We’ve talked about the value of having a system.
Then we talked about the importance of measuring the results.
Now we need to talk about the importance and the art of “tweaking.” We call it Systems
Innovation.
Systems innovation is about creating new systems, enhancing existing systems, and doing things in a better way. The truth is that every system can be improved and systems innovation will keep your business healthy year after year.
Using the indicators you developed in your systems evaluation process, you'll be able to immediately determine whether or not new ideas are having a measurable impact. And in today's challenging economy, you may need to make quite a few adjustments to your business.
Periodically you will need to evaluate your existing systems and ask yourself:
- Is the system still providing value to the customer – better, more efficient, easier to use?
- Does it still provide the results expected (or better)?
- Are employees comfortable with the process – does it makes sense physically, economically and time wise?
- Is the system still financial viable?
- Is there a different way we can achieve the same or better results with a minor change?
Start by asking your employees their thoughts on the system. Is a change necessary? Why? How would it improve the process? What is the financial and time commitment necessary to make the change occur?
Survey your customers if the system directly impacts their experience. Was the experience satisfactory? How could it be improved? Was it easy to do business with us?
If you keep your finger on the pulse of the systems in place you will be able to adjust for economic or competitive changes in the industry without a drastic impact on the company. Regular evaluation will result in a few tweaks or refinements.
Know When to “Punt”
There will come a time when a system or process or program just doesn’t work. If you are evaluating regularly you will be able to “trash” the system quickly before too much time, effort or money is invested. However if you aren’t measuring, evaluating and changing your system as the need arises, very soon you will find the company has veered off course and the changes necessary to get back on track could be considerable.
Rob May wrote about the Heinz Ketchup story and he has this to say:
Heinz, like many entrepreneurs, considered profit only one of many yardsticks used to measure business success. Here is why Heinz thinks he was successful.
"To do a common thing uncommonly well brings success," he said. Another of his credos echoed the same sentiments: "Quality is to a product what character is to a man."
Therefore, if we are to follow in the successful footsteps of Heinz, we must measure and create a system for more than just sales and profits.
At the end of the day, your systems have to serve your business and your customer. They should help you by minimizing costs, maximizing profits and ultimately increase the value of your business.
Systems are the Solution
Implementing systems doesn't have to be a scary process that you put off for a rainy day. Remember, implementing your best practices (a.k.a. systems) will help you build a thriving turn-key business operation.
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