Systems Leverage Quiz

It’s a competitive world, but we don’t compete for business primarily on price anymore.  We have a written, detailed description of our target customer and through testing and surveying our customers regularly, we know exactly why they buy from us - because of our unique value, not price and we communicate that value clearly in our marketing.  We know the cost of each lead we get and the cost to acquire each new customer, so our marketing is budget driven to provide the right number and quality of leads required to reach our sales goals. Because we know our marketing numbers so well, we focus our spending on the most profitable lead sources. It’s a machine.

We have an awesome sales team. For us, sales is a carefully choreographed process that we have documented and built into our daily life. We invest a lot into training not just on the process, but in selling skills, too. Each one is responsible for setting their sales targets and they are accountable to hit their numbers. We measure them not just by sales, but also the numbers on the activities that lead to sales on a daily, weekly and monthly basis. There is some turnover, but we have a “bench” of talent to keep fully staffed so we can stay on plan when someone separates from the company.

We know exactly who our best customers are and we treat them differently through our VIP program so they stay loyal and spend more. Referrals are our best source of new customers, so we have a formal program in place to actively get those leads. Because we maintain our database so carefully, we have an automated keep in touch communication plan that stimulates upsells and increases our average dollar sale and repeat frequency.

I love my team. We have a systematic approach to recruiting and interviewing that keeps us fully staffed with good people. We treat them well – the onboarding process gets them off to a good start and they have ongoing training and development plans that they are responsible for…that’s really important for the millennials. Their roles are simply and clearly communicated to them and they get regular feedback on their performance. We also publish transparent KPI’s that are tied to their incentive compensation. So everyone is crystal clear about where they stand and their part on the team.

Everyone here knows what we are trying to build together. And they know how we treat each other and our customers. Everyone takes ownership of their work and accepts accountability for their results. I trust them to make decisions on their own - as long as they follow our Operating Principles that describe how to we want to do business so they can make those decisions when I’m not around. We are all different, but at the same time, we all think and work and act together for the goal.

The business works for me, not the other way around. I’ve learned to keep my calendar with discipline, because when I do, I get the free time I want to keep balance in my life for me and my family. The team and the systems are strong enough that I don’t have to fight fires all the time – I can invest time working on the business to grow it. I’ve delegated the things that I don’t enjoy to do and spend more time planning and working to develop the people and innovating. I have clarity on where I’m going and control of the business to get there.

I know my numbers very well. I thoroughly understand my monthly P&L, Balance Sheet and Statement of Cash Flows. We have a rolling 6 month cash flow forecast that shows me what will happen before it’s too late. Cost accounting tells us our profitability for each piece of work we do so we have control of our margins and pricing model. Expenses are controlled by budget and profit is predictable now.

When we meet to solve problems, we don’t just solve them, we actually follow through and do it. Our meeting system has a rhythm of daily, weekly, monthly, quarterly and yearly pattern that we follow and each has a set process that keeps track of our commitments to ensure accountability. When we decide to do something, from a strategic decision right down to fixing an operational detail, it gets done.

We get consistency in operations because everything is systemized. We can monitor our effectiveness through the KPI’s in place that measure everything from customer service standards to quality to timeliness. Work flows are documented and checklisted to produce consistent results without a lot of chaos. It’s the systems that create the value and the team operates the system so we are not dependent on any one employee to deliver.

The business can run without me if I go away for a couple of weeks if I choose to do so. There is a GM in place who can manage it for me. Our vision is clear and documented and the team is aligned to it. Our goals are clear and there is a culture of success that everyone shares in. My attention is spread across fulfilling not just my business goals, but my personal goals as well.