Tribal Knowledge vs. Systems

Management Team: Tribal Knowledge vs. Systems

Management team:

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.

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 wear too many hats and they haven’t transferred tribal knowledge into systems.

There are 2 ways to create systems

a. 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.

b. 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.

Systems are of huge value because they are transferrable. They’re scalable. You can multiply yourself.

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Jim, Chicago has 30+ years of experience but has no systems, Dale Richards gave him a method to do it.

Jim, Chicago has 30+ years of experience but has not converted it to systems. Dale Richards gave him a method to do it completely and quickly in his presentation on business concepts — Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically.