The Concept Of Systems

Lesson number: 

One of my favorite topics of discussion has always been about the Concept of Systems and how they affect our daily life and existence on our wonderful planet. The concept of systems is surely a topic that we are all familiar with in one way or another. It's quite easy to precede the word system with an unlimited number of descriptive titles. Some examples might be: Solar System; Political System; School System; Digestive System; Nervous System; Accounting System; Monetary System; or just let your mind wander for a while and you can probably name another hundred or so different systems right off the top of your head.

Many systems must remain in complete balance to function in harmony, while other systems can constantly be improved upon. For example, our Environmental System must remain in a certain range of balance and harmony, or the consequences can be catastrophic. Yet our School System can and should be constantly improved upon, or we may suffer many consequences from outdated practices. Thus, the concept of different systems and how they affect us can lead to interesting discussions, improved policies and general enhancements to our health, well being and lifestyles.

Every business, organization, family or individual has their own methods, systems or habits they follow, so that they can function in an orderly fashion. Today more than ever before in history, I believe it's critically important to think and act in a systematic fashion. We must understand that technology is changing the way our world operates. The internet and the rapid advances in information technology software and cheap data storage, has enabled most systems to be fine tuned like never before. Today multinational companies have real time information on transactions that are simultaneously occurring in hundreds of divisions around the world. They are able to make policy and price changes in a split second that may have taken a month to accomplish 100 years ago. Thus fine tuned operational systems, along with astute management who can decide and instantly act on real time information, can give an organization a five fold advantage over their competitors.

The same advantages can hold true for astute entrepreneurs who run small specialty stores or a one person company in the service industry. Well thought out business practices and systems can make the difference between earning high profits and drowning in red ink. Thus it behooves all of us to think and act systematically, using Best Practice Methods as our guideline for high achievement.

When was the last time you studied your current business practices and systems, to see if they are up to date and meeting the needs of your clients, employees and shareholders? Are you pricing your products the same as you did ten years ago? Or have you invested quality time studying your market and your competition, to find the "RIGHT PRICE" necessary in order to satisfy your clients while earning the highest profit margin possible?

I have been counseling small business owners in many ways for over 25 years. I have witnessed the BEST, Mediocre, and poor performers. Those with the best systems, who practice the most daily disciplines, are always the top performers who earn the most profits. Those who practice the least daily disciplines, and have poor systems and methods of operation, may work just as hard and long at their businesses as the BEST, but always seem to struggle financially. There is "almost" no exception to this rule.

In my consulting practice, it is my goal to analyze and understand the different operational systems of my clients. Just as a medical doctor, I try to gather, understand and document all the facts through a series of questions about their enterprise, in order to create solutions and systems to improve their enterprise's state of health and profitability. This very process is a well thought out system itself, that improves my own methods and system for adding value to my client's lifestyle and business operations.

Understanding and discussing the concept of systems and their importance, is the first step toward improving all of the systems that touch your life in some way, shape or form. Then setting aside quality time to brainstorm with other successful individuals or attend classes, seminars or workshops to learn better practices and systems, can put you on the fast track for meaningful improvement. Just keep in mind that learning about better systems is only the first step. You must then take immediate action and implement what makes sense, in order to constantly improve the way you operate. This whole process will become enjoyable and addictive, once you start reaping the financial benefits and satisfaction from understanding and practicing the concept of systems.

Listen to the Podcast of this Lesson