How To Build Systems In Your Business – Systemize Your Business Ep. 7

– The importance of a
clear job description, we’ve talked about this, it’s essential that job descriptions are not build around the particular skills that
a current team member has. In fact, people come and go. Do people come and go, yes? The people come and go, the
exact opposite is needed. The people need to fit
the job description; the job description should not be designed to fit the people. That’s the problem with
hiring family and friends ’cause you try to have
the person, oh maybe my sister could do this, and let me just have her something to do. Or let me modify the job
description till it fits, you know what, my sister,
she’s got two kids, she doesn’t work on,
wanna work on these days. Okay fine, I don’t, let
me design a position so I don’t have to work,
she doesn’t have to work those days and I’ll hire
another part time person just to cover her. Don’t do it that way. – [Announcer] The King
of High-Ticket Sales. World’s Highest-Paid Consultant. Media Celebrity. Multi-Millionaire Entrepreneur. Acclaimed TEDx Speaker. International Best-Selling Author. Dan Lok. – The people need to
fit the job description. This is the function that I need in order for my business to grow let me find the perfect candidate for that. And sometimes a competent
person as you put them in here you might find out they
have different talents, they could take on more
responsibility and more roles. Have you seen that before? Yeah, it happens. Let’s start with that one thing first. Question. Question, okay. Step number three, you want to develop business management systems. Now what is a system? Regardless of the business you’re in, there are best practices,
ways of doing things that have the best
chance of bringing about a particular result consistently. So once you have identified
what the best practices is, break it down into a
basically a series of steps that can be written down, or
illustrated, or photographed, so they can be repeated again and again. Again and again. So once you find that’s why, attraction, retention, optimization, once you know that’s what’s working, okay
now let’s systemize it. If that’s an ad on Facebook that works, well how can I systemize
that so I can duplicate that? There’s a way that I could
optimize a YouTube video, well that works, let me do the same thing for all these other vid,
all my videos in the future. That’s what system does. Now and systems take on three forms. How many? Three forms. The acronym of System is
this, S, Y, S, T, E, M. So you save yourself stress,
time, effort and money. Repeat after me actually. Save yourself stress, effort,
time, time, effort and money. S, Y, S, T, E, M. And the key thing of creating a system is how can I solve this problem
not once, but forever. Now are there incidents in your business, let’s say you have, you’re
working with an employee and they made a mistake. Is it easy for a business
owner to go and just, you know what, let me do
it, let me fix that for you. And you jump in and you
rescue that employee. Can we do that? – [Audience Member] No. – Good, why not? – [Audience] ‘Cause then
they’re dependent on you. – They’re dependent on you,
and next time they’re like, well she’s gonna come
fix it, let her do it, I don’t need to work that
hard, let them do it. That’s why I say as an entrepreneur you got to give room to your
employees to make mistakes. You cannot take them, take their head off every time they make a mistake ’cause if you do that they
won’t make any mistakes, and guess what, you won’t grow. Let them make the
mistakes, let the adults, let them learn from it
as long as it doesn’t, you know, bankrupt the business,
not like a fatal mistake, let them make mistakes and
then sit down with them, treat them like adult,
you know what have you learned from this? Well I learned not to do that again. Okay yeah, good, then
let’s not do that again, but you cannot always, oh shit, ah, okay, get out of the way, let me do it. ‘Cause a lot of us are control freaks. How many control freaks we have? I was one of them and life sucked, because when you’re a control freak every little thing bothers you, yes? Every little thing. I don’t like the way
you do that email here, there should be a period. Fuck, nah next time don’t do the email, let me do the email. I don’t like the way you answer the phone like your hello is too high for pitch, nah let me next time let me do it. And then guess what, it ends
up the organizational chart you, you, you, you, you, you, right? Right, I work with
entrepreneurs like who have five, 10 employees who don’t do shit, like they’re like superman or superwoman, they do everything. I said what does your employees do? Oh they just need to get out of my way. (laughter) I said okay. They just screw things up. And that’s the expectation
you have for employees that’s exactly how they would behave, ’cause people do what you expect. If that’s expectation they are losers, they are no good, they are low performers, that’s exactly what you’ll get. If your expectation is different, that you know what, my
employees are smart, given that they’re actually
smart to begin with, go through the interview process,
assume that they’re smart, and you have the expectation
that they will do good, they will do better, they
could grow, they could learn, they could learn from their mistakes, they behave very differently. No different than parenting. If you expect your kids to be, you know, not listen to you and
run around and stuff, that’s exactly what they do. ‘Cause you set up in a way
that that’s my expectation, you’re gonna scream,
you’re gonna run around, you’re gonna create a scene. Yes mom, I’ll do exactly that. And then you yell at
them, why you do that? It just validates that’s who I am as a kid and I’ll do more next time. It’s fucked up, I’m telling you. It’s how it works. How can you solve a problem
not once, but forever? So don’t just go in and fix that, say you know what, maybe
there’s a flaw in my system that I need to solve so
this doesn’t happen again. How can I solve a problem
not once, but forever? So there are three types of systems, the first type of system is
what I call Hard systems. What kind of systems? Hard systems. Hard systems are what
something looks like. What something what? Looks like. Uniform, logo, decor, design. What something looks like. Your banner, visual, that’s Hard systems. Hard systems, or
something that looks like. And let’s say if you run a retail business and everybody dresses whatever they want and however they want, then
that’s not a system now, is it? It’s doing whatever they want. You notice when you
walk into Tim Horton’s, you walk into Starbucks, do
you know it’s a Starbucks? Yes, can you see the same logo? Can you see the same uniform? That’s a system. Soft systems, now soft systems are what something sounds like. Soft system is what? Something sounds like. It’s how you answer the phone,
how you greet customers, how you deal with complains, how you sell, how you upsell, how you cross
sell, how you follow up. Soft systems. So let’s say if you’re doing sales do you just let your
salespeople or yourself say whatever you want on the phone or do you have a script that you follow? If I’m saying, I’m suggesting highly, strong suggesting, if you don’t have some kind of script
then how can you create persistent predictable results? Some cases you close one out of 10, some cases you close three out of 10, some cases you close zero out of 10, you won’t know the difference, you don’t know what
worked and what didn’t. Versus if you have a
script, you would know you know what, this script
converts at 10 percent. Let me tweak a few things here. Suddenly it’s converting 15 percent. That is cool, let’s keep that. And you tweak some few things
again and back to 10 percent. Oh shit, no, no, I shouldn’t do that. Let’s take that stuff on and craft that. And then once you have
something that works now you can give it to your salespeople and that’s why and I
told Ali the same thing, you cannot expect your salespeople to sell better than you do. It’s impossible, it’s a fantasy. If you are not the best
salesperson for your company you’ve got a problem. You have to be the number one
salesperson for your stuff, for your product and service. If you can’t even sell
you then how can you expect other people to sell you? I’m the best damn number
one salesman for my company. I could on the phone, in person, I could outperform, outsell every single salesperson that I have. So when they pick up the
phone when they are calling, oh man Dan this is hard man,
I talk with the prospects and they are not buying and this is hard. I said give me the fucking phone. And I do it in front of
them and I close the sale. What have you got to say? Oh I guess maybe I don’t know,
I need some more training. Damn right, damn right you do. Then I train them, I coach them. But I can demonstrate,
not just and you can’t just go to your salesperson,
they’re not selling. Oh you should sell more, call more people. That does not help them at all, and then they get frustrated
and then they quit. And you wonder how come
your salespeople don’t last ’cause salespeople I talked about, they’re mercenaries, they work for what? You have to set them up for success, you have to give them a
way that they could make a good living doing it,
promoting and selling for you. So you have to coach them for success. It’s okay they come and
make a little bit less, let’s say commission
based, but if you help them and you give them quality leads, and they could close more people, and they’re making more
and more and more and more, they will stay with you, ’cause
money buys their loyalties, but you have to set them up for success. And how can I teach them
and coach them to sell if I can’t sell? I don’t know what works. I could listen to them
and say you know what, the way you say it,
that line doesn’t work. Your tonality doesn’t work. The way you explain the
offer, that doesn’t work. Let me show you. And I go in, I fix it,
and I’ll do that again. Let me listen to it. That’s why they wanna work with me, not because of my good
looks, although that helps. So what have you learned from my talk and how does it apply to you and how do you take direction action? Comment below and let me know. If you have any other questions
you can also comment below. And don’t forget, click
on the Subscribe button, turn on notification, and hit the bell. So every single time I upload a new video you will get notified. If you wanna watch my other videos make sure you can check
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56 thoughts on “How To Build Systems In Your Business – Systemize Your Business Ep. 7

  1. Discover the vital actions you must do to hire, grow
    and systemize your business for success.
    Share your insights below about this video.

  2. I admit it. I can be a control freak, but I also know it sucks working for a control freak. I will be more conscious of creating higher expectations of the people around me and setting them up for success.

  3. Great Vid Dan. What value do you put on reviewing systems regularly with the staff so everyone is helping to 'grow' the systems and make them more effective?

  4. This video helped me overall connect dots on how to interface with employees. That was not the top lesson for me though.
    This was my first Dan Lok video, and it taught me what I was missing on closing a good video for social media. It was a fast closing, it made me feel wanted, and it provided the EXACT instructions I needed to keep up with future videos. Even if I wake up tomorrow and say, 'Screw Dan Lok!' I'll still have notifications when videos update, making me more likely to come back and tell a friend. More exposure=better publicity.
    Thanks Dan!

  5. i am a control freak and i am learning to release my hold.
    the example you gave of always rescuing your people when they get in trouble resonated with me. i now allow them make the mistake then coach them on how to do it better. thanks Sifu

  6. First view of audience, woman is texting… (even if I am wrong about this specific situation) This is what is wrong with society today. Great video

  7. I like the Sales part after 09.14 at the End. Very important and I'm totally agree! Sadly most companies don't see or act that way. Customers don't like to see or talk all the time an other Sales Rep. I worked for so many companies who treat Sales like the lowest. Go out and sell my shit and you will earn some money. If not, adios.

  8. Hi, That was really helpful and clarifies why we have so many problems. So thank you very much for this 🙂
    One thing though, you said there are three types of system. 1) Hard System 2) Soft Systems and 3)? Is that in some other session?

  9. We have made scripts for our system but You made me realize that not enough, like a script to answer the phone. Thank you Dan.

  10. Sales scripts are just so underrated in many sales environments, especially retail environments! How can we set up our teams for success in the faces of sales? How can we set up systems for crunching data that managers critically need to make efficient decisions? Really deep questions to take home from this video, Thanks Dan!

  11. I have to be the best salesperson in my business, in turn this means I need to improve my sales skills. S.Y.S.T.E.M.= Save Yourself Stress, Time, Effort and Money

  12. seeing the difference between hard systems and soft systems is so interesting doing design for 3 years I never saw it as a system, I like also knowing that theres value in it still but thats not just it, you also got to have soft systems as well, which are more personal and one to one. this is an eye opening video

  13. Well Dan. I really like what you are teaching us. I have once been an employer and employee same time. Do you know what, my employee wait for me to fix everything and expect me to do what they supposed to do. I had to build a system!!!

  14. Ahaa… I like that, allowing team to be creative around their challenges. Fix the problem forever by systemising, make your system as effective as possible… Lead from the front, do what you want them to do… They will learn from you

  15. Fascinating information. I'm now in the discovery of: How do I manage myself better?! How exciting!

  16. The staff who have worked for me in the past who I didn't micro-manage always ended up out performing those I didn't let grow…lesson learned!

  17. Dan, you are a genius! Your appreciation for your teamates is something I aspire to have when I open my business. You are an inspiration to all of us. Thank you

  18. Schools, universities and any other youtubers never teach this. So direct and valuable….

  19. This is really good advice that not only sales managers need but leaders in general. Too many of them don't take the time to groom their people because they expect them to perform at their level. If that were the case everyone in the organization would be a boss. You should be training your people to replace you, not bring you coffee.

  20. I was having 50-50 mindset for making SOP for almost all works in my office. Your video was like confirmation from heaven. I will do now. Give me a word of encouragement…

  21. What is the difference between systems and automation? For example, with software templates, library assets, and presets you have created systems to easily solve a problem again and again. Isn`t it also automation, or how do you differentiate?

  22. Hello Mr Lok.
    I have a landscaping company and watching your videos every day I can see the progress already.
    Thank you for everything. You’re the best.

  23. Dan? How do you creat a system to deal with gossip at work? What is your system you put in place when you have two employees who has conflict with each other?

  24. I am learning a lot from your videos and getting result from my new business. Thanks for sharing your wisdom.


    Systemise Business Management Systems.

    Best Practice
    1. Series of steps
    2. To be repeated again and again
    – attraction, retention, optimisation

    Three Forms Of Systems

    S Y S T E M
    – Save
    – Yourself
    – Stress
    – Time
    – Effort
    – Money

    Let employees make mistakes… don’t take their head off.
    Work with them help the grow and learn

    Don’t control freak
    Help them grow
    People rise to expectation
    – you always make mistakes
    – you can learn and perform better yes
    – my employees are smart
    – they will do better
    – they will grow

    How to solve a problem forever

    1st. Hard Systems
    – what something looks like
    – logo
    – uniform
    – brand

    2. Soft Systems
    What something sounds like
    – how you speak
    – tone

    – scripts to follow
    – build consistent sales results
    – higher convert rates
    – SALES PEOPLE cant sell better than owner.

    Help them succeed

    Set salesman up for success

    They are mercenaries for money

  26. Thank you for such valuable tips! Where were you 20 years ago? You could have saved me a lot of grey hairs!!👩🏻‍🦳

  27. I know I’m not the only one that was waiting on the 3rd System that wasn’t explained in the video. Does anyone know it?

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