What are the benefits of having a systemised business?
There are many benefits to systemising a business and often they will be specific to each business depending upon the driver for undertaking the systemisation work. For example, systemisation may be undertaken to build the foundation for scaling or franchising a business or it may be undertaken to improve certain areas of a business where challenges are being experienced. Here we look at the benefits of systemising a business under these two broad scenarios – systemising to sell or franchise a business and systemising to improve the business:
- Systemising to Scale or Franchise
Scaling a business can be a challenge for business owners and entrepreneurs. Creating a clear business system contributes to resolving some of the scaling challenges as follows:
- Systemisation is a vital supporting pillar of a business model – key to delivering a business model are processes and systems. A clear business system can help secure funding because not only will a business owner have a compelling business model, they will have the means to deliver it to their customers.
- Clear job roles and procedures – when everyone in the business is clear on the delegation of responsibilities and how the work should be done then scaling a business is far less challenging. Some businesses embark upon scaling their business without this clear understanding and this leads to confusion, an inability to scale and a poor customer experience.
- Systemisation means ongoing improvement and efficiency – systemisation means ‘working on the work’ to improve the business. Far too often people are seen as the problem or as the solution to business challenges. Instead of recruiting a bigger team or moving people between teams, the systemisation culture seeks first to look at the work and see how that can be improved and this culture empowers the people doing the work to make it better. Inevitably, this leads to efficiency and a system that can change and adapt and most importantly, scale as the business grows.
- Systemising to Improve Certain Areas of a Business
Many businesses experience the same problems, over and over and over again. Each time the problem appears, it seems worse than before. The key issue here is that oftentimes, the work is not actually looked at and improved. Frequently, the solutions to the most important problems in businesses are either not talked about or the solutions are superficial e.g. changing organisation structures, changing reporting lines or moving one person from one department to another. Systemisation can benefit organisations that find themselves in this position in a couple of ways:
- A clear understanding of the problem and how it impacts the rest of the business – by looking at the work and the business processes end to end, business can develop a picture of the overall business system and how one part affects another. With this understanding businesses have at their disposal the information to make informed decisions about how best to improve and the most effective point of leverage that can be used to achieve the biggest benefit in the shortest period of time.
- Providing the means for actual and sustainable improvement – as stated above, systemisation is as much cultural as it is about actually looking at business processes and systems. Systemisation is about ‘working on the work’ and empowering the people who do the work to improve it. Living this culture leads to massive improvements, efficiency, effectiveness and a business that can be scaled.
Systemisation is first and foremost about the work and ‘how the work works’. Systemisation is cultural in nature, it’s not just about processes and systems (although these are important). Empowering people in a business to improve the work, taking time to develop an end to end view of the business system and focussing on improving the work can lead to scalable, effective, efficient businesses that will naturally attract funding and that won’t take up every waking hour of the business owner’s day.
If you would like to find out more about systemising your business, please contact me on firstname.lastname@example.org