Streamlined systems keep SMEs on the road to growth

A farmer owned a goose that laid golden eggs. In his greed, he decided to kill the goose to get all the eggs at once, only to find none inside. The lesson here is that systems (represented by the goose) are what produce value over time. Destroying the system for immediate gain leads to the loss of long-term benefits.?

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One of the most crucial factors that can determine a company's success or failure is its ability to systematise operations, yet many Kiwi SME owners are quick to put this in the ‘too-hard basket’.?

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Systematising your business involves creating and implementing processes that ensure tasks are carried out in an organised, planned, and coordinated manner. This approach not only saves time and money but also ensures consistency and efficiency across the organisation.?

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One of the key takeaways from my book Business Mechanics is the importance of having a "User's Manual" for your business.??

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Just like a vehicle needs its engine and chassis to be in good working order to reach its destination safely, a business needs well-documented processes to function smoothly. By systematising routine tasks, business owners can ensure that these tasks are performed consistently, regardless of who is carrying them out. This makes it easier for new team members to get up to speed quickly and reduces the likelihood of errors.?

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The book outlines several steps to systematise your business effectively:?

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1. Identify all your processes: Determine which tasks are performed regularly and could be systematised. This could include anything from answering the telephone to processing orders and managing inventory.?
2. Prioritise the processes to systematise: Focus on the most critical tasks first, as these will have the most significant impact on your business.?
3. Flowchart your processes: Create a visual representation of each major step in the process, making it easier to understand and follow.?
4. Document how it gets done: Write down every step involved in performing the task, ensuring that anyone can follow the instructions without needing additional help.?
5. Test the documented steps: Have a colleague follow the documented steps to ensure they are clear and accurate.?
6. Measure using key performance indicators (KPIs): Identify the top five measures that show system performance and track them regularly.?
7. Allow the system to change and grow: Ensure that your systems are flexible and can evolve as your business changes and grows.?

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By implementing these steps, business owners can create a more efficient and effective organisation.??

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Systematising your business not only helps in achieving consistency and efficiency but also adds value to your company, making it more attractive to potential buyers if you ever decide to sell.?

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Systematising your business is a vital aspect of achieving long-term success. By creating and implementing well-documented processes, New Zealand business owners can ensure that their operations run smoothly, saving time and money while reducing the likelihood of errors.??

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This approach not only helps in achieving consistency and efficiency but also adds value to the company, making it more attractive to potential buyers.?