Business organizations often develop several different policies, rules, and guidelines for governing their operations. While home-based or sole proprietorship businesses usually require fewer policies, larger organizations use these guidelines to manage employee behavior, whereas smaller businesses tend to depend on people-driven processes. The skill of managing a business is mixed in their galthuthi (a mixture of molasses, ghee, and water that is given to a newborn) – meaning it is inculcated and ingrained into their minds from a very young age. Gujarati youth grasps the various ways of doing business very quickly. You may recall so many small to big companies where if we look at their sales turnover, they would be termed as reasonably good-sized companies, but while looking into the systems and processes there would be zero work done in those areas.
Such companies are capable of handling the business turnover till a certain extent, after which due to lack of proper systems, they fail to cope with higher demands and tend to fail miserably. If systems and management are not coordinated at the right time, such deadlocks become unavoidable.
Systems and processes play a significant role in building a company. They serve as the company’s essential building blocks and support. Systems enable employers to monitor and manage their staff. It also improves the employee performance and creativity. It allows them to interact with each other and connect them to the operational strategies of the business. Besides, they also enhance productivity and help implement strategic planning, creation, and operation.
Using a systematic approach also allows you to meet the expectations of your clients. It makes knowing the strengths and weaknesses of an organisation more conveniently monitored, leaving you better aware of what needs improvement and understand customer needs you haven’t met.
Recently, an interesting dialogue exchange of the top officials of financial consultants held. From their deliberations, it was revealed that not just small, but even medium and big sized companies do not have much knowledge about the enforcement of GST and its effects thereupon. If big companies that work with a well-defined system and procedure are facing this issue and the picture is still not clear for them, then where do the small companies stand? This instance shows that we need to have proper systems in place, which will ensure that outside changes or modifications do not have much of an impact on the functioning within the company.
To ensure the efficiency and consistency of results, systems and processes are essential. Finally, business systems have the capacity to reduce costs and boost revenues by producing consistently high quality work. Combined with all the other factors, it is clear how systems and processes help grow a business. In short, business systems start with documented procedures and processes that allow your business to run without you.
The poster child for business systems is McDonald’s. This is a complex, worldwide, multi-billion dollar business that is essentially run by pimply teenagers who can’t even be trusted to make their beds.
How do they do this?
They manage to run this hugely successful and profitable business because they have amazing business systems. Their operations manual covers everything from hiring to product delivery to customer interaction.
Truly, systems give your business the ability to expand. You can replicate your business in other geographic areas yourself or by franchising or licensing the rights to your business system. Many fortunes have been made this way.
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