The E-Myth: Become System Dependent, NOT People Dependent

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The E-Myth: Become System Dependent, NOT People Dependent

The E-Myth: Creating a business that works for you where “Systems run the business and people run the systems.” Rather than have a business that you work for, it should be the other way around. How do you accomplish that, though? Michael E. Gerber’s The E-Myth (Entrepreneurial Myth) Revisited recommends systemising enterprises. The principle of Gerber’s philosophy is that businesses should be system-dependent as opposed to people-dependent. Everything that works does so because it runs on a system. 

“If your business depends on you, you don’t own a business—you have a job. And it’s the worst job in the world” Michael E. Gerber – The E-Myth

 Many business owners don’t think about it, but every entity has a mechanism or two that lets it operate the way that it does. However, a system must be designed to suit the company if it’s to produce the desired outcomes. Never rely on default mechanisms to achieve specific objectives.

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Understanding Systems

If you are to employ the tenets of the Entrepreneurial Myth (The E-Myth), first you must comprehend the basics of a system. What is a system? It’s a series of processes that determine how to carry out certain tasks. You can incorporate a system to take over daily routine tasks. 

For example, take the role of a receptionist. This employee answers the phone each day. You already have a phone answering system that dictates how the receptionist should answer calls. A script and checklist guarantee consistency regardless of who is handling the phone.
It means that even if the regular team member is off sick, or unavailable, there is an exact process for how to handle incoming calls so customers get the exact same service when they call.

After implementing a system, it takes minimal effort to sustain it. For this reason, a well-executed mechanism frees up workers to concentrate on critical responsibilities. Systems are liberating. They capitalise on the expertise, skills and experience of employees to achieve great goals. You can have systems for almost every component of a company.

Why Does Your Company Need Systems?

If you are to capitalise on the power of systems, and the basis of the E-Myth system you must know what role they play in a business environment.

Establishing Consistency

The biggest plus point of implementing systems in a company is the ability to be consistent. Once you set up a mechanism that works one time, then you can expect it to deliver the same results every time. By crafting efficient systems, you can be confident that the business can replicate products and services. Consistency goes a long way in retaining customers because they know what to expect from you.

Creating Value

Once you have identified the systems that work for your company and put them in place, they become part of the organisational infrastructure. Consequently, the value of your business rises exponentially. Functional systems guarantee that an enterprise runs smoothly: the more seamless the mechanisms, the more efficient the operations.

Connecting People and Systems

When you set effective mechanisms in a company, people have to learn to operate them. Building solid relationships between systems and employees increases value. As individuals work to complement the various processes, they improve their effectiveness. This interconnectivity reduces a company’s reliance on the owner.

Enhanced Quality

Seeing as workers don’t have to be tied to certain processes as they happen, they can dedicate more time to various roles. Employees can invest resources in tasks with higher payoffs while the system handles the mundane.

Elements of an Effective System

Not every system will offer the discussed benefits. So, you need mechanisms that are designed to last. How do you achieve them, though? 

Firstly, a business requires a result statement. It is paramount to explain the need for the system. 

Secondly, your staff has to know the way to operate when working with a system. 

Hence, establish operating protocols for workers to follow. A sustainable system should also have key performance metrics. An enterprise needs to know if the mechanisms are working as they should.

The E-Myth Management View

From the recommendations of the E-Myth point of view on management, companies can enjoy immense value through systems. For that, business owners must know how to define their requirements and find solutions to meet them.

An entrepreneur/business owner doesn’t produce a great product or service they create that system that creates a great product or service.

Business Systems Increases Efficiency

Creating business systems for efficiency is not a new concept but goes back many years. One of the pioneers was Henry Ford (Ford Motor Company) who implemented an assembly-line to enable mass-production of his motor car the Model T in 1913.

The production of the car was a lengthy process with only skilled specialists being able to complete the tasks. His production system reduced the manufacturing process drastically but also put the price of cars within the reach of an average family which broadened his market.

Ford’s system both boosted productivity and enabled workers to specialise in areas of assembly which made them easier to replace, if off sick or resigned. He was not reliant on a small group of people who had the skills and knowledge to build a car but distributed the knowledge and documented the process. Increasing productivity and a more efficient process.

Business Systems

Businesses have multiple systems in place to help them run more efficiently. Many of these systems can now be found in the form of software, and apps.

Use technology to build systems that can help simplify and automate tasks and give you more time.

Day to day work life is made up of many tasks, whether that is an individual one-off task or important steps in a business process checklist.

  • Process Management
  • Task Management
  • Workflow Management
  • Project Management

Here at Checkify, we have created a checklist software that offers task management, process management and workflow management to help you complete tasks, processes and manage prioritising tasks by dates and importance. Identify where your processes can be improved.

Task Management System

Everything you do during the day is a task, a job, a step in a process of operations of a business. Think of it as a high tec version of a to-do list. 

Every day you have one-off tasks that need to be completed and task that is repeatable and recurring part of your business process. 

Task management systems can help create, manage, allocate and schedule tasks so nothing is forgotten.

Process Management System

Processes can give you the edge in the consistency of quality of service/product.  Why Document Processes and Procedures? These detailed step by step guides on how to execute a process in the best possible way to get the best possible results.

As the example explains others can step into the breach at any time as they have a guide to be able to complete the task. These can be used when onboarding a new team member using it as a training tool to get them up and running quickly and have all the answers available.

Systems within a business can be liberating rather than restrictive. Business processes enable people at all levels to share knowledge, skills and experience to empower everyone to produce exceptional results. 

The sharing of all this tacit knowledge and documenting how the business runs at its best generates consistency and increased productivity which can boost the bottom-line and overall value of your business.

Developing systems gets businesses and teams more organized and operating more systematically allowing additional time for more creative tasks.

Process management software like Checkify offers consistency, efficiency and increased productivity.

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