How to Create Systems in Your Business – 7 Steps

Systems and processes are the building blocks of every business – if done right! Are you finally looking for how to create systems in your business because you are constantly going from one crisis to another? Do you feel that your business is running in circles with no end in sight?

Systemizing your business not only helps improve consistency and efficiency, but is essential to effectively achieving set goals and results for success of the business.

This article explores the key steps to create systems in your business. Let’s get started!

Systems Thinking and Business Systems

How to Create Systems in Your Business
Systems Enhance Customer Experience

Business systems create consistency because they provide structure and allow a business to track and manage its operations, assets, resources, and customers.

They not only include the polices, procedures and processes used to operate a business but, they also include assets, software, IT, human resources and, of course, customers who the business intends to serve.

Business systems introduce simplicity into otherwise overwhelming business activities as they create bite- sized systems (e.g. lead generation, customer service, order fulfillment, quality management, document management etc) that are easier to manage.

“ If you are not serving the customer, your job is to be serving some else who is”  - Jan Carlson, Former CEO of SAP Group

Getting Started – How to Create Systems in Your Business

As a small business owner, you probably already understand the importance of organization and efficiency based on the daily running of the business. There is a huge difference between a business operating in “survival mode” and one that “runs like a well-oiled machine”.

The difference is that the latter operates on created systems that the team can easily follow to ensure that all tasks are completed correctly and consistently.

Creating systems in your business requires some high-level pre-planning. This will require some brainstorming with key people in the company if there are different departments and teams.

Of course, if you are the business owner wearing “many key hats” in the company, you might think that this will simplify the brainstorming session.

Unfortunately, it usually it does not, and “tunnel vision” can creep in where it is not easy to see the grass because of the weeds.

It is never recommended that you create your systems without input from other key personnel or the employees that will use them.

Many business owners choose to engage process consultants like BCINC to assist them with systematization especially with increasing business size.

This is because it can become confusing, and a consultant can guide you more efficiently through the exercise by asking the right questions.

Step 1: How to Create Systems in Your Business – Identify the Working Team

One of your key resources when creating systems in your business is your team since they will be the ones responsible for actually putting the systems into operation and making sure that they are running smoothly.

How to Create Systems in Your Business
Identify Team Members

Identify key members of the working team – managers, supervisors and other “system user” employees.

This ensures that you have their buy-in and commitment for when the new system is implemented because they would have provided ideas, insights and experience.

Assess the processes you currently have in place and identify which ones are working best for you.

Once you have identified the successful processes and the ones that need improvement, gather any current performance data (including customer complaints) from the areas you suspect may require a new or improved system.

Work on each system one at a time.

Step 2: Identify the Objective for the System to be Constructed or Repaired

Select the System: What is the name of the business system you are addressing? Order fulfilment? Customer service? or Other

Analyze Current Workflows: To get your baseline process map, document how the system is currently performing.

Identify Current Problems, Bottlenecks, and Challenges: By properly identifying the root cause or underlying problems will help to identify potential solutions.

Identify a System Objective and a Measurable Goal: A measurable goal ensures that you can track the performance of the system.

By monitoring your system’s results to ensure it meets your business’s needs and regularly reviewing the performance and making any necessary adjustments will bring continuous improvement.

It is important to take the time to discuss the goals and objectives with your team and create a plan for how the system will be implemented in the business.

Step 3: Draw a Flowchart or Process Map the Desired System

Establish the correct beginning and end points of the process as you do not want to overlap with other business systems. Sometimes there are more than one process or sub-processes within a system arising from decision points with alternate paths.

These could include approved vs approved pathways or pass quality check vs failed quality check and reject pathway.

Proper tools are essential for mapping, and this is where process consultants can assist you. Swim lane mapping helps you identify the necessary human resource roles associated with different steps in the map.

Step 4: Determine Key System Components

List the key components required to perform the steps in the process. These include the policies, procedures, work instructions, phone scripts, forms, checklists, equipment, software, database etc.

How to Create Systems in Your Business
Key System Components

These are very important because without a consultant, somebody in the company must be tasked with creating this paperwork.

Step 5: Testing and Refining Your Systems

Once you have got your systems set up and running, it is important to test them out and make sure they’re working properly. It is also a good idea to review the systems periodically to ensure they are still relevant and efficient.

For optimal performance, consider running a pilot of the system and then refining it until it meets the needs of your business.

This could include collecting feedback from users, testing new technology, or modifying existing processes. By continually testing and refining your systems, they remain effective and up to date.

Step 6: Managing Change

When creating systems in your business, it’s just as important to think about how you manage changes and ensure adoption. After all, if you create the systems, but no one uses them, there is not much point!

You can use a few strategies to manage changes successfully and ensure adoption.

  • First, it is important to clearly communicate the reasons for the changes to your team and involve them in the process. This will help them feel invested in the outcomes.
  • Second, you should introduce and explain the changes incrementally. This helps team members adjust to the system in manageable chunks.
  • Finally, supporting other employees is important as they learn to use and adapt to the new system. This can mean offering training or other resources to help them understand how the system works.

Step 7: Monitoring and Managing the System

Once you have created systems in your business, it is important to ensure they are working as intended. Monitoring and controlling the system is essential to setting up an efficient and effective system.

This section will outline the steps you should take to ensure that your system runs smoothly and is properly monitored.

Metrics to Monitor

First, you will want to determine what metrics should be used to assess the system’s performance. Metrics should be tailored to your specific business goals and objectives.

These could include time-based metrics such as time on task and completion rate and customer satisfaction metrics such as average customer response time.

How to Create Business Systems – Review Process

Once you have identified the metrics, you will want to set up a regular review process to track the system’s performance. This review should be done regularly, typically monthly, but can also be done quarterly if necessary.

During the review, you should look for areas where the system is not performing as desired or where there may be potential areas for improvement.

In addition to the regular review process, you should also look at implementing automated systems to monitor the system’s performance if this is applicable.

Automated systems can collect data and report on any issues or areas of improvement. These systems can be set up to send out reports regularly, allowing you to review the system’s performance and make any necessary changes quickly and more efficiently.

Feedback Loop

Finally, it is important to have an effective feedback loop in place. This feedback loop should include both customers and employees so that any issues or areas of improvement can be identified and addressed promptly.

Customers should be able to give their feedback directly to the team responsible for the system, while employees should be encouraged to provide feedback on the system within their team.

Conclusion – How to Create Systems in Small Business

Now that you have completed this article, you have a clearer understanding of how to create systems in your business.

By analyzing your current processes and planning out the future, you can develop comprehensive systems that will help you streamline operations and achieve success.

No matter the size of your business or the complexity of the systems you create, having accurate and up-to-date systems will be an invaluable asset to you and your business.


Business Systems: How to Create a Business that Works For You » Predictable Profits

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