NFIB

Stuck in Mud?
09/ 29/ 2003

by Doug McPherson

Imagine coaching a runner for a race. There’s just one glitch: You have no idea that the race’s course snakes through thick, knee-deep mud. So the runner takes off, but stalls after just a few steps. Obviously the problem isn’t the runner -- it’s the mud.

How are the tasks structured at your business? Are you asking employees to run through mud?

Many small business owners pour tons of energy into getting employees to do a job just right. But the problem may not be the employees -- it might be the way their jobs are structured. Management pros advise outlining each job so that any employee can become proficient.

How do you do that? By creating systems -- organized methods to handle everything from human resource problems to communications procedures to financial transactions. Systems can eliminate unnecessary, time-zapping tasks. They can also help owners find more time for a life outside their businesses.

"People respond to orchestrated patterns," says Michael E. Gerber, author of The E-Myth. "Within a system, people can manage themselves."

Matthew J. Coats, an orthodontist in Dallas, recently created systems for his business. "First I took a fresh look at how my business worked. Then I created systems so that everyone knew exactly what had to be done," Coats says.

To show employees what was expected, Coats created detailed checklists for every aspect of his business. The new methods have increased business five-fold. As an added bonus, he works fewer hours.

Stick Out

Gerber offers three tips for a more structured, smoother-running business:

1. Step back from the day-to-day bustle and look at the big picture.

2. Diagram every function by writing down required results, workflow, who's accountable for what, the timeframe involved, the necessary resources and your performance standards.

3. Train your employees thoroughly on the new systems.

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This article originally appeared in the October/November 2003 issue of MyBusiness magazine.

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