Is rapid business growth causing havoc and missed opportunities? Systemizing your company is a proven solution
As a business owner/ leader or entrepreneur, how often do you step back and examine how your company operates?
Considering these questions is a good way to find out:
- Has the business grown organically, with new departments added piecemeal as needed- each with its own way of doing things?
- Have staff adopted tasks they think they should carry out?
- Have roles expanded beyond abilities, as your business demands increased?
- Are critical decisions put off? Do the same problems pop up time and again?
- Is the business becoming too complex and unwieldy?
- Does all of this mean that key tasks don’t get done, and you don’t feel like you know what’s going on, or have complete control?
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These issues crop up in rapidly-growing businesses. Staff members may have been over-promoted, or find themselves working in roles that they aren’t able to perform at their best. If there aren’t clearly documented methods, everyone may do things differently, and there may be a lack of accountability, direction and purpose for the organisation to expand with confidence and direction.
If this sounds familiar, it may be time to introduce order into the chaos – with a business operating system. To be clear, this isn’t new technology like a dashboard that tracks KPIs, but rather, a complete framework around which you tailor to your operations and run your business more effectively. It’s a system that gives you control, confidence and perhaps more significantly- business FREEDOM!
A framework establishes common structure, principles and practices. It introduces a standard set of processes that will drive forward the strategic development of the business, as well as provide a roadmap for how this is to be executed. Many companies find that an operating system becomes the key driver of performance, and can persuade both investors and prospective employees that your business is the right one for them.
Multinationals such as LEGO, Toyota, Boeing and Audi developed their own operating systems- but you don’t have to be a giant company to reap the benefits.
Over time, we realized that it was essential to find a way to systemize companies, and track what was happening when we help companies build and scale. However, any organization – big or small – will benefit from introducing a standard way of operating, which ensures things don’t fall through the cracks.
Manage Rapid Growth and Missed Opportunities with an Operating Systems
Establishing, documenting and training the set processes needed to run your business is just one feature that operating systems have in common.
- Establishing a clear vision for the future of the business
- Scheduling regular strategic reviews
- Setting measurable goals for your team
- Collecting regular data about all aspects of your business
- Standardizing employee assessments
- Setting procedures for dealing with issues
There are many different operating systems to choose from, and several different ways to simplify your strategic plan in one- or two-page documents. If you’re considering using one- do your research, read testimonials and results, then decide which is right for your business.
Based on experience, trying to use multiple operating systems makes the business more complex, and potentially more convoluted. Select one that fits your business and which you and your leadership team buy into. When you choose the right one, it can completely transform how the organization operates from top to bottom.
The system which we help businesses introduce, the Scaling Up System, concentrates on four (4) key components of every business: People, Strategy, Execution and Cash.
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The benefits of an operating system
Whichever operating system you choose, when implemented effectively, it should grow with your business and transform the people who are doing and managing the work.
Here are five key benefits:
- A clear vision of where the business is going, and how you will execute on that vision
- Quarterly strategic reviews to stay focused on your vision and
- execute better
- You will build a team who match your culture, share your vision and are clear about their responsibilities
- Increased accountability and consistency; so your business runs more efficiently day-to-day
- Transparency and better communication throughout the organization; meetings become more productive
Typically, an operating system’s impact on a business is greater control, better results and increased profit. One manufacturing business we work with implemented a recommended operating system for 6 months, and has made significant gains and increased profit margins.
An operating system makes a company easier to lead and manage, which gives owners, leaders and teams a better work-life balance.
Let us know if you would like to know more. We are always up for a conversation!
Nick Fagan, Next Practice Education