Michael Gerber is the godfather of business systems. I read his book “The E-Myth-revisited” years ago when I was struggling to manage a growing law firm. What intrigued me was the fact that not only does virtually every small business suffers from a similar disease, but that the solution is so universal.
Every business needs systems. The precise systems are different but most of the general areas are similar. For example:
1. Lead Generation (marketing)
2. Lead Conversion (sales)
3. Product Development
4. Operations
a. Product Delivery
b. Product Returns
5. Financial
a. Accounts Payable
b. Accounts Receivable
6. Customer Relations
7. Customer Satisfaction
The mistake that most new entrepreneurs make is that they think that the business is only about the subject matter. Lawyers think their business is about the law. Mechanics think it’s about fixing cars. Pilots think it’s about flying.
But your business is about so much more than that.
Gerber uses the story of a bakery owner to make his point. He describes how, as a young lady she becomes fascinated with her grandmother’s baking. Every weekend, the smell of fresh baked bread and cakes wafts through the house. That sweet smell lifts her spirits and before long, her grandmother is teaching her how to bake for herself.
Years later, she starts her own bakery and before long she becomes disillusioned with all the other tasks that have to be done to keep this business running. She’s so busy ordering supplies and making deliveries that she doesn’t have time to do the very thing she loves: bake. Pretty soon, she’s ready to throw the muffins and her customers, right out the door.
Systems:
1. Convert chaos to order
2. Convert frustration to deliverable expectation
3. Bring reliability
4. Improve performance
5. Allow consistency
6. Your business enjoyable and fulfilling (for you and your customers)
Every franchise business has a set of systems which must be followed. If you don’t follow the systems, you lose the franchise. Why, because the franchisor has spent years and hundreds of thousands of dollars developing systems that work.
Can you imagine taking over a McDonald’s and replacing the “special sauce” with your own recipe? You’d be dis-enfranchised (thrown out) in two seconds.
That’s why you pay so much for a good franchise. Because the systems have been developed and perfected over time. In other words, the franchisor is telling you to invest not only in his product (Big Macs) but also in his way of delivering those products (Golden Arches, Ronald McDonald, golden French fries, a clean, family setting, etc.) He’s saying, use our product and follow our systems and you’ll make money. Fail or refuse to follow them and you’ll lose money (and your franchise).
You know what happens if you add the ingredients for a recipe in the wrong measure or order. You get mush instead of a soufflé. Bill got mush and a lot of it. That’s one reason that franchises aren’t for everybody. You’ve got to be willing to accept and implement their winning formula, instead of discovering your own.
Occasionally, I’ll begin working with someone who has things twisted around. They’ll say things like, “Yeah, but I can get around that system.” or “You can’t make me follow that system.” as if systems were a lock to be picked or an obstacle to overcome.Systems are part of the solution. But like any beneficial process, if you ignore them or cut corners, you won’t get the same results.
It’s like a diet or nutritional plan. If you’re more dedicated to disproving its validity then you are losing weight and getting in shape, you’ll prove your point. You’ll win the argument (battle) and lose the war. So, don’t make the system the bad guy. And if you’ve got employees who have a similar approach, you may have to replace them.
People resist change. That doesn’t make them bad, it just makes them people. So start implementing your systems slowly. Don’t go into the office Monday morning and expect your staff to memorize and follow thirty seven new systems. Start with no more than one or two. See how the employees respond. See how the customer responds. See how the business responds.
In fact, one of your systems might be “tongue and cheek” titled “The system implementation system”.
Before you add another new system, you may have to tweak one you’ve already added. Slow and steady. Step by step. This is a marathon, not a sprint to the finish.
Before long, you and most of your employees will embrace the new systems. They’ll see and enjoy the positive results. Most people want to be part of a winning team.
Those that don’t will have to leave. It will become obvious to you.
As your business grows, the systems will evolve. Steps will be added. Others will be removed. New systems will be designed and others will be retired. Again this happens over time and is a very natural occurrence.
When McDonalds started out, it was pretty much hamburgers and cheeseburgers. Then they added the Big Mac. Years later, it was the McFish. Then Chicken McNuggets and now green salads. And so it will go for you.
New products…
New services…
New systems…
Enjoy the process!