Implementing Systems for optimal efficiency!
One of the scariest moments for weaker leaders is when they must delegate authority to their employees. They somehow feel powerless because of the uncertainty factor of exactly how their employees will perform. This is the reason why many of those weaker leaders force themselves to be responsible for any task deemed important in their organizations. Whether those duties are operational or management related, they cannot easily relay them to regular employees. The best leaders in the world however solve this problem with two mechanisms: Systems and Controls.
Systems are simply the engine of an organization. For example, let us consider the vehicle of an individual named Sam. Sam's vehicle has an engine with numerous parts interconnected for the efficient operation of his vehicle. The brake system is responsible for slowing the car down or completely stopping it if necessary. The cooling system is responsible for providing enough aeration so that his vehicle will not overheat. The belts are responsible for providing enough torque and horsepower for his car to pick up speed and ride for long distances. The gas pump is responsible for providing the right amount energy so that his vehicle stays running. Those above are just some of the systems that comprise Sam's vehicle. Every time Sam starts his car, hundreds of procedures take effect to make his engine operate. The most wonderful thing about thing about Sam's vehicle is because he does not have to dictate to his engine how to execute its regular functions. The engine knows what procedures to follow and what actions to undertake when Sam turns the ignition key on. This appeasement factor is due to the fact that Sam's car manufacturer implemented the engine systems long before it arrived at Sam's parking lot.
In essence, we will conclude that Sam's sole activity will be to just drive the car and provide it with regular maintenance. Additionally, someone else besides Sam can drive the vehicle and it will perform the same exact way. The best leaders in the world thrive or come close to building their organizations like car engines. They will build their organizations piece by piece and make all of the necessary decisions that revolve around business operations long before any employee is to perform a task. For good reasons, they put their employees in a frame in which they cannot change the predetermined course or debate over the next plan of action. Just like cars, business systems represent the sets procedures and actions that must take effect in coordination with other sets of procedures to make an organization run efficiently.
If true systems are in place in an organization, then a leader is able to delegate full authority to anyone with the confidence that operational activities will be executed at a maximum level of excellence. However, one should be careful not to mix systems with standard procedures.
By definition, standard procedures are the manuals that one will use to operate the systems. Systems are the specific deliverables that an organization will enjoy if the standard procedures are properly followed. Without systems, standard procedures are somewhat irrelevant because they amount to a multitude of regulations that may not be coherent or viable to every business activity. Unfortunately, many organizations keep their faith in standard procedures while trivializing over the reason for their lack of efficiency and consistency. Their major problem lies not in their ability to write up many rules and regulations but their inability to construct a business scheme that is operational all year long and in every type of business activity. This mindset is attributable to their failure of realizing the fundamental reasons for systemizing regular business activities.
Why develop Systems?
Organizations go through many different circumstances during a business cycle. For instances, in a given period, businesses must deal with accounts payables, accounts receivable, customer inquiries, billing issues, product marketing, employee benefits, financial reporting, downturns, profit losses, and so on. Because of the unpredictability of these factors, businesses cannot push for efficiency unless they tackle these issues with the same methodology. In reference, the best leaders in the world understand efficiency in an organization as the establishment of control, and systematic use of a predetermined methodology regardless of variations in a business environment. In an organization, if there are multiple means of operating and multiple ways of solving issues, then it would be very difficult to always determine the likely outcome. Remember, the best leaders in the world do not dwell on uncertainty, they dwell on predictability.
One of the scariest moments for weaker leaders is when they must delegate authority to their employees. They somehow feel powerless because of the uncertainty factor of exactly how their employees will perform. This is the reason why many of those weaker leaders force themselves to be responsible for any task deemed important in their organizations. Whether those duties are operational or management related, they cannot easily relay them to regular employees. The best leaders in the world however solve this problem with two mechanisms: Systems and Controls.
Systems are simply the engine of an organization. For example, let us consider the vehicle of an individual named Sam. Sam's vehicle has an engine with numerous parts interconnected for the efficient operation of his vehicle. The brake system is responsible for slowing the car down or completely stopping it if necessary. The cooling system is responsible for providing enough aeration so that his vehicle will not overheat. The belts are responsible for providing enough torque and horsepower for his car to pick up speed and ride for long distances. The gas pump is responsible for providing the right amount energy so that his vehicle stays running. Those above are just some of the systems that comprise Sam's vehicle. Every time Sam starts his car, hundreds of procedures take effect to make his engine operate. The most wonderful thing about thing about Sam's vehicle is because he does not have to dictate to his engine how to execute its regular functions. The engine knows what procedures to follow and what actions to undertake when Sam turns the ignition key on. This appeasement factor is due to the fact that Sam's car manufacturer implemented the engine systems long before it arrived at Sam's parking lot.
In essence, we will conclude that Sam's sole activity will be to just drive the car and provide it with regular maintenance. Additionally, someone else besides Sam can drive the vehicle and it will perform the same exact way. The best leaders in the world thrive or come close to building their organizations like car engines. They will build their organizations piece by piece and make all of the necessary decisions that revolve around business operations long before any employee is to perform a task. For good reasons, they put their employees in a frame in which they cannot change the predetermined course or debate over the next plan of action. Just like cars, business systems represent the sets procedures and actions that must take effect in coordination with other sets of procedures to make an organization run efficiently.
If true systems are in place in an organization, then a leader is able to delegate full authority to anyone with the confidence that operational activities will be executed at a maximum level of excellence. However, one should be careful not to mix systems with standard procedures.
By definition, standard procedures are the manuals that one will use to operate the systems. Systems are the specific deliverables that an organization will enjoy if the standard procedures are properly followed. Without systems, standard procedures are somewhat irrelevant because they amount to a multitude of regulations that may not be coherent or viable to every business activity. Unfortunately, many organizations keep their faith in standard procedures while trivializing over the reason for their lack of efficiency and consistency. Their major problem lies not in their ability to write up many rules and regulations but their inability to construct a business scheme that is operational all year long and in every type of business activity. This mindset is attributable to their failure of realizing the fundamental reasons for systemizing regular business activities.
Why develop Systems?
Organizations go through many different circumstances during a business cycle. For instances, in a given period, businesses must deal with accounts payables, accounts receivable, customer inquiries, billing issues, product marketing, employee benefits, financial reporting, downturns, profit losses, and so on. Because of the unpredictability of these factors, businesses cannot push for efficiency unless they tackle these issues with the same methodology. In reference, the best leaders in the world understand efficiency in an organization as the establishment of control, and systematic use of a predetermined methodology regardless of variations in a business environment. In an organization, if there are multiple means of operating and multiple ways of solving issues, then it would be very difficult to always determine the likely outcome. Remember, the best leaders in the world do not dwell on uncertainty, they dwell on predictability.
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