Two very different approaches to scaling businesses...

Two very different approaches to scaling your business.

Welcome to today's episode, or really tonight's episode, I want to share with you two very interesting approaches to scaling.

The first one is around building systems and processes so that your team can use those instructions to get the work done.

This means running the business on systems and having the people do the work of those systems.

So this is one very clear approach.

But today, I was scanning through a different book, a book called Scaling up.

And it is the apparently the second version of following the Rockefeller habits.

Now, this takes a very different approach to scaling businesses.

And instead of looking at systems and processes, it's all about how do you manage people? So they talk about meetings, daily meetings, weekly meetings, monthly meetings, how to get the most out of them? What is interesting about these two very different approaches is that they are trying to solve the same problem.

What is that problem? Well, it is very clearly laid out in scaling up.

And the problem is that as you increase the number of people in a enterprise in a business in a company, that the degree of complexity goes up exponentially, that by even for people, they were saying that there might be 24 different directional interactions between those four people.

So at this, this, this is a major problem.

This is, this is what these two approaches are trying to solve.

One's looking at, like, okay, let's simplify it down and manage the processes.

One is looking at, hey, let's manage the people and simplify down so that we can have some control.

My bet, and my take on this is that the first approach is more efficient.

And I would say that what one of the interesting ideas out of scaling up was that there are these natural points of where businesses end up with a number of people, sort of two to three was the first point eight to 12 per second.

And then I think the next one was 2030, and then 50.

And then like 350, like these natural numbers that appeared.

But my take on this was that because of systems and processes being vastly more efficient than people, that what you could achieve at one level of using systems and processes was exponentially more.

And so to do the same amount of work in a business using scaling up, you might need eight to 12 people as you do in two to three people with systems and processes, and then 20 to 30 people the same amount of work as 812.

With processes and systems, you might say, well, that's ridiculous.

But what is interesting is that I was listening to another audio today, and they're talking about the problems of managers and managers not passing on information.

And that the problem was that humans forget, humans are fallible, humans have problems like we are by no means perfect.

We're certainly not computers.

But if you manage the processes, then suddenly, the consistency comes, all we need to do is have the human like me like you like your team, like my team is to follow the instructions.

And these instructions, which is really trippy to me, do not have to be perfect, that they just have to be enough.

And with time, with improvements with iteration over and over and over that system gets better and better.

In the early days, it is not worth filling in the details at all.

Why? Because well, you're not sure that system works yet.

But as you become more confident that system is producing the results, then you can slowly fill in more and more links.

And that system continues to get better.

When you're dealing with people.

As soon as one person leaves.

They take a whole chunk of knowledge with them.

And that is lost to the enterprise lost the business.

And you're still dealing with the degree of complexity.

When you managing by systems you can see so much clearly more clearly what's going on.

It's not in people's heads, even though this is commonly what gets done up until maybe the multinational level.

Why? Because well, systems are challenging to run systems are challenging to build, or at least that's the belief unless you do a particular way which we've covered before.

I call it the magic board.

It's like oh, wow, that makes systems obvious and easy for anyone to do find some help with this head over to systemio.dev.

Thanks for tuning into today's episode or tonight's episode.

And I look forward to seeing you on tomorrow's journey into the power of systems to create results.

See you then.