You are currently browsing the monthly archive for December, 2007.
We are still covering the 10 issues/reasons behind installing Systems in your Company (What are Systems? ) - this being #3 in the Series
Reviewing the Systems in your Company is a serious investment. Installing them is even more serious (because you followed through). These magic little engines that run your company like clockwork (while you, as the owner, may be away) eliminate inefficiencies in your operations. And eliminated inefficiencies typically mean
(1) more profit - eliminating inefficiencies equals eliminating unnecessary expenses, thus creating more bottom line
(2) happier employees - when employees know what to do and what is expected of them, they tend to be happier
(3) customers/clients who are happy - likewise, when your customers know what to expect from you (consistency), they feel more secure and tend to trust you more (which should lead to more sales), and
(4) more time for the owner - a growing company needs less of the owner, if possible. Managing that growth is a full time job for the owner. She does not need to be managing inefficiencies
I need more time in our company. I’ll be hiring some new employees in the new year so I can devote more time to branding our firm, networking with big wigs, and bringing in more business. The systems installed in our company are going to really help me in the new year when I’ll be busy OUT of the office bringing in new business. I anticipate my company running with lesser inefficiencies than before simply because the systems have been installed. Now, everything doesn’t always run smoothly. But you have to have systems in place before you even know if they are working or not. In fact, installed systems bring even more inefficiencies to light (…that you can further eliminate). They will probably be the smaller inefficiencies that you never would have noticed had you not installed systems in the first place. Pretty freakin’ cool. Another Thriveal Mantra: “When you do things right, it helps you continue to do things better.” Pretty freakin’ cool.
Thanks, Jason M. Blumer
1. I keep seeing this more and more on some of my RSS feeds (like from Techdirt) - bands, record labels and the music industry are starting an interesting trend of giving awaytheir music and CDs. Will this trend end up in more concert and paraphernalia sales? Interesting economics ( and marketing) - GoSee
2. Here it is again - Free. The new way to market, and the new way to price. Chris Anderson, popular author of The Long Tail points out the theory of free (passed along to us by Guy Kawasaki’s blog) - GoSee
3. Heard of cloud computing yet? It’s the next supercomputer, and it seems Google (in association with IBM) has the best - GoSee
Thanks, Jason M. Blumer
As mentioned in my original Systems post, Implementing Systems into a Company’s karma requires initial time investments from the owner.
A good marriage doesn’t just happen. It takes time investments from the “owners.” Its the same way with installing Systems into your company (what are Systems?). And, particularly, it takes the owners’ time. The owner has to be the one to develop the systems, sell the value of the Systems and to INSTALL them. Probably the biggest initial time investment required of the owner is found in designing the Systems. They must be designed properly. And, frankly, that takes a lot of time.
Remember, these Systems will be the underpinning and foundations for how your company operates into the future. Properly laid foundations ensure a stronger building. So, when considering the Systems needs of your company, consider the following:
-Design systems that will produce the greatest amount of outcome for the smallest amount of input. Make sure your people don’t have to do a lot to make the processes happen. Spend time thinking through the beginning and ending outcome of each designed system. Think through how an initial need in your Systems will come about (e.g. a customer calls with a complaint), and design a system in your company to address this issue (e.g. receptionist takes down the complaint on a Customer Complaint Form and forwards the document to the Sales Manager for further follow up). Make sure the form that drives this part of your system produces a great amount of information that can be analyzed later when addressing your downturn in sales.
-Spend time making sure the Systems, and forms that often go along with the Systems, are not overly complicated. Ensure that enough information is captured inside of the System, but don’t capture more than you need at any one point in the Systems process. Highly complicated and structured Systems don’t typically get installed very well (even the owner ignores them sometimes). Again, spend time going through the newly created processes and make sure all levels of your company can understand the instructions and what is to be done and when. Having a second set of eyes on this part of the installation can make sure your overly complicated Systems are boiled down to simple necessities.
As owners, it is important to remember that the initial time investments will reap huge benefits later in your company’s future. Time spent now is time well spent. You will have to think through these processes outside of the office to eliminate business interruptions. But the rewards your company may reap will be a true blessing to you, your company and your employees.
Thanks, Jason M. Blumer
This is the first installment in the Systems Series - Your Company’s Systems Must Be Installed.
In my original Systems post (found here), we talked about 10 reasons/issues behind the importance of your company’s systems. The first topic involves installing your company’s systems. In other words, you can’t just design a system in your office - you have to install it. Here are a few ways you can formally install the systems:
1. Perform a re-hire. If your structure is struggling, then start a new year with a re-hire. Re-hire everyone to the same position, but this time do it with systems in place for everyone to follow. Interview them again and let them know of the systems in your company, how they operate, why they were set up in this particular manner, and ask for buy-in. They’ll feel like they’ve been re-hired into a new company.
2. Hire a consultant to install them for you. Obviously, I like this one. I do this for my clients through my consulting CPA firm. But seriously, if you can’t enact the change then you may need a professional to do it for you. You may be too busy, or you may just need some guidance; either way, a good consultant can be seen by your employees as having some expertise in this subject area and may effect more buy-in with your staff.
3. Install the Systems with your annual performance review process. I’m assuming you do an annual performance review with all of your employees. Part of the process should be some one-on-one time talking about the company’s systems, what you expect regarding the performance of these systems, that employee’s role concerning the systems, and how to perform them properly.
4. Make sure you “sell” the systems. Tell your employees why the systems were created, why they are good to follow them, how they make your company better than all other companies, how they will make everyone in your organization successful, etc. If they see your enthusiasm about the systems, then they will be more apt to follow them.
Thanks, Jason M. Blumer
<—– Beginning of the Systems Series #2 in the Systems Series —–>
1. Looking for a new Mac? Can’t afford new? Check out the used Apple stuff at DV Warehouse (passed on to us here at Thriveal by the super blogging blog) - GoSee
2. I’m really interested in upgrading my Microsoft Office to the 2007 version. I need information on the upgrade before I do it… here’s some info you can download on the new ribbon interface - GoSee
3. Marketing using the web, social media and Web 2.0? Here is some info from Marketing Sherpa on a specific case study for HubSpot - GoSee
Thanks, Jason M. Blumer
The lack of Systems, those magical little engines that run your company like clockwork, may be the downfall of your company’s growth!
My basic post on your Company’s Systems (found here) showed us ten (10) very important aspects to a Company’s Systems, and how they make your company successful. And successful here can be defined in many different ways. Because this concept may be a little confusing and some what misunderstood, I want to address each of those 10 aspects in a 10 part series. But, before we embark on this enlightening journey, let’s address the last two questions I posed at the end of my original Systems post.
1. Why Don’t Company’s Implement Systems?
and
2. When Is It Time To Formally Implement Systems?
Take the first one first. Put simply, there is one reason why company’s don’t implement systems: Management doesn’t KNOW they need to implement Systems. What the heck are “Systems” anyway? Real quick, your company’s systems are those magical little engines that run your company like clockwork while you go do other important stuff. Maybe you, as the owner, need to go start another company, or play golf, or go on vacation. Your systems, or predefined and implemented structures by which your company operates, can make sure your employees, vendors, customers, etc. do what they are supposed to do while you are away.
But management doesn’t know they need such engines. They don’t know they exist. They don’t know of their value. They don’t know how to design them. And that’s Why they don’t implement them.
The “When” of the implementation can be tricky. You implement systems before you need them. You anticipate the need for systems. This is almost the same thing as anticipating growth in your company. When growth occurs, do your systems help your company run smoothly, or do you enter into the “chaos zone”? If you have decided to run a company, then you need to go ahead and orchestrate the use and design of systems (before you start work!!).
This is all a franchise has to offer… a system. They know how to print, or change oil in 15 minutes, or pick up your junk. But they also know what Systems are for, when to implement them and why. And guess what? They are selling their system to you. Pretty cool, huh? And for most people, it’s a pretty good idea to go into a business that already has a system set up. If you follow their “system”, then you can have a somewhat safe guarantee of your income and future.
So, work on your company’s systems and prosper (and then sell your company system as a franchise).
This series will go into further detail as to the implementation of systems… why and when.
Thanks, Jason M. Blumer
1. It’s an old post, but The Entrepreneurial Mind blog has three great questions to ask yourself on determing when and if you should jump into a new business endeavor - GoSee
2. One of the core basics to our Thriveal Theory is a view toward the future and how that impacts businesses now. I really enjoyed the recent release by Nokia stating that 25% of entertainment by 2012 will be created and consumed within our own peer communities. Very interesting aspects to consider on how traditional media will change in the next few decades - GoSee (this was passed along to us here at Thriveal by the great Small Biz Labs blog)
3. I love articles on the importance of cash flow (because some of the rules behind cash flow are not that obvious) - GoSee
Thanks, Jason M. Blumer
Wanna make your customers and clients trust you, and remain loyal? Be consistent!
Perceived Consistency (PC) produces great trust and loyalty among your customers. Do you have a friend, client, family member who is always living in chaos? They never show when they say they will, they bring information to you that is in disarray, their information is inaccurate, their information is late, etc. You tend to perceive them as untrustworthy. And if they are untrustworthy, then you become uncommitted to them, or disloyal.
As the PC factor goes up, then trust and loyalty goes up. And it works the other way too (doesn’t it always?).
What consistency am I talking about? Let me give some examples from my firm. I ALWAYS send out a semi-annual update to my clients, some time in May and then some time in December. ALWAYS. My clients come to expect it. They feel a level of comfort when they receive it. The tax packages we prepare for our clients must ALWAYS look the same when the client comes to pick up their information. We are going to implement a new process in our firm at the beginning of the new year. It’s an area where I have some marketing cushion, and I need to take advantage of it. We will begin sending out new client information packets to all new clients. I usually talk with the new clients about their respective needs, but the new information packet will be an opportunity to talk about all that we do, who we are, what our theories behind business are, etc. We will ALWAYS do this from now on. We will work the PC factor in this area and build trust and loyalty in our clients. You see, my firm gives off good vibes when I confirm my customers trust again and again and again… we are consistent and that makes my clients trust us. And if they trust us, they tend to remain loyal too.
Running your business in a chaotic way hurts you more than you think. It might be hurting you and you don’t even know it. Your PC factor is going down… maybe slowly, but it is probably declining. Consistency in the way you do things, the way you present things, the way you return your client’s calls, the way you talk to your employees, the way you pay your bills, the way you bill your clients all build solid trust and loyalty… or not.
Consistency matters. Work on the PC factor in your company.
Thanks, Jason M. Blumer
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