March 25, 2009 - What is a System?

Main Idea

What do you think about the word “Systems”?  Does it put you to sleep immediately or does it take at least 3 minutes?  Is there anything in the world more boring than looking at systems?  (Try reading the tax code.)

Expansion of Idea

Right now, everyone is looking to find new business.  We are trying to replace customers that are not buying or have gone out of business.  We are always looking outside of our business instead of sometimes looking inward.  The answer for a lot of us is to improve our systems.  This is one of the four main ways to grow your business and is actually the key to everything. 

We are going to discuss systems and various examples over the next few weeks.  The starting point is to define what a system is.  A system is how work is performed.  Systems are either soft systems or hard systems.  A hard system may be how the financial statements are generated or how goods are shipped out of your warehouse.  A soft system would be how you answer the phone or how you manage your people.  Systems only work when there is consistency of application.  (There is a place for appropriate use of exceptions also.)  Your team must understand and embrace the systems.  

A great example of using systems to bring a group together is the University of Missouri basketball program.  The new coach, Mike Anderson, put systems and policies in place which insured that the team would play hard and at a high level.  In just three years, he has taken a program that was miserable and will play this weekend in the NCAA Sweet Sixteen.  Frankly this is unbelievable considering the shape that the program was in when he took over.  The key is the relentless focus on systems and the discipline to accomplish them. 

Suggested Areas to Start

  1. Define your systems

  2. Review your systems with your team and determine if they are being followed.

  3. Commit to spending some time every week to work on systems.