Systemizing Your Business: People, Processes, Purpose
Systematization is the systematic organization of anything, the act of organizing something according to a system or a rationale. In an enterprise context, it is organizing business operations, from long-term strategy to day-to-day, into a system that is efficient, pragmatic, and productive. There are three key components to developing a business operating system; people, processes, and purpose - the three Ps of systematization.
People should always be the first consideration when designing, organizing, or constructing anything for a business. After all, people will buy the product or service, people will produce the product or deliver the service, and people will be required to run the systems. The key to proper systematization is organizational structure in order to get the right people in the right seats, doing the right job the right way, and measuring the right things to achieve accountability. .
Structure is more than an organizational chart, it is the road map to team development and growth, the framework for all processes and communications, and the foundation to all operations. People make up the structure, however structure as part of a system requires clearly defining functions, metrics, protocols, and communications that dictate how a business will operate. Once a proper organizational structure is in place, the next step to building an operating system is process.
Workflows should be designed and optimized to execute the intended operations as defined in the structure and as a key part of the system. Workflow is the high level conduit that connects processes, procedures and protocols in a rational and efficient manner across all functions. The processes are the extrapolated definitions as to how business is done, from customer service, to production, to accounting.
Processes and standard operating procedures are key to a systems ability to remain consistent, efficient, and profitable. Furthermore, processes allow businesses to grow and make scaling operations and people possible. Processes are the specifics to executing on all functions as defined in the structure and make cross-functional efforts and communications practical. The system will develop organically from here, once day-to-day procedures are defined and connected across the entire structure. However, to create an intentional and effective system, businesses must consider purpose.
Purpose will be apparent from the beginning of systematizing a business, including the purpose of people and processes, but organizations must consider the higher purposes too. Purpose starts with the company's mission and reason for being, which drives long-term vision, dictates culture and core values, and determines everything about how the company will operate - from how it treats people, to how it makes money, to what product it makes.
However, specific to systematizing a business, strategic planning and execution of the purpose must be consistent. A business will need to establish a rhythm to its operations including goal setting, measuring, and reporting. This requires scorecards, which are impossible to create without a clearly defined structure, Scorecards provide the accountability metrics per function or the processes that dictate how to operationalize objectives.
When a business leverages a systems thinking approach to design and develop all of these components in cooperation, taking a comprehensive yet contingency viewpoint, a system can be developed and implemented. A business operating system will enable accountability, profitability, and scalability. Systematization is the key to sustainable growth and building a company that can achieve short-term objectives and realize long-term success.