How to Create a Business Management System That Works for Your Organization

Your company’s unique style of doing things—how it runs, goes to market, produces, and interacts with customers—is known as a Business Operating System (BOS). An effective BOS is more important since it transcends the people who are doing and overseeing the work. A company that can operate efficiently without you is always more appealing to public and private investors. It is critical to perceive your product as the business itself, rather than the commodity or service you produce, in order to establish an effective BOS. This mindset allows the CEO to consider his or her company as a model for a hundred others. McDonald’s, for example, does not claim to have the best hamburgers and fries. McDonald’s, on the other hand, has a product—its business operating system—that is unquestionably one of the best.

Great firms establish and enforce a strict discipline like production management when it comes to the small details that effect their customers, staff, and shareholders. They’ve imposed discipline throughout their company (via a BOS) and reinforced it at the individual level (via their cultures). Personal and organizational discipline give your BOS life and allow you to sustain it over time, transforming it into a method of doing business rather than a set of processes. 

Technology, financial, marketing, operations, and people are among the hard and soft systems addressed in this component. Your payroll and human resources information system are hard people systems, whereas performance management, selection, compensation, and development systems are soft people systems. Systems that are well-designed and implemented provide predictable consumer and employee experiences while also improving operational efficiency.

You can more accurately match the necessary abilities to each function now that you have a comprehensive understanding of the responsibilities that your company requires. Effective systems and processes will ensure that your skill is put to the best possible use. Your systems and processes should be designed with the lowest common denominator in mind, so that they are not reliant on individuals. This will free up your employees’ minds and time, allowing them to concentrate on more innovative, proactive ways to develop your company. It is typical to encounter skilled people who are underemployed as a result of wasting time figuring out how to complete their tasks.

With a contemporary operating system, users experience 40% less downtime, increasing worker productivity and lowering help desk costs.  According to the 80/20 Rule, the 20% of the most productive employees (those who provide 80% of the results) will inevitably adopt a system to improve their efficiency. A client recently had to let go of 70% of its sales team, only to discover that the remaining 30% were responsible for 90% of the company’s revenue. The remaining salespeople were, indeed, disciplined in their prospecting, qualifying, pitching, delivering, and securing business.

Each BOS component must be scalable, either up or down, enabling future expansion or contraction. As with every living system, the components are interconnected. As a result, strong leaders handle all aspects and understand how they interact.

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