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Business systematization: how to prepare a company for a new stage of development

31/ 07/ 2017

Author: Petro Synegub, the owner of 14 successful and evolving businesses in Ukraine and other world`s countries, founder of Business Academy 4SMART

One of the most important conditions for the business development is the owner’s departure from the operational management. It is logical, because this is how he returns to his original tasks: he builds a strategy, sets the vision of the entire company and generates common goals.

Due to a system business the owner stops being its hostage. This improvement can be seen on the other employees: each department works more efficiently.

The established system allows the business to enter new markets, to increase staff, to scale, to introduce new products. The business must adhere to certain rules for everything to work out.

What is systematization?

80% of Ukrainian medium and small businesses owners do not suspect how their companies actually work. They are sure that all existing processes are executed for 100 percent and no failures occur.

They are really surprised when an audit or a secret purchase takes place in a company. It turns out that employees act at cross-purposes and finally do not reach the overall goal.

This is a small illustration of how a business works without a system. The company can not grow, recruit new employees and adapt them quickly with chaos inside it.

So what kind of business can be considered systemic one?

– Each employee works on the described business schemes and business processes
– The management has approved them
– The processes are maximally effective in their expense of time and human resources
– Each specialist can change his work process if he sees its inefficiency
– The owner does not interfere with the operation management, because everything is set up and works without any problems
– There is a clear technology of hiring, due to which the company selects “its” employees

How to organize business

Usually specialists are wondering why they should describe their work processes. They consider this work to be unnecessary – as long as it works normally, they do not need any additional instructions.

In fact, the described business processes are aimed at their tasks:

– They lead the employees for the ready process and save their time
– Newcomers adapt faster and take on their responsibilities
– The processes show the owner and his managers, what exactly people are busy with in the company

So what steps should the company take to systematize itself?

  • Describe the processes

Each specialist gradually describes the work processes he is responsible for.

  • Calculate time

The employees indicate the time of each small step inside the big process. As a result, the managers know what and how much their employees are loaded with work.

  • Evaluate

The owner, together with his expert group, assesses the effectiveness of his employees’ working processes. The experts are the heads of departments and the key specialists.

Together, they decide how to refine this or that business process to make it even more effective. The way they do it depends on a particular process. In one case you can shorten the time, in the other case remove an unnecessary link or exclude someone else’s action from the chain.

  • Distribute

Being approved by the TOP managers, the edited processes are sent back to the specialists.

  • Check

To describe and give the rules back isn’t enough. They need to be checked. This can be done by department managers or a specially assigned person. Due to this control the employees will not depart from the concerted actions.

  • Improve

The advantage of an organized business is that it can always be made even more efficient. It is good when the change initiative comes directly from the staff. As the executors, they know exactly what should be fixed inside the process.

An expert group considers different ideas and decides whether to approve them or not.

How to implement the system in the existing business

Business organization must be done consistently, according to a well-agreed schedule. The only principle is to start with more profitable departments. Each company has its own specific situation.

How can you introduce a system into a company, following the example of an average small and medium Ukrainian business?

  • Sales department

In most companies, this is the unit that generates a significant portion of the profit. Therefore, the positive changes in this particular department can significantly improve the overall rate of the company.

Especially the companies with the majority of regular customers should start with sales.

  • Marketing department

Typically, these two departments go hand in hand, so the system should enter them simultaneously. That goes for the companies where marketing brings potential customers, which are then processed by sales staff.

  • Financial and management accounting

The system is needed in this area for the company to understand how much money it has and where it is from.

  • Budgeting

The next step for the company is to understand how to distribute money in a certain time perspective, in which departments and for what needs.

  • HR department

When all profit and customer issues are resolved, you should undertake the staff. It is important as the team is the central resource of the company. The employees’ productivity and efficiency depends on their comfortable environment.

Therefore, it is necessary to systematize each individual process and the life cycle of the employee in the company in general. All the processes from interviewing to farewell are meant.

Business systematization is a comprehensive measure. You can not implement the system in one department, saying to the other: “Work like before.” Therefore, the process of systematization takes time.

Many Ukrainian business owners have already decided to change. Their experience suggests that competently systematized business is a new stage in the company’s development.

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