What is Business Systemisation

What is Business Systemisation

Business systemisation gained notoriety from the bestselling book by Michael E. Gerber, published in 1986, The E-Myth – Why most businesses don’t work and what to do about it.  In 2011 this groundbreaking book was named the number 1 business book of all time by The Wall Street Journal.  In The E-Myth (Entrepreneurial Myth) Gerber explains how businesses are usually started by those who know the content of a business – so-called “Technicians”, people who know how to do the technical work involved in an enterprise – rather than by those who know business itself – so-called “Entrepreneurs” – and why start-ups are therefore by definition prone to failing. In order for a company or business to thrive, it must move beyond relying on the so-called “Technician” who is now also the company owner.  Gerber uses the franchise model to demonstrate how a business does this: Franchises are prototype businesses that are operated in terms of well-documented systems, i.e., there are manuals describing in minute detail how to run the business.  Gerber argues that the entrepreneur should spend time creating a business that can run by itself, without the presence of the entrepreneur, and this is achieved through business systemisation.   Important business systems Gerber outlines the three systems that are important for businesses, by making the business processes ever more predictable and consistent: Hard systems are the physical tools that make a company more efficient; soft systems are the methods and practices employed by staff to get the job done; and information systems are those IT processes that gather data about the business and its operations in order...