System Five of six. The one that hurts. Also the one with the biggest payoff, because everything you built in the first four falls over without it.
Remember McDonald’s?
Same burger in Boise as in San Antonio. Same taste, same quality, every single time.
How the hell does that happen?
One word. Accountability.
Now let’s bring it home.
Your phone rings. Good news, your marketing is working.
Here’s the million-dollar question.
Who’s going to answer that phone? And what are they going to say?
Do you have a script? Does anybody mystery shop your own business to hear what’s actually being said? Is there a supervisor who listens in periodically to make sure your team follows the system?
Or are you crossing your fingers and hoping for the best?
What you’re paying for the privilege of not delegating
Run this one honestly. It’s the number that makes owners uncomfortable, which is why it works.
The owner’s time audit
A. Hours you worked last week
B. Of those, hours only you could possibly have done
C. A minus B. Somebody else’s job, done by you.
D. What one hour of your best work produces, in dollars
E. C times D times 50. What that costs you in a year.
F. What it would cost to hire somebody to do C
G. E minus F. What you’re paying for the privilege of not delegating.
Right now you’re paying the most expensive person in your company, you, to do fifteen-dollar-an-hour work. That’s the most expensive labor you could possibly have.
Mystery shop yourself
Ask somebody your team doesn’t know to call your main line this week with a real question.
Find out how long it took, what was said, and whether anything happened afterward.
Then sit with the answer for a minute before you go correct anybody. Your people almost certainly aren’t the problem. Nobody ever told them what to say, and nobody ever checked.
A story about systems nobody wrote down
Back in the 1980s I worked with failed and failing savings and loan associations.
At one of them, I brought in a consultant from an accounting firm to map out how paper flowed through the institution. She spent about a week interviewing employees and collecting documents from around the bank.
A week later she calls a meeting in the big conference room.
When I walk in, she asks me: “Will my services be paid for if I found more than $15,000 in lost money?”
“Well, of course,” I said.
Then she unrolls this massive brown paper diagram across the entire floor. From one end of the conference room to the other. Both sides of the table.
She’d mapped not just how paper flowed, but how checks for mortgage payments were being handled.
What she found was insane.
This S&L had been around since before the Depression. Here was their system. Employee one receives checks and logs them in. Employee two credits the payment to the account. Employee three deposits the checks.
Sounds reasonable, right?
Except deposits were only being done on Tuesdays and Thursdays.
Not daily. Not even twice a day. Tuesdays. And. Thursdays.
When I asked why, you know what they told me?
“We have no idea. But the procedures must have been set up by the lady who retired ten years ago.”
She’d worked there forty years before retiring. Probably one of the original employees.
There were no real systems. The process was just the way it had always been done, and every time they hired somebody new, they kept doing it the same way.
Oh, and that $15,000? My consultant found checks totaling over $15,000 that had been filed in mortgage files by mistake.
So much for their system.
Your business has a Tuesdays and Thursdays. Everybody’s does. The only question is whether you’ve looked.
What your team actually needs
Here’s what most business owners don’t want to hear.
Systems and benchmarks don’t invent themselves.
If you’re sitting around waiting for your staff to develop systems while they’re busy doing their day jobs, don’t hold your breath.
It will not happen.
You, as the owner, must take charge.
A strong team doesn’t happen by accident. They need to be trained. They need to be accountable. They need to be responsible. And they need to be responsive.
Which means they need four things from you:
- Clear expectations
- Written systems to follow
- Accountability measures
- Financial incentives tied to performance
Written job descriptions, and I don’t mean a thesis
Not some long, rambling document nobody reads.
I’m talking about a spreadsheet that details specific tasks, performance benchmarks, and how compensation ties to performance.
For example. If accuracy is critical, is a portion of their pay based on the number of errors found? Or rather, the lack of errors?
Your benchmarks have to pass five tests. Specific, so there are no vague goals. Understandable, so everyone knows what’s expected. Measurable, so you can track actual performance. Attainable, so it’s possible to achieve over time. Consistent, so it’s applied the same way every time.
That last one is the one everybody breaks, and it’s the one that costs you good people. Occasionally it’s the one that gets you sued.
Your number two
Here’s the question underneath all of this.
If you disappeared for ninety days, who runs your business?
If you have a name, write it down, then write down what that person still can’t do without asking you. That list is your next ninety days of work.
If you don’t have a name, that’s finding number one, and it outranks everything else on this page. You can build all six systems perfectly and still have a business that nobody can run but you.
Through a buyer’s eyes
The org chart is one of the first documents a buyer asks for, and one of the most revealing.
He isn’t reading titles. He’s counting how many boxes have your name in them.
Then he asks the simple version out loud. What happens if you get hit by a bus the day after closing?
Every owner has an answer ready. Most of those answers don’t survive a follow-up question.
What a buyer does about it is hold your money. Escrow. An earnout. A seller note that only pays if the numbers hold. A three-year employment agreement at a salary he sets.
Sometimes all four at once.
Here’s what that means in practice. You negotiated a price. Then you agreed to terms that put a third of it at risk, contingent on a business performing without you, when everybody in the room already knows it can’t.
Every name you put in a box, every benchmark you write down, every job you hand off for good, moves money from the contingent column into the cash column on the day you close.
Frequently Asked Questions
What is a team accountability system?
Written job descriptions with specific tasks and benchmarks, a way to verify the work is being done to standard, and compensation connected to hitting those benchmarks. Not a culture. A structure.
What makes a good performance benchmark?
Five things. Specific, understandable, measurable, attainable, and consistently applied. The last one is the one owners break, and breaking it is how you lose good people and occasionally how you get sued.
How do I find out what my team is actually doing?
Mystery shop your own business. Have somebody your team doesn’t know call in with a real question, and find out what was said and what happened next. It takes ten minutes and it’s usually the most useful ten minutes of the quarter.
My staff won’t build systems. What do I do?
Stop waiting. Systems and benchmarks don’t invent themselves, and your staff are busy doing their day jobs. You take charge or nobody does. That’s not a criticism of your team. It’s a description of how every business that ever got systematized got there.
Why does a buyer care about my org chart?
He’s counting the boxes with your name in them. Each one is a function that leaves when you leave, and each one gets priced as risk in the form of escrow, an earnout, or an employment agreement.
Should I tie pay to performance?
Where the work is measurable, yes. If accuracy matters, tie a portion of pay to error rates. People deliver what they’re measured and paid on, and they can’t do either if nobody ever wrote down the standard.
How do I know if I need a number two?
Ask who runs the business if you vanish for ninety days. If there’s no name, that’s your most urgent project, and it outranks the other five systems.
One Hour. One Price.
Sixty minutes on the phone. Bring your org chart, even if it’s on a napkin.
I’ll count the boxes with your name in them and tell you what that costs at closing.
It costs $1,000.
Most business owners get one shot at their exit. One. The cheapest hour you’ll spend on it.
The material on this page is general information about how businesses are built and valued. It isn’t legal advice, and reading it doesn’t make me your lawyer. Every business is different, and the details are where the money is.