Welcome to a Tacticware Business Systems educational article. At Tacticware we focus on growing enterprises, teams, and competitive advantage. The result is financial predictability.
This article is available for free download at tacticware.com.
What is a Business System?
Business systems are a model to consistently and predictably achieve quality results. Systems are structures. Like a building, the system supports the foundation, walls, and roof. Structure is a set of process and performance boundaries both management and employees work within during the course of business.
Externally, business systems allow management to focus on growing and delivering greater value to customers. Competitive advantage is the driver of greater revenue and profitability.
Internally, business systems allow management to focus on employee achievement, retention, and loyalty.
All of which are driven by the quality of leadership, culture, and strategy.
Business Management Systems
Leaders proactively manage and achieve objectives. Managers manage activities and tasks. There is a difference.
The capacity of the enterprise is limited by the capacity of its management team. If a management team is unskilled or overwhelmed, the business fails to grow.
Business systems allow management to become better decision makers and leaders. Enterprise capacity expands as the system establishes and supports sustainable performance results.
Unfortunately, the vast majority of managers spend their time resolving crisis situations. Most are symptoms and not the true source of crisis. Many times, these situations should have been resolved long ago, and continue to re-establish themselves. Sometimes on a daily basis.
The result of a management systems approach is customers receive superior quality, service, and value. That is, customers receive consistent and predictable deliverables and behavior from the company.
The second result of a management systems approach is employees receive and work in a quality environment of team, job security, and fair compensation.
The final outcome is the company gains competitive advantage through consistent employee trust and customer relationships.
Culture Management Systems
The vast majority of business managers measure cultural health by gut feeling and emotion. If it’s a good day, cultural health is fine. If it’s a bad day, cultural health becomes negative. Perception is defined by feelings. Company culture is a function of employee perception. We measure employee perception in 10 actionable areas.
Cultural health influences nearly every aspect of an organization. It’s a primary reason objectives are consistently achieved, and employees retained. When customer and employee retention rates are poor, it’s a clear indicator employee culture is challenged.
Interesting enough, challenged cultures are generally activity based. Quality cultures are generally more objective based. Ultimately for activity-based organizations, the churn of customers and employees leaving the company set the stage for toxic cultures.
Cultural health isn’t just about salaries and benefits. People want to work for an organization that places value in a TEAM dynamic, job security, and fair and equal compensation.
People have pride, loyalty, and want to earn a sense of accomplishment. The fact remains most people leave a job not because of the work, but rather because of the manager.
Culture management systems allow management to benchmark and improve the source of cultural challenges rather than the symptoms. This allows leaders to solve sources of challenges rather than managers solving symptoms.
Weak or toxic cultures influence enterprise capacity. Employees are assets influencing revenue and profitability. When we identify challenges and opportunities in culture, it takes leadership to make course corrections.
Strategic Systems
Revenue and profitability are a result, not an objective. Well-conceived strategies are concerned with opportunity, risk, and return.
Paul R. Fournier
“Strategy is not how do something. Rather, strategy discovers whether we should, or should not, engage the objective.”
The devil is in the details before a strategy is initiated. Effective Strategic Systems discover prior to implementation if the risk, return, or the investment is too great. Effective leaders rely on a Strategic System to establish a decision-making model. The system model educates the team on process and establishes performance boundaries.
Highly successful companies develop strategies, align the tactics, and communicate the message the same way every time. There’s no random occurrence.
Quality strategy defines the strength and value of management leadership. It builds trust and respect with the TEAM and customers.
Competitive Advantage
Business Systems create high performance organizations. They allow organizations to grow without loss of control or wandering outside their core values.
Customers expect 100% quality, service, and value. Employees expect 100% TEAM, job security, fair compensation.
When customers and employees connect at the 100% level, that’s competitive advantage. The result is greater revenue and profitability.
A great book to read or listen to. “Anonymous Cultures, The Silent Majority”
Learn more about culture management, and leadership by reading “Anonymous Cultures, The Silent Majority,” by Paul R. Fournier. It’s available from Amazon in Kindle, paperback, hardback, and Audible. https://www.amazon.com/Cultures-Silent-Majority-Strategies-Management/dp/B08XZDTCQM
Article Author
Paul R. Fournier is President of Tacticware Business Systems. Tacticware offers business systems in Management, Culture, and Strategy.
Our expert resources include management systems, management courses, executive coaching, and 360 Cultural Organizational Assessments. We provide guidance to clients globally. Learn more about transforming your business by contacting us.
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