What is a Business Management System? Why is a System of Quality Management so Vitally Important to Business Success?

Every company is a system-of-business. You work in a system that delivers products or services. If you want to be a better business you need to create a better business system.

It took a long time to understand why a business in the same market does better than other businesses. Every one thought that it was better marketing, or access to capital. But it was not. It was simply that one business had products that better suited customer needs. The best product always gains most market share and makes the biggest profits.

 


The best product or service always wins. You do not need to be first to market to own the market. Simply become the best product or service in your industry and the buyers in the marketplace will make sure that you dominate that market.

People know value when they see it. We tell friends and strangers when we are happy with our purchase. We also tell them in droves when we are unhappy with what we got. Length of time in the market and first to market means nothing if your products do not benefit the customer more than those of your competitors.

An example is Toyota passenger cars; they took the US car market from USA auto makers because their products better suited the customer. They were cheaper, yet more reliable and safer. They were better appointed inside with features useful to the driver.

When you build a business build it to be the best—it is the only strategy that guarantees your future success.

Business Management System
To become the best business, and remain the best business, needs a business management system to deliver the best products and services for the marketplace. You need to build a system-for-success in your business. In fact, your business has to become the system-for-success.

In the Collins English Dictionary the word System means: a group or combination of interrelated, interdependent, or interacting elements forming a collective entity.

A system has particular characteristics. Wikipedia imbues a system with the characteristics of structure (made of interrelated parts), behaviour (it uses processes to get an outcome), and interconnectivity (there is a relationship between parts and processes).

A human being is a system of flesh, muscle, bone and mind. A machine is a system of parts and controls. Traffic lights are a system of sensors, coloured lights and electronics. Earth is a system of land, sea, air, life and sunlight.

There are lifeless systems and there are alive systems. Lifeless systems have no internal capacity to survive alone. Cars and traffic lights are lifeless systems—they never change their behaviour. They are not self-sustaining and not self-improving.

Humans and Earth are alive systems—they look after themselves and exist by their own efforts. They can change the outcomes.

An alive business system learns and improves. It adopts better answers and adapts its behaviour to make better outcomes. To be the best business in the marketplace you need a business system that is alive. Your business has to become a system to create better outcomes for your customers.

For a business to flourish it needs to be more than a collection of people, processes and physical assets. It needs to come alive as a system-of-business. Its people, physical assets and processes become an interconnected structure that behaves to optimise the long-term performance and capability of the organisation to make products or services which best satisfy their customers.

Quality Management System
If your business is to survive in the marketplace it needs to grow and evolve in a planned way to become a system. To dominate your market the business system needs to produce products and services that suit customers’ needs. You will need a methodology to manage and evolve your business system and its products. That methodology is your quality management system.

You use a quality management system to learn where, and to understand how, to change your business management system into one which makes products that deliver better outcomes for customers.

Designing an Alive Business Management System
Every business is already a system-of-business. A few are brilliant business systems that create dominant products and services. Did they get to be so good by accident, or where they designed to deliver great outcomes?

We know the necessary characteristics an alive business system must have: components correctly structured; processes that deliver desired outcomes; beneficial internal relationships; ability to change to better behaviour; and be fully self-sustaining.

A system-of-business needs to be designed to work properly. Designing a business system requires a business design process and methodology that puts life into a business.

You must choose your business design method wisely. It is easy to create a business system with processes, assets and people. It is very much harder to build a business system that is alive, that improves itself until it is the best at making and delivering the best products.

If you manage an industrial operation, take a look at a business system design methodology that you can use to build an alive business—The Plant and Equipment Wellness Way.

 

My best regards to you,

Mike Sondalini
Managing Director
Lifetime Reliability Solutions HQ