If you have staff, you are probably familiar with the story of Somebody, Everybody, and Nobody:
Somebody was asked to do something that was Everybody’s job. Everybody thought Somebody was going to do it, but Nobody did it. When Nobody did it, Everybody asked why Somebody didn’t do it. Somebody said it was Everybody’s job. Everybody said it was Nobody’s job, therefore Nobody did it.
Can you relate to that story? If you don’t have staff, this will reveal how not having staff is holding you back and what to do about it.
Systems are critical to your business! Here are just a few reasons why…
The key to profitable growth. Have you ever seen companies that grow big fast only to discover that more money is going out than is coming in? I have. And it is not very phenomenal! The bigger you get without systems, the more money is going out the door in reinventing every day.
Employees perform better. When your employees don’t have to depend on you to direct their every move because they have a system to work in, their performance increases.
Fewer surprises. Have you noticed that human beings do dumb things? The stuff people come up with sometimes is mind boggling. Like the time one of my clients had an employee who wrecked a company truck. Instead of calling the owner and letting him know, he hid the truck behind his house and didn’t show up for work the next day. Of course my client didn’t have systems in place then. Now he does. Don’t leave it to your employees to try and figure out the best thing to do. Have a system set up.
Keeps the owner in line. I don’t know about you, but I like to change things, update them, and try something new from time to time. As the owner, you may like to tinker, or you decide which part of the system you feel like using that day. As the owner, you have to be the example and follow the procedures yourself if you want your staff to follow them.
Many years ago in my service business, I went out to do an on-site presentation for a prospective client. I assumed that the client wouldn’t buy and did not write up a proposal. Instead, I just quoted a verbal price and left. Sometime later, the prospect called to have the work done. My salesperson looked high and low for the paperwork and finally in frustration asked the prospect if she was absolutely sure we had done an on-site consultation.
“Oh yes” she said. “A man drove up in a Lexus, looked around and told me how much it would be!” Of course my sales agent knew exactly who she was talking about—me! The owner—the one who decided not to follow the system that day. And of course there’s another lesson there too. Don’t judge a prospect. Do the proposal!
If you like to change things around and you have a team, they will be confused if you don’t inform them beforehand. Customers may also become confused. When you change something, be sure to communicate it and update the system.
A consistent service experience. When you have a system, the customer knows exactly what to expect. McDonald’s is the “poster child” for systems because customers can get the same hamburger in Tokyo as they can in Paducah, Kentucky. It may not be the best hamburger, but it’s the same hamburger. It’s consistent because they have a system.
Takes less of the owner’s time. The idea behind building systems is so you have more time. If you are “reinventing the wheel” every day because there is no system in place for your team to follow, you end up doing everything yourself. Ultimately, you want to streamline your business so you can have more time to pursue your life goals.
As I write this section, I have been traveling for almost three weeks. It’s July 4th, and my wife and I are at our little beach condo in Florida. My staff knows what to do. They don’t need me. We were in Australia for almost two weeks, and I didn’t have a phone with me. My wife asked me about ten days into the trip, “Have you talked to your office?” I said, “Uh, no.” “Don’t you need to check in with them?” she pressed. “Uh, no…they know what to do. Remember I have a turnkey business.” “Oh that’s right,” she said.
One of my coaching clients built his business from almost nothing to over $2 million per year—and he takes fourteen vacation weeks each year and travels all around the world. It can be done. Now please understand that you don’t want to be irresponsible. You still have a responsibility as the owner of that company. You must make sure that your managers are leading properly and that things are being implemented properly.
I liken it to investment property that is managed by someone else. You own the property (and therefore have responsibility), but you don’t have to do the day-to-day management.
Another caution is not to exit too soon. I have another client who did not have the right team; and although his business was profitable and he was able to travel a great deal, he began to travel continuously and things began to fall into disrepair.
A saleable business. Finally, would you like to sell your business for a lot of money one of these days? What if one day you could sell your business and retire on the proceeds. How would that be? I have found that there are two responses to this question. The first one is, “No! I love what I do!” And the fact is that many times the work we do in our business is a ministry—it’s our expression—or perhaps we love the technical work we do (or some other part of the work “in” the business).
If that is your response, you still need systems in your business! Here’s why. What if you had to sell your business? A friend of mine has a hereditary kidney condition that will one day take his life. It took his brother’s life. As far as he knows, it is inevitable.
The problem is that his current business depends on him! He is a genius at what he does, but it isn’t a turnkey system. So, he has been feverishly building another company that will help him reach his most important life goal: to leave his family with the finances they need to live comfortably.
You may not want to sell your business right now. But sooner or later, you will “leave the building,” as we all do! Whoever takes over that business will need a system. And if you have to sell it for some reason, you can.
(Excerpt from 5 Secrets of a Phenomenal Business)
On Pre-Sale now at Amazon.com & BarnesandNoble.com!