THE BENEFITS OF SYSTEMS, 

"THE E-MYTH WAY" WAY!

Michael E. Gerber, in his classic business book, "The E-Myth" illustrated how Ray Kroc, founder of McDonald's, pioneered the "systems approach" to running a business. Gerber termed it the "Franchise Prototype", which he viewed as the answer to how and why a business owner can "work on a business, not in it." 

Gerber offered six key benefits of using the "systems approach" model to operating a business:

• The "Franchise Prototype", as Gerber termed it, provided "consistent value" to business stakeholders, going "beyond what they expected." A big part of that value is the consistency. For example, a Big Mac at McDonald's can be trusted to look and taste the same at McDonald's restaurants all over the world. The same can be said for the chicken served with Colonel Sander's famous Original Recipe at KFCs globally. 
• The systems approach makes work a streamlined process, which allows the business model to be "operated by people with the lowest possible level of skill." The bottom line: your business won't be held hostage to your best people. Your systems and documentation will be the anecdote to maintaining high quality. As a caveat: it is possible that a manager can sabotage an installed system, if their "tweaks" confuse people or if time pressure renders the system to the dust bin.
• This business model will be a place of "impeccable order." This order adds value by creating trust and peace of mind with customers. It also allows employees to do their job, instead of worrying about which supervisor or manager's method they need to be using, or who to please.
• In the Franchise Prototype model pioneered by Ray Kroc, "all work is documented in a clear Operations Manual."  Gerber notes the operative word is, "clear". Again, in reality, change happens. The system needs to be updated/ revised to address those changes or a business can once again be moved by the "whims" of key staff or managers.  
• Uniformly predictable service will be provided to customers. This is the benefit, as noted previously, that McDonald's provides and other franchise businesses provide that enjoy more sales than many "mom and pop" stores, without such a predictable reputation!
• The systems business model will utilize a uniform color, dress and facilities code. This goes along with predictability and providing a consistent experience for customers. 

Source of Mr. Gerber's quotes and insights are from "The E-Myth Revisited" by Michael E. Gerber, pg. 98-99. Used under the Fair Use Rules of the U.S. Copyright Law.