Systemization and Business Systems

2012-02-15 16:54:59

The importance of good business systems is crucial to any organization. If you haven’t read the E-Myth by Michael Gerber, I highly encourage you to do so.

Organizations lacking good business systems are wasteful, have a hard time retaining and training people, have cash-flow issues, and have quality issues and resultant customer complaints.

Top leaders will tell you that you need to systemize (or systematize [sic]) your business for better efficiency. More important gains are control, and consistency, where each customer has the same experience each time, with the same level of QUALITY.

Most business owners understand the theoretical importance of this, yet most business owners don’t know how to create good business systems, or even where to start.

There are a fair number of software and online packages available that let you define and run your business systems to a point, but they all are separate from your operational business systems. This makes acceptance, use, and compliance, very difficult.

The best business systems are those built directly INTO your operational systems. This removes acceptance out of the equation, and forces use and compliance. If you have to use a system to do your job, that system should also control HOW you do your job. Very simple really.

This translates into your website as well. If you have very clearly defined paths that visitors and users can take, with only certain options at each point, you are better able to guide them to the desired outcome (which to you would be income smile )

The downside is that such systems usually are custom solutions or ERP’s, and this often translates to a larger up-front investment.

The pay-off in the long run is well worth it though.

One of the most memorable quotes from the E-Myth is “Work ON your business, not IN your business.”

Whichever route you choose, make sure to make time to work ON your business.

Andreas Huttenrauch


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