Management 101: 5 Steps to Creating the Ultimate Business System

Author: Russell Smith
February 5, 2018

Trying to establish a new business system and need help creating notes and plans? We take a look at the best way to create your business system.

Business System Feedback Loop

Creating a business system plan is a vital part of company operation; so people say.

Through our work, we’ve encountered many business owners and members of management that aren’t quite certain what a business system plan, otherwise known as system notes, is.

In this blog, we’ll explain everything!

We’ll be looking at what a business system is, why you need one and provide you with our bullet-proof, step-by-step guide to creating one that stands the tests of time.

What is a Business System?

A business system is a very general term. It covers a number of things, including:

  • Processes
  • Procedures
  • Methods
  • Actions

Essentially, anything your business does will have a system behind it.

How do you gather payments from customers? You’ll have a process of requesting payments, dealing with late payments and so on.

How do you manage your internal disagreements? They’ll be procedures to follow.

Why Do You Need to Create a Business System Plan?

Over time, the needs of your business will change. You may grow or shrink. You may introduce new ideas, innovations, services or products. Your internal structures may shift.

Whenever a change occurs, systems change or introduced.

However, if you change systems without creating plans, people get confused. Transparency and clear instructions on all aspects of business operations ensure everyone is on the same page, limiting the potential for mistakes and misunderstandings.

For example, if you were to change the way payments were requested, but didn’t create a system plan for it, you’ll find employees aren’t quite sure what to do, follow old methods or lose track of their tasks.

Every great business system has to be written down somewhere and taught to those within the company. If it isn’t written down, it’s just an idea.

Ideas can be shared, but they can also be confused, misunderstood or forgotten.

Five-Step Guide to Effective System Notes

Identifying what a business system is, and why you need to establish a plan when creating a new one, is one thing, actually making the said plan is another entirely. Once you’ve moved through that process, you move onto the next phase: devising business system notes in order to ensure everyone on your team understands the changes to the way your brand operates.

System notes can come in many forms. Common introductions include slideshow presentations, but you can also create handbooks, hold meetings or produce instructional videos.

Whatever platform you choose to share your business system notes on, it doesn’t matter. What does matter is the steps you take when creating your business system plan:

Step 1 — Which System Are You Adding/Changing?

Identify which systems are in need of changing/improving/introducing. Set a priority for those that will have the most significant impact and avoid wasting resources on rolling out wide-scale changes that influence very little change.

The highest impact systems that are often in need of improvements are those around finance and revenue collection.

Step 2 — Who is Creating Your System Notes?

The most senior member of staff, or those that have the most flexible work schedule, are not always the right person for the job. The best person to create your business system notes are:

  • Those aware of the changes in comprehensive detail
  • Skills in communication and project management
  • Good eye for detail and organisation
  • Proven ability to create documents that have clear and understandable intent

Step 3 — Produce Your Business System Plan

Have whoever is creating your business system plan, create your business system plan. Similar to this blog, a step-by-step guide is often recommended. Avoid jargon and ensure it is understandable by those in all levels of the company, in all positions.

While it may not apply to them at this moment in time, it very well could do in the future.

Step 4 — Audit Your System Notes

Run a trial of the new system.

Get together one or a few members of staff and have them perform the tasks documented in the new system notes. Look for confusing elements or occurrences of slower than expected competition.

Gather feedback after the trial, and find out how effective the employees believed the system notes to be. Make adjustments based on their performance and feedback. Do not let subpar system notes become part of company policy.

Step 5 — Rollout Your Changes Company-wide

Use your chosen platform and deliver the new business system plan to your company; across every team member necessary. Ensure the information provided within the system notes is always accessible to those it is relevant to, in case they need to refer back to it at a later date.

Look for support in producing your business system plan? At Russell Smith Chartered Accountants, we’re experts in business management as well as finance. We can help you create detail, comprehensive and understandable system notes, helping to get your new projects off the ground.

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