Friday, August 14, 2009

An Excerpt from Getting Out of the Bucket: Systems

Every business will experience problems, no matter how carefully the owner plans. Every business will experience undesired results, no matter how rigorous the execution. Every business owner will experience frustrations, no matter how conscience his efforts.

Our goal with systems is to minimize the number and impact of these problems, frustrations, and undesired results. By developing and implementing systems we can achieve greater consistency in the results we experience, and greatly reduce stress and frustration.

Your systems should identify the most efficient means for achieving the desired results. In other words, if you want an employee to perform a task a specific way, document the steps involved. This becomes your procedure for that task.

Consistent results require consistent actions. When we identify and document the actions that will achieve our desired results, success becomes simply a matter of performing those actions.

A bottleneck is defined as anything that restricts or prevents us from accomplishing our goals. In general, bottlenecks manifest themselves in two ways.

Anytime we experience undesired results, a bottleneck is present. An undesired result may be as simple as not getting what we wanted or expected, or it may mean the development of a problem. In either case, the result is not what we desired. Examples include call backs, poor quality work, a project that goes over budget, and insufficient leads.

Another sign of a bottleneck is frustration. Frustrations may result in the absence of an undesired result. For example, improper planning may result in a material shortage that requires an emergency trip to get more materials. We may still get the desired result—a satisfied customer and profitable job—but the shortage creates a frustration. Another example would be employees asking unnecessary questions.

Most bottlenecks have one of two fundamental causes: a lack of systems and procedures, or the appropriate procedure was not followed.

A system could be defined as an integrated whole, in which each part is interdependent with other parts. Together, the individual parts contribute to the overall function of the item in question. For example, an automobile consists of many individual parts. If a particular part fails, the entire automobile may not function. In a business, if a particular function or task is not performed properly, the business may not meet its goals. In other words, a bottleneck will result.

Systems will help us reduce, eliminate, and/ or prevent bottlenecks.

To learn more about Getting Out of the Bucket, click here.

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