There’s actually a way to tell
I’ve gotten a lot of subscribers since October 2022 so I’m reposting this because I think it’s important. Something I didn’t mention when I posted it first is that thinking in systems is a skill not everyone has. If you’re more intuitive than process oriented, find someone who is better than you to document the systems in your firm. Your company growth will thank you for it.
In the 1980’s Carnegie Mellon University Software Engineering Institute along with the US Department of Defense, developed a way to rank the maturity of software systems. They called it the Capability Maturity Model. I have adapted it to rate the maturity of any process or system in an organization.
Level 1 – Work gets done.
Focus on Achievement
Work is ad hoc, and even chaotic. It may be behind schedule, over budget, but it gets done. Results often depend on the effort (often heroic) of key people.
Goals may not exist or be very vague.
Definition of an individual’s success is often “my boss is happy” or something else that’s not measurable or predictable.
Level 2 – Work is repeatable.
Focus on Repeatability of Results
The basic processes are in place to track progress, costs, schedule and functionality. But these tend to be lagging indicators so are measured after the work is done. Discipline is in place to repeat earlier successes on projects with similar goals.
Goals / success indicators are after the fact.
Level 3 – Work is standardized and hence, trainable.
Focus on Standardization of Process
There is a documented process for standard operating procedures. This process includes workflows, instructions, and has exceptions noted.
This can be used to train others. Which is critical for growth.
Level 4 – Work is managed while in process.
Focus on Metrics / Management
Leading indicators are measured so results can be predicted while in process and problems corrected before the job is done, rather than fixed after the fact.
The process (not just the result) is “measured and controlled.”
Level 5 – Work is optimized.
Focus on Optimization
This means that:
Work is aligned with the company strategy so it’s effective not just efficient.
The process is deliberately (often continuously) reviewed and improved.
CEO Time
That’s the maturity scale. Now here’s an exercise for your CEO Time (working ON the business).
Make a list of all your systems. Anything that repeatedly produces an output is a system. Most systems are not software or tech. And if you’re moving to technology, your systems should be mature before you do so.
Score each one according to the above.
Decide which ones need to be improved and which will you work on first.
Increased maturity of systems usually increases the value of a company. But for normal operations, they don’t all need to be a 5. That depends on the importance of the output the system produces. Remember that the output – the work – is the reason for any system. For systems that are repeated infrequently or where the output is not that important, level 1 is probably OK. But any significant system should be at least a level 3.
Your job as CEO is to determine the appropriate level and get those systems to that level. You don’t have to do that work yourself, but you are responsible that it gets done. If systemizing is not your strength, bring on someone who’s good at it – either permanently or temporarily.