Systems for our businesses

Reider

Reider

New member
On another thread about sales people, Ron talked about how we need systems in place before even thinking about sales people. That hit home with me, because I have some systems in my head, but nothing concrete or written down. So one of my recent goals is making sure I understand this concept and fine tune it so I can run my business and not have the business run me.

From my understanding (correct me if I'm wrong Ron), systems are the foundation of franchises. I'm not looking to develop a franchise, but I've read that 75% of franchises succeed in the first 5 years as compared to 20% success rate for non-franchises. This seems to be direct correlation of the concrete systems franchises have developed.

So my thought process now, is to develop a business operations system just like a franchise would. My hope is that it will allow me to quickly get away from the wand, get away from managing and allow me to be a true entrepreneur. This will also allow me to spend the time I want to with my family instead of juggling multiple responsibilities.

My question is what are the categories or items that any of you have formally developed? Systems I can think of are:

technician systems for specific jobs - house wash, wood, concrete, condos, warehouses, etc.
technician daily routines
management systems
sales systems
marketing systems
customer service systems
maintenance systems

I appreciate any guidance on developing a master operations manual for my business. Examples would also be great if you would be kind enough to email me at jason@waterdogrestoration.com. Any examples would be strictly confidential. Phone calls are best for me after 3:30 because I'm still teaching full-time. My goal is to quit teaching and go full-time within 2-years, but hopefully sooner. I love this business!
 
The secret of systems is getting everyone doing the exact same thing every single time. For instance, the vast majority of my business is cleaning bus stops. Seems a little ignominious, but it is something that needs to be done. In order to make sure we accomplish the desired task, I have a system, or order of operations that all of my guys are expected to follow every single time. If they don't follow it, without fail, they are going to forget something that is important, but subtle to putting out a quality product. It is easier to make everyone an automaton, so that everything is done automatically.
I have actually had potential competitors come up to me at bid conferences, and compliment my guys, because they were following us trying to figure out how we are able to consistently achieve such a good result. Their comment was, "I followed 4 different guys of yours, and watched them clean bus stops, so I could figure out how to be competitive. Everyone of them did it the exact same way. I don't know that I would be able to get my people trained to do the work the same way."
So, if you want a competitive advantage, get a system in place for everything that you do. You will know when you are getting close, when you can get to a job site, and without a word, everyone just does what they are supposed to do.
 
This is something I've been trying to wrap my mind around for the last 3 years. We're further along now than we have been but still have a long long ways to go.

Our goal is to do exactly what Scott just described in all parts of our business.

Jason it helped me drawing an organizational chart of my business to show the different positions. Even though I am most of them. After that I made a list of things that each position is responsible for and when they are responsible for doing it.

After that you can start writing processes to get those things done.
 
Scott Stone said:
The secret of systems is getting everyone doing the exact same thing every single time. For instance, the vast majority of my business is cleaning bus stops. Seems a little ignominious, but it is something that needs to be done. In order to make sure we accomplish the desired task, I have a system, or order of operations that all of my guys are expected to follow every single time. If they don't follow it, without fail, they are going to forget something that is important, but subtle to putting out a quality product. It is easier to make everyone an automaton, so that everything is done automatically.
I have actually had potential competitors come up to me at bid conferences, and compliment my guys, because they were following us trying to figure out how we are able to consistently achieve such a good result. Their comment was, "I followed 4 different guys of yours, and watched them clean bus stops, so I could figure out how to be competitive. Everyone of them did it the exact same way. I don't know that I would be able to get my people trained to do the work the same way."
So, if you want a competitive advantage, get a system in place for everything that you do. You will know when you are getting close, when you can get to a job site, and without a word, everyone just does what they are supposed to do.
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That's my goal Scott. Consistency with every aspect of the business. I think customers have great experiences with certain businesses and expect the same routine/system next time every time. If their expectations aren't met because the system is suddenly different, they may possibly not use the service again.

I think it is also important to make sure the systems are easy for the simplest of minds to understand/follow. I've worked with some "smart" people that messed up certain systems because they thought they knew better and ignored procedures. Smart is nice, but I'd rather have an employee that is trainable and follows the procedures exactly. Than there are less surprises and excuses.
 
Ron Musgraves said:
Keep them simple and so others can Succeed using the process.

You have to work them, use them. They will not magically work on there own once you write them
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Exactly! I posted my reply to Scott's information as you posted this. I agree that it must be simple. Do you have an employee handbook for each position in your business?
 
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apple said:
This is something I've been trying to wrap my mind around for the last 3 years. We're further along now than we have been but still have a long long ways to go.

Our goal is to do exactly what Scott just described in all parts of our business.

Jason it helped me drawing an organizational chart of my business to show the different positions. Even though I am most of them. After that I made a list of things that each position is responsible for and when they are responsible for doing it.

After that you can start writing processes to get those things done.
Click to expand...

I like the idea of having different flow charts. It is easier to follow and visualize for many.
 
It does seem very tedious Chris, and I was thinking about doing the same process you are. Work on the ones I need most right now, and then add others as my experience and knowledge increases. They are all important though. It's like the quote by Aristotle, "The whole is greater than the sum of its parts."

The ultimate goal is to build a well oiled machine, that if I passed away, my wife, son or daughter could run the business with out skipping a beat.
 
Reider said:
It does seem very tedious Chris, and I was thinking about doing the same process you are. Work on the ones I need most right now, and then add others as my experience and knowledge increases. They are all important though. It's like the quote by Aristotle, "The whole is greater than the sum of its parts."

The ultimate goal is to build a well oiled machine, that if I passed away, my wife, son or daughter could run the business with out skipping a beat.
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Your last paragraph hits home. It's not so much about ourselves as it is taking care of them.
 
We going to See you in NJ next month?
Reider said:
It does seem very tedious Chris, and I was thinking about doing the same process you are. Work on the ones I need most right now, and then add others as my experience and knowledge increases. They are all important though. It's like the quote by Aristotle, "The whole is greater than the sum of its parts."

The ultimate goal is to build a well oiled machine, that if I passed away, my wife, son or daughter could run the business with out skipping a beat.
Click to expand...
 
Reider said:
It's going, but slowly. I have systems for the easy stuff, which for me is the technician side and customer service of the business. I am still finding my way through the sales and marketing side of the business, especially with commercial sales.
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Make it to a Meeting Close to you this Year, it will be helpful
 
Very good thread on systems for our businesses. I just hired an employee and will be working on all our systems for all aspects of our business to better train him, as well as future employees.
 
Dan Manley said:
Very good thread on systems for our businesses. I just hired an employee and will be working on all our systems for all aspects of our business to better train him, as well as future employees.
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One employee is easy its when you get 8 or 10 is when the systems have to be very precise so everyone has a knowledge of their exact position on the team. When a football team goes out for a play all the quarterback has to do is give a signal and everyone on that team knows exactly how to run that play. Daily meetings before the work day is essential (to go over the play). You have to constantly go over your systems. Employees will forget things week after week so keep on them.
 
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