We are discussing client management (or “project management”) in 5 parts.  You’ll want to revisit Parts 1 and 2 from last week:
Part 1: Managing Client Expectations
Part 2: Getting Organized

You have to be able to manage your clients’ expectations and have an organized work life before you can put systems into place.  The systems won’t work or function if you have clients who are ruling you and a system won’t work in a chaotic environment.

What is a system?

A system is a ritualized method for accomplishing a project.  This can mean lots of different things to different people.  Many moons ago when I worked for Deloitte as an auditor we would examine a company’s systems to ensure that they had procedures in place to safeguard from fraud and to ensure that accounting regulations were being consistently followed.  Our businesses don’t answer to the SEC.  We have a certain level of compliance for IRS purposes, but they are far less involved.

For the small business owner, systems are important for the following reasons:

  • ensuring a consistent client experience
  • for use in training and educating your employees
  • gives you control over your projects
  • if you sell your business (or franchise it) you want your company to be “turnkey”

Systems strengthen your brand and benefit the client experience

Tell me about your hair salon.  Do you LOVE the experience?  This is what I love about my hair salon: Andy always offers me a cup of coffee or glass of wine when I walk thru the door.  We chat about the latest happenings in our lives and then it’s business: color, wash, cut, style.  I’m out in an hour.  I LOVE this.  This is what I want from my hair salon.

Now, my experience wouldn’t quite be the same if I walked into that door and we sat down and got straight to business without the coffee or wine in my hand.  For me, that is part of the experience.  This is part of his salon’s brand.  This is also why I refer people to him.  It’s also why pretty much anyone in a 10 mile radius of his salon in Pasadena, CA that knows me gets their hair cut and colored by him.  (Did I mention that I live in MIAMI?! Yes – he is still my hairstylist.)

Whether he has sat down and identified his systems scientifically, I’m not sure of.  But, he does know that the consistency of the experience in his salon is what keeps people coming back for more (and from 3000 miles away.)  This is part of his sales ritual.

Systems are necessary for training your employees

It’s pretty much impossible for anyone to replicate what you do without having systems and procedures in place.  How will your staff know the “secret mojo” of your company if you haven’t identified any systems for them to follow.  How can they consistently offer your client the same experience you do?

Before reading the book E-Myth Revisited by Michael Gerber I thought systems would rob my company of any soul.  I was thinking robotic McDonald’s employees, “You want fries with that?”  But systemizing isn’t about taking personalization and customization out of your business.  Systemizing is about creating an extravagant experience for you client, regardless of whether it’s you or your staff.  It’s about finding those personalized and customized touches and doing them each and every time with each and every client.

If you dream of growing your company to more than just 1 person (you!) then you need to start thinking about the systems, procedures, and rituals that other people will be responsible for.

Systems give you control

Before I had systems for my business, I felt like I was responding to whatever need came up at that moment.  I also didn’t feel like I had a strong grasp on where each of my clients was at in our process.  I would find myself flipping through their file trying to remember when I had last heard from them and if they had sent me their contract.

With systems in place for a few key functions I felt much more “on top of things” in regards to client matters.  I can look at my assembly chart and know exactly where people are at each stage in the process.  I can look at the list of my inquiries and know which people I should follow up with to set an appointment.  And, better yet: my employees know exactly where each of our clients is at also.  They can pick up where other leave off.

A buyer of your business is going to want a “turnkey” business

A turnkey business is one that a new owner can operate as soon as he “turns the key” on the business’s door.  The new owner should be able to step in and and take over with very little transition.  These days businesses are much more complex than in olden time when this term was coined.  However, the expectation has not changed much.  A buyer of a small business wants success quickly – and profits.  They want to ensure that they can continue operating a successful company as it has been operated in the past.  Sure, they’ll improve upon the old.  But, if you have a successful formula and they are buying your business for that formula, they’ll want to know what it is.

Not of all of us have aspirations of selling our businesses and not many in the wedding industry will be able to do so.  But if this is something that you would like to do, you’ll have to be able to turn over the procedures to your company’s “secret mojo”.

Sooo… now you know all about systems.  Come back tomorrow… we’ll talk about HOW to document your systems.