“You do not rise to the level of your goals. You fall to the level of your systems.” – James Clear

 

The Cost of Chaos – Why Business Systemisation Is No Longer Optional

If you run a growing business, you will know this feeling all too well. Everyone is working flat out, you haven’t taken a proper holiday in years, yet progress slows instead of accelerating. Customers wait longer than they should, quality wobbles, people unintentionally duplicate work, and mistakes creep in because nothing is quite as clear as it should be.

It is not a lack of effort. It is a lack of systems.

This is the silent tax that poor system design places on companies of every size. Wasted time, rework, inconsistent service, unnecessary stress, and rising operational cost are all symptoms of a business relying on memory, improvisation, and goodwill instead of structured, repeatable ways of working. And as your business grows, the cracks widen. What worked for five people becomes unmanageable for fifty.

This is where business systemisation comes in. It is the unsung engine of operational efficiency, productivity improvement, and sustainable scaling, yet it is one of the most neglected areas in SMEs worldwide. Far too many leaders continue to rely on heroic effort rather than consistent workflow design. And in many cases, the founder becomes the bottleneck because everything still relies on them.

As I often say: “You didn’t build your business to become its prisoner. You built it for freedom.” Systemisation is the antidote. It’s not about bureaucracy – it’s about building a business that runs smoothly, scales sustainably, and frees you from being the bottleneck.

Last week’s article, Optimising Your Supply Chain, examined external operational efficiency – the suppliers, logistics, and partners that shape your ability to serve customers. This article shifts the focus internally. If the first article covered the arteries of your business, this article covers the beating heart.

Next week we will look at continuous improvement, but that is impossible to establish without the foundation of clear, consistent systems. Excellence depends on structure, not chance.

 

Why Systemisation Matters: The Hidden Engine of Growth

We live in a fast-moving, interconnected world shaped by global competition and rapidly advancing technology. Complexity increases every year. Customer expectations rise. AI accelerates decision-making and reshapes workloads. In this context, systemisation is no longer a nice-to-have. It is essential.

The Challenges of Sticking to Startup Processes

Many SMEs grow rapidly without their internal systems keeping pace. As a result, several problems emerge:

• Startup processes break as the business scales – processes designed for a handful of people collapse when volumes increase. Manual tracking, informal communication, and memory-based operations simply cannot keep pace.
• Founder dependence becomes a major risk – if the founder is the only person who knows “how things work”, the business becomes fragile. This is neither scalable nor sustainable, and it often leads to burnout.
• Inefficiency grows quietly – paper logs, verbal instructions, unstructured email chains, and undocumented customer commitments all become slow, error-prone bottlenecks.
• Training new staff becomes painful – without clear processes, training varies wildly. This leads to inconsistent quality, increased mistakes, and long onboarding times. And when an experienced staff member is away for any reason, things get even worse.
• Technology cannot be adopted effectively – you cannot automate what you cannot define. When systems are unclear, introducing CRM tools, workflow software, or automation platforms becomes difficult, even impossible.

The Importance of Business Systemisation

Smart systemisation enables:

• Scalability – Standardised processes ensure consistency as you grow.
• Resilience – The business can run without your constant involvement.
• Focus – Automation frees up time for strategic work.

Industry leaders such as Jason Goldberg make a compelling case in The Art of Scale for why systemisation is central to organisational growth. He describes systems as the mechanism that enables creativity by removing friction. David Allen, quoted widely in business productivity circles, puts it simply: structure creates freedom.

In my own career across three continents, I have repeatedly seen the same: consistency builds reliability, and reliability builds trust. Customers trust you because you deliver the same quality every time. Teams trust leadership because expectations are clear. Investors trust a company that is not dependent on a single individual.

Strong systems also reinforce the themes explored in my earlier articles on agility, cost management, compliance, and customer experience. Every one of those topics relies on predictable processes.

Systemisation is the only way to scale your business beyond your own capacity.

 

The Foundations of Good Business Systemisation

Good business systemisation is not about creating mountains of paperwork. It is about clarity, flow, and enabling people to perform consistently without guesswork.

Process Mapping – Understanding How Work Really Gets Done

Most leaders have a mental picture of how work flows through their company. In reality, the picture is often inaccurate. Processes drift over time. People adapt, workaround steps, or invent shortcuts.

Business systemisation begins with uncovering the actual workflow.

Practical tools include:

• Value stream mapping tracks how value flows through your process and where it gets stuck.
• SIPOC diagrams (Supplier, Input, Process, Output, Customer) provide a high-level overview.
• Simple whiteboard mapping with sticky notes lets teams visualise and rearrange steps collaboratively.
• Screen recordings of key activities provide more engaging lessons than pure text.

These expose bottlenecks, duplicated efforts, unclear handoffs, and quality gaps.

The most important rule is simple: the people doing the work should document the process – your SOP (Standard Operating Procedure). They understand the nuances, the exceptions, and the real challenges.

The video revolution has changed documentation. Instead of writing fifteen-step SOPs, teams can record short clips demonstrating how tasks are performed. It is faster, fresher, and more engaging.

For more on seeing how work truly occurs, refer to my article on Gemba – Taking MBWA to the Next Level – you can’t improve what you don’t observe.

Eliminating Waste – Lessons from Lean for SMEs

Lean methodology identifies eight major waste categories that silently erode profitability:

• Defects and rework – Errors that require correction consume time and resources.
• Overproduction – Creating more than needed ties up cash and space.
• Waiting time – Idle periods while work waits for approval, information, or the next step.
• Non-utilised talent – Skilled people doing administrative tasks below their capability.
• Transportation inefficiencies – Unnecessary movement of materials or information, whether internally or externally.
• Inventory excess – Holding more stock than necessary.
• Motion waste – People walking, searching, or navigating poor workspace layouts.
• Extra processing – Unnecessary steps that add no value for the customer.

Shigeo Shingo captured this perfectly: “The most dangerous kind of waste is the waste we do not recognise.”

In SMEs, waste accumulates quietly:

• staff chase emails instead of using a centralised workflow.
• inventory is over-ordered because no one trusts the system.
• reports are generated manually even though tools could automate them.
• customers repeat information because CRM entries are incomplete.

A practical way to identify the worst offenders is the 80/20 audit: identify the 20 percent of processes creating 80 percent of frustration.

Customer feedback is another key source of insight. As explored in How Customer Feedback Fuels Continuous Improvement, customers quickly expose inefficiencies that internal teams miss. One of my most effective techniques for uncovering issues has been simply talking with my customers and suppliers and asking four simple questions:

• “What are we doing well, or you’d like us to do more of?”
• “What are we doing badly, or should do less of?”
• “What should we start doing that we’re not doing?”
• “What should we stop doing?”

The answers are always instructive.

 

Designing Workflows for Flow and Reliability

Good workflow design turns complexity into clarity. It creates flow instead of friction.

Creating Flow Instead of Friction

Flow occurs when:

• steps follow a logical sequence, and fewer steps usually win.
• each person knows exactly what to do.
• handoffs are smooth.
• no one has to stop and wait.
• information is complete, accurate, and instantly available.

Jason Goldberg’s friction vs flow concept illustrates how systemisation multiplies efficiency. When you reduce friction, productivity improvement becomes immediate and visible.

Simple rules include:

• reduce the number of steps.
• define clear ownership.
• establish inputs and outputs for each stage.
• remove unnecessary approvals.

SOPs Without the Corporate Overhead

Too many SMEs think SOPs are bulky corporate documents. They do not need to be, and should not be.

Effective SOPs for SMEs are:

• short.
• practical.
• visual where possible.
• stored in a shared location.
• updated regularly.
• easy to follow.

Make them easy to find, easy to follow, and easy to update. Think checklists, flowcharts, and short videos – not 40-page PDFs. And keep them updated – the shorter they are, the easier this process is.

Examples of where SOPs add value:

• onboarding new staff.
• finance processes (purchase orders, invoicing, expense claims).
• customer service interactions.
• sales processes.
• operations workflows.
• IT tasks.

SOPs are not about bureaucracy. They create consistency and reduce reliance on memory. They are the foundation for automation and quality assurance.

Documentation as a Strategic Asset

Documentation is not bureaucracy – it is clarity. It reduces training time, improves quality, and protects your business from key-person risk.

Documentation supports:

• faster onboarding.
• fewer mistakes.
• higher consistency.
• lower training costs.
• stronger compliance.

Modern documentation formats include:

• video walkthroughs.
• annotated screenshots.
• checklists.
• quick-start guides.
• process playbooks.
• centralised knowledge bases.

Far from slowing you down, documentation increases operational efficiency by reducing confusion and rework. It gives your team the confidence to deliver high-quality results autonomously, so boosting customer experience and satisfaction levels.

See also my article Boost Your Bottom Line: Streamlining Processes for deeper insight into building clarity in operations.

 

Smart Automation: Using Technology to Scale What Works

Technology accelerates business systemisation, but only when applied after you understand the underlying process.

Automation in Context – Only Systemise What You First Understand

Michael Hammer famously warned: “If you automate a mess, you get an automated mess.” Automation multiplies whatever it touches. If the process is messy, automation simply makes the mess faster.

This is why process mapping and workflow clarity must come first.

Where You Can Get the Fastest ROI with Automation

Automation delivers rapid returns when applied to repetitive, rules-based tasks such as:

• invoicing.
• sales follow-ups.
• payment reminders.
• customer onboarding.
• support ticketing.
• order processing.
• appointment scheduling.

Tools like Zapier, Make, Microsoft Power Automate, and CRM-based workflow builders offer SME-friendly automation without requiring coding knowledge or needing big budgets to implement.

In my article, Smart Automation: The CEO’s Fast Track to Efficiency and Scale, I unpacked how automation frees your team to focus on higher-value work while improving accuracy and service quality.

The Emerging Role of AI in Business Systemisation

AI is becoming the junior analyst in many businesses. It can:

• document processes.
• summarise workflows.
• draft SOPs.
• monitor KPIs.
• analyse customer patterns.
• check for anomalies in operations.
• remind staff about deadlines.
• generate quick reports.
• produce minutes of meetings.
• interpret large volumes of data.
• suggest workflow improvements.

As HubSpot regularly highlights in its AI-driven operations research, AI reduces friction in sales, marketing, and service processes by automating routine steps and ensuring information is consistent across systems.

AI also supports systemisation by capturing that vital corporate knowledge before it disappears.

For more on this, see Practical AI for SMEs.

 

Systemising the Human Element – Empower People Through Clarity

Systemisation is ultimately about people. It is about helping them succeed without unnecessary stress, confusion, or wasted effort.

Why Systems Improve Employee Performance and Reduce Stress

People thrive when they understand:

• what is expected of them.
• what good looks like.
• who is responsible for what.
• how to complete tasks without ambiguity.

Clear systems:

• reduce errors.
• strengthen accountability.
• improve teamwork.
• lower frustration.
• increase job satisfaction.

This directly links to my articles on culture and customer experience. When your internal operations run smoothly, your customer experience becomes stronger and more consistent.

Designing Personal Operating Systems for Leaders and Teams

Systemising at the personal level is just as important as systemising the business.

Good personal operating systems include:

• daily routines.
• structured calendars.
• checklists.
• meeting hygiene.
• decision frameworks.
• time allocation for strategic work.
• documented habits.

Leaders must model what they expect from their teams. If your personal workflow is chaotic, your business will mirror it.

Drawing from my experiences in aviation and scuba diving, I can assure you that clarity saves lives. Whether you are flying a night approach or planning a technical descent, procedures exist for good reason. They remove uncertainty and ensure focus under pressure.

Similarly, business procedures protect your team, brand, and customers.

For more on personal time structure, see Too Many Meetings? A Strategic Guide, Mastering Time Management and Conquering Email Overload.

 

The Dark Side of Systemisation – Avoiding Common Pitfalls

Business systemisation is powerful, but, like any powerful tool, it can cause damage when applied poorly. Jason Goldberg warns about “death by a thousand papercuts of bureaucracy” – a situation where processes become more important than outcomes. It is a trap many organisations fall into as they scale.

Understanding the risks helps leaders avoid them.

Bureaucracy Creep – When Systems Become Sludge

This is one of the biggest dangers. A system designed with good intentions becomes bloated over time:

• a simple form accumulates extra fields because “we might need that data one day”.
• a once-clear workflow now requires three levels of approval.
• a quick internal check becomes a mandatory report.
• small decisions require sign-off from multiple managers.

When systems slow your people down, you do not have systemisation – you have red tape.

As Seth Godin often says, organisations can become “factories for compliance” instead of engines for creativity and value. If your team feels more constrained than supported, something has gone wrong.

Inflexible Systems That Stifle Innovation

Goldberg makes another important point: over-corporatising is as dangerous as having no systems at all.

Systems that:

• cannot adapt.
• have no feedback loops.
• are not reviewed.
• discourage experimentation.

…become barriers to progress. This is particularly damaging in SMEs where adaptability is often your greatest strength. Bad system design can neutralise this advantage.

Lack of Ownership and Engagement

Systems fail when they are created for teams rather than with them.

Common symptoms include:

• nobody feels responsible for updating documentation.
• staff see systems as “management’s rules”.
• processes are followed only when someone is watching.
• systems sit in a folder but are ignored in practice.

Ownership is essential. Teams must participate in designing and updating their workflows.

Trying to Systemise Everything at Once

This is another classic mistake. Ambitious leaders launch “process transformation initiatives” that attempt to fix every process simultaneously. This overwhelms the organisation and results in little lasting change.

Systemisation works best when you start small, methodically, and with the biggest pain points first.

The Balance: Minimum Viable Structure

The healthiest system design approach is to establish:

• as much structure as necessary.
• as little complexity as possible.

SMEs thrive when systems act as rails that guide people, not cages that restrict them. Reviewing systems quarterly keeps them fresh, effective, and aligned with business goals.

 

Reinforcing a Culture of Excellence and Continuous Improvement

Business systemisation is the foundation upon which a culture of excellence is built. Without clear systems, continuous improvement is impossible. With them, improvement becomes a natural behaviour.

The next article in this series will examine continuous improvement in depth, but it is worth setting the stage here.

Excellence Begins With Predictability

You cannot improve what you cannot measure, and you cannot measure what is inconsistent. When processes are clear and repeatable, leaders finally have visibility into:

• performance.
• bottlenecks.
• quality issues.
• customer experience.
• time lost to inefficiencies.

This is the bedrock of operational excellence.

Systems “Empower Ordinary People to Deliver Extraordinary Results”

Goldberg’s words sum this up beautifully. Systems liberate people by reducing guesswork. Staff can focus on quality, problem-solving, and contributing ideas rather than firefighting and improvising.

My articles on culture and customer-centricity highlight the same truth: when people are supported with clarity and structure, they deliver a better customer experience.

Continuous Improvement Thrives in a Systemised Environment

Systemisation and continuous improvement are complementary forces:

• systems create a baseline.
• improvement elevates the baseline.
• systems are updated.
• improvement continues.

This cycle strengthens culture, encourages innovation, and aligns with what companies like Toyota, HubSpot, and Amazon famously practise – operational discipline paired with feedback loops.

 

Practical Steps to Start Systemising in Your SME Tomorrow

You do not need to overhaul your entire organisation to start improving your business systemisation. The following steps will get you moving quickly.

A Practical 10-Step Checklist

1. Start small – choose one painful bottleneck.
2. Define the outcome and owner – be clear about who is responsible.
3. Map the existing process – document the real workflow, not the idealised version.
4. Remove unnecessary steps – simplify aggressively.
5. Document the streamlined flow – use video, screenshots, checklists, or simple guides.
6. Train the team – ensure consistent understanding.
7. Automate where appropriate – only once the process is stable.
8. Review in 30 days – check if it is working and refine if needed.
9. Track metrics – time saved, errors reduced, customer experience improved.
10. Celebrate small wins – acknowledge quick improvements to build momentum.

This is a practical, low-stress approach that builds consistency without overwhelming your organisation.

 

Conclusion: Structure Creates Freedom

Business systemisation is often misunderstood as restrictive, but the opposite is true. Clear systems free your team to perform at their best. They reduce friction, waste, stress, and reliance on the founder. They accelerate onboarding, strengthen customer experience, and create a business that can scale, adapt, and perform reliably.

Most importantly, systemisation creates freedom for you as a leader. When your operations run smoothly without your constant involvement, you gain the space to focus on strategy, innovation, and growth.

A well-systemised business is:

• more resilient.
• more predictable.
• more profitable.
• more attractive to potential buyers.
• more enjoyable to lead.

It is the foundation of operational excellence and the gateway to sustainable scale.

 

Key Takeaways:

• Business systemisation is essential for growth, efficiency, and resilience.
• Systems reduce founder dependence and build consistency across the organisation.
• Mapping processes reveals hidden waste and inefficiencies that silently erode profit.
• SOPs, checklists, and documentation accelerate training and improve quality.
• Smart automation boosts productivity but must follow process clarity.
• AI enhances systemisation by analysing data, documenting workflows, and maintaining consistency.
• The best systems are simple, flexible, and continually reviewed.
• Systemisation strengthens culture, customer experience, and strategic execution.

 

Next Steps (You Can Take This Week):

1. Choose one area of your business that causes frequent delays or errors.
2. Spend 30 minutes mapping the current process with your team.
3. Remove one unnecessary step from that process today.
4. Create a simple checklist or screen recording of the improved flow.
5. Share it with your team and gather immediate feedback.
6. Identify one small automation opportunity to explore.
7. Book a follow-up review in 30 days.

Small steps, applied consistently, transform businesses over time.

 

Your turn:

Which part of your business would benefit most from clearer, simpler, more consistent systems – and what would change if you improved it by just 20 percent?

I would love to hear your views. Share your thoughts in the comments, DM me, or feel free to drop me an email directly if you’d like a more personal conversation.

 

FAQs – Business Systemisation

1. What is business systemisation, and why is it important for SMEs?

Business systemisation is the process of creating structured, repeatable workflows that improve consistency, efficiency, and scalability. SMEs benefit from reduced errors, faster onboarding, and more predictable operations.

2. Where should I begin with systemising my business?

Start with the biggest bottleneck – the place where delays, errors, or frustrations are most common. Systemising one area at a time builds momentum without overwhelming your team.

3. How do I prevent systemisation from turning into bureaucracy?

Keep processes simple, practical, and outcome-focused. Review systems quarterly and involve staff in updating them to ensure they remain relevant and useful.

4. What processes should be systemised first?

High-impact areas such as sales, onboarding, customer service, finance, and fulfilment typically yield the fastest improvements.

5. How does business systemisation improve profitability?

Reducing waste, errors, duplication, and unnecessary manual labour directly lowers operational costs and increases productivity, improving margins.

6. Should I automate everything once I start systemising?

No. Automate only once the underlying process is clear and stable. Automation multiplies whatever it touches, so clarity and accuracy must come first.

7. How does systemisation strengthen company culture?

People perform better when expectations are clear and frustration is minimised. Good systems support autonomy, accountability, and continuous improvement.

8. What tools can SMEs use for systemisation?

Tools such as Asana, Trello, Monday.com, HubSpot CRM, Zoho, Zapier, Make, Loom, and Power Automate support process clarity, documentation, and automation.

9. How can I get my team to follow systems consistently?

Involve them in designing the systems. When people help build workflows, they understand the logic behind them and take ownership of results.

10. How does systemisation support business valuation and growth?

A systemised business is less dependent on individuals, easier to scale, and far more attractive to investors or buyers, increasing its long-term value.

 

If you’ve found these answers helpful and want to look more deeply into the subject of Enhancing Operational Efficiency, you can explore the full article and more resources in the previous sections. And as always, feel free to share your thoughts in the comments below or reach out to me directly for further insights.

 

Want more tailored advice on issues in your business that are of concern for you? Let’s talk. Book a complimentary 45-minute Business Health Review today to get personalised advice on some things you can address today. Schedule your session here.

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This month, we’re exploring the topic of Enhancing Operational Efficiency, with this being the second article in the series. The first, should you wish to review it, was:

> Optimising Your Supply Chain: Strategies to Cut Costs and Build Business Resilience

 

Stay tuned for further articles to help you take your business to the next level – or better yet, subscribe to my blog and receive the latest insights straight to your inbox. Click here to sign up or send me a note here and I’ll add you to the list.

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Let’s Take Your Business to the Next Level

With over 50 years in the technology industry across three continents – including three decades in C-suite roles driving exponential revenue and profitability growth – I now coach business owners and leaders to achieve even greater success.

💡 Need help with your strategy, culture, leadership, board dynamics, or scaling your business? Let’s talk. Book a complimentary 45-minute Business Health Review today to find a  quick win that will free up time or improve margin this quarter. Schedule your session here.

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Related Posts

If you’d like to learn more about effective marketing and the areas we’ve covered here, the following articles and posts might be of interest:

• Optimising Your Supply Chain: Strategies to Cut Costs and Build Business Resilience
• Thriving in a Chaotic World: How Agility Makes Your Business Unbreakable
• Navigating the Waters of Expense: Cost Management Techniques to Boost Profitability
• Compliance is More than a Tickbox: How Building a Culture of Compliance Can Drive Business Growth
• Transform Your Business: The Power of Exceptional Customer Service
• Gemba – Taking MBWA to the Next Level
• How Customer Feedback Fuels Continuous Improvement and Business Growth  
• Boost Your Bottom Line: Streamlining Processes for Supercharged Business Efficiency
• Smart Automation: The CEO’s Fast Track to Efficiency and Scale
• Practical AI for SMEs: Streamlining Operations, Boosting Efficiency, and Gaining a Competitive Edge
• Culture to Customer Experience: How a Thriving Workplace Fuels Business Growth
• Too Many Meetings? A Strategic Guide to Unlocking Time Management Excellence
• Mastering Time Management: Escaping the Urgency Trap for Leadership Success
• Conquering Email Overload: Striking the Balance for Business Leaders
• Embedding Culture into Your Business: Transforming Values into Action
• Embedding a Customer-Centric Culture: The Blueprint for Lasting Business Success  
• The Magic of Small Changes for Big Profit Increases
• Art of Scale

 

Backgrounders

Forbes – Does Your Company Systemize These Nine Important Business Functions?

• 10 Aspects Of Your Business You Should Be Systemizing 

Harvard Business Review – Companies Are Reimagining Business Processes with Algorithms

• 4 Steps That Can Optimize Your Sales Process 
• How Systems Support (or Undermine) Good Decision-Making

 

Business Systemisation, Operational Efficiency, Process Improvement, Streamlining Operations, Workflow Optimisation, Reducing Waste, Standard Operating Procedures, Automation for SMEs,  Smart Automation, AI in Business Operations, Continuous Improvement, Scaling an SME, #BusinessFitness, #ArtOfScale, #QOTW,