Systematization Definition for Small Business - Organizing
The systematization definition for small business is: to arrange into a system, plan or method, how the business operates from start to finish. In other words, simply mapping or writing down, step-by-step, exactly how each process or function in a small business works.
For example, a small business owner asks an employee to clean up the company tool room. As a result, the employee will clean the tool room to a level of what he or she considers “clean.”
However, what an employee thinks “clean” looks like may not be the owner’s idea of clean. In fact, five different people may have five different definitions of clean.
Therefore, to systemize the process of cleaning the tool room, the owner of the business would write down, step-by-step, EXACTLY how they envision a clean tool room.
With the above systematization definition in mind, imagine every function or process in a small business, systemized from beginning to end. Now, imagine it systematized to the owner’s vision of organization.
Turnkey Like Big Boy Box Stores
When applying the systematization definition to every aspect of a small business, you end up with a turnkey business, like a big boy box store, i.e. Lowes, Home Depot, etc. Consequently, the market value of the small business increases, exponentially. Moreover, the small business owner has more time to spend working on new growth, without causing undue chaos or stressing existing capacity. This is known as scaling a business. In fact, turn-keying is also a crucial step in getting a business franchise-ready.
Sadly, companies can implode, due to chaos caused by too much growth, too fast. A company can only grow at the speed of their systems!
Another benefit of applying the systematization definition, to bring order to a small business, is that you end up with a comprehensive Operations Manual.
Small Business Owner’s Fear the Unknown
You might be surprised how often small business owners share with us that they are NOT good managers. Many tell us they’ve put in systems, but their PEOPLE won’t use them.
Consequently, these small business owners stay frustrated and bogged down in daily operations. Not to mention, everyone in the company continues stepping in messes, and everyone stresses over internal chaos.
These owners should ask themselves, “Who’s the boss here? And, why do I use these excuses to avoid bringing order to my business?”
Sadly, many business owners think the systematization definition for small business, “Looks like rocket science!”
At the same time, these same business owners can describe, to the smallest of detail, how their business operates, minute-by-minute, step-by-step, and from beginning to end. WHY? Because, the way their business operates is trapped in their head. And it will stay there until the owner decides to WRITE IT DOWN. In the meantime, employees will constantly interrupt them trying to get at that trapped information.
Think about that … you, the owner, know how your business is (or should be) operated, and you have developed ways of making it happen. However, if your ways still frustrate the process - because employees don’t have the same vision or clear directions - it’s a recipe for CHAOS.
Remember, a “best-kept secret” remains a best-kept secret, until you … WRITE IT DOWN!
In conclusion, the systematization definition for small business is actually “simple stupid” - and the mission for bringing systematization into a reality is also simple. Here’s where leadership is most needed, and perseverance is a must!
Did I mention? Great systems work!
Philip Beyer, founder/president of Ebiz Products LLC and founder of Beyer Printing Inc. in Nashville Tenn., is a chronic entrepreneur, business systems analyst and consultant. Author of "System Busters: How to Stop Them in Your Business" and recipient of an InterTech Technology Award for the design and development of System100 business process management software. Beyer speaks to business owners across the country on how to bring lean, sustainable order to their businesses. Contact him at (615) 425-2652.