Perspective on Management

2005 | Nov 6 in Management

By E-Myth Business Coach,

"Systems run the business and people run the systems." Michael E. Gerber

Management isn't about doing things, it's about getting things done. It's knowing what has to be done and finding a way to get it done without doing it yourself. Management is not the same as leadership. Leadership focuses on you, your vision, the way you think, the way you communicate, and the image you project to your people. Leadership is about you. But management is about your business. How to get your business to do the things it has to do while leaving you free to do the things you want to do. When you reach the point where your business gets things done the way you want them done, consistently and predictably, without your having to do them, then you can be free of it.

Management in a Nutshell: Think Systems!

The key component of successful business management is systemization. To do it, you have to be able to think systemically as well as systematically. Systematic thinking is methodical, thorough, and pulls diverse information together into an integrated whole. People who think and act systematically can communicate with clarity and inspire confidence. People who don't think systematically can be perceived as "scattered."

Systemic management thinking is about viewing a business as a intergrated whole on one level, and groupings of systems on a different level. It means you're aware that your business is a system, and that it's composed of systems within systems, dependent on each other to achieve the higher result. It also means you approach your business operations by creating systems to accomplish them and you approach business problems by creating systems to eliminate them.

The current reality from many small businesses is either the "bandaid" mentality in which the manager comes up with a quick-fix solution to the problem, or "people dependency" in which the manager looks first for the right person to throw at the problem. In both cases the solution is only temporary. It works until the problem shows up again, at which time the manager once again either "fixes it" or "throws more people at it." And because the original problem was never really solved in the first place, you can be sure it will show up again.

You can see where this leads, and maybe you've lived it yourself. Problem-quick fix. Problem-quick fix. Problem-quick fix. And a cycle of perpetual frustration. Many business owners tell us the experience is like being on a treadmill. But there is a better management process: managing your business by implementing the principle of systemization. In other words, living by the adage "the system is the solution."

Comments

1. Glen C. says:

   Im not sure if this is the right forum, but I am looking for some help with management. I have a small business that combines physical therapy and personal training services and offers them out of local gyms. My niche is that I provide medically based fitness programs. It is of course a service based business. Thats where I am running into a problem. In order to keep my niche, I must grow by bringing in another therapist. Another possiblity might be to work with an assistant which would typically earn less. I know that Michaels book takes about creating the system and then bringing in less skilled people to run the system. However, in my situation, I dont know how to approach this. My business in based on the idea that people get to work with a healthcare profession vs. personal trainer. Therapists require a higher salary. How do I approach this problem. Where can I go to learn more about how to create a system that will work for me. Any help would be appreciated. Thanks

   Submitted Nov 10, 2005 5:33 AM

2. Hasan L. says:

   Glen, Thanks for your comment here. We are glad to have you as a member of Embark Community Connection. The situation you find yourself in is not at all uncommon amongst small business owners. One of the most often misunderstood elements of Michael Gerber’s message is around employees. In the E-Myth Revisited Michael speaks about hiring people with the “minimum required skills”, so that you can avoid hiring people who know too much and are unwilling to play your game using your systems. This does not mean hiring unqualified people; different positions have different minimum required skills. An interesting exercise would be to first start with what you want the business to look like, what is your vision? Adding in some concrete objectives in terms of performance indicators. Then identify the differences between the two hiring options, which one gets you to your vision in the most effective manner. These are starting points along the path of what E-Myth can do for your business.

   Submitted Nov 10, 2005 9:54 AM

3. Taki M. says:

   Hi, this is my first time on the forum... and I'm hoping maybe you can help me out. We've got a pretty detailed sales process, with scripts for each of the 8 steps, and information to send and faxes , etc. Everyone in the team UNDERSTANDS the process, but I'm out of control--I dont' have a way of managing the process (who's in process, who's out of process ... and making sure that we look after all our potential clients the way they deserve (consistently with promises kept) I've got a documented process, how to I turn it into a system that works every time? I'd love as many ideas or answers as I can (it's coming to a head. Thanks, Taki

   Submitted Nov 11, 2005 2:25 PM

4. Hasan L. says:

   Hello Taki, Thanks for posting your comment. It sounds like you have done a lot of work to develop systems in your business. Right now you are at the implementation level, meaning your employees have a system to use; and the next step is to set up the quantification component of the system. So what is the result of the system? What are the main steps involved in achieving that result? Write them out and identify those steps that are immediately measurable (i.e. number of calls per day, hours allotted to selling, number of appointments set). Then look at the non-measurable or intangible components, which also need to be quantified. You will likely want to monitor only the most important elements of the system (3-4 indicators), the ones that are most directly related to the achievement of the result. After you have gathered your key indicators, what are the next steps? How often will you generate reports? How are you going to communicate the results to employees? These are some leadership accountabilities associated with managing systems in your business.

   Submitted Nov 16, 2005 8:52 AM

5. Esi F. says:

   I have a question about a conversatin I had with a doctor the other day. I was explaining Michael Gerber's philosophy about it's all about the "SYSTEMS." He started to ask, how does he build a company that is service-based and very much dependent on him. He said clients go to his practice because of his personality and high technology. He understands how the technology can be systemizied and trained, but how does he train the personality? He wants to bring in other doctors and franchise but it becomes difficult because he feels like he can't train the personality. I didn't know what to say. I think employees are always a source of frustration on some level. It's so difficult to find good people.

   Submitted Dec 8, 2005 4:41 PM

6. Esi F. says:

   I have a question about a conversatin I had with a doctor the other day. I was explaining Michael Gerber's philosophy about it's all about the "SYSTEMS." He started to ask, how does he build a company that is service-based and very much dependent on him. He said clients go to his practice because of his personality and high technology. He understands how the technology can be systemizied and trained, but how does he train the personality? He wants to bring in other doctors and franchise but it becomes difficult because he feels like he can't train the personality. I didn't know what to say. I think employees are always a source of frustration on some level. It's so difficult to find good people. Esi Fassi

   Submitted Dec 8, 2005 4:41 PM

7. Robby R. says:

   Esi: I am in a position similar to your doctor. I have a business consulting practice, and through E Myth, have realized the necessity to have others in my office provide personal services to our clients. Like your doctor, clients have come to our practice largely due to my personality. I know this because I've been told that. But I realize the need to have others deliver the service, and have spent a lot of time considering how to hire/train/teach/or whatever others to provide our services. This is most definitly a work in process at this point, but here is what I am trying to do. First, I looked closely at the tasks I was performing, and determined there were certain services I was doing that could more easily be delegated to other employees, already employed and known to our clients. I have been working on delegating these duties, we've developed (and continue to develop more) detailed systems, done a significant amounts of training, and do continued training with these employees. My staff has risen to the occassion, I think primarily because they are looking for more personally challenging tasks, and they really enjoy working with clients. Admittedly, these types of tasks are more commodity type tasks-they must be done with almost every client, they all follow generally the same format in terms of "how we do it here", and they are tasks that are repeated-at least annually. There are signifiant differences in each client's specific requirements, but continuous training seems to be working here. I am using more outside training to free me up. My sceond challenge is to figure out how to document WHAT IT IS THAT I DO THAT IS SPECIAL, AND WHY THAT IS SO SPECIAL TO OUR CLIENTS. In working on this task, I am looking at the general types of tasks that-until now-only I provide. I have been looking at the market that uses specific services, or for whom I provide specific services. I am beginning to develop more information as to what the client is after. I feel right now, that I can hire someone who has an educational and experience level much different from my current employees, provide guidance and training regarding the REASON the market wants such service, teach how to provide that service from a technical standpoint-the system, and leave it to new consultants to work the system. Certainly, I am concerned that the personality of the new consultants will work. I am reasoning that the client is looking for help, answers, guidance. While personality will be a concern, I am hopeful that the bottom lin eto the client will be the ability of the consultant to help solve the problem in a manner that is acceptable to the client. I will be interested in following this discussion. Robby Reynolds

   Submitted Dec 18, 2005 7:06 PM

8. Ohio E. says:

   What we have today is more of task master management style rather than exemplary leadership.We need to teach our school systems on how to develop and use systems like this to assist them build a world class business. We are a company in Nigeria trying to use Emyth system to build an existing business and become employers of labor.

   Submitted Apr 17, 2006 7:22 AM

9. Binah U. says:

   I`m a medical doctor from Nigeria. I`m setting up a health care company. I heared of E myth for the first time through Robert Kiyosaki`s Rich Dad`s Guide to investing. There i was also made to realise the importance of setting up systems to run my business. I have made frantic efforts to get MIchael Gerber`s books book i`ve no t been successful.

   The problem is that i do no really know how to go about setting up functional sysytems. What do i do?  

   Submitted Jun 17, 2008 2:26 AM

10. Wendy V. says:

    Hi Binah,

    How wonderful to meet another business owner from Nigeria! Did you know we hosted a delegation of Nigerian business leaders here in California in January 08?  In fact, there may be another Nigerian delegation coming later this year. Take a look at the video from this special event at www.e-myth.com/seminars.

    We actually have worked with many Physicians around the globe and as a result, Michael E. Gerber, wrote a book entitled, The E-Myth Physician. You can order copies on our website so no need to br frantic! Reading this would be a great place to start. The fact that you have recognized the need for creating a systems-dependent business tells me that you are an enlightened technician. Start with creating a vision of what a systems-based practice will look like 3 years from now. Then, go about creating the systems that can produce consistant, predictable results through others.

    Please let us know if you need any addtional assistance.

    Kind regards,

    Wendy Vinson

    Submitted Jun 17, 2008 10:46 AM

11. Jagdish P. says:

    Hi Wendy,

    I agree with you about great E-myth book for physicians.  I read first time and after few session of embark learning, I am reading it again.  It makes so much sense and I am more confident about my future practice which is now one and half year old.  Do you have any other comments or suggestions?

    Submitted Jun 18, 2008 1:37 PM

12. Tayo A. says:

    Hi,

    I am a medical practioner in Nigeria practising the E-myth systems in my Hospital, Korede Hospital Abeokuta, Ogun State. I am happy to see more doctors interested in E-Myth writing in from Nigeria. While I am still far from perfecting the systems, I have had over 700% increase in the Hospital income using E-Myth methodology since 2003 when we started the processes. In addition I now find it easier to get good people who are happy to work with us. We are achieving better consitency and pedictability in the Hospital and the patients are happier with us. I will be interested in sharing my experience with Doctors in Nigeria and we may end up having an E-myth Club in the country. My contact is tayoatkh@yahoo.com.  Tayo Apampa

    Submitted Jun 21, 2008 10:55 PM