In this global competitive market, business owners are looking for that competitive advantage to keep them ahead. It’s all too easy to find the best new technology that seems to have all the answers to increase productivity or create a new product. So you, as the business owner, invest in the technology, only to find out that it’s not producing the desired results . . . increased productivity, lower costs due to efficiencies and thus more to the bottom line. It has actually done the opposite . . . lengthened production time, created chaos across all departments and thus reduced margins. And on top of that, the investment never delivers the return that was planned. So you decide that you were oversold on the technology, that it doesn’t work, and decide to pull the plug on it. Or even worse, you keep using and investing in it but only use modules that fit your immediate needs to patch things up.
You just bought a Ferrari and can only drive it 20 miles per hour!
As a business owner, you’re frustrated with the results of the new technology and wonder if you can ever get your business humming like a well-oiled machine. You’re constantly looking for ways to improve your processes and developing your employees. You have big goals for the company and understand that what you’ve done in the past is not what’s going to take you to the next level.
So you tweak your marketing strategy, hire talented sales people, look for ways to reduce costs in operations, and offer a new service. You’re making progress but just when you think you’re heading in the right direction, you hit a barrier and take two steps back . . . and wonder. Am I ever going to reach my Big Hairy Audacious Goal or should I just be satisfied with where I am?
What if you figured out a way to have your business humming like a well-oiled machine . . . like a perfect system! What if everybody in your business got along and performed excellent work in their specific roles! What if all your processes were frictionless and nothing got dropped along the whole customer experience! What if your technology was accelerating your progress instead of hampering it; working like a natural appendage to your business body!
It can happen and does happen with several successful businesses around the world. Those successful businesses have found the formula for that perfect system. And they didn’t start with technology or relied on technology to take them to the next level. Technology is only a small component of the overall business system and is merely a tool in the overall infrastructure of a business. I would argue that it is the last thing you should look at when looking for ways to improve your business.
Think of your business as a system, composed of various integrated parts. Those main components are either related to People, Process, or Infrastructure. All of these components are interdependent but it starts with People. Technology is only a subset of Infrastructure (I’ll explain all sub-components of Infrastructure in future blogs). So when you jump into a technology solution, you’re missing the first two main components to consider: People and Process.
If you’re only looking for a technology solution without seeing what personnel or process issues could be the root cause, you’re spending money on the wrong solution. It’s much cheaper to address personnel issues and process breakdowns. However, you have to invest your time to truly understand the root causes. You can’t short-cut problems through technology if people are not trained or if you have gaps in your processes. Jim Collins found through his research in writing Good to Great that technology was not a factor in taking companies to greatness. It helped accelerate their progress, but not until after they had the right people in the right seats doing the right things (People and Process).
So visualize your company with employees that have the proper talent, skills and training to accomplish common goals (People). Your business processes are streamlined with no bottlenecks and no wasted time or effort (Process). Your technology and organizational structure supports your team so that everyone is working effectively and efficiently (Infrastructure). What would that do for your company?
Visualize beyond your company. What would that do for you? If your company were operating in such a way, what would that do for your personal satisfaction, for your family, for the legacy you want to leave? All my clients desire something beyond the personal satisfaction of having a successful business. Their “Why” for having such a business is to have a quality life and to provide for their family. Their business is not the end. It is merely a means to an end. They want to be available and involved with memorable experiences with their family, not absent and forgotten. They want to make sure their family is taken care of, especially beyond their time here on earth. They’re passionate about their business because they want to make an impact on this world, leaving a legacy for their spouse, children, and community.
If you are the business owner I described, I challenge you to look at your business differently before you implement that next technology solution. Find the root cause of what’s really causing the challenges in your business. Really, really, really dig deep! Ask “Why” are we not getting the desired results . . . at least 5 times. Peel that onion back.
Chances are, it’s not a technology problem. It could be a process issue that needs to be addressed before investing in technology. Or it could be a training issue or a wrong person in a role. Taking this approach could be painful and arduous. It may even point to you as a leader in your company as the root cause. Maybe you’re not communicating your expectations clearly. Maybe you’re avoiding terminating an employee that doesn’t really fit. Technology will not fix those issues.
Take a deep look at your company when the next challenge comes up. I’m willing to bet that technology is not the root cause.
Read my next blog on viewing your business as a true system . . . a living system! For more information on a successful business system, read about the Entrepreneurial Operating System (EOS).
To Your Business Health!