How Creating Systems and Processes Can Make Your Business Bulletproof (Well, Almost)

What’s the difference between Systems, Procedures & Policies?

A System is a collection of interconnected parts, all working together to achieve a specific goal. Think of the human body as a system, where different systems like the respiratory, cardiovascular, and skeletal systems collaborate to maintain overall health. Similarly, in a business, a system is made up of various elements such as tasks, roles, and tools that work together to produce consistent outcomes. An example in your business could we how you handle a new business enquiry; tying together answer the phone/email, qualifying the situation and responding with a solution and price.

A Process or Procedure is the detailed instructions or series of steps system to accomplish a specific task. They provide a methodical approach to ensure tasks are completed consistently for a repeatable and teachable outcome. It outlines how to perform a task from start to finish. For example, a process might detail how to handle and initial phone call (script) or a meeting agenda/flow, or the exact steps for an onsite safety audit.

Policies, on the other hand, define the overarching rules and guidelines for an organisation. They set the standards for decision-making and behaviour. For instance, a business might have a motor vehicle policy or a drug testing policy that employees must follow. Policies are about the rules that govern various aspects of the organisation’s operations.

So, in summary:
• A System is the overall structure or framework in your business; a collection of procedures.
• A Process/Procedure is a sequence of steps within that system to achieve a specific task.
• A Policy establishes the overarching rules and guidelines of an organisation. It provides a framework for decision-making and behavioural expectations for employees

By understanding these concepts, you can better organise and streamline your business operations, ensuring consistency and efficiency.

What are the benefits of creating systems in your business?

There are numerous benefits to creating systems in a business.

1. By creating systems, business owners can free up their time, scale their operations, and ensure consistency. Systems and procedures mitigate the risks associated with having all the information confined to one person, making the business less vulnerable to disruptions. Often, business owners have all these critical systems stored just in their heads. We see this consistently at PROTRADE United, where business owners who’ve built everything from the ground up haven’t bothered to document or teach others the systems of the business. This reliance on one person for everything can become a bottleneck. It limits the owner’s ability to take a break or grow the business, as they are the sole keeper of crucial information.

2. Solid systems can also increase a business’s profitability. Consistency in pricing is a prime example of this. Every job might be different, but by sticking to a quoting process, you ensure that all relevant questions are asked, and every job is scoped out effectively. This approach prevents costly mistakes, like under-pricing a job due to missing critical information.

In a practical sense, when you’re pricing a job—especially in fields like plumbing where every project can differ—you need a procedure in place to ask all the right questions. For instance, you need to know the location of the job, whether the site is accessible, and have a basic understanding of the problem. Without this information, you’re like a doctor prescribing medication without first diagnosing the patient. Just as a doctor needs to ask the right questions to provide the correct treatment, your team needs to gather all the necessary details to price the job correctly and avoid losing money.

3. A robust foundation of effective systems and processes enhances the customer experience – and that’s absolutely critical. There’s only one thing worse than a poor customer experience, and that’s an inconsistent customer experience. If I contact a plumbing business, I want to know that every time I call, the phone is answered the same way, I expect the same level of professionalism, I want project notifications, clear communication when a plumber is on their way, and an invoice within 24 hours of the job being completed. This consistent professionalism is achieved when robust systems and processes are in place. No matter which staff member is handling the phone, or which plumber is fixing the leaking tap, the customer experience remains the same.

Consistency is key; it’s not only about meeting customer expectations but also about exceeding them reliably. Once effective systems and procedures are consistently adhered to, it increases the likelihood that you can build customer trust and satisfaction, leading to repeat business, positive reviews, and referrals.

What processes should my business have in place?

There is no ‘one’ answer to this question as every business is slightly different. However, when considering what processes your business could have in place, it’s helpful to break your business down into different functional areas. We recommend identifying these areas as follows:

• Marketing: Generating a consistent number of quality leads/opportunities.
• Sales: Conversion and/or pricing jobs.
• Production/Operations: Delivering the product in a consistent, five-star way.
• HR/Team: Managing the team and human resources.
• Administration: Daily administrative tasks.
• Management: Overseeing business operations.
• Finance: Handling financial matters.

These functional areas are standard across most businesses, regardless of the industry. Within each of these areas, there will be a list of tasks required to achieve the most effective outcomes each and every day.

An example of the tasks within a Finance function are:
• Invoice creation
• Taking payment
• Following up outstanding payments
• Reconciliation of accounts
• Paying suppliers
• Payroll
• Generation financial reports
• Preparing budgets
• Using bookkeeping software

The benefit of putting all these processes together is that you create what can be called the “how we do it here” guide. This guide documents how tasks are performed within your business, providing a consistent approach to achieving your desired business objectives. Clearly articulating the roles and responsibilities within these areas will improve efficiency and reduce double handling. This process can start before an employee begins, by developing current and descriptive position descriptions, which gives new starters a clear understanding of what is required.

How does a business owner identify opportunities for new systems or processes?

One of the things we recommend to business owners is to create a “Key Frustrations List” or a “What Annoys Me” list. At the end of the day, you might think, “What really frustrated me today?” For example, if the guys on site called the office 20 times for more information, which was costing the business time, that’s an opportunity for improvement. Or if you, as the business owner, got called five times by the same person in 20 minutes to fix a problem on site, that’s annoyed me and is another indicator of where things are not flowing. Or we are not being paid by customers on time, and this is resulting in cashflow gaps.

It’s about taking complete ownership of the situation. To really identify where the breakdowns, gaps, or frustrations are. It’s important you check in with your team to help identify other frustrations that you didn’t experience firsthand but are still negatively affecting the business. That’s one of the benefits of having a weekly meeting rhythm, for the chance to ask, “What wins and challenges have we had? Are there any procedures or processes we need to review?”

If you’re gathering problems without solutions, you’re just complaining. Instead, look at it this way: Before blaming an individual, ask if a procedure, checklist, or policy has been documented explaining what needs to be done, when, why, and by whom. If not, then it’s time to create one and document it. If you do have something in place, the next question is whether you’ve provided adequate training and development and allowed enough time for employees to practice and get it right. If the answer is no, then provide the necessary training.

You can’t just send a blanket email to all team members about a new system and expect it to be implemented perfectly. Assumptions that everyone received, read, and understood the email as intended can lead to issues. Proper communication and training are crucial for successful implementation.

What are the steps to implement a new system or process in your business?

When working with trade and construction business owners, I tend to use the following 6-step process to help them implement a new system or process.

1. Identify areas that require a system.
As mentioned above, you need to uncover the problem first. The “What Annoys Me” list is the perfect place to start. Once this first step has been taken, you will begin to see how you are able to streamline your business, while empowering your team to step up and start to take on more responsibility.

2. Prioritise.
Now that you have your list, you may find it overwhelming to know which aspect of your business to systemise first. Start by thinking about what your top goal is. What is the biggest challenge in your business right now?

Do you want more clients? If so, marketing is the area that needs your attention first and foremost. Write a list of all the tasks involved in your marketing (networking, social media, cold calling etc).

Do you need your team to be more efficient? Detail the tasks that are consuming the most amount of time or detracting from the job at hand. Prioritise these in order of impact on the business.

3. Break it down and document it.
I have always used Post-it notes or a whiteboard to perform this next step, however you can use your computer or any other method that suits you.

Take the priority you want to work on and list out the current steps in the process. If you are using Post-it notes, write each separate task as-is on a separate Post-it note. Then, using a blank surface like a table or wall, stick them up in logical order. Keep going until your process is finished.

You may come across a Yes/No scenario in which case, just turn your Post-it note until it becomes a diamond shape. Then simply branch off from that.
Ensure the document includes who’s responsible and at what time should this system/process be used.

Once you have read through the process, added to it and re-designed it a little, transfer it to your computer and document it.

4. Do a trial run.
Test-drive the first draft of your new system by having someone else work through it. Don’t take your system live until you are happy with your trial run. If your system involves anything external to the business such as marketing, any mistakes in the testing phase would be on public display causing embarrassment, possibly losing you money and potential customers.

Have a team member follow your system exactly as it is documented and in doing so, they may identify a few gaps that you hadn’t thought of before. Alter your first draft where necessary and take your second test drive. Repeat this process until you are completely satisfied that all gaps are filled and smoothed over.

5. Train your team.
With your system tried and tested, this step should be relatively straightforward. Review your system with your team, ensuring each action is easily understood and that there are no roadblocks preventing the system from being completed start to finish. To ensure effective adoption, it’s important to consider how people learn information. There are three main ways: auditory, visual, and kinaesthetic. So, when sharing the process with your team, present it visually (is it written out?), explain it auditorily by running through it with them, and then demonstrate the process. Finally, have them perform the process themselves, especially if they will be required to do it regularly.

You must never assume that a new employee—even with years of relevant experience—will perform the job exactly how you’d like. Just as every chef knows how to prepare an omelette, each restaurant has its own specific preferences for how it should be made. Ensure new hires are familiar with your systems and processes so their work aligns with your business expectations and achieves consistency more quickly.

6. Revisit.
Like most aspects of your business planning, don’t simply allocate your system to a dusty shelf after three months. Sure, it is probably a well-engrained habit by then; you or anyone else could follow it blindfolded. But things change and your system will need to change too. We discuss this further later in the post.