Now You May Ask: "What Is a System, Anyway?"

by Tom "Bald Dog" Varjan

In spite of Demings' wisdom about systems, when IT companies want to improve their bottom lines, they start the process by threatening their people to work harder. But they fail to look at their systems, because then they would realise that the problem is a tad more complex than reprimanding some frontline people.

So, the systems remain the same. After all, the systems are designed by people who can't be reprimanded and threatened.

Look at the multilevel marketing industry. The failure rate is some 99%, but the industry insists that the system is perfect, and all people have to do is to buy more education materials and attend more seminars. Have you ever considered that the whole MLM industry is a thinly disguised scam of selling educational materials as the main stream of income?

This is where many IT companies are similar to MLM companies. They pontificate that their systems are perfect, and their people have to shape to produce better results or they get shipped out, that is, fired.

It's like asking the German violin virtuoso, Anne Sophie Mutter, to play Vivaldi's Four Seasons on a toy violin. And revoking her contract if she can't pull it off.

I reckon it's doable, but you may want to plug your ears and protect it from the very possible laughter of your eardrums. And while Sophie is probably the greatest female violinist on this planet, she needs a system, that is, an instrument, to play well. And even at her genius level, the quality of the instrument has a huge role to play in the quality of the end result.

But haven't we all learnt from quality guru, Edwards Deming that...

"People want to succeed. They want to do a good job. They don't like to turn out lousy work. If your people are consistently failing, it's not their fault - it's your system's fault. 94% of all business problems are system problems."

Expressed in simple language, a system is to automatically, affordably, practically, measurably, repetitively and predictably execute a specific sequence of actions, in order to achieve specific outcomes. Outcomes like attracting a preponderance of quality prospects to your business without chasing them all over hell's half acre.

Teacher, consultant and management expert, Peter Senge defines systems this way:

Business and human endeavours are systems? they are bound by invisible fabrics on interrelated actions, which often take years to fully play out their effects on each other. Since we are part of that lecework ourselves, it is doubly hard to see the whole pattern of change. Instead we tend to focus on snapshots of isolated [arts of the system and wonder why problems never seem to get solved.

The Journal of Business Strategy has named Peter Senge a "Strategist of the Century." He is one of 24 men and women who have had the greatest impact on the way we conduct business today.

Expressed differently, a system is a collection of parts integrated to accomplish an overall pre-defined goal neither part of the system could accomplish by itself.

Systems have inputs, processes, outputs and outcomes, with ongoing feedback among these various parts. If one part of the system is removed, the nature of the system is changed.

Changes in one part of the system can create unexpected and even shocking effects on other parts of the system. This is like a laundry line. You pull on a bra at one end of the line, and some knickers start dancing at the other end. The garments are tied to the line independently but move together. The items are interdependent, just as parts of a system are. Even a small change in one part does affect the whole system. That is why systems must be designed from a holistic, systemic perspective.

Frederick Winslow Taylor wrote in his book, The Principles of Scientific Management...

"In the past the man has been first; in the future the system must be first."

This is not to dismiss the importance of humans, because only great people can design and run great systems.

But the key is that then you can leave the system alone with minimum or no human supervision. How do you think McDonald's can operate a business empire with school kids? Yes, systems. They could hire a bunch of food scientists and they could operate the business in haphazard manner. Besides, the operating costs would go to the sky. It is plain retarded.

Complex systems consist of several subsystems as well. These subsystems are designed and arranged in specific hierarchies, and integrated to accomplish specific objectives of the system. Each subsystem has its inputs, processes, feedback systems, outputs and outcomes geared to achieve the objective of that specific subsystem.

An army of salespeople haphazardly running around like headless chickens dialling for dollars, pounding pavements and tearing down doors to peddled their stuff is not a system. However, salespeople who work as parts of a client acquisition team are a system. There are specific inputs, processes, outputs and feedback loop, creating specific outcomes with constant correction and improvement.

So, just remember the word: SYSTEM. A pre-arranged sequence of repeatable processes that produce consistent results with the minimum intervention and human effort.

Also systems...


Attribution: "This article was written by Tom "Bald Dog" Varjan who helps privately held information technology companies to develop high leverage client acquisition systems and business development teams in order to sell their products and services to premium clients at premium fees and prices. Visit Tom's website at http://www.varjan.com.