If you have been in business for any length of time, you have probably heard about systems. So, what is a system and why should you incorporate systems into your business? In this series of articles, I will be focusing on what systems are, give examples, and list some key things to know when incorporating systems into your business.

First thing to note is that there are a lot of statistics about "Franchises" and what I refer to as "Mom and Pop" establishments. I have heard everything from Franchises outlasting Mom and Pop businesses twice as many times; to stats that state that 95% of Franchises survive versus 5% of Mom and Pop. Regardless of which statistic you believe in, the final analysis is this: Franchises outlast, outperform and outpace most Mom and Pop establishments.

The main core difference is yes; systems. Systems not only make a difference in how duties and tasks are performed, but in some ways change the culture and how people think in the organization. Systems also add a level of transparency to the organization as key indicators of business success are tracked and reported. One big advantage in system based organizations is that company performance is not based on that superstar you have working that seems to be way ahead of others, it is based on ordinary people achieving extraordinary things with ordinary effort.

To illustrate this, let's look at an example using a kitchen chef that is preparing a lunch special.

Mom and Pop: Joe Chef is a highly experienced chef which has been learning from multiple chefs in his long career. Today he is preparing a pasta dish. Joe fills a pot with water, throws in some salt and waits for it to boil. He cuts carrots, potatoes and other veggies and puts them aside. In a skillet he starts sautéing some chicken and grabs a pinch of this, a pinch of that and so on. He has prepared this dish before and keeps adding ingredients until it tastes the way he likes it. He then adds the vegetables. Once the water boils, Joe throws in a handful of noodles, again, by feel. He tests the noodles after some time to check if they are to his liking. Once all is completed he puts it all together, puts aside any extra and sends the plate to the customer. Oh yes, lets not forget the tasting to make sure it is up to his standards. So what is wrong with this? Well nothing if you have a handful of customers and you take pride of each meal being slightly different than the previous one and if the food costs are a secondary concern.

Franchise (systemized kitchen): Amanda has been working for this restaurant for just under a year. Amanda fills a pot to the pre-selected line (pan clearly marked) and puts it on the stove at a preset temperature (reference chart at stove). Once the water is boiling she adds the noodles and presses a timer. She knows the noodles will be perfect once it goes off. In a pre-heated skillet Amanda puts in a pre-weighted and sized piece of chicken and pours on the flavor package (pre-prepared selection of spices), adds the container of pre cut and prepared vegetables, covers the skillet and presses the timer. Once all is completed she puts it all together, and sends the plate to the customer.

So what is the big difference? Amanda does not have to continuously check on the progress of the meal that is now being prepared. She can work on more meals while waiting for the timer. In addition, a junior chef can do all the prep-work ahead of time during slow times, thereby decreasing costs.

These two scenarios illustrate some key systemization points. First, ordinary performers (Amanda) produce quality results. Second, the quality is consistent because the variables are controlled (with statements such as the fill line at the pot). Third (and finally), having all ingredients prepared in advance (like the spice mix and weighted portions) frees up the biggest resource, time, which allows other tasks to be completed. So on final analysis, a systemized business is a more efficient business; results are more consistent and as an owner more focus can be spend on growing the business instead of managing day to day operations.

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