General Business

   Are Your Resources Stretched?  (This is the #4 post in the Systems Series)

A lot of small businesses stretch their resources to the point they may snap!  Hey… resources are valuable things when you’re trying to make a living.  Quit fiddling with them like they grow on trees.  You know, resources like your employees, your money, your line of credit, your computer system, your knowledge, the 24/7 we all have, your amount of sleep, etc.

Implementing Systems (those magic little engines that invisibly run your business like clockwork) in your company will take a lot of resources (mentioned above), so BUDGET those resources.  When it comes time to implement systems, you want some resources left to throw at the implementation of your Company’s Systems.  You will be glad!

Among others, here are some overarching resources you’ll need to implement those valuable Systems:

1.  Money.  Moolah.  Cash.  This stuff really does spend well, doesn’t it?  And it helps when you are about to start implementing Systems in your company.  Some major assistance you may need when implementing Systems may be professional assistance.  We are hiring a PR firm to send our firm soaring in 2008, and it will cost money.  This firm will be key to continuing the marketing/branding Systems during this year and in the near term.  I hope my clients see the value in my services (and they cost money).  My clients’ Systems of tax planning, cash management, business operations can be greatly enhanced with my services.  Cash is obviously one of the greatest resources you will commit to the implementation of your Company’s Systems.  Make sure you got some when it’s time.

2.  People are also a huge resource (I hope that was obvious to you).  People cost money, and good people cost more money.  Payroll is the biggest expense on a service-based businesses’ P&L.  But the resource expense is worth it.  You can’t implement good Systems in your company without good people to uphold, carry and better those Systems.  It takes people to put “legs” to the Systems.  And remember, you get what you pay for.  Low pay means low experience and education, which means less effectual Systems.  And that hurts EVERYONE in the company.  It’s all about the folks…

3.   Time.  Whoa.  That is something nobody has enough of.  Time is a valuable resource, and can certainly be wasted.  Thankfully, it can be enhanced too… with the right Systems.  But you need time to make the right Systems which in turn give you more time (ahhhh… its all so confusing!).  Be careful with your day.  Each minute wasted is a minute not devoted to the right priorities in your Company… one of those being to implement good Systems to help your company run smoothly, more profitability, and with joy.  Take time AWAY from those unprofitable things that are stealing your time and GIVE it to those tasks that enhance your business and relationships.

These resources are huge.  There are many other, more specific resources I could touch on, but I felt these overarching ones were the biggest and most important.

Let me know how you manage these three resources…

Thanks, Jason M. Blumer

<—– #3 in the Systems Series         #5 in the Systems Series —–>

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 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

<—– #2 in the Systems Series                                         #4 in the Systems Series —–>

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  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

<—– Series #1                             Series #3 —–>

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  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 —–>

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  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

<—– Original Systems Post                                                                                   #1 In The Systems Series —–>

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