Sunday, March 28, 2010

Healthy Systems Create Healthy Companies

“Do some exercise,” the doctor tells her patient. “It’s good for you.” The number one reason people exercise is so they can stay healthy. And how does physical exercise contribute to your health? Now I am no doctor but I have come to learn that physical inactivity is a major risk factor for developing coronary artery disease. It also contributes to other risk factors including obesity, high blood pressure, and diabetes. Physical exercise, on the other hand, improves the performance of your body system. There is that word again- systems.

Businesses, just like our bodies, function as systems of interrelated parts. A company’s health is as good as the system that runs it. A company may have enormous cash flow but without an efficient system, it won’t be long before the cash flow disappears. Systems ensure continuity, stability and reliability.

When you look at the most successful businesses in the world, you will find a common secret behind them all. They have perfected the system that delivers their products or services. It’s this kind of businesses that have survived for years.

One would think that a company with a very good product will surely succeed. Much as each company needs a great product to start, the company must go beyond just the provision of a glittering product. This company must learn how to perfect the system that delivers the product. All great businesses deliver their products through an efficient system. This partly explains why franchises are still successful up to this day. Your favorite drink may not be the healthiest drink, especially because of all that sugar in it. But it still sells more than your healthy orange juice. Why? Because of the efficient system that delivers the drink. Yes the money is in the system.

1 comment:

Anonymous said...

I hear you Amon....a system is an entity that maintains its existence through the mutual interaction of its parts where as cash flow is the medium of exchange during the mutual interaction of the parts.

Kawesa

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