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Your Business is a going concern - keep it that way

Published: 08/01/2010 by Mrs. Habiba Haja Afonja

Any organization, large or small; profit making or not; domestic or foreign needs a solid business system. This essentially entails an organized daily method of operation. This goes from a filing system to an accounting system. A good system will run from the first activity within an organization to the last.

Large organisations usually have watertight business/organization systems – in fact some organizations are defined as large based on the depth and track record of their systems (of course coupled with criteria such as size of manpower and turnover). It is usually the small to medium sized organisations that are usually found wanting, either due to the perceived costs of maintaining a system (time and money) or fear of sustainability.

However, the business world has developed to rightfully give solid organizational skills and strong preparedness to tackle problems (operational, tactical or strategic) the same weight as the ability to generate revenue to determine the ability of the business to SIMPLY GO ON. These are the benefits of a thoroughly tested business system to an organization.

Small to Medium sized organizations must understand the significance of a good system; whether operational or financial to the success of their operations. It is a business tool that allows management (whether that of a sole proprietor, partnership or a conglomerate) to look at where the company has been, where it presently is and where it is going.

For example - A neat filing system ensures continuity at the absence of a key member of staff. A reliable human resources system reminds management of its obligations to staff on matters such as holidays, sick leave, and remuneration and to some extent bonuses. With just a quick reference to certain documents, staff know the provisions made for them on such matters and when to take advantage of such benefits. A good financial system allows an organization to know exactly how much is generated and spent on a regular basis. This helps the accounting team see cost cutting opportunities easily and helps apportion management expenses appropriately. It will quicken investment decisions. And a healthy strategic system allows a business see exactly what the competition is doing and why they are succeeding or failing. BELIEVE ME; THIS IS IMPORTANT.

A carefully designed and reliable business system will take a thorough look at the current operations system (if any); seek alternative methods of achieving the business objectives (where the existing system does not appear to be working) and chose the alternative method(s) that best suit the organisations’ ethics and culture as well as positions the organization to comfortably exist (with its competition) within the market. A good system will give priority to

Continuous customer satisfaction and ensure that customers remain at the heart of its daily achievements.

Finally, a well thought through system will ensure that a strong Monitoring and Evaluation culture is imbibed within the system. Do not get scared of the big words; it just means, making sure that the organization sets goals it wishes to achieve (within its system); targets with which to measure achievement of the set goals by and going back through the system to make sure that achievements are being recorded and in so doing the INITIAL AIM IS MET. If not, go back and either reset your goals or the targets. Most often than not, it is the target that should be given the second ‘go over’.

In conclusion, if you have never had a proper system or have a system that is half-in-between, there is always a good time to start making amends. As always, it is better late than never. Your business is a going concern; you should do everything within your power to give it a healthy life and make sure it stays alive.

A good system will give careful consideration to (not limited to);
1. Procurement/order process
2. Production and/or service delivery methods
3. Sales and Marketing methods
4. After Sales or Customer Service Experience
5. Operations System
6. Firm Structure
7. Human Resource Management
8. Filing and Record keeping System
9. Financial Records
10. IT Systems

And remember, there are consulting firms that provide services that cover every single thing that has been discussed in this article for a token. Shop around and you will be pleasantly surprised.

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