The Myth of Business Systems

Most entrepreneurs recognize the need for business systems. Many books and gurus teach that without systems or standard operating procedures your business won’t last long.

And they’re right—but only to a certain point. If misdirected, an over-reliance on business systems can do more harm than good.

I’ve found many business owners hold common misconceptions about business systems. In this brief video I reveal the top four myths of business systems, and what to do about them.

Action Steps:

  1. Watch this video and ask yourself: Have I been acting upon any of these myths in my small business?
    • Systems should be as detailed as possible.
    • The business owner should write the systems.
    • Systems should be perfect.
    • The system is the solution.
  2.  Share your perspective or ask questions about business systems on this page.

Principles:

  1. A Business System should be a brief sketch outline that you can use for training. Documenting too much detail to systems makes it ineffective.
  2. The best person to document the systems is the employee using it.
  3. There is no such thing as a perfect business system. We always want to improve and innovate processes within the business.
  4. Business systems are only as effective as the people using them and the accountability provided to those people.

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  • Carol

    Very useful, Dave. Thank you! Number 4 under Principles really hit home. I have learned, at considerable expense, that systems are no substitute for hands on interaction with, and oversight of, the people who are supposed to use those systems. If employees are not really using the systems, they are useless. And as a business grows or the environment in which it operates changes, the systems themselves need to evolve as well, so the leaders of the business need to be in touch with what is or is not working. 

    • http://DaveCrenshaw.com/ Dave Crenshaw

      Well put Carol. I like this statement: “So the leaders of the business need to be in touch with what is or is not working” This requires continual measuring and reassessing of the results a business is getting from its systems.

  • Louise

    I love all your videos, but this one hit home. Many of my current systems need revision…time to let my employees work on that instead of me.  Also, always needing reminders about keeping them accountable to prevent the systems breaking down. Thank you!

    • http://DaveCrenshaw.com/ Dave Crenshaw

      Yes, delegate the revision of the systems to your employees, and then edit their revisions. You’re welcome, Louise!

  • zalikhan

    Hi Dave, Thanks for your input. I am in the process of putting together systems and have looked at e-myth as well as Work the System. Both have their strengths and weaknesses. Do you offer a program for system creation? Thanks!

    • http://DaveCrenshaw.com/ Dave Crenshaw

      Yes! Please see my book, Invaluable: http://amzn.to/OFB7lZ.

      In the appendix of the book is the Single Page Systems template that I teach to my one-on-one business coaching clients. It also includes instructions.

      If you are interested in one-on-one coaching, please complete the Chaos Assessment at http://harnesschaos.com This will help us determine if you are a fit for coaching with me.

      Also, my next book will go into this topic in greater depth. Keep your eyes open…Thanks, Zalikhan

  • Glennh

    Love it Dave! We implement solutions daily, which become part of the “system”. Your words ring so true from my own experiences. I’ll take a look at your book. Does it come in e-form? 

    Keep them coming! 
    Glenn