Saturday, January 22, 2005
What systems are and how a business uses them
In this post we’ll look at what systems actually are and how they work. We’ll learn about two types of systems; hard and soft, how they function, and well look at a few real life examples of both kinds that real businesses are using today.
What are systems and what is their purpose?The purpose of systems is to influence the results of any activity that impacts the business to within an acceptable variable range. The system itself is either tangible or intangible, physical or behaviorally based tactics that accomplish the stated goals of variable control.
Hard and Soft SystemsThere is more than one way to segment systems but for the business builder beginning a systems implementation or improvement plan, we’ll describe two types; Hard and soft systems.
Hard and soft systems are called “hard” and ‘soft” because they reflect two type of system, ones that are people based activities that follow a systemized strategy of behavior or communication (soft), and the hard systems which describe technological, physical location, machinery or equipment based systems.
Lets take a closer look at soft and hard systems
If I wanted to use a hard system, I would have some type of automated dough machine that would cut my dough to the precise size and weight necessary to make my ideal cookie. In a soft system I would hire artistic employees who would “eyeball” the best start shape equivalent to the desired pattern as possible, or I could use a hard system that would cut out the dough into perfect stars of the same exact pattern each time.
It may seem like I’m saying that hard systems are always better and more efficient, consider this. Say that I am an owner of a growing business and I need to have a way to handle an increasing load of customer calls.
I could utilize a hard system in which I could have the client call into an automated voice systems that routed them through ever increasingly specific options until they hopefully hear an answer to their question. I could refer all of my call to a web site with a question and answer area.
Or I could have customer employees answer calls either helping the customer by handling the issue while on the phone, helping them to find the correct person they need to speak with, or helping them to connect up with the proper “hard system” designed to expedite resolution of their concerns.
There is a place for automation of customer services, especially online based solutions where those using them expect low touch responses, but we have all been the victim of being in one of those automated telephone systems that seem more design to discourage you form actually attempting to resolve your problem than to resolving them.
Soft spoken-soft systems
“Hello, welcome to McBurgers,
Ever hear anything like this? That’s a soft system. It’s a script used by many fast food restaurants. The script is a proven verbal communication that has been developed and tested to increase sales of double scrumpy value basket. And guess what, when followed precisely by the employee, it works. It increases sales of the item mentioned.
Scripting for success
My business struggled for while trying to find the best way to handle prospective clients. We tried mailing out multiple option educational packets, and tried for a while to just “wing it” on each sales call. All of these produced marginal success at best.
After some thought, I a developed a sales script based on what I had learned were the specific questions that 99.99% of all potential clients wanted to know. Who are you? What can you do for me? How does it work? How much is it going to cost me? How do I take action on this?
My Business helps trucking companies get into and stay in compliance with federally mandated drug and alcohol free regulations. When we make contact with a client they usually don’t know much other than they need a drug and alcohol program and they could get in trouble if they aren’t.
Our script begins with a question; “how much do you know about the regulation?” They usually say “not much” and then the script goes on. “I’ll let you know what the federal government expects from you in order to be in compliance and then I let you what we do and how it relates to that.” Then I say I’ll be telling them how much it costs and what they can do to get started”
The script takes about five to seven minute of mostly just the company rep speaking. You might think that that is too long but we learned that the clients are very interested because we use the educational approach, and they are getting questions they have had answered for them. In most cases without even asking first.
Our conversion rate for a qualified prospect or referrals is near 100% including respondents to any marketing piece we use. And it doesn’t matter whether it’s me, a sales person, or a complete stranger to the business just following the script. It is always that effective.
More Hard and Soft System Examples
O.K. how bout some more hard systems. McDonald Fries making machinery ensures uniform quality in their fries from Chicago to China and from Moscow to Miami. Using a fax machine is a hard system ensuring fast delivery of hard copy information. Email is a hard system that speeds up communications.
Computers are hard systems. The letter sorting equipment used by the postal service is a hard system. A cannon is a military hard system designed to deliver predictable destruction. An automated fabric cutting machine is a hard system used in clothing factories.
More soft systems; Wal-Mart’s “How can I help” badges that employs wear signifying there training to help anyone who asks no matter what department they’re from. The Southwest Airlines mindset that they promote in all their employee. Casual Fridays at any company.
You too can develop systems, hard and soft, for your business as well. Try this next exercise to start helping develop you systems awareness. And I’ll see with the next installment soon.
Exercise:
What are systems and what is their purpose?
Hard and Soft Systems
Hard and soft systems are called “hard” and ‘soft” because they reflect two type of system, ones that are people based activities that follow a systemized strategy of behavior or communication (soft), and the hard systems which describe technological, physical location, machinery or equipment based systems.
Lets take a closer look at soft and hard systems
If my company was making star shaped cookies and I wanted them to be the same size and weight each time I would need to utilize some sort of system. An example of a soft system would be to have my employees try to create uniform dough balls of approximate similarity in weight and size by sight and feel.
If I wanted to use a hard system, I would have some type of automated dough machine that would cut my dough to the precise size and weight necessary to make my ideal cookie. In a soft system I would hire artistic employees who would “eyeball” the best start shape equivalent to the desired pattern as possible, or I could use a hard system that would cut out the dough into perfect stars of the same exact pattern each time.
It may seem like I’m saying that hard systems are always better and more efficient, consider this. Say that I am an owner of a growing business and I need to have a way to handle an increasing load of customer calls.
I could utilize a hard system in which I could have the client call into an automated voice systems that routed them through ever increasingly specific options until they hopefully hear an answer to their question. I could refer all of my call to a web site with a question and answer area.
Or I could have customer employees answer calls either helping the customer by handling the issue while on the phone, helping them to find the correct person they need to speak with, or helping them to connect up with the proper “hard system” designed to expedite resolution of their concerns.
There is a place for automation of customer services, especially online based solutions where those using them expect low touch responses, but we have all been the victim of being in one of those automated telephone systems that seem more design to discourage you form actually attempting to resolve your problem than to resolving them.
Soft spoken-soft systems
“Hello, welcome to McBurgers,
would you like to try a
double scrumpy value basket today?”
Ever hear anything like this? That’s a soft system. It’s a script used by many fast food restaurants. The script is a proven verbal communication that has been developed and tested to increase sales of double scrumpy value basket. And guess what, when followed precisely by the employee, it works. It increases sales of the item mentioned.
Scripting for success
My business struggled for while trying to find the best way to handle prospective clients. We tried mailing out multiple option educational packets, and tried for a while to just “wing it” on each sales call. All of these produced marginal success at best.
After some thought, I a developed a sales script based on what I had learned were the specific questions that 99.99% of all potential clients wanted to know. Who are you? What can you do for me? How does it work? How much is it going to cost me? How do I take action on this?
My Business helps trucking companies get into and stay in compliance with federally mandated drug and alcohol free regulations. When we make contact with a client they usually don’t know much other than they need a drug and alcohol program and they could get in trouble if they aren’t.
Our script begins with a question; “how much do you know about the regulation?” They usually say “not much” and then the script goes on. “I’ll let you know what the federal government expects from you in order to be in compliance and then I let you what we do and how it relates to that.” Then I say I’ll be telling them how much it costs and what they can do to get started”
The script takes about five to seven minute of mostly just the company rep speaking. You might think that that is too long but we learned that the clients are very interested because we use the educational approach, and they are getting questions they have had answered for them. In most cases without even asking first.
Our conversion rate for a qualified prospect or referrals is near 100% including respondents to any marketing piece we use. And it doesn’t matter whether it’s me, a sales person, or a complete stranger to the business just following the script. It is always that effective.
More Hard and Soft System Examples
O.K. how bout some more hard systems. McDonald Fries making machinery ensures uniform quality in their fries from Chicago to China and from Moscow to Miami. Using a fax machine is a hard system ensuring fast delivery of hard copy information. Email is a hard system that speeds up communications.
Computers are hard systems. The letter sorting equipment used by the postal service is a hard system. A cannon is a military hard system designed to deliver predictable destruction. An automated fabric cutting machine is a hard system used in clothing factories.
More soft systems; Wal-Mart’s “How can I help” badges that employs wear signifying there training to help anyone who asks no matter what department they’re from. The Southwest Airlines mindset that they promote in all their employee. Casual Fridays at any company.
You too can develop systems, hard and soft, for your business as well. Try this next exercise to start helping develop you systems awareness. And I’ll see with the next installment soon.
Exercise:
- Try to find ten soft systems being usd in businesses all around you and write them down
- Then try to find ten hard systems \
- Send me your lists to spbiz4@juno.com
Each business is unique and it systems needs are as well. Some can be borrowed wholly or adapted from other businesses and others must be developed for your business alone. In the next installment we’ll be talking about how to go about developing and implement systems with some examples and another activity to help you learn how to.
Systems Steve
