Management Team: Tribal Knowledge vs. Systems
They are important as long as we go to the next step which is Scalable. Scalable means you can take your system and it can be duplicated in other cities or other areas. You’ve got a system.
- Listen: Jim, Chicago has 30+ years experience but has no systems to capture tribal knowledge. I helped give Jim a method to capture that valuable tribal knowledge completely and quickly in my presentation on business concepts — Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically.
Benefits for a system:
1. Take your tribal knowledge high risk positions, systemize them- find out exactly all the steps they use, all the materials, all of the scripts, everything they do. Create a system that can be duplicated. You can not duplicate tribal knowledge. Systems don’t happen for companies until they are about $100 million in revenue. If you have systems in place, you look like a $100 million company. Smaller companies where too many hats and they haven’t transferred tribal knowledge into systems.
There are 2 ways to create systems.
- When you design or quote a project, take a tape recorder and instead of listening to music as you commute, tell me exactly every step you take to do an estimate. Where do you find it, where the numbers are, the tables you look at. Get a high school kid to transcribe it for $10/hour.
- Or take someone and have them trained. Say, your job not only is to learn the job, but I want you to write down everything he does step by step exactly what you do.
2. Systems are of huge value because they are transferrable…….. Check out my book to learn more about how you can build systems that capture tribal knowledge, before it is lost. Learn more about Business Valuation Principles by Dale S Richards https://successbiznow.com/books/business-valuation-principles-by-dale-richards/
ABOUT DALE S. RICHARDS:
Preview Dales presentations: Watch Dale In Action Dale S. Richards specializes in management, marketing, operation optimization & business valuation consulting and is a 25+ year turnaround expert. He has implemented success concepts into results in 150+ companies. Dale is a Certified Valuation Analyst (CVA) with NACVA, a Vistage International CEO-Board Chair in Utah and a World and Vistage International Speaker. Visit www.successbiznow.com to learn more about Dale and business valuation services.