"A good system shortens the road to the goal"

-Orison Swett Marden-

1. Does your team have a major dependency on you?

2. Do you answer calls even on your day off to oversee operational problems?

3. Do you experience the exhaustion of having to tackle all the problems yourself?

As a leader, if you answer any of the above three questions in affirmative, then this article is for you.

Managers often end up in certain similar situations like start-up founders trying to battle the problem of constant firefighting and sometimes at very tactical levels.

This often is the result of a missing or a weak system. Dr W. Edwards Deming defined a system as "a network of interdependent components that work together to try to accomplish the aim of the system"

Let us understand the importance of a system.

For a moment Imagine you being a promising swimmer and an Olympic aspirant, and you are put through the world’s best elite sports management system (talent identification, training facilities, financial support, sport policies, coaching & conditioning, competitions and rewards & recognition, scientific research backed strategies, during career & post career support) will most likely result in shaping you into an elite sportsman and possibly a gold medallist and if you add absolutely unprecedented work ethics, you become a sports icon.

Now take the same ambitious you and put yourself to the mercy of a poor or no system. You will start off with enthusiasm and grand expectations, working hard day-in day-out. Do you think you will stand a chance against an opponent who is a product of a highly advanced system?

"A bad system will beat a good person every time"

-W. Edwards Deming-

If extraordinary achievers come to your mind, then these exemplary individuals, organizations or countries achieved what they did is, by carving out a system or adopting one like in the case of Károly Takács, Polgar sisters, McDonalds, or the story of a developed Singapore.

If you and your team need to succeed, you need to build systems. Systems impact behaviour and confidence.

The word ‘system’ has a myriad of application my emphasis in this article is on the management systems.

ISO (International Organization for Standardization) defines management system as ‘the way in which an organization manages the interrelated parts of its business to achieve its objectives.’

A management system includes policies, processes, procedure, or a mix of it all.

"Management work in the system, leadership work on the system"

-Stephen Covey-

Michael E Gerber’s book ‘E-Myth revisited’ got me deeply interested in the details of this subject. Michael E Gerber rightfully sates that one needs to work from bottom up to exemplify and stabilize the system.

Here I share with you what I believe are the ten characteristics of a good system that runs itself. Also, in brackets I am drawing parallels from proven systems.

These apply to daily operational management, change management, improvement management or even project management.

10 Characteristics of a good system

1. Clear aim and beginning

The objective for having a system must be clear (for e.g., health and safety, employee engagement, operational efficiency, performance management etc.) without which the components of the system will not work harmoniously as a whole rather, in conflict leading to a collapse.

2. Clarity in the rules of engagement

The system is either clearly introduced or apparent that it is in effect. The system may be mandatory (South Korean healthcare system), invitation based (Netflix subscription), qualification based (exclusive lounge access based on high frequent flier miles) or an open invitation (free national parks, free national museums). At the outset, the documented rules and expected behaviours are either made available (process of applying for a driving license), intuitive (no smoking within hospital wards), clear and unambiguous (entry / exit in well-designed highways) and/ or well-known (Australia follows right-hand drive).

3. Accountability & responsibilities

There is a clear roles & responsibility defined and an agreed hierarchy. The paramount authority must assume accountability for the outcome. Institutionalize traceable governance.

4. Benefits, privileges, or restrictions

The system cares and works for all parties. The benefits, privileges or restrictions are clear for being a part of the system. (Benefits to the authority and/or the user basis the risks involved in case of insurance policies, the privileged services that come with box seats at large stadiums) or guaranteeing freedom of movement and expression (expected behaviour and decorum within a library or a museum).

5. Rewards & consequences

Respond to behaviours with rewards (tax rebates) and/or with recognition (citizen honours). Reward generously to eliminate friction either while introducing the system or if there is an ongoing budget, if not then ensure suitable recognition as stated above. In case of unacceptable deviations, apply consequences (penalty for violating road rules) with provisions on how to go about fixing such deviations.

6. Learning curve

Provision for a learning curve for both the authority and the user system (new shopping and payment options e.g., Amazon One at Amazon Go). Expect misses, avoid knee jerk reactions, instead design a support system.

7. Metrics

Identify the determinants of a system’s objectives to measure and understand what good-looks-like, how early warning signals can work, and the possibility of effective retrospective investigations. Can historical data forecast the likelihood of a pattern reoccurring or predict through cause and effect.

8. Independent audit authority

Strive to eliminate hidden/selfish relationship between auditors and those that are building, running, or governing the system (independent teams & auditors). Levy consequence basis audits for non-compliance to the obligatory standards (the case of Ranbaxy)

9. Degree of transparency

Other than justified confidentiality and exclusivity from common population create transparency to retain belief in the system to avoid any potential anarchy (Citizen information state websites).

10. Ever evolving

Improve the system continually.

Customize the system basis the need, location, feasibility, and limitations within the ecosystem it operates in (for online purchases, cash-on-delivery is highly preferred in certain countries).

Systems permit ordinary people to achieve extraordinary results

-Michael E. Gerber-

While the above may seem logical, one needs to reflect on the commitment on ground. Validate and see if all key personnel understand this. Any system starts flat, something like a two-dimensional creation and when practiced and supported well and long enough becomes a well-rounded, sturdy, and self-protecting. All-in-all, mere instructions do not work.

Develop systems to develop people.

Here is a check list that can help you.