Management Systems

This episode looks at the complexity of management systems and some of the wasteful process that can be hidden in the business, coupled with the likely margin opportunity of these processes are streamlined.
Transcript: "Management Systems"
Hi everybody. It’s Peter Selby from Business Drivers, and today is snippet number eight from our growth and profit series. Today’s topic is management systems. That sounds pretty dull I know, but it is a wide topic. I am really talking about the effect of those management systems and organizations understanding the effectiveness of those systems before we do work with them.

When we carry out business improvement, one of the first things we do is run a deep diagnostic of the management systems and understand how they interact, because you really do need a holistic understanding of your organization before you pull too many change levers.

We spend a lot of time helping organizations understand how well they interact as an enterprise, and how well the systems are interacting with data platforms etc, before we change anything.

Certainly, where we’ve seen organizations try and improve in one area, they find that they can be adversely affecting other areas of the business through not understanding all the relationships between those systems.

Now, most businesses have about key 50 – 100 key management processes and in each process there is anything up to a 100 – 200 smaller processes, procedures and activities. So clearly having control of those is pretty important.

The tip here is really to understand them, take the time to map them, or at least understand them at some level, keep the procedures up to date, to have somebody that focuses on this, because at any one time we found that can be up to about 30% waste. You know, that’s really significant to margins, as there are hundreds of activities and procedures in a business and if up to 30% of that is not necessary, then imagine the cost saving and the impact on the bottom line, that can have in your organization.

You know, this is where lean consultants, for instance, earn a living because they make such a huge impact to the business.
So, the tip is to understand that, try and map it at some level, try and understand how your systems are interacting and have a continuous improvement mindset around your processes. Be actively trying to streamline them all the time, because the effect is enormous, certainly from a resilience and sustainability perspective. It has a massive impact on your business.

Today, that is all I’m going to talk about today about management systems. Next time I’m going to be talking to you about the data from those systems and how to use that data to make decisions in your business and the importance of that.

Okay, until then, I’ll see you next time and as always, if you want to know more about the topics I’ve talked about here, or just bounce ideas, we do run complimentary sessions for you.

So to give me a call, just follow the link on the text here and I can give you any advice or any observations or tips that might help you, as you try and drive some improvement in your business.

Okay. Speak to you next time. Bye. Bye.

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As usual. if you have any questions about anything I’ve talked about, um, you can email us at enquiries@bizdrivers.biz or go to our website www.bizdrivers.biz. You can contact us there and we can certainly steer you in the right direction.