Systems, Systems building
Title:
Systems Design and Documentation
Source:
E-myth Mastery Coaching Program Materials, to be made available scanned and attached to this brief, currently hard copy with Donnie
Key Points:
-The Starting point for designing a business system is to define the exact result you want to system to produce.
-Draft a box and arrow diagram to show the sequence and interdependency of the elements of the system
-Pay attention to the details of your business systems. Small errors in one system are magnified in subsequent ‘downstream’ systems.
-Do your system design work on the spot where it takes place. It’s not an academic exercise, it’s real world
-Components of a system action plan: 1. Title 2. Result statement 3. Accountable positions 4. System diagram (optional) 5. Quantification 6. Standards 7. Checklists (optional) 8. Forms (optional) 10. Scripts (optional) 11. Samples (optional)
Notes:
Systems Design and Documentation
How do you know which systems to design?
-Make list of systems needed
-Prioritize list according to seven centers of management attention.
Start with the end in mind and pay attention to the details.
-Determine result needed and be precise or problems multiply
What if you are uncertain about the result you want?
-Logically analyze the result you want,
-Don’t be afraid to use trial and error, but be systematic as possible
The nine steps of business systems design.
1. Specify the Result and Name the System.
-Start with word ‘to’ make clear concise statement of result, and brief descriptive name
2. Diagram the System.
-Use box and arrow showing sequence and relationship
3. Write System in Clearly Stated Benchmarks
-Make full sentences starting with a verb clearly explaining each work step.
4. Assign Accountabilities
-Identify by position not person who does or supervises this work.
5. Determine the Timing.
-Establish time for steps or whole system by time of day or overall duration.
6. Identify Required Resources.
-Staffing, work space, facilities, equipment, supplies, and information
7. Determine how you will quantify the system
-Need to know if getting results you want
8. Establish Standards.
-Set for performance of system and behavior of staff
-Most easily stated as quantity, quality, and behavior
-May include measures, defects, cost, staff guidelines, ethical standards
9. Document the System
-Format recommended is System Action Plan
-Use E-myth worksheets attached or your own design
It’s real world not academic.
-Do systems design on the spot, shop floor, truck, phone etc.
-This is hands on straight from the field
Some hints for diagramming the system.
-Use boxes and arrows identify each step and sequence
-Some steps/benchmarks are dependent from previous one, some not.
-Each benchmark completes task meeting standards and producing results.
-Each benchmark actually subsystem of overall system
Fine tuning your system.
-Spend time seeing how existing systems work or how new one should
-First diagramming determines key benchmarks
-Second it gives overview how they fit together
-Then can determine best way to arrange or eliminate actions
The system benchmarks, keep it simple
-Need enough detail to be exact but avoid clutter and excess info
-When writing remember missing pieces will be in accountability, timing, resources and standards section
-Start each benchmark with action verb
-Benchmarks are ‘what’ you do, standards are ‘how’ you do it.
Appraising residential property benchmarks (example)
1. Get the parcel identification and address of the property to be appraised, locate on map
2. Identify and select comparable homes that have recently been sold
3. Search county records to obtain and verify critical information
4. Conduct on site appraisal work
5. Enter data into the appraisal software
6. Draw floor plans
7. Analyze data collected and estimate the property’s market value
8. Complete and submit Appraisal Report
-each step is a subsystem, could write out each which become overall process
Resources, what you need to get the job done.
-Staffing, amount and type of manpower
-Workspace and facilities, amount and type of space, layout and placement
-Equipment, machinery tools furniture etc.
-Supplies, consumables, office supplies, raw materials, Information, databases, operating instructions,
reference materials
Quantification, the proof of the pudding.
-Take time during design to think how objectively measure results
-example, goal of 90% of appraisals within 10% of price
-can include simple description of quantification in system action plan
-system may be already quantified in financial/operating report routinely produced
Standards mean quality results.
-standards answer ‘how well,’ ‘how much, how many, how fast, how safe, how clean, how simple or
complex, how helpful, how honest, how cost effective’
-required for achieving quantity, quality, and behavior desired
-High performance requires high standards
Appraising residential property, standards (example)
1. The current year’s edition of the Official County Parcel Maps will be used
2. Homes considered comparable will have closed escrow within the past three months and will be within a
half mile radius of the property.
3. Exceptions must be approved by the appraisal manager
4. Information from a county records search will include at a minimum for all properties: a. current title, b.
flood risk, c. earthquake risk.
-use passive voice in writing standards, separates standards from benchmarks
-use ‘will be’ not ‘should be’ it is not a judgment call, must be done this way
-standards don’t have to correspond one to one to the benchmarks
-standards deal with perceptions as well as reality, customer must feel satisfied
A system isn’t done until it’s documented
-documentation forces you to think through it thoroughly
-best way is to have a consistent format
-see the e-myth system action plan worksheets
It’s a never ending process.
-continually test and revise based on experience
-customers, competition, tech is always changing
-markets are dynamic so your business must be too