Tuesday, March 1, 2011

Designing & Implementing Effective Business Systems (Chapter 2)

(2a)What exactly is a Business System ?
Any business is a system of systems. As the human body is a system of systems ,so is a business . If the circulation system does not function at optimal effeciency ,the entire body is affected .
A business system is a structure a business adopts in order to successfully deliver services or goods to the concumer .It is made up of guidelines or policies which are implemented by those working the system.
Four critical categories make up the framework of any basic business system or structure .These can be summed up as
1) Operations
2) Human Resources
3)Financial
4)Marketing
5)Research
We could choose to call these departments. These departments are as critical to a business as strikers,midfielders and defenders are to a soccer team . How they combine and supplement each other is as crucial in a soccer team formation.Similarly ,how departments combine and compliment each other is equally important in a business . One department needs the other in order to function at maximum effeciency.
These departments can be more than those shown here.The purpose of a business system ,formation or structure ( you may call it whatever you prefer) is to optimize the role of each department and ensure that it performs its role efficiently.The sum total of all departments performance ensures the effeciency and success of the business.
In my undrstanding, effeciency is the ability to achieve more with less.

(2b)Designing a Business System
Start with a clear VISION -a statement defining where exactly you want to go ,what exactly you wish to achieve .
Follow up with a Mission Statement-a statement oultining how you will get your vision acccomplished .
Conclude by setting out your VALUES- a statement of what you believe in as a company.
These three statements must be visible to anyone who gets in touch with your business . When a businesses vision and mission statements resonate well with your team ,comsumers and prospective consumers -it becomes a powerful entity .
No business, I know of , ever succeeded without a clear Vision or Mission Statement.I can simplify my opinion by stating that a Vision is where we are going , a mission statement is how we are going to get there ,and values are principles we believe while on the journey.

(2c)Creating Roles within each Department
Work through the processes of service /goods delivery for each depatment .
Get to know the routines of the work processes intimately.
Then document how each function within a department must work .
Craft these functions with aim of getting them to contribute to the eventual, successful attainment of the business objective( the VISION ) .
Make job descriptions for each role since the aim is to find someone who can work within the roles defined in each department . It is inevitable that the routines of work will be amended as time goes on and/or as the business grows .

2(d)Finding The Right people to Run the Business system
It is often said systems don't fail -people do . I don't fully subscribe to this view .However, I do believe that badly designed business systems can fail . I also do know that for a well designed business system to succeed it must be run by the right people . And , finding them is no easy task .

(2e)What to look for in prospective team members
Always be on the look out for people driven by passion -they don't need that much motivation when the chips are down .
Look for experience -its a rare quality . If you intend to list your business -you will need someone on your side who has been exposed to all the processes of listing on a practical basis .
Avoid people whose chief objective is to make a lot of money( a get rich quick mentality ) .They are meant employees after all and the employers only duty is to pay an employee enough for them to work and live comfortably -not to get rich quick !

(2e)Leading A Team
I rate experience ,passion and integrity as the top three qualities in a Leader .To me integrity is doing what you say and saying what you do or walking your talk. Once what you say is not in alignment with what you do it becomes difficult for people to trust you . Remember ,when you're leading people in business that they have entrusted their career in your care !

Once you become the most knowledgeable person in the team you're leading -something is wrong. Let your team achieve and let them take the credit .Your job is to bring out the teams maximum potential,individually .A coach doesn't score the goals in a soccer team ! His job is to bring out the best in all players -so it should be in business . The reason I use soccer as an example is because soccer leaders ( coaches ) and players are tested nearly every week. This means all the systems are brought to test regularly ,whereas ,in business results are seen monthly,quarterly or even annually. Think what these means about the effectiveness of a system of a soccer team -so should it be for a business systems.

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