Over the past month, not by sheer coincidence, I have participated in many discussions about ‘business systems’.

People have differing views, ranging from ‘the need’ for systems to ‘the design’ of systems.

I am not writing about my personal views at this time. However, I’d summarize them this way: with respect to ‘the need’ I am of the view business systems are essential and with respect to ‘the design’ I am of the view business systems should be comprehensive yet user-friendly and containing user input, automated within reason, simple to follow yet sufficiently detailed, and crystal clear.

Business systems must be taught and they must be learned. They must be embraced.

Here is one way to look at business systems…it is an introduction to the good work Brad Sugars is doing with his business-consulting company ActionCOACH…for more information visit www.actioncoach.com.

As part of his ‘INSTANT SUCCESS’ series, in his 2006 book titled ‘Instant Systems’, Brad Sugars wrote about “The  Nine Steps to Systemizing Your Business”. While one needs to read the book to understand the strength of Brad Sugars’ 9 points, the following summary illustrates his approach to business systems.

1.      Step 1: VISION – this is a long-term [Brad says a 100-year view] of the grand picture of what your business will be like when it is finished. The Vision should be clearly understood by everyone at your business. Brad provides his company’s Vision, which is captured in 5 words.

2.      Step 2: MISSION STATEMENT – this states how you are going to accomplish your business Vision. It should clearly explain: who you are, what business you are in, who your customers are, and what makes you different than your competition. Brad provides his company’s Mission Statement, which is described in one page.

3.      Step 3: CULTURE STATEMENT – Brad says this is usually a 14-point statement covering: the company leader’s 4 most-important values, the team’s 4 most-important values, and the customers’ 4 most-important values. At his company, Brad covers these using the following 14 points: Commitment, Ownership, Integrity, Excellence, Communication, Success, Education, Teamwork, Balance, Fun, Systems, Consistency, Gratitude, & Abundance.

4.      Step 4: GOALS – your Goals help you achieve your Vision. Your Goals should be SMART, consider the end point, ie, your exit from the business, and provide direction and focus.

5.      Step 5: ORGANIZATIONAL CHART – again, consideration must be given to the end point.

6.      Step 6: POSITIONAL CONTRACTS – using Brad’s words, ‘It’s very important to tell your people what they’re supposed to be doing.’ And, ‘Spell it out in clear, unambiguous terms.’

7.      Step 7: KPIs – Key Performance Indicators for every position. Brad recommends 5 to 10 KPIs. He ties pay-for-performance bonuses to each person’s KPIs.

8.      Step 8: HOW-TO MANUALS – written down, video- or audio-taped…whatever works.

9.      Step 9: MILESTONES – you must consider the main stages your business will go through from infancy to maturity.

That’s a summary of a concise set of instructions for setting up Business Systems. Perhaps, the most striking piece is the step called Culture Statement. Many businesses have given little thought to culture. Based on our discussions with many businesses, the first three steps – Vision, Mission Statement, & Culture Statement – appear to be the most difficult.