Business Systems Lecture Notes

Introduction

• Traditional approach to building business systems is time-consuming.
• The lecturer is a process consultant with 7 years of experience.
• A new, efficient method to systemize a business in 35 minutes is presented.

Traditional Approach

1. Diagram Business Processes
   • Use tools like value stream mapping or business model canvas.
   • Often results in complex, one-time use diagrams.
2. Detail Process Steps
   • Zoom in on specific areas to map out detailed steps using proprietary software.
   • Can involve 200-500 processes in small businesses.
3. Create Work Instructions
   • Document every step in extensive detail (e.g., 15-30 page documents).
   • The goal is to make them clear enough for a child to follow, which is rarely achieved easily.
4. Test and Revise
   • Test work instructions with someone unfamiliar.
   • Revise until clear and functional.

Critique of Traditional Approach

• Seen as outdated, especially for small businesses.
• Focuses on complex documentation, not practical application.

New Efficient Method

1. Identify a Needy Area
   • Choose a high-value, pain point area in the business.
   • Examples: onboarding, service delivery, sales conversations.
   • Small teams can quickly identify these areas.
2. Identify Needy Activity
   • Break down the system into specific actions or activities.
   • Prioritize activities based on pain and potential value.
   • Example: In a trophy shop, activities might include ordering parts, designing, engraving, etc.
3. Define Tasks
   • Detail what happens, when, and who is responsible.
   • Write down as many tasks as possible.
   • Tasks bring processes to life and are crucial for system functionality.
4. Delegate Responsibility
   • Assign system or process ownership to team members.
   • If no team, future self takes responsibility.
   • Responsible person manages tasks and improvements.
   • Metaphor: Assigning full responsibility is like mentoring rather than babysitting.
5. Capture Methods (SOPs)
   • Document standard operating procedures, templates, tools, and examples.
   • Ensures continuity if someone is unavailable.

Benefits

• Total time for systemizing an area is 35 minutes.
• Immediate benefits and gradual improvements over time.
• Saves time that can be reinvested into other processes.
• Contrast with the traditional approach, which is slower and less effective.

Conclusion

• Efficient method allows businesses to evolve quickly.
• Encourages experimentation and continuous improvement.
• Proven to work in real-world applications.