A lot of time and attention is given in strategy to what the value and benefits you give to customers and the price you charge.
The other side of the equation is how you deliver on those marketing promises through your systems and processes.
The two main ways to measure systems and processes are in terms of:
- Capability - in terms of time, quantity, quality, flexibility
Capability relates directly to the customer value promised. If you promise quick delivery, you need to have systems and processes designed to either supply from stock, convert quickly from raw material and component stocks or purchase whatever is needed from suppliers who also promise quick delivery.
The big advantages of designing and improving your systems and processes is that the output becomes more consistent because variations are reduced in what happens and costs are reduced.
From 1986 to 1995 I worked within manufacturing industries and the buzzwords at that time were total quality, just in time manufacturing, business process re-engineering and the theory of constraints.
These ideas remain very valid today although the buzzwords may have changed as consultancies need to keep promoting the next big thing.
Michael Gerber, the author of the E Myth books has built a career on teaching small businesses to systemise themselves as if they were creating a franchise. This is basically applying the big company ideas to owner-managed businesses.
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