Am Fam Telecon5 Systemizing Your Activity For Growth 091909

1© 2009 Wright Business Institute, Inc.1

Teleconference #5: Systemizing Your Activity for Growth

© Wright Business Institute, Inc.E-mail questions to [email protected]


Step It Up Competition

E-mail questions to [email protected]

3© 2009 Wright Business Institute, Inc.

► Open to all registered Business Accelerator participants

► One winner in each city (Chicago, Phoenix, and Denver)

► Advantage For Sales training program from Wright Business Institute – 6 sessions live or via web/phone

► Marketing strategy session from Hi-Impact Marketing

► $500 Staples gift certificate



► Contestants will be judged on:

► Thoroughness

► Impact

► Creativity

► Entry forms are online at www.AmfamBusinessAccelerator.com and can be submitted between October 1st and October 22nd

► Winners will be announced at the November Business Mixers in each of the cities



Systemizing Your Activity for Growth



Today’s Topics

► The Why, What, and How of Systems

► The Evolution of Business Through Systems

► Building Systems

► Maintaining Systems

► Improving Systems

► Interacting with External Systems


The Why, What, and How of Systems



► Everything in your business runs on systems

► You can view your business as a web of interlocking systems

► By understanding systems, you can build increasingly effective systems.

► Consistent systems make your business more saleable

Why Discuss Systems?


► Theoretically: a set of interacting or interdependent entities forming an integrated whole.

► System Science: Ludwig Bertelanffy.

► Our Definition: a series or network of processes, actions, or functions that generally have an input or output and a process in between.

What Are Systems?


Financial

► Billing

► Payment

► P & L

► Planning

Sales

► Prospecting

► Tracking

► Planning

Systems We Have Discussed So Far

Marketing

► Database Management (CRM)

► Web Site Search Engine Optimization

► Blogging

► Social Media

► E-Mail Marketing

► Leveraging Media through PR

► Direct Mail


► Scheduling

► Storage

► Delivery

► Production

► Human Resources

► Management Systems-Project, etc.

► Purchasing

What Other Systems Do You Have?


► Flows from your purpose and mission

► Facilitates

► Efficient

► Consistent

► Automated

► Reduces human error

► Flexible

What Makes a System Good?


The Evolution of Business Through Systems



Today we will review the evolution of systems as businesses

develop. Watch for your position and plan your evolution.

Businesses Go Through Systems Development Phases


The Map - Getting To Know Where You Are

Level 1

Level 2

Level 3

Level 4

Level 5

Level 6

Initiating

Establishing

Emerging

Differentiating

Generating

Self-Developing


Systems at the Initiating Phase

Level 1 Initiating

Level 2 Establishing

Level 3 Emerging

Level 4 Differentiating

Level 5 Generating

Level 6 Self-Developing

All is new. You are experimenting, and few systems are in place:•Financial – Systems are spotty in most cases, based on checkbook rather than routine. Mistakes are common in deposits, P & L generation, review, and federal payroll deposits. •Sales systems – Hit and miss, selling as you can.•Marketing – Business cards and word of mouth marketing•Production & Delivery – Systems are catch as catch can. You are still figuring it out. •HR, Facilities, and Project Management— Barely existent or rudimentary systems.


Systems at the Establishing Phase

Level 1 Initiating


Level 3 Emerging


Level 5 Generating


Getting the hang of your business. Depending on the training or personality of the owner, firms at this level may have developed or totally informal systems.•Financial – Payroll systems develop with first hires. You use QuickBooks to write your checks and generate a P&L, which you still do not know how to read or use. •Sales – You have sales rhythms but rarely track from prospect to close and follow up. You juggle service delivery and sales erratically, leading to feast or famine reality.•Marketing – You have a web site, yellow pages ad, a regular ad in local print media, and some experimenting with other means.•Production and Delivery – Selling and delivering as promised is routine. Your sales-delivery rhythm produces systems.•HR, Facilities, and Project Management – Your first hires force these systems into existence, albeit informal and inconsistent.


Systems at the Emerging Phase

Level 1 Initiating


Level 3 Emerging


Level 5 Generating


Different staff fulfillling distinct functions requires more formal systems.•Financial systems – You accurately record your financial activities, can read your P&L, and probably have a payroll system and external accounting support.•Sales Systems – You are no longer the only sales person and now need systems to track your sales activity.•Marketing – With the basics in place, you get creative with webinars, user groups, print and broadcast marketing, white papers, blogs, and/or sponsoring small events—still experimenting to find yourself.•Production and Delivery – Adding staff drives these systems, having already taken shape, to continuous improvement and sharpening.•HR, Facility, and Project Management – Still spotty with signs of routines developing and a mature business emerging.


Systems at the Differentiating Phase

Level 1 Initiating


Level 3 Emerging


Level 5 Generating


Your business is complex. For most functions, you have systems you are developing and refining as the need arises. •Financial systems – Your tracking and measurement fall just short of the highest levels of sophistication, which would give you solid control in planning and strategizing.•Sales systems – You have sophisticated CRM systems and likely have strong tracking.•Marketing systems – You have found yourself. Your identity is firm and you are building on it. Beyond the basics, you have found your way into on-line, print, broadcast, and other media.•Production and Delivery – All operating at a very high level.•HR, Facility, and Project Management – these systems come on line and grow in sophistication as past experience and current needs indicate.


Systems at the Generating Phase

Level 1 Initiating


Level 3 Emerging


Level 5 Generating


Your business can run without you. Systems are all in place and continuously refined with new technology as your business expands.•Finance –Your cost control mechanisms are sensitive, and sophisticated analysis systems allow you to expand or hold as market conditions indicate. Your CFO is a meaningful part of the business development strategy team.•Sales – A full set of tracking, dashboards, and sales prediction methodologies complement your CRM. Follow-up, quality control, and other systems serve both sales and marketing.•Marketing – Your marketing is effective. You grab customers’ attention in distinct niches to support the sales effort. Sophisticated marketing research leads to new products and services.•Production and Delivery – you are fully engaged in refining these systems for optimum efficiency.•HR, Facility, and Project Management – You are likely seeking to upgrade these from high to state-of-the-art operation.


Systems at the Self-Developing Phase

ThisLevel 1 Initiating


Level 3 Emerging


Level 5 Generating


Your systems now include research and new product/service development. •Finance – Systems are highly sophisticated and integrated throughout the company•Sales –You value sales and have powerful relationships with your customers and clients. High level quality control, and account management systems serve marketing, product development, and customer management. •Marketing – Advanced systems deliver sensitive competitive and customer-based measurement. Advertising is sophisticated, often targeted and heavily monitored.•Production and Delivery – Responsive, highly efficient, and flexible systems provide low-cost products or services and allow rapid change and response in a dynamic marketplace. •HR, Facilities, and Project Management – Systems constantly improve as resources allow and the market demands.


Building, Maintaining, and Improving Systems



► Building

• Identifying

• Assessing

• Planning

• Establishing standards

• Implementing

► Maintaining

► Developing

Building, Maintaining, and Improving Systems


Building Systems



► Make sure it flows from your purpose and mission

► Identify the function

► Identify the elements

► Identify input and output, or function in response to signals

► Develop an implementation strategy

► Be realistic in implementing

“Do not spread your inner resolve too thinly. There is simply

not enough will power to go around.” - A Mind of Its Own

How Do You Build Good Systems?


What are the sub-systems in each of these areas?

► Financial

► Sales

► Marketing

► Human Resources

Systems Often Have Sub-Systems



► Financial

• Billing

• Payments

• P&L

• Balance Sheet

► Sales

► Marketing

► Human Resources

Financial Systems



► Financial

► Sales

• CRM

• Prospecting

• Dialing

• Meeting

• Proposal

• Follow up

► Marketing

► Human Resources

Sales Systems



► Financial

► Sales

► Marketing

• CRM

• Advertising

• Outreach

• Relationship maintenance

• Promotions

• Quality control

► Human Resources

Marketing Systems



► Financial

► Sales

► Marketing

► Human Resources

• Hiring

• Compensation

• Training

Other Systems


1. Consciousness

2. Consistency

3. Efficiency

4. Adaptability

Qualities of Systems


1. Unconscious, inconsistent, and inefficient

2. Inconsistent and inefficient

3. Consistent but inefficient and not adaptable

4. Consistent, efficient, and adaptable (evolving)

System Rating


Rate your systems in each of the following areas using the rating scale shown.

1. Unconscious, inconsistent, and inefficient2. Inconsistent and inefficient3. Consistent but inefficient and not adaptable4. Consistent, efficient, and adaptable (evolving)

System Rating


Maintaining Systems



► Maintaining-communicating

► Establishing standards

► Implementing standards

► Training

Guarding Systems


Improving Systems



► Employee involvement is key

► Continuous improvement (kaizen) as a platform for unleashing creativity

► PDCA

• Plan

• Do

• Check

• Action

The Deming Cycle: Wheel of Continuous Improvement


Using the Deming Cycle


Interacting With External Systems



► Their Buying Process

• Identify

• Qualify

• Assess Need

• Propose

• Negotiate

• Close

Understanding Your Clients’ Formal and Informal Systems


► Clients’ Roles in the Buying Process

• Influencers

• Recommenders

• Decision Makers



► Sources of Resistance

• Financial Needs

• Functional Needs

• Emotional Needs



► Seasonal Variables

► Socioeconomic Variables

• Who’s buying?

• When?

• How?

• Why?

► Economy Variables

• What is the overall psychology in the economy?

Understanding The Market Systems In Which You Operate


Exercise



Exercise

► Pick five or six systems you are going to refine or bring on line over the next year.

► Choose one system that you want to develop to impeccability

► Follow the steps to build, maintain, and improve that system:

• Make sure it flows from your purpose and mission• Identify the function• Identify the elements• Identify input and output, or function in response to

signals• Develop an implementation strategy• Be realistic in implementing


American Family Business Accelerator Program

Upcoming Teleconferences and Success Activities


Looking Forward

What’s Next?

Knowing Where You Stand: Defining the Game• Establishing vital systems and monitors to understand the state of your business• • Getting Down to Business: Selling & Essential Daily Activity• Setting up effective disciplines, intentional networking, and negotiating deals• • Building Relationships• Creating your vision, developing and leveraging your network

• Marketing Tools• Developing your brand and mastering marketing tools• • Systemizing Your Activity for Growth• Anticipating and getting around roadblocks; understanding your business and its sales cycles• • Leading Your Business, Leading Your World• Building a culture, getting work done through others, and getting the most from what you have


Teleconference #6: Leading Your Business: Leading Your World

► Getting work done through others

► Planning and inclusion

► Dealing with different personalities

► Going for satisfaction

► Getting the most from the least

► Building a culture

► Becoming a trusted advisor


Ongoing Support and Involvement

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