Business is a complex and dynamic collection of decisions and actions. It is interdependent departments jostling for attention. It is a rush of energy as the day starts and an exhale of exhaustion as the day ends. A business and its pieces move fast and run into struggles continuously as the company grows and adapts.
With all the moving pieces of finance, marketing, sales, operations, delivery, HR and administration it becomes a lot to track and organize.
How do you do it? What’s your system?
Too often good solid business owners and entrepreneurs don’t have a real system for running their company. They move from decision to decision with their best ideas and insights but without a broader mental model of their business and what they are trying to build.
What does every business need? Structure. Not just the structure of set hours, a fixed location or a website address. A structure to use as a blueprint for growth. A structure for measuring the performance and output of the business.
This structure needs to come in the form of a framework. A model, or a way to think about all of the intricate, interconnected pieces of the business. Most people structure a business in the traditional silos or segments of sales, marketing, finance, operations, admin and HR.
These silos compartmentalize the business nicely but does it really give us a way to think about the business as a whole? Does it give us any tools to consider how to improve in each area or how to grow the business overall? In my opinion, it doesn’t–and that is a significant gap for the entrepreneur.
A framework is also critical for your management and team. The use of framework in the business means that everyone uses a common language. As you reference an idea, people can put it into the framework and know how it fits. Much like knowing the general grouping of contents of the cupboards in a kitchen, when an action is discussed the team can quickly know what business cupboard to look in.
So what is a framework?
A framework is simply the naming and identification of pieces of the business as well as their relationships or progressions.
With our clients, we identify and work on 3 key points:
- The 5 Drivers of Business Revenues and Profits
- The 5 Foundations of Business Performance
- The 8 Stages to Business Growth and Scaling
With these reference points, everyone in a business can be thinking about, discussing and understanding the way the business runs AND where to look for improvements in the company.
Sales can just be about ‘sell more’. Marketing can’t just be about ‘advertise more’. People can’t just be about ‘work harder’. The inputs and variables that create the results of the company have to be known and managed. A framework makes that possible.
How do you develop a framework?
Frankly, it is often easier to adopt one that already exists. There are many models to explain a business, just be sure to adopt framework that focuses on improvement and the levers you can influence to get dramatically different results. The time to create your own is not something most entrepreneurs have time to develop and prove out.
Unsure of where to start? We can share our models with you and give you that starting point. Otherwise, look online and ask other entrepreneurs what they use (and what results they get).
A good framework allows operations to run more effectively. It also paves the way for growth and performance in a company; as every participant knows the ways they can positively impact the business day to day. They’ll understand how the small steps taken roll up into the master framework of business success.