’s not for lack of trying to get their ideas out there, it’s because the business is YOUR baby and because it’s your baby, any ideas that aren’t yours can easily be dismissed.

There are a couple of problems that can occur because of this that, as a business owner, you may not see.  

The first problem is missed opportunity.  How many time saving, cost saving, productivity increasing innovations are you missing by not hearing the creative thoughts of your employees?  It’s important to remember that as your company has grown, by necessity you have removed yourself from certain daily operations which are now being done by your employees.  The people that now do the work you were doing, may very well find a faster, smarter, better way to get it done.  Instead of shooting down their ideas, hear them out.  Create a forum for creativity if you will.  Create a process for the submission of ideas.  This empowering of your employees is an often missed and invaluable business asset.  Which brings me to the second problem that can occur by stifling out ideas.

This problem is often overlooked, but is probably a much bigger issue than the missed opportunity issue.  What is it?  Demotivation and devaluation of employees.  Employees who feel their opinions and ideas are not heard stop giving them willingly.  Not only that, they may start doing their work begrudgingly.  They may lose the passion for what they do that makes them valuable and in turn, may start doing sloppy work–may stop caring about the quality of their work altogether.  

The ripple effect that is caused by a disgruntled or unsatisfied employee can have a lasting imprint on your entire business.  I saw a company recently lose hundreds of thousands of dollars because one disgruntled worker (who repeatedly had ideas shot down and felt demoralized by the boss) “poisoned the well” at her office.  The customers could see it and responded by going elsewhere, the quality of her work went down the crapper, and she was constantly bad mouthing the employer and making everyone else question why they worked there.  Months later the company is still trying to recover from this one employee.

The simple fact is that employees who feel empowered perform better.  If a team member feels like they have a voice, they are much more likely to be passionate about what they do and perform at highest level.  

Does this mean every idea a team member has is a good idea?  Absolutely not.  I’m not talking about letting the employees make the rules either.  But many a grand innovation has come from an employee, not the employer (you).  Be open to new ideas from within your company.  Create a company culture that embraces creative thinking without restrictions.  Let the ideas come to the table and then nourish those ideas with potential.  Your team will feel more connected to you and to their work, and you will feel better as your company grows and flourishes.  

Remember, your entire company started with an idea.