System eBook)

SystemBuster

The Mystery of the Circle Revealed

Philip Beyer has created asystem of improvement that

is virtually unknown inmost businesses!

PHILIP PAUL BEYER

Beyer Printing, Inc. • Nashville, Tennessee

RREVISEDEVISED ANDAND UUPDAPDATEDTED

Published by:Beyer Printing Inc.

1855 Air Lane DriveNashville, TN 37210

[email protected]

Cover and book design by Susan Beyer

The Library of Congress Cataloging-in-Publication Data Applied For

Philip Paul Beyer, 1949System Buster Revised & Updated: The Mystery of the Circle Revealed/

Philip Paul Beyer.––1st ed.p. cm

0-9764822-1-5 1. Business I. Title

2007

Copyright 2007 by Philip P. Beyer

All Rights Reservedincluding the right of reproduction in whole or in part in any form.

All scripture referencesNew King James Version © 1982 Thomas Nelson

Printed in the United States of America3 5 7 9 8 6 4 2

For information regarding special discounts for bulk sales please contact the publisher at

[email protected]

D PHILIP PAUL BEYER

DEDICATION

TO MY WIFE , SUSAN MEREDITH BEYER, for her love, patience andencouragement—also for her editing skills in the writing of this book.

TO MY FATHER, HENRY T. BEYER, JR.—a pastor and evangelist forfifty years—who taught me how to manage as I watched him stretch thesmall salary he made as a pastor, that somehow allowed him to supporta wife and eight children. My father introduced me to the number oneBook on my list of preferred reading. He also introduced me to theAuthor of that Book.

TO MY MOTHER, ARMELLIA STRIMEL BEYER, who not only taught, butdemonstrated to me, the value of hard work, stewardship and servingothers.

TO MY THREE SONS—Paul, Barton and Brandon. Paul was our firstpaid employee when we started our business in 1988, and he has beena witness to every mountain and valley along the way. I pray that all mysons will continue to build upon what we have accomplished here thatthey might realize their own dreams.

WITH VERY SPECIAL THANKS

TO OUR FRIEND KAREN WEST, for her invaluable input in the revi-sion of this book. AND TO THOSE OF YOU whose sincere interest and help-ful suggestions encouraged me in the work. Many blessings to you all!

Except the Lord build the house they labor in vain that build it.King David

FINALLY, TO EVERY ONE OF YOU WHO HOPE TO OWN A SUCCESSFUL

BUSINESS—may this simple book plant a seed that will help you reap aharvest beyond anything you ever dreamed or imagined.

READ ON!

i

SYSTEM BUSTER: THE MYSTERY OF THE CIRCLE REVEALED E

WITH OUR DEEPEST APPRECIATION

AND

IN MEMORY OF

ROGER DICKESON*(1921 - 2006)

In the Summer of 2005, it was my great pleasure to finally get to talkwith Mr. Roger Dickeson, after many years of reading his columns inthe Printing Impressions Magazine. I used to cut out many of his arti-cles and save them. I can’t tell you how much knowledge I gleened fromhis wisdom over the years. At the time of our conversation, I had noidea that he was into his eighty’s—he seemed so vibrant and stillexcited about his industry. He was so curious about what we were doingwith my book, System Buster, and with our System100 software. In fact,I gave him an online demonstration, during which, he drilled me withquestion after question.

Two other times, he emailed me a long list of questions to answer—no doubt, to make sure we had answers that would be beneficial to thepeople he had been helping for years. He loved the printing industry,and his heart was to ensure its prosperity by finding tools or ideas thatwould help them improve.

It was a great surprise, and one of the highlights of my life, to hearthat Mr. Dickeson was going to do an article on our work in the October,2005 issue of Printing Impressions Magazine. I appreciated his kindwords more than I was able to express. What an honor and humblingexperience it was to spend some time with one of the greats in ourindustry!

We extend our deepest sympathy and eternal blessings to Mr.Dickeson’s family. He will surely be missed!

Philip P. Beyer

* Columnist, Printing Impressions Magazine (1979 to 2006)

ii

F PHILIP PAUL BEYER

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Chapter 1: What Are Systems? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Mystery of the Circle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Chapter 2: My Day of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Chapter 3: Beginning the Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Chapter 4: Writing it All Down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Chapter 5: Working ON Your business, not IN it . . . . . . . . . . . . . . . . . . . . . 25Chapter 6: What Replaces Systems in Most Organizations? . . . . . . . . . . . . 29

Managers, Managers, Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29Meetings, Meetings, Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

Chapter 7: Encountering Opposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35Chapter 8: Are You on the Run? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39Chapter 9: The Land of Chaos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43Chapter 10: Leadership—The Buck Stops Here . . . . . . . . . . . . . . . . . . . . . .47Chapter 11: TQM and ISO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51Chapter 12: Why Be Committed to a System? . . . . . . . . . . . . . . . . . . . . . . . .57

The COMPANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59The CUSTOMER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59The EMPLOYEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60

Chapter 13: How to Build Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63Context and Understanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65Standardization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66Completeness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68Referenced / Un-loseable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68Organizing Your Operations Manual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69Recap of Building a System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70

Chapter 14: Systems That Empower People . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73Job Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73Daily Routine Checklists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73Control Checklists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75Driver / Quality Control System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79

iii

Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80Orientation System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 81

Chapter 15: Systems that Follow Up and Measure Improvements . . . . . . 83System Buster - The Leak Detector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 83Rework Due To Error System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 88A System to Change the System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Employee Performance Evaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 90Tasks / Projects Management System . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 91Time Keeping / Floor Data Collecting System . . . . . . . . . . . . . . . . . . . . .. 92Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 93Inventory System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 95Benchmarking Charts for Measuring Results . . . . . . . . . . . . . . . . . . . . . .. 95Sales and Marketing System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

Chapter 16: A System of Cleaning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99The 100 Percent System of Cleanliness in Action . . . . . . . . . . . . . . . . . . .100Let’s Recap the 100 Percent System of Cleanliness Rules . . . . . . . . . . . .102Why the 100 Percent System of Cleanliness Works . . . . . . . . . . . . . . . . .103Money in a Fish Bowl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104Other Benefits of the 100 Percent System of Cleanliness . . . . . . . . . . . .104So What’s the Big Deal? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105Do We Just Clean All Day? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106OSHA versus The 100 Percent System of Cleanliness . . . . . . . . . . . . . . .107

Chapter 17: Production Scheduling System . . . . . . . . . . . . . . . . . . . . . . . . .109Schedule Busters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110Let’s Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114

Chapter 18: Introduction to System100 . . . . . . . . . . . . . . . . . . . . . . . . . . . .117Chapter 19: The Mystery of The Circle Revealed . . . . . . . . . . . . . . . . . . . .119

Let’s Recap and Close . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120Chapter 20: A Little Lanaippe (Extra) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123

The Information Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123Embrace Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124Staying Encouraged . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124Don’t Act Great, Be Great! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125The Worker is Worth Their Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126Take Good Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127Buy Cheap, Buy Twice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127

SYSTEM BUSTER: THE MYSTERY OF THE CIRCLE REVEALED Gix

Pay Your Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128Barter and Trade Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129

Closing Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131Profile of the Ideal Owner or Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . .132A View from My Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134Code of Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .136Books We Recommend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137What Others Are Saying (Endorsements) . . . . . . . . . . . . . . . . . . . . . . . . . . .139Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145Quotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149

H PHILIP PAUL BEYER x

SYSTEM BUSTER: THE MYSTERY OF THE CIRCLE REVEALED I

INTRODUCTION

OVER THE PAST DOZEN YEARS, I have had opportunity to see thepower of industry—and the efforts of many who attempted to har-ness that power—clash like Titans in an arena. I have seen my ownearly attempts and frustrations reflected in the faces of others whohave dared to own their own business, only to find them stressed tothe point of despair. It doesn’t have to be that way!

My reason for writing this book is to show even the most ordi-nary person how to organize, build and grow an extraordinary busi-ness through a systematic approach.

I didn’t want to begin writing a book until I had tested these sys-tems and knew they would actually work—to watch how they trans-form a company step-by-step. We’ve done that.

My hope now is to help others discover the answer to what I call,“The Mystery of the Circle”—a must for building a successful busi-ness. More about this in Chapter One—What Are Systems?

Using my commercial printing company as the prototype, wehave been able to break down all facets of business systems thatseem very complicated into something easy to understand.

Some systems are so simple, I’m still amazed that more organi-zations have not implemented, nor even discovered them. I haveproved to myself and others that any person who is willing to puttheir shoulder to the wheel—and not look back—can build a suc-cessful organization that will serve, educate, and be a model ofexcellence to the world.

AT THIS POINT, you may be thinking, “Oh, this book is forcommercial printers, not for my type of business!” WHOA!!

This book is for YOU if your answer is “Yes” to any of thefollowing questions:

• Troubled with CHAOS in your business?

• LOSING MONEY due to wasted time and resources?

• Stressed over MISTAKES recurring, over and over?

• MISSED DEADLINES causing panic?

• Working LONG HOURS training and retraining personnel?

• FRUSTRATED keeping your business clean and orderly?

• Constant INTERRUPTIONS with the same questions?

This book is also for . . .

• Those who want to learn how to organize and turn-key any type of business or organization—service or manufacturing;

• Those who may not have a business education or training, but who have the drive and vision to launch their own business;

• Managers of small-to-large companies and organizations who want to improve their skills and see their company grow and prosper.

BUT FOR THOSE OF YOU who have many years of business educa-tion and experience, I feel confident you will pick up a few pricelessnuggets of fine gold—They were mined under extreme pressure!

2 PHILIP PAUL BEYER

Chaos is NOT NormalAccording to the Small Business Administration, over fifty per-

cent of small businesses fail in the first year, and ninety-five percentfail within the first five years. A great many of these businesses failin the fourth or fifth year because they have usually grown to a sizewhere the owner can no longer maintain proper control.

I started my business in 1988 and, by my fifth year, I was expe-riencing major problems. CHAOS!

I REALIZED I DIDN’T OWN A BUSINESS—IT OWNED ME! I ONLY HAD A VERY DIFFICULT JOB.

Most business problems come to the surface after growing to acertain size, and then the floodgates of chaos are opened. You findthat your business is too large for you to keep all the information inyour head, while YOU still do most of the work and it’s too small tohire the people you think you need to handle the chaos. As long asyou are a one- or two-person operation, everything goes rathersmoothly, but when you get to four or more employees—WATCHOUT!

I have included some true stories and anecdotes in this bookbecause I believe they paint pictures that communicate complexideas in a simple way. I worked literally thousands of hours for tenyears, building a network of systems to systematize every aspect ofmy organization, from top to bottom.

Not long ago I was talking with an older salesman at the largestmanufacturer of printing presses in the world. He told me the thinghe had come away with, after years of visiting thousands of printingcompanies, is the wonder that anything ever gets through the pro-duction and service processes correctly.

The greater wonder for me—after countless meetings and dis-cussions of my own with business people and leaders over theyears—was that so many companies remain chaotic and that, formost businesses—chaos is considered “normal.”

That is the great deception!

SYSTEM BUSTER: THE MYSTERY OF THE CIRCLE REVEALED 3

A Day in the Life of Some American BusinessesCranky opens his place of business at 8 a.m. Salesman Bob

arrives at 8:20, and Worker Sue and Bookkeeper Mary get in around8:45. Salesman Bob and Worker Sue answer the phones until CSRJim wanders in at about 10, and then Cranky answers the phonewhile Bookkeeper Mary sends Worker Sue to the bank, except onTuesdays when Worker Sue takes “Scooter” to Doggie Daycare,then CSR Jim goes to the bank. But if CSR Jim is on call, thenBookkeeper Mary has to go herself, if she can borrow Cranky’s car,since her teenage son wrecked hers. Cranky takes care of doing pay-roll on Fridays, unless he is having lunch with a client—then WorkerSue will do it because she always has, and Bookkeeper Mary hasnever been trained on payroll. CSR Jim takes in most of the joborders, unless he is called to the back of the shop to handle problemsin production, and then Salesman Bob is asked to take in the orders.But Salesman Bob doesn’t like taking job orders, so sometimes hejust lets the phone ring until Cranky has to answer and take the orderhimself. But when Cranky takes a job order he usually writes it upwrong, so CSR Jim gets mad at Salesman Bob for not doing the job,and Salesman Bob gets upity, and says his job is selling—and whyshould he have to answer phones and take in orders, anyway!?Cranky gets upset at CSR Jim and Salesman Bob for quarreling andsays, “If Salesman Bob is too d#% busy, then we’ll have Worker Suegive us a hand, if her nails are dry and her stupid dog’s OK!” AsCranky downs a blood pressure pill, they all wonder, “What isCranky’s problem—what is he so upset about?” I think you get thepoint. Chaos!

4 PHILIP PAUL BEYER

It Can’t Be Done—Or Can It?In the graphic arts industry, the fulfillment process from data

entry to shipping is extremely complicated. Each job is custom, andthe variables seem almost infinite. I guess if you wanted to tacklesomething hard to organize and turn-key, to the extent of theMcDonald’s Corporation, it would be a commercial printing com-pany. In fact, when I first began to turn-key my company, I was toldby another printing company owner, “It can’t be done, there are justtoo many variables!” To tell you the truth, in my second year of sys-temizing, I started to believe I had taken on the impossible—but Ipressed on!

One More Mountain to ClimbIn my sixth year of systemizing, I was receiving a lot of ques-

tions and compliments from my customers and vendors about howclean and well-organized our company was. Some even asked me tospeak to their employees on how we set up our systems and keepsuch order. I want to serve and help my customers become moreorganized themselves, and I have found I really enjoy sharing whatI have learned over the years.

In 1998 I was thankful to be debt-free—my company OperationsManual was built, and my systems were working fine. I could havesemi-retired then, and gone fishing or golfing, but I felt there wassomething missing. I had the desire to own a really nice building formy business, and to take my systems to the people. I could havedone as some consultants recommend—“sell when you turn-keyyour company or have it franchise-ready”—but I wanted to reach upto a higher level, give it my utmost, and ultimately teach others mysystems through a book like the one you are holding.

Over the years, many had suggested I write a book on organiza-tion and systems. I assume they thought I had it all worked out, eventhen, and was some kind of “systems guru.” But I believe unlessyou’ve actually completed something from start to finish, you reallydon’t know HOW or IF it will work. There was still a lot to learntowards the end of completing a truly “turn-key” operation. So, thetime for a book had not yet arrived—there was still much left to do.


I had plans to develop computer software that would contain allof these systems in a format that could be customized for virtuallyany kind of business or organization. It would integrate the systemsneeded to organize and transform a business within a matter ofmonths, without them having to spend ten years building the mouse-trap from the ground up. See Chapter 18: Introduction toSystem100.

This book—System Buster: The Mystery of the CircleRevealed—is able to show people with dreams of successfully man-aging a business, a step-by-step method of how to do it; not just aphilosophy and some rose-colored stories and illustrations aboutother successful companies, but one we have actually built.

If your business is in chaos, this book will help you GET OVER IT!

What you will read here is the product of more than twelve yearsof testing, re-testing, and finally proving the systems that have trans-formed our company into one of excellence. You won’t need a con-sultant to interpret this book—you can understand it easily for your-self.

Be aware, however! Setting out on this adventure, to totally sys-temize your operation, is not for the faint of heart—but I believe itwill revolutionize your business and, quite possibly, your life!

TURN-KEYA franchise or business, complete with Operations Manual, purchased in a condition ready for immediate occupation

whereas the buyer only has to "turn the key" for the operation to start.

6 PHILIP PAUL BEYER

CHAPTER 1

WHAT ARE SYSTEMS?

The Mystery of the Circles I was about 28 years old, and sitting on my front porch in

Louisiana one night, when I had what I thought was a very realvision. Looking up at the stars, I envisioned what seemed to be per-fect circles of all sizes. Suddenly it occurred to me that everythingin the universe was represented by these circles, and the circles rep-resented systems. All of the circles intersected and seemed to inter-act with one another. I thought how every circle affected every othercircle—or system—in the universe. That was it! That was my vision.What to do with all that remained a mystery to me until years laterwhen I began systemizing my company, and then it began to makesense. Taking it further…

Our planet, the solar system, all the stars and galaxies are actu-ally systems of circles—each planet affecting the other planets, justas one galaxy affects another galaxy, and so on into infinity. It's allconnected!

Well, back to earth! The "Mystery of the Circle" in the subtitle of this book, simply

stated, is when a circle, representing a system, has a gap or hole init—it will not continue to work properly. It is incomplete. When youcomplete the circle/system, it will work continually with little effort.

The main question I am asked about systems is, "Once you buildyour systems, how do you get people to continue to use them?" Theytell me that they put in a system—it works for awhile—then it stopsworking. People go back to their old habits. I tell them, the reasonit stops working is because they haven't completed the circle—thereare GAPS in the circle. The gap—or hole, in this case—is that theyhave no follow-up system to insure people are staying the course.

Webster’s Dictionary Defines Systems:1. A group or arrangement of parts, facts, phenomena, etc, that

relates to or interacts with each other in such a way as to form awhole;

2. An orderly method, plan or procedure.

I call them lifesavers!

Another way to think of a system is like a circuit board that anengineer designs and tests until it works flawlessly. It should nothave any breaks in the circuit, unless it is a planned break. Then theengineer puts this new circuit board, along with additional parts, intoa nice clean package and the new electronic gadget works every timeyou turn it on. No need to go back to the schematic unless it needsrepair. If you forget how a particular feature works, you just go tothe Operations Manual for that gadget.

Imagine if every time you turned on your new electronic gadgetit would stop working every few minutes and you would have tobang on it, or take a wire and jump one of its circuits to get it work-ing again. Well, that is what companies do when they design a poorsystem and don’t spend the time to make it work flawlessly, and testhow that system affects other systems in the company.

The right system completes the circuit 100 percent, like a circlewith no gaps—less than 100 percent and it will not work properly.

COMPLETEHaving all needed or normal parts, elements or details—

lacking nothing. Entire, thoroughly wrought, finished. Perfect!

8 PHILIP PAUL BEYER

A close friend of mine said it like this: “A business without goodsystems is like a body without a central nervous system—lots ofloose nerve ends reaching for something that doesn’t exist.” I callthe operation of that kind of company the “Anti-System Solution.”

The mindset of the Anti-System Solution is that . . .

• Systems are for very large organizations only—or not necessary at all.

• You need good people—not good systems. • More customers bringing in more money is the answer

to our problems.

Just Imagine!

If one of these Anti-System Solution companies were to be totallyhonest with its employees, they might send out a series of MEMOS

FROM MANAGEMENT that read like the following:

MEMO: Due to lost revenue, a powerful marketing campaign willbe launched to bring in more business.

MEMO: Due to more chaos from these new customers, more meet-ings will be needed to deal with employee frustrations over produc-tion and service problems.

MEMO: Due to production and service problems, new managersare being hired to handle the chaos.

MEMO: Due to a lack of profits from soaring marketing and uppermanagement costs, we need to reduce budgets in the followingareas: Employee salaries, service maintenance and new equipmentacquisitions.

MEMO: Due to a lack of skilled employees from budget cuts,managers will be expected to fill in the gaps.

MEMO: Due to budget cuts for maintenance and new equipment,we are experiencing more equipment breakdowns causing furtheremployee frustration . . . bringing about employee turnover . . .which is creating missed deadlines . . . which is also resulting in lostcustomers.


MEMO: Due to lost customers and red ink, a powerful marketingcampaign will be launched to bring in more business. Also a NEWAND IMPROVED consultant has been hired to work on site tofigure out what our problem is. P.S. Our consultant has asked us notto call what we are experiencing “problems,” but “opportunities.”

Do you know a business that is experiencing those kinds of “opportunities?”

So, What is a System?

THE SYSTEM, as defined in this book, is a network of interactingprocedures, policies, checklists, etc., written down to create anOperations Manual for your business. This Operations Manual ismade accessible to every member of your organization, to give clearunderstanding—empowering them to do their job without constantsupervision.

It’s your decision—THE SYSTEM or THE ANTI-SYSTEM!

10 PHILIP PAUL BEYER

CHAPTER 2MY DAY OF DECISION

IN 1993 ONE OF OUR REGULAR CUSTOMERS stopped by my firstprint shop in Nashville, Tennessee, to have some copies made. Aswe were having a casual conversation, I noticed he was eyeing theshop with a less than approving look on his face. He said, “Philip,you need to clean this place up, it looks awful, and it doesn’t makea very good impression!”

I was pretty embarrassed, to say the least, and felt a little defen-sive. After he left, I wondered, “Who does he think he is, cominginto my shop and telling me how to run my business?” The more Ithought about it, the madder I got.

As I was thinking about what had just happened, I turned andlooked up on the wall and there was the large, ragged-edged sign Ihad posted a year or so earlier. The sign simply read, JOHN 3:16.

You may be familiar with this Verse that means a lot to me.Well, at that very moment I had the distinct impression that God wassaying to me, “Philip, either put this place in order or take My namedown. What the customer said to you is true!”

Yes, my company was in chaos, my nerves were on edge, and Iwas dropping balls right and left. We were making a lot of mistakesin production and many orders were being taken and then misplaced.Customers would call and ask me about a job in progress and itmight take me twenty minutes to locate it. An old job order that was

supposed to be filed would sometimes take hours to locate. The shopwas cluttered and disorganized. I had so many papers on my deskthey were falling off on the floor. I couldn’t leave the shop withoutmy employees having major problems. I had to admit I really didn’tknow how to organize even a small company with only four or fiveemployees. That’s a terrible place to be, knowing there’s a big prob-lem, but not knowing how to correct it or where to begin.

An Answer ComesA few weeks later one of my best friends, Van Thompson, came

to the shop and noticed I was really stressed out. I was complainingabout the mess and the fact that I couldn’t keep up with it all. Vanwasted no time in asking me to take a ride with him. I told him,“Van, I can’t leave the shop, because every time I leave this place itcosts me hundreds of dollars in mistakes.” Van wouldn’t take “no”for an answer and pressed me to “Come on and take a ride. You needto get out of here for a while, and we’ll be right back!”

I finally agreed to go with him, but with a first-class attitude. I don’t really remember where we went, but on the way back to

the shop I noticed he was taking a detour to his house. I was gettingpretty irritated and told him I didn’t have time for that, but he saidhe’d only be a minute. When we pulled up to his house, he jumpedout, ran inside, and soon came out with a book in his hand. Throwingit on the front seat, he said, “Read this! It will help you with theshop.” Now he was getting on my last nerve! “I don’t have time toread books,” I barked. “I’m just too busy with the business and therest of my life.” But, I took the book home after work that day andset it aside.

About two weeks later I decided to read before going to sleep,and there laid Van’s book: The E Myth by Michael Gerber. “Sometitle! What’s the “E” stand for?” I wondered, negatively. But I beganto read, and as I got into the second chapter, I swear I bolted straightup in the bed.

It was like a light had come on in my head. “I know what to do!”I said out loud, “I know how we can fix this thing!” It was just asimple story in the book about a man going to a hotel and the great


service he had received, and how the hotel had a system to make thatgreat service happen. Now, the book didn’t tell me step-by-step howto fix or turn-key a company, but it gave me the spark needed to lightthe fire and the passion for a mission to fulfill the vision I believedGod had placed in my heart.

All the years of being a self-employed entrepreneur cametogether with almost total understanding, in just a moment of time.By the way, that’s what that “E” stands for—Entrepreneur!

I set out to find other books and tapes and the counsel of otherbusiness owners. I read everything I could put my hands on to helpme prepare for the work ahead. I was determined to turn the visioninto reality, and turn Beyer Printing into a world-class operation.And I couldn’t wait to get started.

In the day of my trouble I will call upon You,and You will answer me.

David, the Giant Killer


CHAPTER 3

BEGINNING THE MISSION

FACING THIS CHALLENGE HEAD-ON, I thought it was time to take agood, hard look at my own life.

Do I really seek truth or do I avoid things I don’t want to dealwith? Do I procrastinate and sweep things under the carpet? As anentrepreneur, do I jump from one project or business idea to thenext, never totally completing anything? Do I really dot the I’s andcross the T’s? Or do I approach things haphazardly, saying tomyself—”It’s not that important,” or “It’s so small no one will evernotice?”

There’s a story I heard about Michelangelo the painter, that oneday his employer—who had commissioned him to paint the SistineChapel in Rome—noticed Michelangelo spending a significantamount of time in one dark corner of the building. He askedMichelangelo why he was being so meticulous when no one wouldsee it? Michelangelo simply replied, “God sees!”

Well, you may not think that’s reason enough to do your best inall situations, but what I will reveal in this book will explain in detailthe reasons you should.

Do I Need a Consultant?Companies that are just starting out, those experiencing trouble,

and owner/managers who find themselves overwhelmed and weary,

often turn to motivational seminars and consultants to find answers.You will hear the fine-sounding words of some who seem to havethe cure for all your ills. Wisdom says we need to keep our earsopen to good counsel—but here’s where discernment is needed.

There are some exceptionally motivating speakers on the circuit,but there are also thousands of self-proclaimed “gurus”—I call themthe “Rah-Rah boys”—who, if “busted,” would prove to be less thanthe experts they make the big bucks to imitate. Beware of those whowould move into your operation, make themselves what you think is“invaluable”—and then bleed you dry.

If an “expert” does not have the heart to serve your best interests,and to see your company prosper without draining or taxing itsresources, I would look elsewhere. In fact, I would recommend youRUN FOR YOUR LIFE!

As I contemplated writing this book, a friend of mine broughtme the comic strip below. Not only is it funny, it is also sadly true.

Printed by permission:


Dilbert by Scott Adams

A lot of consultants (Consulticks) give you systems only theycan understand. They actually become part of the system they willcharge you to put in place. They will expect you to rely on their“expertise” for your success. Yes, they want to become part of you—and you can’t remove them without leaving a large hole in your side.

The most important question these people could answer for youis: Have you actually, successfully built a company from the groundup and seen it thrive?

I believe whole-heartedly that if you will continue reading thisbook, and implement the things that apply to your organization, youcan build a world-class operation—without me or any Consultick.

You’ve heard the old adage, “Give a hungry person a fish to eatand tomorrow they will need another fish, but give them a fishingpole and teach them to fish and they can feed themselves.” I humblyoffer you this book—my best fishing pole.

Confidence in an unfaithful man in time of troubleis like a broken tooth, and a foot out of joint.

King Solomon

So, What is Truth?

I decided I would seek the truth, whatever the cost: I would demand the truth from my employees and myself. I would not accept office politics in place of truth. I would leave no stone unturned. I would continually improve the company through a systematicapproach in every area of the business—even as detailed as a paperclip out of its place. I would continue my education in business, and keep up with thelatest technology, but I would refuse to be sidetracked with the latesttrends or fads in the business world.

I made a promise to God I would not start on another businessventure that might take me away from my mission until my com-pany was completely turn-key and reflected His excellence.


I had no idea how long it would take. And, I guess, if you hadtold me then that it would take ten years, I might not have made thejourney.

But I knew if I was going to commit to this . . .

It all had to start with me—and I would have to change!

I’m sure you’ve heard it said, “The truth will set you free!” Well,I’ve learned in business and in my life—that is absolutely true! Onlywhen you know the truth about an issue or problem, can you fix it.If you don’t believe in this concept, I suggest you put this bookdown, because from here I only go deeper into the truth, and it willcost you. But— it’s well worth it!

For which of you, intending to build a tower,does not sit down first and count the cost,

whether he has enough to finish it? Luke, the Physician


CHAPTER 4

WRITING IT ALL DOWN

THE NIGHT I GOT THE VISION for how to fix what was wrong withmy company, I knew I needed to write it all down, so I could referback to it:

• How do I want my company to look?

• How should my employees and I conduct ourselves?

• How can I guarantee great quality and service to my customers?

I made a list of character traits that I thought would constitute agreat employee and an owner. I called it Profile of the Ideal Owneror Employee. See page 132. You may want to add to my list.

I also wrote down how I wanted this new company to conductitself as far as morals and integrity. See our Code of Ethics on page135.

The Ten Commandments, our Declaration of Independence andThe Bill of Rights are all written documents used as guides to buildlives and a nation. A Mission Statement, along with many other sup-porting documents, can be used as a guide to build a great company.Each added document should build upon the Mission Statement, notdrift away from it. See our Mission Statement on page 134.

A Written Document Keeps You on CourseThe Declaration of Independence says that all men are created

equal. And yet, at the time it was written there was slavery in theUnited States. Does this mean that the Declaration of Independenceis of no use? Since the founding fathers were not totally living up toits standards, does that mean we should abandon it? God forbid! OurConstitution and the Declaration of Independence were the visionfor a great nation, written down by men, but it takes a long time tofulfill a great vision. We keep going back to our founding documentsas our guide.

Fredrick Douglas, the black orator during the Civil War, used thegreat words and ideals of those documents to hold our governmentaccountable, stating, “You are not living up to your own words inyour own written document!” It still guides our government today,and points out whether our laws are on course. Our courts andjudges measure our laws against these founding documents. That’swhy we hear people ask if this or that law is “constitutional” or not.All other laws we might implement are gauged using the measuringstick we call The United States Constitution.

Your company’s Mission Statement and Code of Ethics shouldact as your founding documents—your “Constitution.” All of yourpolicies should measure up against it. The word constitution actuallymeans establishment or laying the foundation.

Everything in your company’s written system—your OperationsManual—should strengthen your Mission Statement. A MissionStatement can become mere words on a piece of paper or it canbecome a living document guiding you through the years of build-ing a great company or organization.

System of ApologyI remember once calling the company of a person who had writ-

ten a book on organization, and I was surprised to be put directlyinto general delivery voice mail. I thought to myself, “This person isso systematic, I’ll bet I will hear back from them immediately!” Buta week went by and no return phone call. I decided this must be afluke, so I called again, just trying to reach anybody—and back to


general voice mail I went. Three or four days went by and again, noreturn phone call. “What is going on?” I wondered. At this stage Idetermined to hold up their document—their book—as a reminder.I called, and again went to general voice mail, but this time I left along message. I stated the main purpose of my call. I then made itclear that, “I am disappointed that no one has gotten back to me. Ithink you should have someone checking voice mail and returningphone calls.” I closed my message with, “I felt sure you would havehad a simple system in place for returning phone calls!”

Almost immediately, I got a phone call back from one of themanagers, apologizing and saying they were understaffed at thattime. I appreciated that they had a system of apology, but I wouldalso have appreciated hearing about the system they would put inplace to fix the problem.

Words Have MeaningSome have said a Mission Statement is just an old business trend

that consultants came up with to turn companies around. Everybodyin the business world began writing them. You may have written oneyourself. What generally happens to these statements is that they areput on a wall in a frame, or they get lost in some drawer full of junk.Some business owners and managers never really take their MissionStatement seriously. I guess they figure if they write it and waitawhile, the mission will just happen, sort of like––evolution?

Well, I can tell you, after ten years of deliberately trying to orga-nize my company, that order-from-chaos doesn’t just happen—ittakes a lot of creativity and hard work!

As you will see, I will use words, concepts or terms that someconsultants and business gurus like to call “out-dated,” saying,“People were doing that years ago, but now we’ve moved on tosomething new.” That’s because they are selling a slogan, a trend—something that appears “new” so you will buy the same thing overand over again. But nothing really changes. They know if you takea proven truth—stand on it, do it, and DO NOT GIVE UP until youhave built an excellent company or organization—they can’t repack-age the truth with just trendy new words.


DownloadingAll your company documents should be written and gathered

together in your Operations Manual. This is the place to begindownloading your mind. Do you realize that you are storing in yourbrain’s computer a very complex system of how your business oper-ates? Some of you have been storing this information for years. Theproblem with carrying such information or systems around in yourhead is, people around you will keep logging into you like you aresome kind of computer. They are just trying to get at the informationyou haven’t bothered to download to a written document—a check-list, procedure or policy, etc.

THAT IS WHY YOU ARE TIRED AND STRESSED OUT—WHY YOU CAN’T LEAVE THE BUILDING

WITHOUT THINGS FALLING APART!

You have become the mainframe computer that everyone in theorganization is plugged into.

You can’t blame your employees if they don’t know exactlywhat you mean, or exactly how to do a task the way you want itdone—because you never bothered to write it down. You made iteasy for them to use you as a computer, telephone book, OperationsManual, map, etc.


Imagine building a complex machine, and you are the only onewho really knows how it works. That is why an Operations Manualusually accompanies each product you purchase. Think of yourcompany as that machine—you will need the manual to show some-one how it works.

You Can Write it DownI was talking with my brother Teddy, an electrical engineer who

owns his own business, and he shared his thought that, “There aresome things you just can’t write down into a system.”

I asked him to explain. “Well,” he said, “When I am ordering parts that we assemble

into products for our business, I look at every invoice to see if weare getting good prices. When I order parts, I know how to negoti-ate for a better price.”

I suggested that, as a designer of electronic circuits, he couldeasily write a system for purchasing, and recommended the follow-ing:

Make a list of the things you say while you’re on the phonenegotiating with these vendors for better prices. You could turn thisinto a checklist or procedure for your purchasing person or agent touse when buying. Maybe the lead statement—after the vendor hasgiven your purchasing agent the price—is to tell them what priceyou paid last time, and that you were hoping for a better price thistime. Or—you could have your purchasing person call at least twoor three vendors to get pricing. This would keep your main vendoraccountable, while giving your purchasing person an edge in thenegotiations.

Yes, in some circumstances this may be a complex process, butit’s already in your head and you can write it down. You only haveto write it down once, and then tweak it from time to time. Do yourealize you are freeing yourself from that particular job each timeyou finish writing a system down? You can literally work your wayout of all jobs in your organization, if you were so inclined.

Don’t leave a hole or a gap when you write a process/system. Itwill need to be tested to find the holes, by having others try it.


You will also find you sleep better as you clear your mind ofthese processes. Have you ever had a hard time sleeping becauseyou kept going over and over something in your head? So youfinally get up and make a list or write the thing down. Your brain hasto work constantly to keep all the processes of your organization orbusiness fresh in your mind. It takes a lot of energy to maintain andupdate information. Write it down!

I CAN NOT STRESS STRONGLY ENOUGH the importance of down-loading your business processes into written documents—yourOperations Manual. As you build this manual, it will become moreand more valuable to you, to your employees, and the worth of yourbusiness. You will gain freedom from jobs you should not have beenburdened with in the first place.

You are the vision person—you should be spending your timelooking down the road to see where your organization is going.

If you can’t describe what you are doing as a process,you don’t know what you’re doing!

W. Edward Deming


CHAPTER 5

WORKING ON YOUR BUSINESS

NOT IN IT

I HOPE BY NOW you can see that by working on your business, andnot just in your business, you will gain the freedom to do the thingsyou have always wanted to do, but couldn’t find the time or theenergy.

A lot of owners are doing the work of two or more people. Theycan spend eight to fourteen hours a day, or even more, working inone or more of the positions in their business.

So how will you ever find time to work on systems to really organize your business?

You may not like the answer, but this is what I did: I worked at least two to four hours extra each day and a lot of

weekends on the most important systems. I worked on designing asystem to fix the biggest leaks first.

After about two years, things really started to roll when a friendand former business owner, who was counseling me at that time,made a good observation. He noticed I was spending most of myday taking in orders or acting as an inside Customer ServiceRepresentative. He said, “Philip, I really think if you would trainsomeone to take your place, you would have more time to work onyour business.”

So I started to work on a system for customer service and orderentry—two positions I was doing myself. After I built the system forthese positions, I took the business owner’s advice and hired mydaughter-in-law, Jennifer. I trained her on these systems for threemonths, eight hours a day, until she was doing about 80 percent ofmy job. Wow! I had six hours a day more to work on the business!Things really started to move, and as she improved I had even moretime. Now I was only working in that one position—which is at thetop of the Organizational Chart (See page 136)—and I couldn’tbelieve the transformation that began to take place.

Although I had hired people to take my other positions, such asproduction worker and bookkeeper, I didn’t think I would ever befree of actually being Customer Service, Purchasing and ProductionManager. Those positions gave me the controls I thought I neededto make sure my business survived, because I was directly in contactwith customers and venders, and I also had control over production.I just couldn’t see anyone else doing those jobs the way I would doit—until I understood the power of systems.

The solution will come as you install good systems. It will freeup more of your time. After you have built a complete system for theposition you are working in, then you need to hire someone, or del-egate it to someone already on your staff. You need to train them onthe system you just created for your own position.

Once you hand those systems off to someone else—and you’renot trying to be all things to all people—you will have the time towork on your vision of becoming a great organization.

Your new position is to work on the business, not in it!All those things that most business owners long to do are not as

far off as you think! •More time for family

•Take a real vacation•Be debt free

•Spend time on other projects•Start another enterprise

•Write a book?


Working on your business—going the extra mile—will help youattain those goals and much more. You will own a business and notjust have a job.

I spent my life stringing and unstringing my instrument, but the song I came to sing remains unsung.

Rabindranath Tagore - From his poem Waiting

Entrepreneur, Manager, or Technician?Michael Gerber’s book, The E Myth, talks about three types of

people in an organization—entrepreneurs, managers and techni-cians. It’s important to identify people’s skills and interests within anorganization, including your own, to make sure you have the rightpeople in the right positions.

The ENTREPRENEUR envisions or starts an enterprise. Theyare self-starters. They sometimes lack organizational skills and,because of that, they are not always known for being good businesspeople. You see them going from one project to the next and some-times never completing any of them. They can become boredquickly doing one thing, because their mind is usually off thinkingabout another thing—a new invention, idea or project.Entrepreneurs see opportunity around every corner and sometimeslack the discipline not to chase every rabbit they see. If you are anentrepreneur, organization may elude you, because you have toomany irons in the fire or too many ideas going on at one time. Soyou need managers and technicians to put feet to your ideas.

Think of your business like the new invention of a gadget. Takeyour creative talent and focus it on building your business. Reinventyour business into the world’s best-run gadget. After you turn-keyyour business, you may want to sell it and then move on to the next“gadget.”

The MANAGER tends to have good leadership and organiza-tional skills that help to build the business. Their work is to manageand improve the system, and sometimes to create systems. A man-ager should be trained not to manage people, but to manage thesystem.


The TECHNICIAN has the skills to do the hands-on work of theorganization—or you could say they shape the stones and movethem into place. The technician’s work is to implement the systemand play a vital role in its improvement.

PLEASE NOTE: A system doesn’t know an ENTREPRENEUR,from a MANAGER, from a TECHNICIAN, from a cow in the road. Thesystem will only work as long as everyone uses it correctly. And agood system knows when you are NOT!

In the best system—all parts work together as one!

What a strange thing a body would be if it had only one part!

The eye can never say to the hand, "I don't need you." The head can't say to the feet, "I don't need you.

Paul the Tent Maker


CHAPTER 6

WHAT REPLACES SYSTEMS IN

MOST ORGANIZATIONS?

Managers, Managers, ManagersEVER WONDER WHY many companies are top-heavy with man-

agers and assistant managers? It’s because they don’t have good sys-tems—so they hire managers to manage the chaos.

Imagine a system as a wheel with gaps in it. Every time thewheel rolls to the spot where the gap is, it stops. Now imagine thisgap is a hole in a company’s system. Instead of building a systemwithout gaps, companies hire managers to push the wheel of pro-duction and service to get it rolling again when it gets bogged downor stops in the gaps. Then another manager will push it again whenit stops at the next gap, and so on. They will even hire an assistantmanager to help the manager when the gap is too big for one personto keep it rolling. So, instead of putting in place a good system, oreven having a system, they insert more and more managers into thegaps.

Managers should only be hired to manage and improve thesystem, and not running to and fro managing chaos, putting outfires, and being a gap-plugger!

SEE ILLUSTRATION NEXT PAGE.

Warning! Warning! System Failure!Another manager I hired had come from a company that was

three or four times larger than our company. He had managed fiftyor more employees and had experienced burn-out at his former com-pany, because in order to keep up he had consistently worked sixtyto seventy hours a week. He wanted to move to the south, so heanswered an ad we had placed for a Pre-Press Manager. Let’s callhim “Sam.” We thought Sam was the answer to helping us meet thegoals we had set for the Pre-Press Department. Even before hisarrival, we had the Pre-Press Department very clean and systemized.We trained him on our system and we believed certainly, with hisbackground, running our well-systemized Pre-Press would be acinch. But after he was with us for two or three weeks the depart-ment started to deteriorate and our Customer Service people weregetting concerned. The system said we had a problem in Pre-Press.

I called him into a meeting and he seemed to be very coopera-tive. I said, “Sam, these are the concerns I have . . .” He wrote themdown and said he would correct them immediately, but nothingchanged. In fact, it was getting worse by the day, so I called him tomy office again. This time he started complaining about “too many


hours.” I went over our concerns again, and he said he would takecare of them. A week or so later, he was called out of town on anemergency, and I told our Production Manager that I wanted to runthe Pre-Press until he returned. It would give me the opportunity tosee how far the systems had actually broken down, and to find outwhy Sam was struggling. I found Sam’s desk and other Pre-Presscabinets to be a wreck. Notes that he had taken in our meetings, andother important papers, were just buried in the bottom of drawers. Irealized he was the type of manager that just hid things, instead ofdealing with issues. I found he had lost a lot of our Pre-Press tem-plates, and had disregarded other systems we used as major timesavers. None of them were being utilized. He was off the system andthat was the reason for the problems we were having.

When he got back to the office, I met with him again. I said,“Sam, I see why you are working the long hours you have been com-plaining about. You have departed from our system, and now you areway off course.” I told him that while he was gone, and I was work-ing in his place, I had started a job and found the Pre-Press templatesmissing, so I had to start the job from scratch. It took me three extrahours to complete it, and I believed he had been doing it fromscratch every time. I said, “Do you know how many hours you losea week just from not using the template system?” He told me he hadlost the templates. I asked him why he had not rebuilt them. He hadno answer, just a blank stare.

I told Sam that I had estimated he was losing 10-15 hours aweek, by not using certain systems. That was where all the longhours, he said he had been working, were going. When we fail to filethings, and bury them in some drawer or cabinet, it causes turmoillater and you lose even more time.

“Sam, I am totally confused!” I said. “How did you run the entireproduction of a company four times the size of ours?”

He said, “Oh, I had several assistant managers and they did a lotof the work.”

I asked him, “Sam, don’t you realize that if you would stick tothe system you wouldn’t have to work sixty or seventy hours a


week?” I was convinced he wouldn’t have needed all those assistantmanagers at his old company if he’d had an excellent system.

Yes, I had to give him his leave, but I still considered it a con-structive thing for me to have gone through that with Sam. Ourfollow-up systems had saved our company valuable time and moneyby revealing this manager's actual lack of management skills, beforeit became detrimental. Sometimes people look you in the eye, asSam did, and say, “Yes, I’ll take care of that,” but their actions say“No!” They are betting no one will follow up on them.

I walked by the field of a lazy person, the vineyard of one lacking sense.

I saw that it was overgrown with thorns. It was covered with weeds,

and its walls were broken down. Then, as I looked and thought about it,

I learned this lesson: A little extra sleep, a little more slumber, a little folding of the hands to rest

and poverty will pounce on you like a bandit; Solomon the Wise

Meetings, Meetings, MeetingsYou ask, “Why do some companies have so many meetings?”

Most of the time it’s because they don’t have good systems. Everyorganization has problems, and meetings are the conventional waythat businesses deal with them. Generally, meetings are called to geteverybody “on the same page,” or to remind people of things theythought would have been handled after the last meeting.

A meeting may go like this: Sally forgot something that a customer had requested and blames

Joe. Joe blames Bob and Bob blame Sue, but they seem to get it allworked out in this lengthy meeting, which just cost the company alot of money. The cost—Number of people in the meeting, multi-plied by their salaries, for the time spent in the meeting. And the next


week, it starts all over again. Someone calls another meetingbecause there are more problems to deal with, and some of the oldproblems are back again.

Do you realize it can cost companies hundreds to thousands ofdollars for a single meeting? Next time you are in a meeting, runsome numbers to see how much that meeting costs. If the issues thatneeded to be solved in meetings were placed in a system—a DAILY

ROUTINE CHECKLIST, a written PROCEDURE or POLICY, or some otherwritten system—most meetings would not be needed at all.

Meeting time should be spent brain-storming or doing othervisionary work, not used in place of a poor system.

When you tell people to “just remember” to do this or that, youare gambling with the results. In most companies, people are alreadyexpected to remember too much. I have had employees say to me,“You know, you rarely have meetings with us.” I tell them it isbecause we have systems to fix problems and a meeting of that typeis not needed here. We do have scheduled meetings to fix systems ,boost morale, and for other creative work. Those are really produc-tive because they fix the problem, and ideas are born. Think howmuch money you would save with fewer meetings!


CHAPTER 7

ENCOUNTERING OPPOSITION

WHEN YOU START building and implementing systems, you canplan on opposition. This is where leadership comes into play.Systems work! It’s not a theory, but a fact! If you want to improveyour organization, then be ready to take a stand. And also be readyto be humbled.

They Say, “Systems Will Never Work”One day in the early years of building our systems, my son Paul

came into my office and said, “Dad, why do you take so much grieffrom Bob, our graphics manager? Bob enjoys doing everything hecan to find fault and problems with the systems you are trying tobuild. He is mocking you and laughing behind your back and sayingthese systems will never work.”

I said, “Paul, it’s okay—Bob is helping me!” Paul asked, “What do you mean?” I said, “Although Bob is sometimes a pain in my side and I

would love to show him the door, he does find the holes and gaps inthe system. Paul, imagine a system where Bob couldn’t find anyholes. What would we have?”

“A great system!” Paul replied. I said, “That is exactly what we’re trying to build—and we will

build it!”

Monkey BusinessI’m no psychiatrist, but there are people in this world who like a

little chaos—some are attracted to a lot of chaos. I’ve met them,observed them and, yes, even confronted them. My conclusion isthat they feel safe somehow, because they can hide in the confusion.They can point fingers and blame others in a chaotic organizationwith no systems, and who could prove otherwise? When a man-ager’s or owner’s attention is diverted away, because of chaos andlack of systems, a lot of hiding the truth and monkey business goeson.

Have you ever seen the gorillas on TV’s Animal Planet runningaround kicking up dust and shaking the branches? It’s quite a show,and it looks as if a lot of activity is going on there. All the othergorillas are very impressed with the commotion, but it’s all smokeand mirrors—just a big ole show for the folks. In a company that ischaotic, some people can do the same thing—looking busy, runningto and fro, but actually just kicking up dust. Some managers may beimpressed with the bustle of an employee. When they pass by them,they hear things like, “Whew, rough day, I’m worn out!”, or thosefamous words, “We need more help!” These kinds of folks do notcare for a structured system, because they will be exposed by it, andyou will encounter their opposition.

Other people feel insecure about their abilities, and the system isasking them questions they have never had to answer. Their pride,talent and organizational abilities are being challenged.

Some of these people have come from companies with poor sys-tems, where they were believed to be very talented, organized, andknowledgeable—they may even have been celebrated at their lastemployment. You see, some people may see themselves as a nine ona scale of one to ten, but when they encounter a well-structuredsystem that actually measures their efficiency, they may be exposedas a five. This type of person doesn't like a system and, again—opposition.

I am telling you these stories because you must decide if you areready for the challenge. Will you stand?


All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed.

Third, it is accepted as being self-evident. Arthur Schopenhauer

No “Sacred Cows”I once had a very skilled department manager in my company

whom I thought, at that time, we couldn’t do without. I’ll call him“John.” He was highly technical, and a very dependable employee;however, the system was showing that he had some work habits thatneeded improvement. I had a meeting with John and told him of myconcerns. He said he would work on it, but after a few months, thesystem was telling me that the problem wasn’t fixed and that Johnwas still not adhering to the system. I had to make a very difficultdecision at that time. Do I tell others in our company they have toadhere to the system, but because I may be thinking of John as somekind of “sacred cow”—an employee that I’m afraid to lose—I willcontinue to make an exception for John’s behavior? If I did that, Imight as well stop right now and throw the years of building systemsthat were transforming us into a great company right out thewindow.

By that time, I had invested eight years into building our systemsand I couldn’t look my son in the eyes anymore and tell him wecouldn’t do without John. The rubber was about to meet the road.The systems were either what I claimed they were, or they weren’t. Imet with John and again told him that he was either going to have toadhere to the system or he would have to leave.

He said, “Well, to tell you the truth, I really don’t like these sys-tems.”

I said, “John, thank you for telling me the truth. I know youdon’t, but I am sold on them because I have seen the benefit for ourcustomers, employees and myself by having them.”


We parted friends and our company saw an immediate improve-ment in production and in other areas. We didn’t miss a step. As amanager, John was hindering our progress. This decision sent a mes-sage to all of our employees, that I would not yield to anyone’s notadhering to the system, and that we would stay the course on con-tinual improvement.

You can expect certain employees coming to your office who willsay they are having a difficult time using the system and are tired ofbeing “called out” for every mistake. You will need to tell them thatit is not YOU, nor their SUPERVISOR, who are bringing up their mis-takes, but THE SYSTEM that is pointing them out. You will also needto tell them that they should be glad their mistakes are being found,because the system also demands that we show them how to correctthem.

Yes, there will be opposition—but if our goal is one of excel-lence, we must take a stand!

Cast out the scoffer and contention will leave—yes, strife and reproach will cease.

Solomon the Wise


CHAPTER 8

ARE YOU ON THE RUN?

I LEARNED A LOT ABOUT CHICKENS when I was a boy. After mymother died suddenly, I went to live with my Aunt Ducy in PearlRiver, Louisiana. I was nine years old, and the fact that my auntraised chickens, along with other small farm animals, helped to keepmy mind off more serious things. Chickens can be very funny, butwhen Aunt Ducy’s chickens got to a certain age, we needed to getthem ready for market. My job was to catch the chicken—that wasfunny!—and hand it to Aunt Ducy. Then I’d stand off about ten feetwhile she would calmly lay the chicken’s head on the stump, raiseher little hatchet, and whack! Not so funny! But so goes farm life!I learned that when a chicken loses its head, it will often run aroundin circles for a time, until it runs out of steam and keels over...

Reminds me of some businesses I’ve observed!

A company without a good head for systems is apt to flail aroundfor a while, but it will eventually collapse. In the same way, if aleader fails to download the systems he keeps in his head—shouldhe leave the business for any reason, the systems go with him andthe business is in danger of collapsing. This is why a lot of second-generation businesses fail.

Earlier, we talked about how you need to download so all thatinformation you carry around in your head is readily available to

your staff—and so they won’t feel the need to corner you every timeyou do a walk-through of your company or department. Have yougrown tired of having one staff member after another pull you asideto ask you the same questions for the umpteenth time?

Have you given your staff a manual where they can find theanswers for themselves? No? Okay, so you have become “Mama,”and they will continue to pull at you like a small child tugging on itsmother’s skirt while she has both hands in the sink, the phone ring-ing, and another child crying for attention.

“Hey Bob! You think you could get me a . . .” “Hey Bob! My uncle is visiting. I need time off to . . .” “Hey Bob! Can you have this light fixed . . .” “Hey Bob! Would you talk to so and so about . . .”

This gets old! The reason owners and managers get burned outis because they have no systems to handle all these questions andpressures. It’s not very hard then to understand why some of themhide out, sneak in and out of the building, close their doors toemployees and problems. No surprise that they have glassy, faraway looks in their eyes—some even throw tantrums and attend“Happy Hour” frequently!

In his book, The E Myth, Mr. Gerber wrote:

YOU are the problemYOU have always been the problemYOU will always be the problem—until YOU change

I can tell you, I thought long and hard about that!

Denial ain’t just a river in Egypt.Mark Twain


It’s Your Own Fault—YOU Are the Problem!Charles Edward Deming of the famed Deming Award for

Manufacturing says, “You should not expect your employees to dothe job the way you think they should, unless you have providedthem the necessary tools and the time in which to complete it.”

In other words, if your employees come running up to you everytime you walk through the various departments, to ask you everyquestion under the sun, then you haven’t given them the tools or thesystems to do their job.

Give Your Employees the Right ToolsAt Dr. Deming’s business seminars, he would use a very effec-

tive demonstration with managers and CEOs of some very large cor-porations. This involved bringing a group of them to the front of theroom and giving each one a box of black and white marbles allmixed together. He would tell them that their assignment was to sep-arate the white marbles from the black marbles, and he would givethem one minute in which to do it. He assured them it could be donein one minute or less, because he had done it himself. He would thenstart the timer and the managers and CEOs would start franticallyseparating the marbles into different boxes, while everyone else waslaughing and cheering them on. After one minute, he would saystop! Everyone would look around to see if anybody had completedthe separation, and of course no one had. Then Dr. Deming wouldask them, “Why didn’t you complete the job? You expect youremployees to do jobs in a certain amount of time, and when theydon’t, you get upset.” He continued, “In a lot of cases, you havenever tested the job to see how long it takes, to see if it can be con-sistently done in a certain amount of time. You don’t supply themwith the correct tools or systems to do the job in the allotted time.

Then Dr. Deming would say, “I gave you a job and you couldn’tdo it in the time I said it could be done. The reason you couldn’t doit, is that I didn’t give you the tool to do it.”

At that point, Dr. Deming would pull another box, with holesdrilled in it, from under a table. He would start the clock, pour thebox of mixed black and white marbles into the box with the holes;


then he would shake it around, and only the black marbles would fallthrough. The white marbles were too large to fall through the holes,and they would remain in the box. Deming completed the job of sep-arating the marbles in about thirty seconds.

WHAT IS THE MORAL TO THIS STORY?

Give your employees the right tools and systems and they will consistently complete the task

to your specifications—and on time!

We shall not fail or falter; we shall not weaken or tire.Give us the tools and we will finish the job.

Sir Winston Churchill


CHAPTER 9

THE LAND OF CHAOS

DON’T GO BACK!—back to hiding from the truth, back to sweep-ing things under the rug, back to not fixing the problems—back to“The Land of Chaos.”

In the movie, The Ten Commandments—after Israel endured 400years of slavery in Egypt—Moses (with no small help from God)was able to set his people free. But after coming into some hardshipsand inconvenience, the Israelites began to grumble. They told Mosesthey were better off back in Egypt. Amazing! In a very short time,they had forgotten the cruel beatings, working in the mud pits, theback-breaking labor, moving tons of stone to build Pharoah’s tomb,and all this with no compensation. You see, the Israelites had grownaccustomed to the chaos and humiliating situation, even though theyhad been assured they were the people of promise. They even threat-ened to stone Moses for leading them out of bondage. Hmmm! ButMoses persevered, and year-after-year he led the people toward thePromised Land. He faced the opposition and refused to turn back,because his eyes were set on the vision—the bigger picture. Heknew where he was going and how great it would be for everyonewhen they finally got there. Moses was a true leader.

Yes, it can be really discouraging in the face of opposition, butthis goal of systemizing your company only works if you accept nothing but the truth! If you will lead, you will find those people

who will follow you on your mission to becoming a world-classorganization.

Good systems tend to expose lazy or incompetent employees,but they also expose the good ones. And isn’t that what you want? Ihave found that good employees love a good system—while theothers will often see your systematic way of organizing as “toorigid.”

People who balk at systems will tell you they prefer a “relaxed,family-type” atmosphere. Well, I call it a “loosy-goosey, shoot-from-the-hip, let-the-good-times-roll, as-long-as-it’s-not-my-money-and-I’m-getting-paid-I’m-happy” atmosphere. Here is whatthey are really saying: “I want an atmosphere that doesn’t requirestewardship or accountability. I want an atmosphere where I canmake all the personal phone calls I want—visit or gossip with every-one in the building when I want—play on the Internet when I want—take as many smoke breaks as I want—take my cat to the vetwhen I want—work the hours I want—and complain about every-thing under the sun, including the boss, when I want.” These willalso complain at holiday time when they don’t get the bonus theywant. Go figure!

If you, as an employer, won’t stand up to this type of oppositionand intimidation, then I can tell you right now, you are wasting yourtime in reading this book. You don’t have what it takes! The onlything you may have left—is a prayer!

Building a great organization—notice organization is the keyword here—takes commitment! It takes leadership and your will-ingness to lead when people are murmuring and wanting you toreturn to Egypt—the Land of Chaos.

But, if you will turn your face into the winds of opposition, staythe course, and journey on, you will reach the land of peace andprosperity—joy even. The rewards will be priceless!

If you faint in the day of adversity, your strength is small.Solomon the Wise


The Pay-OffThe truth of the matter is—building systems is grueling work.

Even after twelve years of building a great system, we still havesome tough days, but they are getting farther apart. To encourage myemployees, when negative things happen, I remind them that, thereare so many things going right in our company—“It’s almost scary!”Like awhile back when one of our front office employees was con-cerned that we were having a slow month, due to the fact that it wasso quiet in the building. He soon found out it was actually a goodmonth and said, “I guess this peaceful atmosphere shows that thesesystems are really working!”

Confirmation—Don’t Go Back!As I was working on this book after hours at my office, I

received a phone call from an employee who had recently resignedto take a position at another company. To my amazement the firstthing he asked was, “Can you tell me why the companies around thistown have no system of checks for catching mistakes?” He went onfor about five minutes telling me of the chaos in Customer Serviceand Production at his new job. I will call him Thomas.

I said, “Thomas, it’s not that they really aren’t concerned aboutthe chaos—I believe they just don’t know what to do, or where tostart.” He said, “I’ve been trying to tell them how we did it when Iwas working for your company, but no one listens!”

Now, why was this call important enough to tell you about it inthis book? Thomas is a fine person and I really like him. We sharea lot of the same beliefs, but he was one I had some difficulty within keeping him on the system. Thomas would tell you now that hehas come to appreciate the difference good systems makes. His callto me was another strong confirmation.

Once you’ve tasted and seen the power of good systems, you will never want to return to the Land of Chaos!


CHAPTER 10

LEADERSHIP:THE BUCK STOPS HERE

Leadership Recently, a friend gave me a book by Dr. John C. Maxwell called

The 21 Most Powerful Minutes in a Leader’s Day, in which hewrites, “To go to the highest level you have to develop leaders—then you should develop leaders of leaders. Many leaders want tomake followers, but at that rate you will only add to your organiza-tion one person at a time. But leaders who develop leaders multiplytheir growth, because for every leader they develop, they alsoreceive all of that leader’s followers.”

Dr. Maxwell’s book also says to, “Hire the best staff you canfind, develop them as much as you can, and hand off everything youpossibly can to them.”

I agree with this premise for the most part. However, I am firmlyconvinced that, to pass your vision on to someone effectively, itmust be in written form. Also, a good system assures the leader youare developing, that he or she will have a greater chance at success.Your system is a powerful tool to give to this leader. As I mentionedearlier, THE POWER OF A SYSTEM IS THAT YOU DON’T HAVE TO START

OVER EVERY TIME YOU REPLACE ONE LEADER WITH ANOTHER.Yes, I suppose you could hire a leader to set up the whole

system, and you could go on your merry way, but I believe that’s

when it turns into their vision and not yours. Later, if that leaderdecides to leave, you wouldn’t know where they began or wherethey left off. You would have to find another leader, throw them intothe last leader’s position, and tell them to “Swim!” They would ask,“How and where?” And you would say, “You are a leader—figure itout!”

I always look for people who are smarter and more talented thanme. Over the past couple of years, when I interview people, I tellevery one of them I am looking for a leader, not just an employee tofill a position.

The Star of the Show is Not Always the Best SingerLet me take you back to my old rock ‘n’ roll days, when I was a

lead singer and hired my own band. I always hired musicians whocould also sing. I wanted the best singers I could find. I had every-one in my band singing lead at some point in our show. I often hadpeople tell me, “Philip, your bass player (or other musician) singsbetter than you do!” I wasn’t intimidated by better singers, I learnedfrom them, and it only made the Philip Paul & Patrol Show all thebetter. I had people who thought I was “great” and some whothought I stunk. But, so what! Not everyone was going to like mysinging. There is probably no singer on the planet that ever took tothe stage where everyone was a fan. To sell a million CDs in the U.S.you only need one out of every three hundred and fifty people to likeyou and buy your CD.

To become a great organization, you are wise to surround your-self with great people!

I not only use all the brains I have, but all I can borrow.Woodrow Wilson

Iron sharpens iron, So one man sharpens another.Solomon


The Buck Stops HerePresident Harry S. Truman kept a sign on his desk in the White

House that read, THE BUCK STOPS HERE. In his farewell address tothe American people, given in January 1953, President Trumanreferred to this sign by saying, “The President—whoever he is—hasto decide. He can’t pass the buck to anybody. No one else can do thedeciding for him. That’s his job!”

You must be willing to accept the truth about a situation and dealwith it. You are responsible for all the decisions made in your com-pany—even the ones made by your managers and employees.

As I mentioned earlier, we have developed a software programcalled System100. The program has a button on it that says, THE

BUCK STOPS HERE. All employees at our company have access to theprogram and they can click on that button that produces a windowwith a COMMENT field. There they can type in any serious prob-lem(s) they are having and it is emailed directly to my home. This isnot a system for suggestions of continual improvement.

This particular system serves a very important function, and hasonly been used a few times. It is to be used when a manager oranother person in the company is mistreating someone or is doingsomething dishonest, and are afraid of retaliation. When someoneuses this system, I will very discreetly call them in for a meeting andassure them that the information they sent me is between me andthem. If they will not allow me to use this information to improvethe situation, then I tell them it’s useless information. However, Ibelieve communication is key in all good systems and, if anemployee does want to resolve the issue, all parties should then bebrought together and this information put out on the table for eachto give their side of the story.

I have found that when you bring people together to discuss seri-ous accusations or problems, stories tend to be revised. I want myemployees to know that they can tell me the truth, and feel safetelling their manager or supervisor the truth, without being mis-treated or alienated for speaking out.

The only way you can truly fix a problem or make good deci-sions is to determine the real truth of the matter. The BUCK STOPS


HERE system is not to be used to spy on anyone or to play one personagainst the other. But as the leader, you need to know that you areultimately responsible for the well-being of your employees whilethey are at work. If a manager or supervisor is intimidating youremployees, not to speak the truth or not to tell you what is going on,if there is really a problem, then you can only go so far with improv-ing the organization and reaching the goals of your mission.

The BUCK STOPS HERE system also sends a strong message toyour managers and supervisors that they are not better than others inthe organization—they just have a different position and they willalso be held accountable for their decision not to improve the systemby ignoring or squashing the truth. Some managers don’t want tohear the truth, because when they know the truth, they also knowthey have to deal with it—and, quite frankly, some just don’t wantto deal with real issues.

Remember, their decisions are your decisions, and as I saidbefore, The BUCK STOPS HERE system has rarely been used, and itreally serves as a deterrent to that kind of problem.

It is not good to show partiality in judgment.Solomon


CHAPTER 11

TQM AND ISO

TQM Total Quality Management is a system of continual improve-

ment in every phase of a business. It is a process by which everyperson in a business—from the highest in management to thegrounds keeper—is part of learning the system, operating and usingthe system, and improving the system.

An Edward Deming StoryIn Chapter 8, entitled “Are You on the Run?,” I mentioned

Edward Deming, the namesake of the Deming Award forManufacturing. He was another source from which I learned aboutthe importance of good systems and how they work.

Edward Deming was an American whose ideas of continualimprovement and total quality management were rejected byAmerican auto and other manufacturers, until about 1980. At onetime America controlled most of world’s automobile manufacturingmarket and didn’t see the need for improvement. At the end of WorldWar II, Edward Deming went to Japan to conduct a census for theU. S. Government as part of the rebuilding of Japan. While in Japan,the Union of Japanese Scientists and Engineers had heard of

Deming’s quality theories and invited him to give a lecture. TheJapanese were so inspired by his theories of quality and continualimprovement that some of the largest manufacturers, such as Toyotaand other companies, implemented his ideas into their manufactur-ing. As you may know, Japanese business was starting from theground up after the devastation of World War II. In the 1950s, aproduct with the mark “Made in Japan” was thought of as junk. Iremember, as a kid, hearing people laughing about and mockingJapanese products—but getting on into the 1960s and 1970s, we allstopped laughing. In fact, American businesses became very fearfulof Japanese products, because the little Toyota, bought as a “secondcar,” was lasting ten years with hardly any maintenance, and the bigAmerican family car was falling apart and constantly in need ofrepairs.

Well, you know what happened next. Americans bought moreand more Japanese cars and Japan started to take a large share of themarket. Through the continual improvement system, Japanese carsgot better and better. Every part of their car was inspected to see howthey could improve it, continually.

Today, the Deming Award is the highest award you can receive inJapan for manufacturing. After we had lost a lot of the world market,and Edward Deming was in his 80s, we finally woke up.

Deming Takes On FordA story goes that the president of Ford Motors invited Dr.

Deming to give Ford management a seminar on his total quality andcontinual improvement system. Just after he introduced Dr. Demingon the day of the seminar, Ford’s president started to leave the room.At that, Dr. Deming walked off the platform and caught up with thepresident. He said, “If you’re leaving, so am I,” and started to walkout. Well, they got Deming to come back, and the president of Fordreturned and sat down. Deming was sending a message to the pres-ident that, “You have to know the system!”

Ford implemented Deming’s systems, and so did GeneralMotors and other manufacturers. Why? Fear. They were losing busi-ness fast. The arrogance, however, continued for a while.


They told Dr. Deming, “We want you to implement your systemsin our company, and we would like you to start working with mid-management and on down to production.”

Dr. Deming said, “No! You don’t seem to understand. Thesystem starts with you. It starts at the top—because if upper man-agement doesn’t understand the system, and are not committed tothe system, then they will make decisions that will hinder or wreckthe system. The system of improvement starts with you, Mr.CEO/President! You must be trained first!”

Again, it was fear that motivated Ford and General Motors togive Americans the quality they deserved, and only because theywere losing business to the Japanese. I know I don’t want to losebusiness due to poor quality and service for lack of continuallyimproving! We ought to thank the Japanese for their dedication toquality—otherwise, we still might be driving piles of junk. I haveowned three Ford vans since the “Quality is Job One” marketingcampaign started. Every one of them has been great. In fact, my firstFord van was used for a delivery van and my personal transporta-tion. We put 250,000 miles on it, then gave it to my son who droveit another 50,000 miles, and then sold it.

Thanks, Japan, for kicking us in the rear end—we have been thebenefactor!

ISO StandardsYou may or may not be familiar with ISO, the International

Standards Organization that is headquartered in Geneva,Switzerland. Maybe you’ve seen their large banners on the sides ofbuildings—CERTIFIED ISO 9000—and didn’t know what it was. The9000 stands for a type of certification.

ISO is an organization that sets high standards for quality con-trol and other management control systems. It was set up to helpcompanies all over the world standardize quality control systems,services and other business practices.

One really effective policy used by the Japanese in making greatcars is to buy parts and services only from companies that have strictquality controls, continual improvement systems—and who share


the same goals and ideas for quality and service. Let’s say, for exam-ple, if a company makes headlights, the Japanese manufacturer notonly insists on a quality headlight, but also a promise from thevendor that the headlight will be continually improved. And thevendor has to prove that they will continually improve the headlight,along with their own business practices.

Now, imagine each part of their cars getting better each andevery year. Every time a Japanese car or part comes back as defec-tive, they gather all the people responsible for those defects andcome up with ideas to improve the system so it won’t happen again.They don’t come together just to place blame. No, they want to fixthe problem as a team. They are not interested in trying to cover upproblems—they are interested in gaining market share by making agreat car for the customer.

NintendoTM Inspector Pays a VisitWe had an inspector from NintendoTM come to audit our sys-

tems. He wanted assurance we had systems that would insure qual-ity printing and service, because our printing would reflect on theirproduct, and they demand quality. Since we have most of the controlsystems required by ISO, and since we’ve been operating these qual-ity systems and services, we were able to be certified to printNintendoTM products. They want their products printed by a com-pany that shares their values and quality standards. NintendoTM isISO-certified. We have had several ISO-certified companies visitour facility for inspections. We understand that through good sys-tems we can compete at the highest levels. Today, business is becom-ing a global market and we must keep improving in order to com-pete on the world stage, as well as the local market.

No need to be anxious about ISO. Let me tell you a story.

ISO For DummiesWhen I started on my mission, I read an article about ISO and

became very curious. I called a firm that consults with companies toimplement ISO standards in order to get them certified. I didn’t evenknow what ISO really was. The article about ISO and the system ofcontinual improvement sounded like something I ought to look into.


Well, I got someone on the phone at this firm and started asking himquestions about ISO. I didn’t understand a thing he was saying,but—so as not to sound totally ignorant—I asked him to send me themanual and other literature about ISO.

He asked me, “How many employees do you have?” I said, “Five, including myself.” (This was twelve years ago)There was a long pause on the other end of the phone and then

he said, “No, you don’t understand, Mr. Beyer, this is for large com-panies! The cost is upwards of a quarter of a million dollars toimplement. You will need to hire a consultant to help you implementand understand these systems. They have people to write policiesand procedures for you.”

Not wanting to be talked out of it, I told him I planned on beinga large company one day, and I needed to get started right awayunderstanding ISO systems. He sent me the manual. Well, he wasright! When I received the manual and literature, I opened them andstarted reading. It didn’t make much sense, at that point. Terms like“Non-Conforming Processes,” and others they used, were hard forme to understand. I picked up a word or two and a couple of ideas,but not very much.

I continued to build systems on my own. When you are manag-ing a business, you know what needs to be fixed and you don’t needISO or anyone else to tell you that, because it’s already happening toyou. After a few years of building systems, I picked up the ISOmanual again and I was amazed that I understood a lot more than Ihad before. After a few more years, I opened it again and I had moreunderstanding. I realized that I was doing a lot of the same things,but felt that our systems were easier to understand. Eventually, theentire ISO manual made sense.

You remember earlier I was talking about NintendoTM beingISO-Certified, and the inspector auditing our systems. Well, as hewas leaving he turned to me and said, “You have one of the mostorganized and cleanest printing plants I have ever audited. In fact, Ibelieve you could pass and be ISO-certified, if you wanted to.” I wason cloud nine. It was one of those proud moments at Beyer Printing.


ISO—Not Just A GimmickA friend told me that the president of a very large commercial

printing company in California, where she sold printing, had told herthat ISO was just a gimmick and used as a marketing tool. This pres-ident also said he didn’t need systems—he just needed good people.My friend told me that two out of three jobs she shipped to her cus-tomers had something wrong with them. But when she would com-plain, the production manager would throw a tantrum and try tointimidate her. One day she reported his behavior to this presidentand he told her the reason that she was hired was to smooth thingsover with the customers—that these production problems were justpart of the printing business. What he was really saying was that shewas hired to make excuses (lie) for the company because they weretoo lazy and arrogant to fix their problems by incorporating goodsystems.

This type of person would have you believe ISO or any provenquality or service system was a gimmick. Apparently, they believe itis easier to tear something down, make excuses, and go golfing, thanto build a system that eliminates internal chaos. It’s not about theircustomers and employees—it’s all about them!

Let me assure you, the ISO system and our system are not fads,nor gimmicks. They work! But you must be committed to usingthem.

The quality of a person's life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor

Vince Lombardi


CHAPTER 12

WHY BE COMMITTEDTO A SYSTEM?

WITH A GOOD SYSTEM, people in your organization have a clearunderstanding of the work they are to perform, and what is expectedof them. Without a system, there are many unanswered questions,and quality and service cannot be guaranteed.

Most companies don’t have systems with written standards thatgive people the proper tools by which to accomplish their job. Inthese types of companies, when a new manager comes in, the wholesystem may change. You may have been in a situation where, ifthere’s a qualified manager, operations run better. If an unqualifiedmanager comes along later, operations start falling apart. With agreat system, operations remain stable—expectations and standardsremain the same, no matter who the manager is. The System shouldset the agenda.

Whose System is it?We had a manager (I’ll call her Helen) who was in charge of all

the production departments. She was loved by the customers andhad the respect of the employees, and everyone knew she ruled theroost. But Helen was beginning to have some personal issues and

came to me with her resignation. I did not want her to leave—how-ever, I understood her situation. Other managers and employees inour company began coming to me to ask, “What are we going to dowithout Helen?” I told them that Helen, although a fine and capableperson, was not the main reason things ran so well in production. Itwas the systems we had been building, for nine years at that time,that were the reason production ran so well. Helen’s title wasProduction Manager but, according to our systems, that means shemanaged the Production Management System. Do you understandwhat I just said? Helen managed our Beyer Printing ProductionManagement System. It wasn’t the Helen Production ManagementSystem.

We had built a system for our company that was very detailedand complete. We completed the circuit—or circle—by removingthe gaps in the production management wheel to keep it rollingalong smoothly. The person who replaced Helen was trained quicklyon the PRODUCTION MANAGEMENT SYSTEM. In fact, it is running evenbetter now, and with less effort, because we keep improving thesystem. This production management change was more confirma-tion to our employees as to the importance of great systems.

Do you think McDonald’s Corporation, the hamburger giant,changes their whole way of managing—or changes their system,when they change managers, personnel or even franchise owners?NO WAY! The new managers and personnel learn the McDonald’ssystem. They follow the system, and in turn are checked by the man-agers of the system to make sure they are adhering to that system.However, McDonald’s franchise owners and all levels of personnelare encouraged to help improve the system—but they learn the pre-sent system first.

Coffee Break at McDonald’sMy son Paul, and I, decided to grab a cup of coffee at a

McDonald’s store right up the street from our business, and whilestanding in line, I noticed empty coffee creamers piling up by thecoffee pot. I said, “Hey, Paul, look—a breakdown in the


McDonald’s system! They should put a container there with a smallsign or label that says ‘place your empty coffee creamers here.’”

A few days later, we had to laugh when we were back getting acup of coffee. There it was. Without us saying a word, someone hadadded a container and a sign that said, PLACE YOUR EMPTY COFFEE

CREAMERS HERE. It was a great little demonstration of how thesystem of continual improvement works.

But let’s break it down a little further.

THE COMPANY—as a Reason to Be Committed to a SystemWhat is the main reason a business is in business? It’s to make a

profit! In some corners of today’s society, it seems profit has becomea dirty word. However, profit has to be the main goal in order for thecompany to exist—but not the only goal. With a successful companythat makes profits, you can afford to give back to your communityin countless ways. If it weren’t for many great American companies,we wouldn’t have some of the schools, libraries, hospitals, researchcenters and many other blessings that their profits have provided—not to mention the jobs they create. They have also been used intimes of war to maintain our freedoms. Therefore, to help assureprosperity—which I believe is profit with peace and joy attached—you will need a great system.

THE CUSTOMER—as a Reason to Be Committed to a SystemIf you promise great quality and service to customers, then you

need a system to back it up. Therefore, you’re able to prove yourpromise and it’s not just a slogan on your business card. A system isthe only proven way to obtain consistent results.

The system helps the sales and marketing department bring inmore customers. Remember I told you about the NintendoTM qualityinspector saying we had one of the cleanest and most organizedprinting companies he had ever seen? Our sales departmentprospected and delivered the NintendoTM customer to our door, butit was the system that helped close the deal.


A company delivering good quality and service, at a fair price,should be able to grow. And with the right marketing—you willgrow! The system will help you in guaranteeing that quality and ser-vice.

THE EMPLOYEE—as a Reason to Be Committed to a SystemA system lets management know which employees are perform-

ing well and which are not.Performance should not be based on a feeling you get of how

someone is performing—it should be based on facts that come fromhaving a system that measures performance.

Have you ever been in a situation where you were working veryhard and the person next to you was a slacker? But the supervisornever seemed to notice this person’s laziness, because when thesupervisor would come around this person would kick up a lot ofdust and pretend they were working very hard. The right system willexpose such a person. If you are a good employee, you should havea sense of relief that good performance is also being noticed,because it is being documented. A good system is one that encour-ages employees to become involved in improving their work areaand processes.

If you measure an employee’s ability on a scale of one to ten—a “five”with a great system could be as effective as an “eight” or a“nine.” Just imagine what the same system could do for an employeewho was already an eight or a nine! As the system improves andtransforms the organization, the people that the organization attractswill improve.

Good Systems Draw the Cream of the CropI had been looking for a top department manager for our com-

pany to take us further up the road on our mission. I came down toseveral choices; however, I had one person in mind. He was the kindof applicant that you know is looking for a great company and notjust a job. I decided to show him our systems and how they work bygiving him an orientation that demonstrated our system before


asking him to make a final commitment. After the orientation, andtaking him on a tour of our facility, he accepted the job saying, “Thisis the kind of company I’ve been looking for!” Again, the systemsold the company—this time to an employee—and I didn’t have tomake any promises and exaggerate our good points and downplayour weak points. We are who we say we are!

The Anti-Employee MethodI remember a printer that asked me one day to come over to his

shop to help set up one of his presses. I got to his shop and startedto set up his machine, but to my frustration I couldn’t find any toolsto work with. I asked the owner, “How do you expect me to set upthis machine with just these few broken tools?”

He said that the reason he didn’t have any tools was that hisemployees lost (or took) them and he wasn’t going to buy more. Iwent over to the sink to wash my hands and all he had was a bar ofplain soap to remove the ink. At our company, we use a special ink-removing hand cleaner that costs $25 a gallon. I went to dry myhands and he had no paper towels. I had to use the shop towels I hadjust been using on the press. This owner has complained to me manytimes that he can’t find good employees. I wonder why! This guy islosing a dollar, trying to save a dime. If you have this mind-set, youwill likely never achieve a great organization and a peaceful envi-ronment. You are saying to your employees, “You are not impor-tant!”

Good Employees Are Worth It!For our employees, we have a breakroom at our business that is

fixed up like a 1950s diner. It has a lot of nice tables and booths andit also has great memorabilia from the 1950s. When I built this forthe employees, I had several managers tell me this was “overkill,”and that the employees would not take care of it —and, in fact, theywould abuse it. I didn’t believe that would happen, and it hasn’t. Theemployees really enjoy it, because, as they say, they feel like theyhave “left the building” when they go there for lunch or a break. It’s


fun to select a few 1950s tunes on the old Seeberg wall boxes, andsit in a booth with your sandwich and a glass of cold Coca ColaTM.All the amenities are supplied—coffee, assorted candy, etc. It’s allfree. Good employees are worth it!

The laborer is worthy of his reward.Apostle Paul


CHAPTER 13

HOW TO BUILD SYSTEMS

THINK OF A SHIP that’s been in battle and has holes everywhereand water pouring in. Does this sound like any business you know?Which hole would you plug first?

START WITH THE BIGGEST HOLE! In my case, the biggest hole I needed to plug, was to stop the

mistakes in my pressroom, so I built a QUALITY CONTROL CHECKLIST

for the press operators. I will go into detail about this checklist later.This new system stopped a lot of leaks.

Then I went to the next hole and set up a checklist for enteringjobs into production—and so on down the line, until I had stoppedall the major leaks. To keep the improvement process moving for-ward, I needed a system to find small and almost undetectable leaks.I searched for a system that would catch these problems that mostcompanies would never find, much less fix. Ah! THE SYSTEM

BUSTER—the leak detector. More on the SYSTEM BUSTER in theChapter 15.

The Spinning PlatesYou may have seen the circus performer who spins ceramic

plates on a row of long poles. He puts a plate on a pole, gives it aspin and moves on to the next pole and spins another plate, and so

on. Sometimes, as he is spinning a new plate, one of the first platesfalls to the ground. So he runs back and puts on a new plate andgives it a spin. There is a point in the act where the performer is run-ning up and down the row trying to keep all the plates spinning. Heseems anxious and frantic for a time, but when he gets them all spin-ning, he is all smiles, because now all he has to do is walk up anddown the row giving each plate a gentle tap with his finger to keepthem all spinning merrily without falling off the poles.

This is how it will seem when you are setting up systems foryour organization. Just when you think you have a system workingwell, it will crash—but don’t give up. You just pick it up and get thesystem operating again. It’s not like you have to build the systemfrom the ground up each time. Once all your systems are up and run-ning—you only have to tweak them now and then.

OKAY, LET’S BUILD A SYSTEMThings to consider as you build your system:

Context and UnderstandingThe words you use must plainly describe the actions and activ-

ity to be performed so that any member of your organization caneasily understand. The following story should illustrate what Imean...

The General and the PrivateIt was told to me that, during the Civil War, a famous southern

general had a certain private that was stationed right outside his tent.The private was a soldier of below-average intelligence. To be blunt,he wasn’t the sharpest tool in the shed! Well, when the generalwould write out specific orders that would be sent to the front lines,he would call this private in to read the orders. He would then askthe private to tell him what they meant, in the private’s own words.If the private had any trouble understanding what the general hadwritten, the general would take the orders back to his tent andrewrite them. He would repeat this process until the private couldeasily explain to him what his orders stated. The general knew that



if this private could understand his orders—when his officers on thefront lines received the orders, they would surely understand them.

It is imperative that a manager understands every word and sen-tence in every system in their department. A general manager orowner should have an overall understanding of the entire system.

Easy reading is hard writing Nathaniel Hawthorne

The Unexplainable BoxI was having our online BILL OF LADING system built for our

System100 software. As I was reading all the information and look-ing at the different boxes that you would fill in on the Bills ofLading, from several freight lines we used, I realized I didn’t knowthe use of a particular box. The box had a header, but its purpose wasunknown to me. I asked our shipping manager to explain what thisbox was on the form, and she couldn’t tell me. I decided to call oneof the freight lines and ask them what the purpose of the box was onthe form. They couldn’t tell me either—and it was their form.

I called other freight lines and got the same answer, and no onecould tell me what it meant or why the box was there. One companyput me in touch with their legal department, as I wanted to makesure that the form we were drafting was acceptable to them. I wantedto know what that dumb box was. The legal department could notexplain why it was there and, in fact, joked about it.

The moral of this story? Know each word and sentence—ordumb box—in your system.

ParticipationBefore a system is implemented you should let everyone whom

this system or document will affect, share their ideas so they knowhow it will impact their job. These same people should also beinvolved in the testing, revising and updating of the system.

StandardizationAll references and terms should be used the same way, every

time. For example, don’t call something in one system or form a cellphone, and in the next line call it a mobile phone. When you havehundreds of terms it can get very confusing. Also, it would be help-ful to standardize your fonts to only one or two. Be consistent.

CompletenessThere must be no gaps in information, logic, or design.

Roadie Proof

Ready for another story? I just can’t help myself! It’s about myrock ‘n’ roll days—with long hair and shiny clothes. We had a PASystem that was very elaborate—it had many powerful amplifiersthat hooked up to lots of speakers, microphones, etc. If the wrongcable was plugged into the wrong speaker, it would blow out thespeaker. We had a couple of roadies for awhile that would help setup our equipment. We were barely scratching out a living and theroadies were probably living with their parents, and had not yetlearned the art of decision-making.

One night, one of these roadies plugged in a cable from a 1000-watt amplifier to a speaker that was rated to handle about 200 watts.Yes, it blew up! Being the resourceful and handsome young band-leader that I was, I decided to fix this problem myself. Truth is, therewas no money for these kinds of mistakes. Truth is, I wasn’t quite ashandsome as I thought I was, either! Anyway, I went to an electron-ics store and bought four different types of plugs. We wired onecable with one type of plug, and the next cable with another type,and so on. It was now impossible to wire a cable to the wrongspeaker. It just wouldn’t fit. You know, like putting a square peg ina round hole. So, I coined the term “Roadie Proof,” that stuck. Nowwhen I’m explaining how a system needs to be set up so that it isalmost impossible to do it wrong, my employees know exactly whatI mean when I say we need to “Roadie Proof” this or that system.


Example of a Simple System for Ordering Materials Each person in each department, in fact all employees, should

have a DAILY ROUTINE CHECKLIST—a list of every task an employeedoes each day.

We will place on the checklist, an entry with a check box besideit to remind them to order materials (The example below is a manualsystem—we now have automated this in System100):

Materials needed have been checked off on the MATERIAL ORDER

FORM PA-343 and this form has been placed in the designated location.

Every department has a MATERIAL ORDER FORM that has listed onit every item used on a regular basis in that department or work area.On this MATERIAL ORDER FORM there will be a description of theproduct, product number, quantity to order, etc. The only thingyou—any staff member—is required to do is to go down the list ofitems on this form and put a check in the box beside the item youwant to order and place the form in a designated location. Easy!

Now, the purchasing person will pick up the MATERIAL ORDER

FORM and order your materials that day, because the purchasingperson has an entry on their DAILY ROUTINE CHECKLIST to do so.They won’t have to look for the description, the product number, orhow much to order, because all the information they need is alreadyon the MATERIAL ORDER FORM.

[Have you ever wasted thirty minutes or more looking around yourbuilding for an old product box to get the description or productnumber of an item so you can order it? This is lost time and money.]

Next—your materials will be delivered to your department,placed in a designated location, and you will be notified, because it’son the Shipping & Receiving person’s DAILY ROUTINE CHECKLIST todeliver these items to each department as they receive them. Now, doyou see how one system works with and can affect another system?A system should be designed to be easy to use and work consistentlybut, most importantly, it must be complete, like a complete circuit.The easier it is to use, the more consistently people will use it. Let’sreview:


Step 1—EMPLOYEE has an entry on their DAILY ROUTINE CHECKLIST

to order their needed materials.

Step 2—PURCHASING PERSON has an entry on their DAILY ROUTINE

CHECKLIST to pick up checked MATERIAL ORDER FORMS from eachdepartment’s designated location. Another entry on their CHECKLIST

is to order materals at a certain time of the day.

Step 3—SHIPPING & RECEIVING PERSON has an entry on their DAILY

ROUTINE CHECKLIST to deliver ordered materials to the various des-ignated locations when received.

ComplianceThere needs to be a way to follow up on systems to insure that a

system is being used and used properly. We have several follow-upsystems (See Chapter 15 - System Buster).

Referenced/Un-Losable You need to connect or reference the system/document to other

frequently-used documents that will guarantee it will not be lost andforgotten. “Out of sight, out of mind” is true!

As we were building our Operations Manual, we found that wewould need a policy or a procedure to correct something, only tofind out later we already had that policy or procedure—we hadsimply forgotten about it. This happened several times, and it wasvery frustrating. Even though we are constantly updating ourOperations Manual, there are those systems/documents that are usedfor specific situations and only come around once a year.

I was going over some of the systems/documents with a newmanager, and he asked if we had a particular document. I told himwe didn’t, but we could easily implement one. I had him draw up arough draft of what he wanted, and had someone create the docu-ment.

As we started talking with other employees in the company tosee how this new system would affect other systems, somebody said,“Hey, we already have that system.” Well, I went back to my office


even more frustrated, but decided right then and there we would ref-erence every system/document we had, to other relative system/doc-uments being used. When you reference those that are rarely used,to those that are used daily, they are not lost and forgotten.

Since every system/document has a form number and a name, itwas easy to start implementing. I just looked at this as continualimprovement for our Operations Manual.

Organizing Your Operations ManualWe like to use D-Ring binders for each department’s Operations

Manual. Each form in this binder is placed in a sheet protector foreasy removal when copying and updating. If your company is verysmall or you are just starting a business or organization, you couldstart with one large D-Ring binder and have tabs for each depart-ment until it becomes too full, then you can break out each depart-ment with its own binder.

I would suggest using no more than one or two fonts on yourdocuments. We use Arial for content, and Zapf Dingbats BT forcheckboxes and other symbols. Helvetica or Times are also goodfonts to use. Remember, standardization is the name of the game inyour Operations Manual.

I recommend that all of your forms and documents be built inMicrosoft Word. However, for very complicated forms, you mayconsider other design programs.

Your MASTER LIST OF FORMS for your Operations Manual can bebuilt in a Microsoft Excel spreadsheet, and each department’s list offorms should have its own tab in the spreadsheet.

All companies have common departments, even if you are a verysmall operation—Sales, Human Resources, Accounting, etc.

In each department’s D-Ring binder, the first plastic sheet pro-tector should have a printed list of the forms or documents for thatdepartment (from your Excel spreadsheet).

This compiling and organizing of documents and forms into anOperations Manual is called FORMS OR DOCUMENT MANAGEMENT.

Now give each document a code or form number, along with arevision date.


Example: YCI-HR-0019 Rev 09/04:

YCI=Your Company Inc.

HR=Human Resource Dept

0019=Number you assign to that document

Rev=Revision Date 09/04

If you have a better way of doing this, great! I would suggest youput zeros in front of your single- or double-digit numbers so that, inthe event you sort them in Excel, they will line up. They will alsoline up when you name your files and store them in a folder on yourhard drive. We have a folder for each department. Example: 009,010 and not 9, 10 etc. Do a test by sorting your forms in MicrosoftExcel and you will see what I mean.

Recap of Building a System

A. Determine if a system needs to be built. 1. Unpredictable Non-Conforming Events

• No reason to build system. Outside disruptions, client orvendor errors, Acts of God, etc.

2. Predictable Non-Conforming Events• We build a system, if not already addressed.

B. Fix the “biggest hole” first - prioritize those systems that need to be built or are in need of change.

C. You can assign a staff member or group—the ones that will beaffected by the process—to create a new system or improve a currently running system. Make changes to old system only if it:

1. Stops errors and chaos2. Streamlines the process3. Standardizes the process4. Saves time and/or cost


D. As you begin to design or improve a system:1. Note all personnel involved in that process.

2. Write down the process step-by-step as you think it would make the most sense.

3. Think about the flow of the process and how each step effects the next step. Roadie Proof the process.

4. Each person affected by the system/document is given acopy to review each step in the process, looking for gapsor holes. They will then give their input as to whether itwill work smoothly, or needs to be revised. It’s importantthey clearly understand each step, as in the story of theGeneral and the Private.

5. Once the needed changes have been made in the system,everyone will review it again. Repeat Steps 3 and 4 untilevery one is satisfied with the results.

6. Be sure the system/document has a follow-up system.

7. Assign a form number and revision date.

8. Reference the system/document to other frequently-used documents that will guarantee it will not be lost and forgotten.

9. The Systems Manager/Head of Organization should givefinal approval.

Through wisdom a house is built and by understanding it is established.

Old Proverb


CHAPTER 14

SYSTEMS THAT EMPOWER PEOPLE

JOB DESCRIPTIONS

An organization or business should have a detailed job descrip-tion (A list of specific tasks and responsibilities) for each and everyposition or person. Some job descriptions may include several posi-tions. In smaller companies, one person may wear a lot of hats.

When we started building our Operations Manual we had onlyfour or five job descriptions for our company. Some positions werecombined. Example: Press Operator / Bindery Operator; anotherwas Delivery Driver / Shipping & Receiving, etc. As you grow, youmay have one position for each person, and each job description isrevised accordingly.

DAILY ROUTINE CHECKLIST

This document is a job description that is broken down into achecklist of every task or duty a person performs from the time theyarrive at work until the time they leave. It is to be prominentlylocated for easy use, either on an employee’s desk or a clipboard bytheir workstation. With this document you—the owner or man-ager—also have, for your reference, a list of everything eachemployee does. You don’t have to ask someone else what a particu-

lar employee does, or try to remember it yourself. All you have to dois pick up their DAILY ROUTINE CHECKLIST and read what they do.This can be very helpful when one of your employees tells you theyhave too much to do. If you agree with them, since your businessmay be growing, it’s easy enough to look at their DAILY ROUTINE

CHECKLIST and make a decision to give a certain task or duty tosomeone else. Just add, delete or exchange a task from one DAILY

ROUTINE CHECKLIST to another. The task may be a better fit forsomeone else, or for one who doesn’t have as much to do.

You see, the DAILY ROUTINE CHECKLIST gives you eyes to seeevery task and duty performed in your organization—from takingthe mail to the post office, to mopping the floors.

If you have several employees, you could collect all the DAILY

ROUTINE CHECKLISTS, lay them out on a table and quickly be able seewho is doing what or who needs to do what. Systems are your eyesand ears!

One way to start building the DAILY ROUTINE CHECKLISTS is tohave everyone in your organization write down everything they do.And I mean everything! You will be greatly surprised at how muchsome people do and how little others do. You will also find out thatsome people are doing the same task as another person, only at dif-ferent times. This is an easy fix. Have one person do the task all thetime, if possible. Remember: this is Standardization. You will seewith this checklist how easy it is to get every task that needs to becompleted in your organization, done—every day, every time!

Let me give you an example of how detailed our checklists havebecome.

Keep the Music PlayingI had a cassette player (Before the days of DVDs) that played

music while callers were on hold. It would shut itself off every weekor so. Well, I wanted it playing all the time, right? But I either hadto remember to check it myself or put it on someone’s DAILY

ROUTINE CHECKLIST:

Music On-Hold Player is working.


I did that, and it was checked every morning, until I improvedthe system by buying a player that didn’t shut off—continualimprovement!

This may seem to be a small thing, but several “small” thingscan often add up to big frustrations. Imagine having hundreds tothousands of tasks, getting done every time, every day. Your busi-ness starts to run like a well-oiled machine. With these tasks beingdone automatically, a more peaceful atmosphere starts to emerge.People can do their jobs without constant supervision.

QUALITY / SERVICE CONTROL CHECKLISTS

These types of checklists are crucial to any company that wantsto guarantee quality and service.

You may not be a manufacturer, but every company and organi-zation has a product it is selling or promoting. Your product may bea service, but it should be quality service.

I have been asked many times by service organizations why Ithink their business needs the same kind of QUALITY CONTROL

CHECKLISTS as a manufacturer. Somehow they think they just needa verbal commitment to quality and service.

I tell them, “I don’t care how committed you are—without achecklist system, you cannot guarantee or prove quality or service,because you are human, and you can’t remember every process con-sistently.

Remember the company president, I mentioned earlier, whosaid, “We don’t need good systems, we just need good people”?Think about this statement for a moment. Aren’t you glad that theairlines think differently? Before trained, professional pilots—nodoubt good people—take off and land, they use a checklist. Theyknow that all it takes is one time to forget to do something—like putdown the wheels before landing—and many people will die.

After having a lot of success with checklists in my own com-pany, I wondered why hospitals didn’t have one person going downa simple checklist before a surgeon starts to operate. You haveprobably heard horror stories of the wrong leg being cut off, etc.


Well, thank God, the better hospitals are now doing just that—CHECKLISTS! Yes, the doctor is a trained professional, but he also hasa million other things, and patients, to remember each day. With achecklist it is almost impossible that he will operate on the wrongleg.

The Right Way to Use a ChecklistWhen you use a checklist properly, the list of entries on the

checklist is to be completed one entry or item at a time. When oneentry is completed, it is checked off as completed. You don’t do allthe tasks or items on a checklist, and then go down the list checkingthem off as “completed.” By the same token, you don’t check offeverything on the checklist first, and then go about doing the tasksby memory. If you do that, you are gambling with the results. Thechecklist is used to focus your attention on one thing at a time.

Have you ever read something and it turns out that you have readit wrong? Or, you were supposed to do something and it turns outyou didn’t, but you “just knew” you had? I have! That is becausewe are human and we don’t see things, or do things, the same wayevery time. Our mind may be focusing on many things, or some-thing major, and overlook something small. The airline pilot couldbe focusing on the weather or passengers, and miss a small light thatalerts him as to whether his landing gear is up or down.

Checklists are not for “dummies,” but for busy, normal humanbeings who simply can’t remember everything about everything all

the time. Checklists make the necessary details a no-brainer!

The First Day We Used the Checklist SystemTrue story. I have a fond memory of the first day we used the

checklist system. There were a lot of skeptics and naysayers whenwe first began to develop the checklist system. I wanted to startusing them in the pressroom first. On day one, I walked out into thepressroom with the first checklist and gathered everyone in produc-tion around a light table for a demonstration of how to use a check-list. I had the press operator set up a job and get it ready for approval


with the new checklist. Well, he set up the press, made all his adjust-ments and, when he was ready to start printing the rest of the job(We were printing letterhead at the time), he brought it over to me tobe approved. I took the new QUALITY CONTROL CHECKLIST, alongwith the DIGITAL JOB TICKET for printing the letterhead, and startedto go down the checklist.

The first item on the checklist was:

Color of ink correct

I compared the color of ink on the letterhead with what theDIGITAL JOB TICKET called for. It was correct. I made a check in thebox by the item.

Next item read:

Paper type correct I compared the paper type of the letterhead with what the DIGITAL

JOB TICKET called for, and it was also correct, so I put a check by it.

Next item read:

Color of paper correct

The DIGITAL JOB TICKET called for a gray color paper and Ilooked at the color of paper we were about to print—it was creamcolor paper. We had the WRONG color of paper, and we were aboutto print 10,000 letterheads.

You should have seen the look on everyone’s faces. Yes! The veryfirst time we used a checklist, it saved a job from having to bereprinted and having a very unhappy customer—not to mention theextra expense. I didn’t have to convince anybody that a checklist isnot a waste of time. I believe it was providential, as we were start-ing out with our first QUALITY CONTROL CHECKLIST, and it worked.As a matter of fact, the person running the press that day is now oneof the strongest supporters we have for the checklist system. Hisreruns due to errors (Jobs that have to be reprinted) have almostgone to zero. Thousands of dollars and hours have been saved withchecklists. They are one of the keys to our success.


Some people welcome checklists, while others are insulted bythem. Apparently, they believe they are just too smart to make adumb mistake. But it happens to the best of us! No matter whatanyone thinks about checklists, they work. It’s been proven.

Suggestions for Building a ChecklistStart with the subject, whenever possible. Example: Instead of a

description that says: I took the mail to the post office

Better to use: Mail taken to post office

You don’t need to use “I” in a checklist (e.g. “I did this” or “I didthat”). Starting with the subject makes a checklist easier to read andfollow.

DRIVER/QUALITY CONTROL SYSTEM

Here’s a system we’ve developed that is most likely to be usedby manufacturers.

We have a system for our Job Tickets/Job Jackets that is uniquefrom others I have seen. For most manufacturing facilities, the JobJacket is used just to hold information such as samples, proofs, etc.That’s part of the order. It is also used to hold the Job Ticket—thespecifications needed to manufacture a job, such as size, type, coloretc. WHAT WE HAVE DISCOVERED and implemented is the use of theJob Jacket itself as a “driver” of the QUALITY CONTROL SYSTEM.

The DRIVER is a checklist that contains the necessary steps forthe entire manufacturing process printed right on the Job Jacket.You could call it the CHECKLIST OF ALL QUALITY CONTROL CHECKLISTS.

It starts with data entry items that need to be checked, all theway to shipping items that need to be checked. As we move step-by-step down the DRIVER, and come to an item or process that has itsown checklist, we simply refer to that other checklist.

Example of an Item Listed on the DRIVER

PRESSROOM QUALITY CONTROL CHECKLIST (S100-PD-543) hasbeen completed, signed, stapled to a press sheet and


placed in the Job Jacket Note: We also reference the form number of the QUALITY

CONTROL CHECKLIST. We have found the more places we can refer-ence a system within another system, the more likely it will be usedconsistently and will not get lost. See Referenced/Un-Losable onpage 68.

Due to space constraints on the Job Jacket, you may not be ableto place every item that needs to be checked on the DRIVER. Youmust decide if an entry or item needs to be on the DRIVER or on itsown special checklist, like the previous example. The DRIVER systemis a great way to see at a glance that all QUALITY AND SERVICE CON-TROL CHECKLISTS have been completed without opening the JobJacket and looking for them. It is also a picture or flowchart of yourmanufacturing process from beginning to end.

POLICIES

Webster’s Dictionary says, “A policy is prudence in the conductof affairs; a course of administrative actions.”

As I have already stated in this book, you must take the time, beprudent and write things down so your employees don’t have toguess what actions they should take, or not take, in various situa-tions. We have used policies to exempt certain actions in certain sit-uations. Instead of telling your employees to try and rememberunder which circumstances they should or should not do something,write it in a policy and it becomes part of the system.

When writing some policies, you don’t always need to re-inventthe wheel or start from scratch. There are many places to find writ-ten policies to give you a good starting point to customize them foryour organization. You can find them on the Internet, especiallyHuman Resource documents such as Employee Handbooks, etc.

A policy should reflect your Mission Statement and your Codeof Ethics, and I strongly recommend you read them often.

There is also information on the Internet that will teach you howto write a policy––but if you use your own common sense, youshould be able to write your own policies.


CAUTION: In your Employee Handbook, you need to be carefulnot to write anything that is unlawful. Also, be sure to mentionsomewhere in your Handbook that the Handbook itself is not a con-tract. You may look on the Internet for other pitfalls in writingEmployee Handbooks and other policies.

PROCEDURES

I have really learned to appreciate written procedures, as they aregreat time savers––and time saved, is money earned. Written pro-cedures also empower people to do their job with less direct super-vision.

Think how many times someone has come into your office andasked if you would show them again how to do a certain task. Theysaid they forgot, but why should they remember, when they haveyou as a living, walking and talking computer/procedure. They usethe excuse, “Well, I just don’t do that task everyday and I just can’tremember how to do it.” So, you stop what you are doing and spendthe time showing them again and again and again. Then just whenthey finally get it, they leave the company and you start over again,training the next person. This is where a good, time-saving proce-dure comes in. Take the time to write a procedure so that anybodycan follow it.

Remember we talked about The General and the Private, andhow to “Roadie Proof” a system?

You will only have to write it once and it becomes part of yourOperations Manual. After writing the procedure, go through thesteps in the procedure step-by-step to find any holes, while actuallyperforming the task. Once you are satisfied that you have found andcorrected the holes, have someone else try the procedure, while youare watching them, to see if they stumble over any words, or if thereis a missing step. Keep correcting all problems until you know theycan do it without you.

The next time someone asks you again to show them how to doa task, simply hand them the procedure––or, to really complete thissystem, the new procedure should be made accessible so they can


find it themselves. Now, as you become more efficient at writingprocedures, you can then train others on how to write them.

Can you see a little clearer, how you will profit by working ONyour business?

The discipline of writing something down is the first step to making it happen.

Lee Iacocca

ORIENTATION SYSTEM

A pressman we recently hired told me a story about a well-known printing company, here in Nashville, that he had gone towork for, and how excited he was to be hired. He heard they wereone of the best printing companies in our city. After a few weeks hebecame very disillusioned. The things he had heard were not thethings he was experiencing. They didn’t give him an orientation, sohe really didn’t have a good picture of this other company.

In most companies that don’t have an ORIENTATION SYSTEM thereare gaps in employee’s knowledge of the company. It may take yearsof being employed there, until they really get a picture of the who,what, when, where and why.

Every time we give an orientation, I hear from the new employeehow grateful they are to know our history, our vision and a detailedorientation of our systems. They know who they are going to workfor, what to expect, and what is expected of them.

A friend of mine went to work for a company a few years ago,and I later asked him about what the company did, and what his jobwas, etc. I was amazed that, even after several months, he couldn’treally explain their actual business with any clarity. The companywas just starting out, had few or no systems, and management wasjust too busy doing, to explain to a new employee what their actualjob description was, or the mission of the company.

This is a good example of why there must be a goodORIENTATION SYSTEM. New hires, and every member of your team,should be fully briefed on exactly what your company is about; what


your Mission Statement is and what it means; the Chain ofCommand; what each department does and how they relate to eachother; policies and procedures; the what and where of equipment,supplies and tools they will be using—everything they need to knowto do their job.

A detailed ORIENTATION SYSTEM can make the difference as towhether your new employee hits the ground running, or flounders inconfusion for a time trying to figure it all out for themselves.


CHAPTER 15

SYSTEMS THAT FOLLOW UP

AND MEASURE IMPROVEMENT

SYSTEM BUSTER - THE LEAK DETECTOR

Any event that causes chaos in—or "busts"—our system of oper-ation, we call “System Busters.”

The System Buster System has been THE most important toolused to transform our company. It is actually a digital form/docu-ment used to find and then eliminate mistakes and internal disorder.When you are not dealing with chaos and disorder in your own orga-nization, you will have more time to serve and focus on your clientsor customers needs.

Non-Conforming EventsThe System Buster is used to find Non-Conforming Events

(Errors, disruptions, etc.), alerting management that a system—aprocedure, checklist, chain of command, etc.—is not being adheredto. It also alerts management of the absence of a needed sytem. ANon-Conforming Event will “bust” or throw a wrench in the gearsof a system—thus, the name of this system became “SystemBuster.” With the thought of having a little fun, I also wanted it tobe memorable. For impact, I even put a cartoon of a cop handing outa ticket on the System Buster form. When someone fails to adhere to

a system, it’s like someone running a red traffic light. He should geta ticket.

If we didn’t have traffic lights, imagine the chaos and disorder.A traffic light is a system that keeps us from running into each other.How many times do we run into each other and cause wrecks anddisorder in our company, because someone fails to follow thesystem?

We are very serious about the System Buster. It has been one ofthe most powerful management tools I have ever seen in operation.It puts the system on trial—and demands a verdict.

We have fixed hundreds of problems with this form/document.Fix is the key word. Most companies put a bandage on a problem topatch it temporarily, but they rarely fix it so it doesn’t happen again.

Example of a Non-Conforming EventMy DAILY ROUTINE CHECKLIST has an entry with a check box to

prompt me to be sure I have enough materials for a certain job. If Iignore that prompt, but check it off as though I had done it, and laterfind out I do not have the needed materials for the job, I have buckedthe system. In short, I lied! Consequently, the job has to be put onhold until the purchasing person can order and pick up the neededsupplies. This failure to adhere to the system has stopped produc-tion, cost the company time and money, and caused disorder becauseI was non-conforming.

Remember, a system is like a circuit on a circuit board. ThisNon-Conforming Event just shorted out the circuit—an example ofone system affecting another system.

Issuing a System BusterWhen a Non-Conforming Event occurs, the one who catches the

error submits a System Buster to management stating what hap-pened. Management completes the System Buster form by identify-ing the root cause, and all who were involved in the error. In theexample above, management would enter the name of the personwho failed to order supplies. Management then determines if it is aPersonal Error or System Error (The main reasons anything goeswrong inside our organization).


1. Personal Error. This is where a person fails to follow thesystem, like the example above. Management then meets with theperson to determine the root cause. The usual response is, “I was ina hurry, so I really didn’t follow the checklist properly.” We thenremind the employee of the reasons we have checklists, and thatchecking off an event as completed when it is not, is falsifying thechecklist. At our company, we take this seriously and we let themknow this is not acceptable. We have them sign the System Busterform acknowledging either a Personal Error or System Error, andthen we move on.

If an employee gets multiple System Busters, due to PersonalErrors, we may place copies in their employee file and fill out a dis-ciplinary form. This also is reported in the employee’s yearlyPerformance Evaluation. You will know right away if an employeeis going to adhere to or buck the system.

At this point, you may be thinking this all sounds a bit harsh, butthat is not the intent. If you want to stop the chaos in your company,everyone needs to be accountable. We give grace when grace is due,and over the years we have only had to fill out a few disciplinaryforms. When people realize we are committed to this continual-improvement system, they will either embrace it, or leave the orga-nization. As you can see, System Buster is also an excellent follow-up system to all of your systems, and when employees know yoursystems are followed up and followed through, you will find youremployees more supportive and compliant.

2. System Error. This is an event, the remedy of which is notfound on any checklist, procedure, policy or any written system. Itwas never incorporated into the system, because the event was neverencountered before—or, if encountered, not properly addressed.Therefore, it is a System Error and not a Personal Error.

Predictable Event or Unpredictable EventAfter identifying the root cause as a System Error, management

meets with those employees affected by the system failure to findout whether this was a Predictable Event or an Unpredictable Event.If found to be predictable AND preventable, we brainstorm until we


find a way to incorporate it into the system and then update thesystem so this error does not happen again. If it’s found to be unpre-dictable—it may be due to one of the following:

• An Act of God (e.g. Lightning striking your power grid and youmiss a deadline).

• A mistake made by your customer or vendor, whereby theyprovided you with wrong information or materials. On the SystemBuster form, there is a place to check Customer Error and enter thename of the customer; also a place to check Vendor Error and enterthe name of the vendor. This information goes into a database;whereby, you can pull a report as to how many times a vendor hascaused problems for your company. This can be brought to thevendor's attention, in order for them to solve the problem. If theywill not fix their problem, you then make a decision whether to finda new vendor. ISO companies track this same information in orderto keep vendors compliant in the way they conduct business, inorder to maintain quality and service. A vendor can actually be finedor dropped as a preferred vendor.

You can also pull a report on how many times a customer causeserrors—whereby, you can train or help your customer in providingyou with correct information. Again, if they will not cooperate withyou, you may find they are causing you too much grief.

The good news is, when the customer or vendor makes the mis-take, they pay for the cost of correcting it.

There is also a place on the form to check an incident asUndetermined or Act of God.

For Unpredictable Events, we have some emergency plans forActs of God, and educational tools for our customers and vendors tohelp them reduce their own errors. You may want to give all of yourcustomers and vendors this book.

Now, do you see that, after many years of using the SystemBuster, it can turn an organization into a powerful machine thatdelivers great quality and service? Your internal chaos can be almosttotally eliminated.


The System Buster allows everyone in the company to beinvolved in correcting and improving the system. If a person fails tofollow the system, and it hinders someone else’s workflow, then theperson who has been hindered can issue a System Buster. They aredoing the “busting.” They become the “cop” helping to identifywhere the traffic violations are occurring, and then we can fix it as ateam. Our staff has actually had fun with this system. The idea is notto place blame or tattle on another employee, but for the purpose ofcontinual improvement.

Yes, there will be people who are personally offended when theyhave to sign a System Buster, but again this is where leadership andtraining comes in. You see, an excellent system exposes good andbad behavior or habits, because it makes it black or white: “Yes, Iwill follow the system,” or “No, I won’t follow the system.”

How Good is Good Enough?I had a Customer Service Representative (I will call her Martha)

come into my office one day to go over some System Busters thatnamed her as the reason for a certain problem. She told me that shewas growing tired of these System Busters. She thought we weregoing too far, and she had never worked in a business that had asystem like this. I said, “Martha, how far do you think we should goin trying to fix problems at our company? Do you think we shouldget 80 percent of the problems fixed and not worry about the rest?”

She said, “No!” I said, “Well, how about us fixing 90 percent of the errors or

problems—would that be good enough, even though the 10 percentwe do not fix may affect the person in the next department and maketheir job more difficult?”

She said, “No!” Then, to my surprise, she said, “How about 98percent!” But, no sooner had she said it, she paused, lowered herhead and said, “You can’t! You can’t stop at 98 percent! You have totry and fix everything!” She signed the System Busters without anymore complaining.


REWORK DUE TO ERROR SYSTEM

We also have a system that is almost identical to the SystemBuster system, except it is used to track how many reprints we haveon jobs due to errors. We call it the REPRINT DUE TO ERROR SYSTEM.Other manufacturers would call this Rework Due to Error. We havehad this system in place for years to measure our success in improv-ing our production system. We have reduced our reprints due toerrors to less that one half of one percent, and some months we havehad zero reprints due to error.

Perception Versus RealityI was going over the Performance Evaluations of the Pressroom

Department with our Production Administrator, and I decided toplay a little game. I asked her—of all the pressmen, which one didshe think had the most reprints due to errors. She told me shethought Harry had the most, and Tommy had the least. I agreed withher assessment, but it was just a gut feeling we both had. I asked herto pull an actual report from the REPRINTS DUE TO ERRORS SYSTEM inSystem100. This report showed just the opposite of what we hadboth perceived. Actually, Tommy had the most reprints and Harryhad the least. The reality was, the Production Administrator and Iwere both wrong. This is another reason why systems are theanswer, and why you should not just trust your perceptions. Had wegone on our feelings, we might have dismissed the wrong person.The number of reruns, and the total dollars that it cost the company,are now documented in our employee’s Performance Evaluations.

A SYSTEM TO CHANGE THE SYSTEM

YES, YOU ALSO NEED A SYSTEM TO CHANGE THE SYSTEM! It iscalled a FORMS/DOCUMENT CHANGE/UPDATE SYSTEM.

I will never forget the time I wanted to quit and give up on thissystem stuff. It was the day when one of my Customer Service Repscame into my office and told me a job was not printed right and thecustomer was not happy. So I asked what had happened to cause the


error. When I was told, I was devastated. I said, “We had that errorhappen just last week, and I know we fixed the system by updatingthe PRESSMAN QUALITY CONTROL CHECKLIST that addressed thaterror!” So I went out to the pressroom and grabbed a checklist. Theupdate I had personally made was not on it. I asked the pressman,“Where is the new checklist I gave you last week?”

He said, “I put the NEW checklist in the rack along with the OLDchecklist because I didn’t want to waste paper.”

I said, “Don’t you understand, when we change a checklist theold ones need to be thrown away? I don’t care about saving a fewpennies worth of paper.” Using an old checklist can cost hundreds orthousands of dollars. Well, it was not his fault, it was mine!

Edward Deming says if you don’t give your employees the righttools and the time to do their job then don’t blame them for theresults. A system is a tool. I went back to my office to have a pityparty, and thought of giving up on these systems, but it only lasted afew minutes, and then the light bulb came on—we need a SYSTEM

TO CHANGE THE SYSTEM.I went to work building the checklist system for changing and

updating our forms. One of the items on the checklist was:

All copies of old versions of this form have been thrown away in every location.

Well, it’s working today, and we haven’t had that problem showup again. The fact of the matter is, ISO had a similar system calledCORRECTIVE/PREVENTATIVE ACTION REQUEST—I just didn’t know itexisted. But it shows you that these systems are really universal, andevery type of organization runs into a lot of the same issues.

Remember, if you assign others the task of building a system,YOU should give the final approval––and YOU need to knowexactly how the new system is designed to work.


EMPLOYEE PERFORMANCE EVALUATIONS

At least once a year, management should provide a writtenPERFORMANCE EVALUATION to an employee––sort of like a schoolreport card. This is a great way to benchmark their progress. Just asthe company should be improving, so should every employeeimprove. It’s also a good tool that allows owners or upper manage-ment to see how supervisors evaluate the people they supervise.

Department Politics in ActionStory time . . . I had one of my managers (I’ll call him Arnold)

give an evaluation to the employees in his department. Later, I wentover each evaluation and gave them to our Human ResourcesDepartment for filing. About six month later, Arnold left on hisvacation. While he was gone, I was filling in for him and getting afirst-hand view of his department, and the different people in thedepartment. We also had just installed our new computerized TimeManagement System that reports on how long it takes to do a spe-cific task. I noticed that a particular person (Let’s call her Sally)seemed very slow in doing her main task. Well, anyway, that was theimpression I was getting but, again, I’ve learned that you shouldn’tgo by impressions or feelings.

So I did the right thing and pulled a detailed report of every jobSally had worked on for the past month. The report showed me shewas taking almost twice as long as she should to do the job. I thenstarted to interview various people in the department and they allconfirmed that Sally was not only slacking, but told me other nega-tive things she was doing. I asked each of them if they had reportedit to Arnold, the department supervisor. They all said they had. Somealso told me in private that they were a little nervous about goingover Arnold’s head. I pulled Sally’s latest Performance Evaluation tosee how Arnold had evaluated her, and was surprised to see thatSally had been given very high marks in just about every area of herperformance.

When Arnold returned from vacation, I gave him a written reportof everything I had witnessed in his absence, and what the employ-


ees under his supervision had shared. Arnold did not have a goodexplanation, other than to say the employees were wrong in theirassessment of Sally. The system said otherwise, and confirmed whather co-workers had reported.

After this incident, I implemented THE BUCK STOPS HERE

SYSTEM (See page 47), as well as other follow-up systems, to helpensure this didn’t happen again. As you can see, an evaluation isvaluable in more ways than one.

Nearly all men can stand adversity, but if you wantto test a man’s character, give him power.

Abraham Lincoln

TASKS/PROJECTS MANAGEMENT SYSTEM

To help with the transformation of your organization or business,you need a system for administering projects or tasks for youremployees. This is also where you can learn to delegate and train. ATASK MANAGEMENT SYSTEM is where you can oversee and watch anorganization transforming before your very eyes, as various projectsare completed. This is where you can test the leadership skills andcreativity of your employees. You are not spoon-feeding them com-pleted instructions that they simply follow––but rather you areassigning them either a one-time project, like overseeing the instal-lation of a new copier, or giving them a task to actually build asystem (e.g. write a policy or a procedure). Leaders will surfacehere. Like other systems, a TASK MANAGEMENT SYSTEM must havefollow-up.

A leader/supervisor needs training just like any other employee.You could start your TASK MANAGEMENT SYSTEM with a simple

list of projects in a spreadsheet or a task management application.There are many programs out there for you to use. Our ownSystem100 software has an excellent task system. This is the waymany of our improvements are tracked.


When an employee submits an idea for improvement, using ourSystem100 software, it immediately sends an email notification tothe administrator of the TASKS/PROJECTS MANAGEMENT SYSTEM. Itis also stored in System100 software’s projects database. The admin-istrator places the suggestion for improvement into one of severaldifferent categories. If the suggestion is approved for implementa-tion, it is then prioritized and assigned to a certain employee. Wehave a group of employees who volunteer to be a part of what wecall our “Task Team.” Special tasks are assigned to these employeesaccording to their special skills, outside their normal job descrip-tions. When they finish their assigned task, they check it off as com-pleted in the System100 TASK SYSTEM. System100 automaticallysends another email to the administator who assigned the task,saying the task has been completed; whereby, the administator canfollow-up.

Using time tracking software, our employees clock in on aprocess called Special Tasks/Projects. The Tasks/ProjectsAdministrator is able to track how much time we spend on these spe-cial projects for a given period. We can create a benchmark, a ratioof chargeable work versus unchargeable work. In this way, we cankeep it in balance and, if needed, we can even create a budget fortime spent on special projects.

You see, most companies have slow periods, but they don’t usethe slowdowns very effectively. They don’t have a written list ofimprovements that need to be accomplished, or again these improve-ments are kept in the owner’s or supervisor’s head. When our com-pany or a department has a slowdown, we immediately assign some-one a task to accomplish something that will benefit us. They getpaid and, at the same time, the company is improving. We are notjust doing busy work

TIME-KEEPING/FLOOR DATA COLLECTING SOFTWARE

I believe if you have four or more employees you should alsostrongly consider time-keeping/floor data collecting software,instead of using time clocks with time cards. Some floor data col-


lecting software is a module or part of a more complex program.Time-keeping software can also be found on the Internet and willpay for itself—in some cases, in the first few months.

The first week I used my time-keeping software, I asked myPressroom Supervisor if he had noticed anything different since westarted the new system. He said he noticed people not going in andout of the smoking area as much as they had been. When we usedconventional time cards, employees were sometimes not clocking inand out for all smoke breaks, and were taking more than the twobreaks we gave them. But when the time-keeping software was putin place, the Plant Supervisor could see from his desk’s computerwho was clocked in, and on what job they were working. When theemployees knew that we knew who was on break or at lunch, thatbehavior stopped immediately. If you have a lot of employees andthey are taking longer or extra breaks, a lot of money and productiontime can be lost.

Time-keeping software is also used for tracking estimated timeand actual time it takes to do a task/job. We use this for benchmark-ing and improving our production times.

CHART OF ACCOUNTS

Clearer Vision for Better DecisionsThe Chart of Accounts is a list of expenses (accounts) where

your money is spent (e.g. office supplies, leases, repairs, payroll,rent, utilities, etc.). A Chart of Accounts is found in all accountingprograms, such as QuickBooks. The great thing about having youraccounting program set up with a Chart of Accounts that is cus-tomized to YOUR business, is that you can get a daily, weekly,monthly and yearly breakdown to see where every dollar goes. Thisis a must for every owner of a business. Many business owners allowtheir accountant to totally set up the Chart of Accounts—and handleall the accounting, for that matter. The problem with that is, theaccountant tends to use the Chart of Accounts that he likes, and notnecessarily what you need to run your business effectively.


Eyes for Your BusinessA former business owner who was counseling me, said, “Philip,

you need to have eyes for your business!” He had learned a hardlesson from losing a couple of his own businesses, because he hadnever taken the time to understand the financial part of doing busi-ness. He didn’t have his eyes on the numbers to make the right deci-sions. He told me I needed to set up my own Chart of Accounts. Atthat time (I’m almost embarrassed to tell you)—I didn’t even knowwhat a Chart of Accounts was.

He called my industry association and they provided me with aChart of Accounts that was customized for a printing company. Hetaught me how to understand and customize my accounting pro-gram’s Chart of Accounts to match the one from the printing indus-try. Most industries have a standard Chart of Accounts already estab-lished for their particular industry—if not, it’s very easy to cus-tomize it for your own business.

From your Chart of Accounts, you can then get the ratio of cer-tain expenses, compared to your total sales for any period. You maybe asking, “Why do I need this ratio and how can I use it?” You cancompare/benchmark it with other companies in your industry to seeif you may be spending too much money in certain areas. Or, youcan compare/benchmark for budgets, etc.

Chart of Accounts Saved Us ThousandsAfter the first month of using my Chart of Accounts to see my

expenses, I looked at how much I was spending on paper, which isa very large expenditure for a printing company. I compared it witha Ratio Report, published by the Printing Industry of the South(PIAS), listing all the printers in my area. It was broken down byprofit leaders, and all the rest of the printers, showing the ratio ofexpenditures on materials and labor, compared to total sales for thepast year. I looked in that year’s Ratio Report and, to my amaze-ment, found I was paying 10 percent more on paper than the profitleaders in my industry were paying. Well, I immediately called mypaper representatives to meet with me. I told them what I had dis-covered using the Printer’s Ratio Report and I was given an imme-


diate ten percent reduction in my cost of paper. That one RatioReport saved me thousands of dollars. Would your accountant knowthat you were spending too much on a certain item, compared toother companies in your industry? I would hope so!

As I learned from a very wise friend, “You should use yourChart of Accounts to have eyes for your business,” to make the rightdecisions.

INVENTORY SYSTEM

Every well-organized business needs to have an inventory of allof its assets broken down into different categories like computerhardware, software, office furniture and decor, machines and tools,office supplies, etc. Businesses lose a great deal of money throughtheft and misplacement of assets and other materials.

The housekeeping of some companies and organizations is sopoor that assets, parts and other materials are constantly being lostdue to clutter and junk laying everywhere. In this type of environ-ment you may buy two of everything—one to use and one to lose.It should be on someone’s DAILY ROUTINE CHECKLIST to update andmake sure all assets and other materials being purchased for theorganization are being added to an Inventory System. Some inven-tory software can be found on the Internet at very affordable prices.

BENCHMARKING—FOR MEASURING RESULTS

It is a great thing to have systems in place; however, when cer-tain systems are introduced, you have to know there will be opposi-tion. The best way to offset skepticism is to measure your results tosee if a system is working. Once you post the results so your peoplecan actually see them, they will be more receptive. Many employ-ees like to see how productive they are and how the company is pro-gressing.

Remember how anxious you were to get your report card inschool at the end of the six-week period? In the same way, ouremployees look forward to seeing our charts and reports at the endof the month. They actually challenge one another to do better. We


have found which systems work by measuring to see if we areimproving or not. We have taken down systems where results wereminimal, and running the system was not worth the cost.

Payroll, for some, can be the number one expense. Overstaffingsends many companies into bankruptcy. Benchmarking can help youknow how much personnel you need.

When your benchmarks at the end of a month look like you’reheading in the wrong direction, you can address the situation imme-diately. A lot of companies wait until they are in trouble, then call inan expensive consultant to find out what’s wrong. Usually, by thattime, it’s too late. We have found with our daily approach to systemslike the System Busters, that we are going to get good benchmarkreports, because the whole system is continually being improved ona daily basis.

SALES AND MARKETING SYSTEMS

I was surprised to find out that a lot of companies and organiza-tions have no systems or controls for their Sales Department. Theyhire salespeople, show them an office, and tell them to, “Get outthere and sell something.” The only system they use is to look attheir total sales for a given period of time—but that alone does notgive the owner or managers “eyes” to see what a salesperson is actu-ally doing. Consequently, they miss the opportunity to help thissalesperson become really successful. A company can lose a lot ofmoney with this fly-by-the-seat-of-your-pants system.

I know of salespeople that stay with a company for a year ortwo, then move to the next company—stay there a year or two, andso on. These salespeople are aware that most companies have nosystem for tracking their activities, so they receive a draw or salaryand, essentially, have to answer to no one. It’s almost a con game. Ireally don’t think they consider themselves dishonest people, but Ibelieve they know in their heart they put in little effort to get sales;therefore, they are not benefiting the company. On the other hand, ifthis same salesperson worked for a company that had a sales system,they might flourish.


I have interviewed many salespeople, and one of the questions Iask an applicant is, “Do you have a system for selling?” The answeris generally very vague, or they list some of the things they do tomake a sale—none of which, in my estimation, would make themvery consistent in selling.

The Old Shoot-From-The-Hip Approach to Sales I remember a young lady coming in for an interview who had

just left a company that had recently declared bankruptcy. When Iasked her about her system of selling, she said she really didn’t havea system. I sensed she wasn’t all that passionate about sales as a pro-fession, as much as she was just looking for a job. Apparently, shehad been selling for awhile, going from one company to another;never achieving any real success. When she asked me about the pay,I said, “Before we talk about pay, I want to know about your sales.”After discussing her former sales figures, and what she wanted to bepaid, it didn’t even approach the ratio needed to compensate her. Sheinformed me, however, that she had a few companies competing forher as a salesperson. I explained our systems to her, and told her wehad a system that would track her calls, appointments and otheractivities—she would also need to turn in a report each day. She wasclear that she had never had to conform to a system of selling. Shenever called back, and I probably saved a lot of money.

Companies may have been losing money on this person foryears. Yes, you can and will lose money on some salespeople evenwith a system. The good news about a system is, you don’t have tolose money on someone for a year or two before you realize thisperson is not going to work out. When you put someone on a systemof selling, you can tell right away if they are working, or using youfor their personal gain. Yes, at times I’ve been a chump, but oursystem of selling has saved me money and has helped many salespeople to rethink their own sales system.

Serious About Selling I think it is obvious that a company should be tracking the

amount of sales a person is making; however, in a good sales


system, you should also track the amount of suspect, prospect, andcustomer calls made each day—as well as the number of appoint-ments made with prospects. All this data should be placed into agraph to benchmark the results. You will not believe how even asimple system like this will give you better eyes for your SalesDepartment, even if you have only one salesperson.

If a salesperson says they will work for commission only, thenyou know this person is serious about selling. They know that sell-ing on straight commission, if it’s a fair percentage, is the path togreat money, and they don’t need you to hold their hand. If theysell—they make money and you make money. If they don’t—youpay nothing. In that situation, you may not require them to followyour sales system—however, they must follow other systems inyour company (e.g. a Daily Routine Checklist, Estimate Checklist,etc.). In one way, this type of salesperson is like contract labor—notmuch fuss!

I believe, however, all salespeople should have a strict system ofselling, and should be constantly looking for ways to improve theirsystem.

A good system, just like in production or service, is the key togrowing a great Sales Department—as you will have charts andbenchmarks to prove progress. Your sales team can actually havefun using these benchmarks, as they challenge one another andbrainstorm about how to bring in new sales.

Be diligent to know the state of your flocksand attend to your herds.

Old Proverb


CHAPTER 16

A SYSTEM OF CLEANING

THE 100 PERCENT SYSTEM OF CLEANLINESS

The ONE HUNDRED PERCENT SYSTEM is what we call our systemof cleanliness. Don’t miss this! If you don’t get anything else out ofthis book, get this! This was the most surprising system I discoveredon my journey to building a great company. It is used to clean andorganize all of our hard systems—things like machinery, cabinets,desks, the entire building and grounds, etc. With this system, wehave received more attention and positive feedback than any othersystem we have implemented. The reason is that people get a lastingimpression of your business when they see it for the first time.

Truth . . . You don’t get a second chance to make a first impression!People have a preconceived picture in their mind of what a print-

ing company looks like. So, when they see our offices, bindery,pressroom and warehouse are immaculately clean, it totally takesthem by surprise. They expect to see dirty floors with ink stains andpaper laying everywhere. We keep our company clean for the samereason people dress up to make a good first impression. Your housecleaning is out in the open and cannot be hidden. It’s an open state-ment of who you are. Simply put, the 100 PERCENT SYSTEM OF

CLEANLINESS is: Everything in its place and a place for every thing.

The 100 Percent System in ActionSeveral years ago, our Production Manager was very frustrated

with Mark, one of my best employees, about his messy work area.I’ve asked his permission to use his real name. Mark has alwaysbeen hardworking and very dedicated, but when it came to keepinghis work area clean, he was about a two on a scale of one to ten. OurProduction Manager had come to the point of firing Mark, and thatmade me very uncomfortable. I liked Mark, so I asked theProduction Manager to give me time to work with him and todevelop a system of cleaning just for him. As Edward Demingbelieved, I also believe: If you don’t have a system/tool for perform-ing a task, then you shouldn’t expect people to perform at top levels.Although we kept a fairly clean facility before we discovered thissystem, it was nowhere near “world class”—and that’s the mission.

I asked Mark to come into work the following Saturday andSunday. I told him that he and I would do a detailed cleaning, anddevelop a cleaning system for his small press department. Beforethat Saturday arrived, I ordered special hard steel cabinets, plasticbins, and a variety of organizational supplies. We already had a greatlabel printer. We started out that Saturday morning cleaning andorganizing. We wanted a designated and labeled location for everysingle item in his department. But, it wasn’t going to be just anyplace—it would be a well-thought-out and planned location, and ithad to be convenient. Everything needed to be in an easy-to-clean,permanent and sturdy container (no cardboard). And the containerhad to look good. We cleaned and scrubbed all day Saturday andSaturday night, then again after church on Sunday and Sunday night.We had his department looking great.

With each item we wanted to organize, I would ask Mark ques-tions like, “Do you use this item on a daily basis, once in awhile—or does this item even belong in your department?” Let me tell you,it took about 120 total man-hours to completely develop this system.I had never cleaned and organized anything in my life to that degreeof detail. We were extremely proud of it, so I decided to play a littlegame.


I asked one of the women in Customer Service to give Mark andme an inspection. I asked her to see if she could find anything, andI mean anything, no matter how small or seemingly unimportant,that was out of place. I gave her the rules. I told her every item hada designated location that should be clearly labeled, and that itshould be in a permanent container that looked good. Well, she didher inspection and, being a detailed person, she found a plastic binthat wasn’t labeled and one paper clip lying behind a light table. Yes,one paper clip. That’s the kind of inspection I was looking for. So Ilabeled the bin, then found the place where the other paper clipswere located and put the one paper clip in its place. I heard com-ments from some employees, including the Production Manager,like, “Yeah, but will it stay clean?” I wasn’t really sure.

I told Mark at the end of his workday, all he needed to do wasput all the items he used back in their designated location, just as ifhe was filing papers. I asked him to come and get me after he puteverything up for the day, and I would do an inspection. At the endof the day, I went to inspect his department and it looked great! I didnotice a T-square lying across the light table and some paper stripslying on top of the plate camera. I also noticed a few items that werenot in the designated location where we had agreed they should beplaced.

I said, “Mark, the T-square has a hook for you to hang it on—and it’s labeled T-Square.”

He said, “Oh, yeah.” And he hung it up. Then I looked around and said, “What are all those paper strips

lying around?” He said he used them for masking out certain imageson the camera.

I also asked, “Why are these other items not in the designatedlocation we agreed to put them?”

He said, “Well, when I started working, I realized they weren’tin a very handy place.”

So right then, together, we found a more convenient location forthe items he had moved. I got a plastic tray and labeled it MASKING

SHEETS for those loose strips of paper. The next day, we repeated the


inspection process and very few adjustments were made to our newcleaning system. The following day I came out for my inspectionand his department was at what I call 100 percent. Every item, downto a paper clip, was in its designated location. From then on, itstayed between 98 and 100 percent. I can’t tell you how proud andamazed I was at this discovery and how simple it was.

One day after Mark had gone home, I asked the ProductionManager—who had wanted to let Mark go—and our PressroomSupervisor, to come and see the Small Press Department. I askedthem this question: If they had walked into this department anddidn’t know the person who was working here—on a scale of one toten, as far as cleanliness and organization is concerned, what wouldthey rate that person? They both agreed, “A nine or a ten.” But, Isaid, “Since you know Mark, what is his rating, really? They bothagreed, “A two or a three.” You see, with a good system—a twobecame a nine.

Since then, we have put that 100 PERCENT SYSTEM OF CLEANLINESS

to work at every desk, every department, and in every area of ourcompany. Again, we are following our Mission Statement of adher-ing to a system of cleanliness.

With the 100 PERCENT SYSTEM OF CLEANLINESS in place, if an itemis out of it designated location, it sticks out like a sore thumb. It isvery easy to do an inspection. In fact, as soon as you walk into aroom you can see an item out of place. This makes managing easy—for example, if you had a room that was perfectly in order, andsomeone had left an old beverage can sitting out in the middle of it,you would notice it right away—but if you had the same beveragecan sitting in a room full of junk you might not notice it at all.

Let’s Recap the 100 Percent System RulesThis is where everything has a designated and labeled location

and everything is in its place. Not 80 percent, but 100 percent of allitems we use will have a designated location. And at the end of theshift or day, all items go back to their location.

It sounds simple, and it really is. However, most companies—especially manufacturing companies—are usually not very clean


and organized, due to the simple fact that they really don’t have asystem of cleaning. They may straighten things up and some mayeven have a maintenance crew “clean” the offices, but I’m talkingabout a system that covers every area of the organization—everydepartment, every desk, every cabinet, every machine, every table—not one thing is unaccounted for in the 100 PERCENT SYSTEM OF

CLEANLINESS.

Why the 100 Percent System WorksLet’s say we started the day with our workstation or desk some-

what in order. As the day goes along, we use more and more of ourwork materials and our workstation or desk becomes more cluttered.I’m sure you’ve seen people’s workstation or desk looking likesomeone took a trash can and emptied it on top. You’ve seen wholedepartments looking as if a bomb had gone off in them. This ischaos!

So when we can’t stand the mess anymore, we begin tostraighten things up a bit—place a stack of stuff here and a stack ofpapers there. This may look better—it may look clean and orga-nized—but this is not a system of organization. This is just straight-ening up, because the next day when you straighten up, some itemsmay be in a totally different place.

You may say, “Why does this matter?” Well, it matters becauseyou can’t be sure where every item is, especially when you’re usingmany items. If a person has to work in your area behind you, it maytake hours for them to find needed items. Everyone should be ableto find every item in your work area, effortlessly—and especiallyyou! Everyone should know exactly where the scissors are—notprobably, but exactly where everything should be—because it islabeled and has a designated location. Sometimes you may evenhave one plastic bin for just one item, such as a flashlight. You maysay this is overkill, but it works!

The closer we get an area to 100 percent, the more time andmoney we save, because it doesn’t take minutes, and in some caseshours, to find things. How many times have you gone looking forsomething in your business, something as simple as a flashlight, and


it took you an hour or more to find it? Or, you lost several minuteslooking for a file or a certain piece of paper, but it was lost some-where in the clutter. Chaos!

Money in a Fish BowlLet’s talk money. You’ve heard “time is money!” Imagine you

had a big glass fish bowl, and every time you or someone in yourorganization looked for something and couldn’t find it, you noted ona small piece of paper the time it took to locate the item, and howmuch money that time had cost. Placing these pieces of paper in thefish bowl—after a year, how full do you think that bowl would be?We have saved bowls and bowls of minutes and hours of time overthe past twelve years using the 100 PERCENT SYSTEM OF CLEANLINESS

—not to mention the bowls of hours saved with the other cost-saving systems described in this book.

Other Benefits of the 100 Percent SystemWhat are some of the other benefits besides saving thousand of

minutes in your business?When our outside cleaning service comes to vacuum, sweep,

dust, mop, etc., at the end of the day, they don’t have to straighten


up and move everything out of the way before they can clean. Moretime and money saved—and they can do what they do best, cleanyour business.

Our outside cleaning service is a very important part of oursystem. They like to participate in the improvement of our company,because they see how seriously we take the cleaning system. That istheir business, and they want to be a part of a business that under-stands their business. We have become a model place for them. Theyactually enjoy cleaning our company because when they are finishedit looks great—like a show place!

So What’s the Big Deal?We know the 100 percent system means: Every item has a des-

ignated and labeled location, and every item is in its place. If 80 per-cent of your items had a place and 20 percent of the items didn’thave a place, we could call this an 80 percent system. You say,“Well, there are only a few items that don’t have a designated loca-tion—so what’s the big deal?”

Ah, but if you only had an 80 percent system—after awhile,some of the 80 percent starts getting lost in the 20 percent and vice-versa! The system begins to break down into chaos. That’s why 100percent works every time, day after day, month after month—butany system less than a 100 percent will start to break down.

Can you imagine an engineer saying, “As long as 80 percent ofthe circuits are in place your television or computer should work justfine?” No, it works just fine because 100 percent of the circuits arein place.

Another great thing about this cleaning system is, you only haveto build it once—as long as you get it to 100 percent—and then allyou have to do is fine-tune it every now and then.

Do you see how this cleaning system works like the other sys-tems mentioned in this book? They must be complete 100 percent—No Gaps!

Our Mission Statement says, you will be able to witness cleanli-ness in every area of our company, and you can.


The 100 PERCENT SYSTEM OF CLEANLINESS is a key component ofour sales and marketing effort. We have won over a lot of potentialclients just with a single tour of our facility. Think about this, youmay not need to hire that extra salesperson. You may just need toimplement the 100 Percent System. How much do you pay a newsalesperson for one year?

Imagine coming into work each day, the floors are immaculate,and everything is in its place, no clutter, and no confusion, whichmeans less stress. Is that not a benefit for you and your employees?

Do We Just Clean All Day?A new pressman we really wanted to hire came in to be inter-

viewed and was shown around our plant. He remarked about it beingthe cleanest pressroom he had ever seen. He took the job the nextday. However, later he related to me that he had gone home to talkit over with his wife and told her how clean everything was. He saidhe told her he was a little worried because he thought, to be thatclean we must not have much work, so he guessed we just clean allday. Nothing could have been further from the truth!

Our press operators spend little time cleaning the pressroom.With the 100 PERCENT SYSTEM OF CLEANLINESS, there is little to doexcept put the items you worked with that day back in their desig-nated location. And most items are already in their place because thelocation is so convenient, you naturally put them there as you’reworking. The outside cleaning service sweeps and mops our press-room floor every night, and they dust and wipe down the stainlesssteel workbenches. In most plants, there is so much clutter, man-agers don’t want outside cleaning services touching anything forfear of losing or ruining something.

This new pressman went on to tell me how he showed his daugh-ters our pressroom and the presses he operated, and that this was theonly company he had worked for where he felt proud to show hisfamily. He said, “Quite frankly, I was ashamed to show them theother companies I worked for.” To me this one testimony is worth itall!


OSHA v. The 100 Percent System of Cleanliness I finally rushed from my office late morning, one October 31st.

I was half way home, and looking forward to helping my wife pre-pare for my son Paul's birthday party, when I received the call on mymobile phone. It was my office calling, informing me that anOSHA* inspector had arrived at our company, and I had 30 minutesto also be there or they would start the inspection without me."You're joking!" I responded to Jennifer, my ProductionAdministrator. She assured me it was no joke! Jennifer was right inthe middle of improving some of our Health and Safety systems—we had even discussed getting ready for a possible surprisee OSHAinspection. "Wouldn't you just know OSHA would show up onHalloween!?" I grumbled, as I called my wife Susan to tell her Iwould be late. Reluctantly, I hurried back to the office.

On the way, I remembered a recent conversation with a friendwho also owns a printing company. He had just had a surpriseinspection by OSHA himself, and had called to warn me it mighthappen to us anytime. He likened the experience to the Nazi Gestapoentering his building—flashing badges, interrogating his staff, andstriking fear in his own heart that they might fine him heavily oreven shut his business down. I had taken my friends prompting toheart and decided to review our systems that related to OSHA.

The drive back to my office allowed me to do a mental inventoryof the things I was sure would pass inspection, but I dreaded whatmight turn out to be some lengthy inquest about things even our sys-tems had missed. Fortunately, my wife and I had just seen a greatfilm called "Facing The Giants," and I was encouraged that my com-pany had been prepared well enough that maybe even the "Gestapo"could not fault us now.

I began to relax and regain my confidence. I was thankful wehad already made many improvements in Safety and Health issues.Due to our 100 PERCENT SYSTEM OF CLEANLINESS, we had every-thing organized, labeled, and in its place. Our employees had sub-mitted countless suggestions for improvements over the years, dueto our TQM CONTINUAL IMPROVEMENT SYSTEM. We had an orga-nized "Right to Know" Station set up with all of our MSDS


(Materials Safety Data Sheets) documents and posters, along withour TAGOUT LOCKOUT SYSTEM. Safety equipment (disposable earplugs, back braces, etc.) was all in designated locations. Chemicalswere stored in clean, labeled, heavy steel storage bins. This hadbeen part of our system for years—and we continually improve thatsystem, I reminded myself.

Jennifer had just scheduled a training session with a local fireextinguisher company to give our staff training on how to use fireextinguishers. It occurred to me I had never actually had to pull thepin and fire one. Good chance to learn! We had also scheduled train-ing for the forklift—all of this, prior to OSHA's visit.

Arriving at the office, finally, I found Jennifer already in conver-sation with the inspector in our conference room. The atmospherewas pleasant enough, and they were getting along nicely. I wasproud of how she handled herself; confident also that we werealready on top of things with our systems. Of course, we didn't knowexactly what would happen, but our systems allow us to be alwayspro-active.

The OSHA inspector interviewed me first. He had his own check-list of questions, that we were able to answer without concern. Onequestion—"Do your employees have access to necessary docu-ments?”—prompted a resounding (and relieved) "YES!" from me."We have a browser-based software system called System100 thatgives our employees access to all documents and informationneeded to do a good job," I assured him, "along with information fortheir health and safety that OSHA requires." It's System100 thatempowers our employees—enabling us to continually improve thecompany in all areas.

After touring and inspecting our plant, he described our house-keeping as "impeccable," and said that it would go a long way in hisreport. I was able to appreciate the OSHA inspector's visit after all.Before he left, he thanked me and said, "Do you know how manycompanies I visit, and I don't even know where to start, becausethere is so much clutter and chaos? It's nice to visit a company thatreally seems to GET IT!" *OSHA (Occupational Safety & Health Administration)


CHAPTER 17

PRODUCTION SCHEDULING SYSTEM

I’ve had many conversations with business owners, productionand plant managers all over the country about Project, Productionand Service Scheduling Systems. I have been asked many times,"How can you deliver your product on time, every time, at yourcompany?" They expressed their doubts that it could be accom-plished at their own company, due to the difference between theirturnaround times and ours, and the different types of product or ser-vice we each provide.

To start, I would like to remind you again, as with any processor event that needs to happen in a consistent manner, and on a givendate, you must have a complete system—no gaps.

To build a great Production or Service Scheduling System, youneed several systems working in concert for a complete solution—starting with a detailed list of steps in the entire process—from startto finish.

Hereafter, the term PRODUCTION will be used to describe the stepsin any process—whether in service or manufacturing. The samebasics apply, whether you are a printing company/manufacturer, afood provider, a medical facility, or a service company.

Today there are many types of Production, Project and ServiceScheduling software on the market. Some companies use Excelspreadsheets, industry-specific software, or a manual scheduling

board, showing all the jobs/projects in progress for a given day.This can also be known as WIP (Work in Progress). These are greattools, but only part of the solution in building a great schedulingsystem.

As a job/project progresses through the production or fulfillmentcycle toward the due date, the job/project moves from one processor work center to the next. A work center is the location where thework/process is performed (e.g. planning, designing, computers,printing/copying, proofing, collating/assembly, labeling, recording,shipping, execution of event, etc.) A process center may involveseveral processes—like a group of similar machines. Work centersmay be used to define costs, and therefore can be known as cost cen-ters. Work centers can also be grouped into higher-level departments(e.g. Engineering, Production, Client and Customer Service,Accounting, Shipping, etc.)

Example: Printing Industry(In printing, a job goes from data entry, to proofing, to plating, to thepress, etc.) Process/Work Center (Prepress-Plating) on MondayProcess/Work Center (Pressroom) on TuesdayProcess/Work Center (Paper Cutting Machine) on WednesdayProcess/Work Center (Folding, Stitching, etc.) on ThursdayProcess/Work Center (Shipping or Delivery) on Friday

Schedule BustersA large enough company may have one or even more employees

whose sole job is manning the SCHEDULING SYSTEM. The Scheduler normally receives his orders or updates from the

Project/Production Manager who is generally running around thebuilding putting out fires, trying to keep the wheels of productionmoving, by directing and pushing jobs or projects from one workcenter to the next.

Management and Sales people are screaming at the Project/Production Manager when their jobs are late or they need to putthrough a "rush job" for their top client or customer. With somemanagement/sales people, every job is a rush job. They assume most


of the jobs in progress are already late, and figure they need to pador even fib about the due date to ensure it is going to be on time. Thiscreates more pressure, chaos and lost production time.

The boss also gets in on the act, barking orders to the Schedulerand Project/Production Manager, as he may have his own clients—and everyone knows his jobs go through production, no matter what.The boss may also have a salesperson that he is afraid of losing,breathing down his neck, reminding the boss that he is the "top salesperson" and his jobs are "priority one."

The most common schedule busters are data entry errors. Thesedata entry errors cause production to constantly slow down, whileone department or employee has to call and interrupt other depart-ments or employees to find the missing information or data. This isanother prime reason for REWORK DUE TO ERRORS. These errors aremade for the simple reason that there is not a control checklist inplace for entering data to create a JOB or PROJECT TICKET (foldercontaining all instructions for production, etc.). The errors comefrom customers, sales people, Customer Service representatives,etc., not having correct information, leaving out certain informationor inputting the information incorrectly. We implemented theDRIVER CHECKLIST along with an ESTIMATE/ORDER CHECKLIST,which are detailed control checklists that have eliminated 99.9% ofall data entry errors at our company.

To add more pressure and chaos to the Schedule, an upset clientor customer may call to report an error or desired change on his job,and to demand that it be done or redone RIGHT NOW. Now it'spanic time. The whole process is moved around in order to accom-modate or re-work this customer's job at breakneck speed. You knowthe old saying, "There always seems to be enough time to redo a job,but never enough time to do it right the first time."

Worse case scenario—the unexpected seems to happen justwhen the production pressure is at its peak. One of the mainmachines or Work Centers goes down. Now the whole productionprocess goes into a tail spin. A lot of breakdowns in equipment aredue to the fact that there's not a well-planned PREVENTATIVE

MAINTENANCE SYSTEM and a REPAIR REQUEST SYSTEM in place.


Another problem is that needed materials are not available orhave not been ordered when it is time to produce a job or project,causing delays.

In some companies, schedules are delayed or moved for thesimple reason that certain employees object to or refuse to workovertime, even in the most urgent situations. Companies shouldhave a written policy about working overtime—a policy that shouldbe given to the employees when they are first hired, as part of theirorientation. At our company, the new employee signs the OVERTIME

POLICY before being hired. Still other companies allow their employees to consistently

come to work late, or take leave without proper notification to man-agement. We use the ABSENTEEISM SYSTEM and the REQUEST FOR

LEAVE SYSTEM, in our System100 software, which tracks and enablesus to be proactive with our employees. This is to ensure we haveconsistent start times for production, and enough man hours tohandle the scheduled hours for completing the work. All vacationsand requested leaves are posted on our COMPANY CALENDAR.

Another reason some schedules may be shifted around is that acompany does not have TIME KEEPING/FLOOR DATA COLLECTING

software that reports on Actual Time versus Estimated Time on aproject or job (The estimated or actual time it takes for a job or pro-ject to go through the entire process, from start to finish—alsoknown as throughput). The company may never have measured,benchmarked, adjusted, and then repeated these steps, until theyhave a very close Estimated Time for how long each process in theproduction/project cycle takes to complete. Therefore, they reallydon't know the throughput of a job—which makes the schedule a"guesstimate," at best. The Actual Time can only be measured afterthe work is completed, and then it should be used to benchmark forimprovement. If it is a new process that will be implemented for ajob/project, then a time study needs to be conducted to come up withan Estimated T ime.

In many cases, the Project/Production Manager is also theScheduler, and spends a lot of time trying to keep the Schedule accu-rate, while fire-fighting in production. As you can see, trying to


please everyone while handling the Schedule, along with manysystem-busting events—or, as ISO would calls them, non-conform-ing events—is almost an impossible task.

The Schedule Reports are normally not up-to-date; therefore,they are practically unusable. The reason these reports are sketchy isthat, by the time the Project/Production Manager sits down andinputs all the jobs/projects into the Schedule, new work is beingadded to production by Client or Customer Service. Also, there mayhave been a slowdown—bottleneck—in production at some workcenter, and the schedule does not reflect that. So, on and on it goes!This is why many large companies must have one or more personsoverseeing the Schedule at all times.

When we began to implement our SCHEDULING SYSTEM, I hadflashbacks of all the conversations I'd had with many vendors ofsoftware management systems. Many of them, when demonstratingtheir software, honestly confessed that very few companies usedtheir scheduling modules. They explained to me that they wereworking on updates to fix the issues that companies had been com-plaining about. Some vendors claimed it was more likely a com-pany's ill-use of their software. Other software companies claim tobe developing so called “automatic” schedulers.

What I observed immediately, thinking of the SchedulingModule of our particular industry-specific software, was that itwould involve MANY of our current systems coming together tocomplete the circle—a SCHEDULING SYSTEM with NO GAPS.


LET'S REVIEW the problems that cause chaos in a Scheduling System:

Problem: Data Entry errors.The Fix: DATA ENTRY CONTROL CHECKLIST (We call ours TheProduction Driver Checklist) and an ESTIMATE/ORDER ENTRY

CHECKLIST.

Problem: Too many hands in the pot—Sales Persons, Owner etc.demanding their jobs take precedent.The Fix: Know your capacity, by having a system for benchmark-ing production times with TIME-KEEPING/FLOOR DATA COLLECTING

software. Have a CHAIN OF COMMAND POLICY—who makes thedecision about priorities.

Problem: Employees showing up late, at different times or absent.The Fix: STARTING TIME POLICY for various departments and anABSENTEEISM POLICY—ABSENTEEISM REPORTING SYSTEM, REQUEST

FOR LEAVE SYSTEM, COMPANY CALENDAR showing who will be outon certain days and TIME-KEEPING/FLOOR DATA COLLECTING soft-ware.

Problem: Workers objecting to or refusing to work overtime unlessit is convenient for them.The Fix: OVERTIME POLICY that the employee signs.

Problem: Rework due to errors.The Fix: QUALITY CONTROL CHECKLIST at each stage of productionto reduce rework. SYSTEM BUSTER SYSTEM and REWORK DUE TO

ERROR SYSTEM, to track and fix errors so as not to happen again, andto benchmark progress.

Problem: Client/Customer changes while still expecting due datesto be met.The Fix: SCHEDULING POLICY regarding client/customer changes,that is given to client before starting a job/project.


Problem: Necessary materials for production not available whenit’s time to start a process.The Fix: MATERIAL ORDER SYSTEM, PURCHASE ORDER SYSTEM,DAILY ROUTINE CHECKLIST, the 100% SYSTEM OF CLEANLINESS,INVENTORY SYSTEM, SHIPPING AND RECEIVING SYSTEM.

Problem: Equipment breakdowns.The Fix: SCHEDULED MAINTENANCE SYSTEM with Checklist, and aREPAIR REQUEST SYSTEM that allows employees to report any equip-ment problems before they completely break down. These check-lists and requests are followed up by an administrator.

Problem: Rush jobs putting pressure on the production systems.The Fix: All of the systems previously mentioned, and having aDAILY PRINTED SCHEDULE for each phase of production. Rush Jobsare marked by an asterisk, noting the first thing that each personcompletes on their daily schedule. The rest of the schedule MUSTBE COMPLETED, and marked as completed, before end of day orshift, unless the Project/Production Manager overrides. Each pro-duction employee turns in their COMPLETED schedule at end ofday or shift, and given to the Project/Production Manager, alongwith their time sheet.

Eli Goldratt, in his 1980s book THE GOAL wrote, “The basis ofTOC (the Theory of Constraint) is that in every production processthere are bottlenecks or constraints that determine the throughput ofa factory or operation. Eliminating these constraints will greatlyimprove throughput.”

Some constraints are not as obvious as the bottlenecks describedby Goldratt. Many of the problems that cause chaos or slowdownsin production, which I have mentioned in this chapter, and over andover in this book, can also be considered “bottlenecks”—or what Icall system-busting events. These can be easily fixed without addingmore labor, purchasing new equipment, or—as in one of Goldratt’sstories—bringing out some old equipment from storage to open abottleneck in production.


CHAPTER 18INTRODUCTION TO SYSTEM100

I designed SYSTEM100 BROWSER-BASED SOFTWARE to downloadthe Operations Manual we had developed to turn-key my company.

As I said in the Introduction of this book—around the seventhyear of building our Operations Manual, the company was runningso well that I was completely out of debt. I could have semi-retiredat a young age, and gone fishing or golfing, but I felt there wassomething missing. What I was compelled to do, was to take thesesystems and ideas that I had discovered to the next level and makethem public. System100 is that next level. It serves as our company’sintranet, and it gives our employees direct access to the documentsin our Operations Manual. Many of these systems are now auto-mated in System100.

System100 is a great tool to transform a company into a power-ful machine. It will help you download the business systems youhave created into its database. We are constantly finding new waysof using System100 to automate the way we do business, and it iscontinually being reviewed and improved by its many users.

With System100, using our Operations Manual as a guide, youwon’t have to spend ten years building it from the ground up. We’vedone the ground work! System100 will rapidly accelerate thatprocess of transforming your company.

Before I selected a software company to write System100, Iscoured the business world for something like it. I wanted to savemyself the time and money I knew it would take to build it. Trustme, if I could have found it on the market, at that time, I would havebought it without thinking twice.

If System100 software—and an Operations Manual for use as aguide—had been available to me when I first set out on the missionto turn-key my company, I would have thought I had inherited agreat fortune!

For more information onSystem100TM Software

www.System100.com

Ebiz [email protected]


CHAPTER 19

THE MYSTERY OF THE CIRCLE

REVEALED

IN THE BEGINNING OF THIS BOOK, I shared about my vision of thecircles that, to me, represented systems intersecting and interactingwith each other. By now, you understand that the “mystery” of thecircle is revealed when you close all the gaps or holes in a system—just as a circle is complete in itself. Then the system will run almostflawlessly. And when you complete all the other systems in yourorganization so that one system intersects with another system—nogaps—then you have created a TURN-KEY OPERATION.

It sounds simple and it really is. Everything in the world thatseems complex is not really hard to understand or build when youbreak it down into small steps. The most complex part of creatingyour systems will be bringing two or more systems together. Eachsystem in your organization affects every other system. You mustbring your people together as a team, so as to find and fix the holesor gaps. Then the interacting systems won’t affect each other in anegative way.

You must also learn to be patient, but persistent, in the creationof your systems for your TURN-KEY OPERATION, which will be doc-umented in the Operations Manual. As you can see it will not happenovernight—it took me over ten years!

Let’s Recap and Close the “circle” of this Book

Here are the benefits of a turn-key organization:

• Fewer and more productive meetings.

• Fewer and more effective managers.

• More effective employees.

• More peaceful work environment.

• Improved production and employee cooperation.

• Quickly reveals employee work habits.

• More profit with fewer sales.

• More profit with fewer mistakes.

• Time and money saved by keeping everything in its place.

• Employee pride with clean and organized work areas.

• Less customer turnover.

• Less employee turnover.

• Better service and more respect from vendors.

• Attracts quality employees who attract other quality employees.

• The market value of your company is substantially increased.

• Production through-put is shortened with less exertion.

• Satisfied customers give free word-of-mouth promotions.

• Vendors draw positive attention to your organization.

• More time/resources to give back to your community.

• More time to serve customers.

• You only have to build a system once, then tweak as needed.


As you fix the gaps and holes in your circle, you gain more timeand profit, which allows you to fix and tweak even smaller gaps inthe circle, where you gain even more time and profit.

AROUND AND AROUND YOU GO—until you’ve created a powerfulmachine—a great organization.

You now own a business—it’s not just a job you’ve created foryourself!

A SYSTEM OF CONTINUAL IMPROVEMENT will allow your com-pany to achieve a high standard in service and production—not onlyimproving service and production, but actually improving itself. Inother words, this positive feedback loop guarantees that as serviceand production improve, the system of improvement also improves.

The mystery of the circle has been revealed!


CHAPTER 20

A LITTLE LAGNIAPPE (EXTRA)

MY FATHER, HENRY T. BEYER, JR., was from New Orleans,Louisiana, and I remember he liked to use the word lagniappe (pro-nounced lan-yap) when he tried to teach us about doing something alittle special for other people. It’s a French/Creole term that means“a little extra,” like a small present given to someone. So, here’s alittle lagniappe for those with small or start-up businesses.

The Information AgeToday, we are living in what is called the “Information Age.” I

suggest you take advantage of the information, but don’t get boggeddown in it. I highly recommend you read trade publications aboutyour industry or business. These are a source of very valuable infor-mation. People in your industry are going through the same thingsyou are. You can learn from them. There is no reason to re-invent thewheel—but by all means, improve upon it. Look for articles, cutthem out, organize them, and give them to others in your company.I have been saving articles on sales, service, management, produc-tion, TQM, etc., for years. I have used and put into practice a lot ofthe tips and information I’ve gleaned from these publications. I findnow, after twelve years of collecting, that a lot of the articles aboutmy industry and business management are confirming what we havealready implemented or believed to be good business practices.

As you hire new employees, give them access to these tips. Onlythe very best employees will appreciate them. So, don’t get frus-trated when some don’t take them as seriously as you think theyshould. The important thing is that YOU take them seriously,because the information from these articles and tips can be used tohelp you as a leader, and grow your organization.

Embrace TechnologyI strongly suggest that if you are just starting a business or an

organization, it is crucial that you start by using the technology thatis available to you at affordable prices. You should be using book-keeping/accounting software such as QuickBooks. Software can befound on the Internet, and will pay for itself—in some cases, in thefirst few months. In fact, most of the software I’ve purchased, or hadcustom designed, has paid for itself very quickly.

If you are one of those companies that have been in business fora few, or even many years, and are not using a computer for yourbookkeeping and other operations, I recommend you look into thesetime-saving tools.

I know companies that have been in business for thirty years andhave no computers at all for the operation of their business. The costis lost time and information. That, I believe, is self-inflicted blind-ness—it’s like using candles instead of light bulbs!

Staying EncouragedWhen you are a leader there will be times when no one is around

to pat you on the back or to give you a word of encouragement. Aleader does not have the option to hold a “pity party.” Your moodswon’t change things—only actions change things. Take action overyour moods by encouraging yourself with the reading of motiva-tional books and trade journals; and by listening to tapes on suc-cessful leaders and organizations in and outside your industry. I sug-gest reading materials that will help you gain wisdom and knowl-edge to help fix and eliminate problems in your business and yourlife. We’ve all heard the phrase “garbage in, garbage out,” andgarbage is the thing that sometimes brings discouragement.


Well-known motivational speaker, Zig Ziglar, calls it “Stinkin’Thinkin’.”

Here are some helpful keys to relieve a lot of stress:

• Regular exercise relieves stress, and helps to keep you thinkingpositively.

• Get the right amount of sleep and eat right.

• Limit your association with negative people—and associate withthose who will give you wise counsel.

• Don’t run from problems; attack them like you would an enemy.Get out in front of problems by meeting them before they meetyou. That is why this book was written, to help people eliminateproblems through a systematic approach. Be pro-active!

Some people avoid problems by procrastinating. They work onthings they find easier and more enjoyable, instead of the things theyshould be working on. These people tend to visit and interrupt othersin the building. They make personal phone calls and surf theInternet, instead of working on the task at hand or the problems thatneed to be fixed. When you ask them later if they have completed acertain task, they will likely tell you they just didn’t have time. Ibelieve procrastination is the number one reason that people, busi-nesses and organizations fail. Failure brings discouragement, anddiscouragement brings more failure.

Don’t Act Great, Be Great!One of the most disturbing things I see in the business world is

the way companies are constantly looking for new business, whilethe customers they now have are not receiving anywhere near theservice they deserve. They want more and more and, when they getmore, the customers they have get less.

Have you ever called a company to ask for technical help on aproduct they’ve sold you, or to ask them a question about your bill,and they put you on hold forever? When you finally get to talk tosomeone they are often rude, or the person is hard to understand and


not much help. But if you turn right around and call that same com-pany’s sales line, they will answer almost immediately with a morereceptive person. This is all the evidence you need to see where acompany’s priorities are. They put a high premium on sales, and notservice.

How many times have you had telephone companies beggingyou to switch to their service, and once you sign up, you can’t evenget them on the phone? And think of the TV commercials that pro-mote a company’s “greatness,” and then you’re disappointed to findthey are not great—it was all just great promotion.

During the first ten years we were building our company’s sys-tems, I refused to put the emphasis on sales. I believe you should bea good steward of what you have, and grow step-by-step. Try neverto sacrifice quality and service to your customers.

He who is greatest among you shall be your servant.The Word

The Worker is Worth His WagesSpending a little more money to add quality is a very difficult

decision for all organizations and businesses, especially when youare still a small operation. I have lost some very qualified peoplebecause I feared I might not be able to afford them. I remember nothiring someone because he wanted a dollar-an-hour more than I waspaying, or thought I could afford. He went on to another companyand became a star employee. I heard later through the grapevine thathe did the work of two or three people.

Good Employees Pay For ThemselvesWhen I bought my first large printing press, which was going to

cost more than my house, I remember thinking, “How am I going toafford this press and a press operator to run it?” I made the trip toNew Jersey to inspect and purchase the press. While I was there, I


got to spend time with the Plant Manager who was answering myquestions about the press.

He said, “Philip, I would like to give you some advice. Whenyou hire an operator for this press, do not hire someone just becausethey will work for a few dollars less an hour. Look for a great oper-ator and be ready to pay a top wage—they will earn every dime ofit. In fact,” he said, “They will make you money!” But I didn’t listenbecause of fear, and immediately upon returning, looked for some-one who would work for what I thought I could pay.

I hate to admit this, but that little lesson cost me more than Iwould like to state in this book. I finally learned that lesson. I was aslow learner. I can also tell you, with much experience under mybelt, that great employees do earn their money and they will makeyou money. They will help you in your mission to build a great orga-nization. But remember—great employees do not replace a greatsystem. You need both to develop a great company.

It’s not what you pay a man, but what he costs you that counts. Will Rogers

Take Good NotesOwners, managers and everyone that is looking for ways to fix

problems and improve the organization should always keep a penand paper handy to make notes as they get ideas, or see things thatneed improvement. I can’t tell you, as an owner, how frustrating it isto call a meeting to discuss improving the company, and the verypeople who have been complaining about problems often show upwithout any written notes or ideas about how to fix the problems.Valuable time is wasted.

Buy Cheap, Buy TwiceYou have heard this before, but listen this time! When you buy a cheap item for your business, or an item that is

not of good quality, it will end up costing you more and give youmore headaches. Now, I am not saying you shouldn’t look for a bar-


gain. Being a good negotiator can mean the success or failure of abusiness. Here is an example of what I am talking about:

When I put in my 100 PERCENT SYSTEM OF CLEANLINESS, I pur-chased some cabinets that were made of heavy welded steel. I alsobought some of those thin steel cabinets you find at office supplychains and other discount stores. The thin cabinets are easily bentand, if you move them, the doors get warped and won’t close prop-erly. I have had to replace, or am in the process of replacing, everyone of them. The heavy steel cabinets still look like the day I boughtthem, other than a few scratches. When we moved to our new facil-ity we didn’t have to take everything out of the cabinets, we just putthem on a dolly with their contents. Another example of this wouldbe if you have a high traffic area and your carpet is constantly inneed of cleaning. Why not consider tile? Yes, tile costs more, but ifyou buy the right kind of tile, it can last a lifetime. It looks good andit is easily cleaned, unlike carpet. In the long run, you save moneyand your business looks great.

Pay Your BillsWhen I started my company in 1988, I asked my brother Billy, a

Louisiana business owner, if he had any advice he could share withme, to help me succeed. To my surprise, he said, “Yes, pay yourbills!

Caution: In your business you will have money flowing throughyour bank account, but it is not your money! It belongs to your ven-dors and your employees—and it’s meant to cover other expensesyour business will have. If you start spending that money you willfind yourself in deep trouble, and probably lose the business.”

He was right! I have seen many businesses go out of business,NOT for lack of business, but because the owner over-spent on hispersonal life, rather than pay his bills.

The first eight or nine months I was in business I didn’t take adime for myself. Even after that I only lived on the profits. I madesure my employees and vendors were paid first. This has been veryvaluable to our business, and when we had to go through some toughtimes, our vendors were behind us all the way. They knew our word


was good, and they extended the credit I needed to get us throughand keep production going.

The SBA (Small Business Administration) website says that oneof the reasons for business failure is personal use of business funds.You can’t get any clearer than that!

Do not say to your neighbor, “Go, and come back,and tomorrow I will pay you,” when you have it with you.

Old Proverb

Barter or Trade OrganizationsBarter or trade organizations are set up for small businesses to

find new customers. There are several such organizations out there;like ITEX and Trade Bank. You become a member for a small start-up fee and they place your business name with all their members. Ifsomeone needs your product or service they use trade dollars to pur-chase them. Trade dollars are printed checks with the trade organi-zation’s name and information on them. You build up a trade bankaccount just like you would with real dollars. When you need aproduct, you call one of the members in the organization to get aprice and, if you like the price, you buy with your trade dollars.

There are a couple of things to be aware of:

• You pay sales tax just like you would with real money, unlessyou’re exempt.

• You claim the sales in your accounting just like you would withany other sales.

• Some members in the trade organizations will mark up theirproducts more than what is normal. This is not supposed tohappen, as you can be thrown out of the organization for mark-ing up product or services too high—but, from what I have seen,this policy is not enforced.

Just like any other purchase you make, you need to be alert. “Letthe buyer beware,” says the old adage.


I have also found that certain trade organizations may be strongerin one city than in another. Before you join, talk to some local mem-bers; they can tell you which is the strongest trade organization.

Some businesses are members of more than one organization. Thestrength of the organization depends upon the area director for atown or city.

Be careful not to over spend or over sell. If your cost to producethe product is high in hard dollars (real money), such as labor andmaterials, be very careful not to sell too much. You can go on hold,which means once you get your Trade Bank Account to a certainfigure that you’re comfortable with, you can stop selling.

A business, such as a hotel or radio station, benefits greatly withtrade organization dollars, because it costs them little more to rent ahotel room that would otherwise be vacant, or air-time that wouldotherwise go unused.

When I first started out, I used trade dollars for office furniture,floor tile, and many other items. It also helped me to establishfriendships and to network with other business people.


CLOSING REMARKS

IF YOU HAVE finished reading this book, I want to thank you. Ihope you have gleaned some ideas and information that will helpyou in your business and maybe even your life. Writing this bookhas been a milestone I will never forget.

As we were doing the final edits on this book two things becameabundantly clear to me:

First, people are your greatest asset, and without them the gearsof industry would not turn. If I have given the impression in thisbook that I believe systems can replace people, then I would like toset the record straight:

Systems do not eliminate the need for people—they are toolswhereby fewer employees can produce more with less effort.

When a typesetting machine, called the Linotype, was inventedat the turn of the 20th century, it was able to do the work of aboutsix people who, at that time, set type by hand. But the machine stillhad to have an operator.

The Linotype was a great tool for mankind—but it didn’t replaceall Type-setters. The type-setters that were replaced by the Linotypewere compelled to pursue other important works that would benefitothers.

The systems that I value and explain in this book are tools to bea blessing to people. I hope this book has been a blessing to you

Finally, I might build a great turn-key business—one that hassystems that would surpass any company on the globe, but a singleAct of God could end it all. I try to pray every day for the blessingof God over my business and my life.

A GREAT system is a GREAT tool for people to do a GREAT job!

Philip Paul Beyer


Profile of the Ideal Owner or Employee

1. Honest with self and others

2. Eager to learn about their trade or position

3. Works well with others

4. Punctual

5. Good appearance and hygiene

6. Good work habits• Focuses on the task at hand• Not easily distracted or side-tracked • Takes pride in doing quality work• Keeps work area clean• Keeps work tools organized

7. Takes constructive criticism

8. Does not blame others to cover his/her own shortcomings

9. Does not use offensive language

10. Not intimidated by change

11. Looks for ways to improve themselves and their work place

12. Shares knowledge to help others improve

13. Willing to go the extra mile

14. Needs little supervision to stay on task

15. Does not condone wrong actions of supervisors or co-workers

16. Does not make improper advances to co-workers

17. Does not exploit stressful situations for personal gain

18. Respects supervisor’s position in making tough decisions


A View from My Window

A special lady, who became my wife in 2005, wrote the follow-ing poem some years ago, and I was impressed to include it in thisbook, because it rang true for me as I worked to bring order to ourbusiness and our personal surroundings.

After the night behind curtain and shadeI look out my window to see what God made

And the sight that I see makes me sad in my heartI think, “How much better, if all did their part”

‘Cause the things in my view would take little to fixIf each neighbor would bother to straighten and pickup

The rusty old pieces of this and of thatSome towering eyesore, a discarded hat

Toys that a child has not treated with careThings taken out, not put back, lying there

A garden of tossed paper wrappers and suchMaking it right again wouldn’t take much

If we each took a moment to think how our waysMight help out our neighbor and gladden his days

So all that we’ve worked for is easy to seeNot hidden by refuse and piles of debris

God gave us so much in this beautiful placeMountains and forests, and smiles for each face

He gave us such wonders as music and lightColors and rainbows and eagles in flight

So, today I’ll remember to do what I canTo spread love around me, not paper and cans

If the world isn’t all that God meant it to beThen I’ll change what I can, beginning with me

by Susan Meredith Beyer, © 2001


beyer printing inc.

Mission Statement

We are in the business of assisting our customers in meeting theirprinting and print design needs. To this end, we are committed to pro-viding the most consistent, high-quality and best customer service inthe printing industry.

To assure our customers of our promise of “Master Quality,” andGREAT CUSTOMER SERVICE, Beyer Printing employs only quality-minded, well-trained personnel. These assurances will be witnessed inevery phase of our business with an emphasis on excellence, promptservice, courtesy, cleanliness, honesty, a genuine concern for our cus-tomers, and a QUALITY CONTROL SYSTEM that allows nothing to leave ourfacility that does not meet or exceed the expections of our customers.

Our systems, work ethic, service, willingness to keep up with thelatest industry innovations, and the offering of unique products, willremain our hallmark and our vehicle toward new business.

Through these commitments, we build our futures, to the benefit ofour company, our customers, ourselves, our children and our children’schildren for generations to come.

—The Staff of Beyer Printing


beyer printing inc.

Code of Ethics

We commit ourselves to a high standard of excellence in the pro-duction of graphic arts, by adhering to a system of quality controlchecks during each phase of manufacturing.

We will only accept work that we are able to produce that willmeet or exceed our customers’ expections.

We promise to treat each customer impartially.

We promise to charge fairly for all of our products and services—fair for the customer, for Beyer Printing and the graphic arts industry.

—The Staff of Beyer Printing



OwnerPerson Working on the Business

This is where you need to be

Presidentor

Facilities Manager

Sales andMarketingManager

Productionor ServiceManager

FinanceManager

SalesRepresentatives

CustomerService

Personnel

Accounts Receivable

Payable

PayrollProductionWorkers

ORGANIZATIONAL CHART

BOOKS WE RECOMMEND

The Bible The New King James Version © 1982 Thomas Nelson

The E Myth by Michael Gerber. Harper Business, © 1986

How to Gain an Extra Hour Every Day by Ray Josephs. Published by Thorsons, © 1992

File, Don’t Pile by Pat Dorff. St. Martin’s Press, © 1983

The Goal by Eliyahu M. Goldratt and Jeff Cox. North River Press, © 1984

Taking the Mystery Out of TQM by Peter Capezio and DebraMorehouse. Career Press, © 1993

The One Minute Manager by Kenneth Blanchard and Spencer Johnson. Berkeley PublishingCompany, © 1981

Financial Peaceby by Dave Ramsey. Lampo Press, © 1992, 1995 and by thePenguin Group, © 1992

Delivering Knock Your Socks Off Service by Ron Zemke and Kristin Anderson. AMACOM, © 1993

No Excuses Management by T.J. Rodgers. Currency; Book and Diskett edition, © 1993

The 21 Most Powerful Minutes in a Leader’s Dayby Dr. John C. Maxwell. Thomas Nelson Publishers, © 2000


WHAT OTHERS ARE SAYING

“Hello. I just read System Buster. Thank you Philip! I heardabout your book via an e-mail blast through PIA. That e-mail was atrue blessing. What I've learned from your book alone will changeDSJ Printing and the life of my family and employees forever. Weare a family owned and operated print shop. My Grandma andGrandpa started DSJ in 1953. My father is now President and weboth work in customer service. Exactly what you described…he is“Mama” to every employee here, myself included. He’s constantlybeing tugged in every direction. To say the least I felt it was becom-ing overwhelming for him. When you mentioned having imple-mented one system at a time…this piece of advice will take a hugeload off both of our shoulders. By giving him more time to do hiswork and by helping me work on getting him into retirement. Yourbook is a serious eye opener. Thank you again. Please contact meASAP regarding your system100.net! God Bless!”

…Jeffrey Vaughan, Jr., DSJ Printing, Santa Monica CA

"I have just finished your book and would like some more infor-mation on the System100 software you talked about. Your book hasbeen a great help to me in rethinking how to manage our small shop.Thank you for sharing this, I believe this information will transformour operation."

…Bill Buckler, Classic Impressions, Marietta GA

"I just read Philip Beyer's System Buster Book and thoroughlyenjoyed seeing myself and our company in the book, repeatedly.What's more, I was thrilled to know that we're not that far off in ourpractices and there is a tried and proven system that's in place atBeyer, and it works."

…Jackie L. Griese, Owner, GGG Digital Graphics, Evansville IN


"This book helped me see the wisdom of systems for our busi-ness and ministry. Proverbs 8:12 says "I, wisdom, dwell with pru-dence, and find out knowledge of witty inventions." Philip's bookhelped me to find and improve upon the systems we use at TheGideons International. He invented a system to improve any system.Philip's work has opened my eyes to the benefits and blessings ofwell-planned organizational systems. He shares practical steps thatcan be universally applied to any business, association, ministry,even one's life. I intend to apply these concepts at every level fromnow on."

… Rodney Jones, The Gideons International, Nashville TN

"Congratulations on your book and what it has meant to yourbusiness. My first read was very helpful. My Operations Manageris reading it now, then I'll take a second run-through, taking notesand building a "to do" list. Most important to me, System Bustergives me a series of models which I am anxious to apply. One youreference, which I am anxious to learn more about, is the applicationof time-keeping software. Philip, thanks for the information andinspiration you offer in System Buster. It's full of wisdom! I'm goingto get a couple more copies on order today. I'll keep mine at my side,give my Operations Manager one, and have the third available forother employees and my wife to read. "

… Scott Fenneman, Owner, Kwik Kopy Business Solutions, Evansville IN

"As a commercial printer in Omaha, NE, in need of processesand systems, we searched for solutions to our continuing problems.We have 18 employees and needed a way to communicate our visionof systemizing our business. We requested a copy of System Busterfor each of our employees and passed them out as gifts. We aremidway through our quest to systemizing our business and couldn'thave done it without Phillip Beyer's vision. Best regards."

...Garrett Anderson, Anderson Print Group, Omaha, NE


"I have just finished reading your book, System Buster. I was sosure this could be done. My husband and I purchased A-1 Printingalmost 5 years ago. It has been in business since 1983. Along withthe business we acquired associates that have been here for a numberof years. Anytime you suggest a new way of doing something, thewalls go up, echoed by the words, "We've tried that before and itdidn't work." Well, some of the things we have implemented haveworked and with little flack. The biggest problem is nonconfor-mance and accountability. I have struggled with this for the past yearand started working on "How to fix our problems." I have learnedfrom reading your book, that we are pretty much normal and justneed to put more things in writing and hold people accountable.Thank you so much for the insight. Just reading your book hasgiven me new hope and promise for a bright future."

…Barb Price, Owner, A-1 Printing Inc., Bucyrus, Ohio

"I am in the process of reading your book System Buster andwould like more information regarding your System 100 software.The book is wonderful. I find myself smiling and laughing out loud.I particularly appreciate your Christian business principles. Thankyou!"

…Dan Goris, Ideal Printing Company, Grand Rapids MI

"I am grateful that Mr. Beyer has allowed us "all" into his"world"...the world of "hard core" business. Before reading andapplying "System Buster" into my business, I would have to say thatchaos was the word for the day. As we began to apply the principlesinside the "System Buster", we immediately saw a difference, thebiggest of which was the recognition of how we lived from one"crisis" to the next. Everything has to have process...trackableprocess. I could write for hours as a grateful business owner...grate-ful that Mr. Beyer has shared his "found" insight with those of uswho will be forever changed! Thank you Thank you Thank you!"

...Paul LaRue "Paul", Brentwood, TN


"After reading the 'Buster' book, I agreed to a session on WebExwith Philip Beyer to test-drive his System100 software in live,actual, operation. Never have I seen anything comparable toSystem100 for a company! The System is a computerized methodfor the daily operation of Beyer Printing. Everything, and I do meanevery last action in the commercial printing plant, appears to be cov-ered. This is a checklist system to end all checklist systems! It allfeeds into a computerized database written in an SQL language andevery employee has access to a computer terminal for listings andforms. Then there's the piece de resistance: a sub-program called"System Buster." When something happens that doesn't comportwith the check lists, the System Buster detects the problem. It'simmediately flagged for correction. I love the idea of System100 andit's checklists that assure personal accountability. Inventories arerestricted. Delivery dates are kept. Invoices issue immediately.Plant cleanliness and equipment maintenance are assured. Everyneeded tool is immediately at hand. Everyone knows what'sexpected of him or her. Why haven't we done this before? Now, I'veseen how a printing plant should be run. You deserve an award forshowing me and the world what you can do when you really try.Small wonder that it took 10 years to develop System100. Everyprinting plant should have it!"

…Roger Dickeson, Columnist, Printing Impressions, Pasadena, California

"This book is motivating and drives you to be a better businessperson. Since I started building our system, I have been able to iden-tify the hidden, underlying problems that have continually set usback, and correct them. His Christian point of view is refreshing andreminds me of the importance of integrity in all regards. I have newhope and direction for my business. Six stars."

...A. Parker, Parker Heating & Air, Smyrna, TN


Hey Philip…You might remember me. My name is Mark Hurtand I talked with you several times while I was in Purchasing atWMG here in Indy. I recently came across your book and startedreading it, and could not put it down. I must say, I will practice thissystem effective immediately and am excited of the end result. TheBEST business book I have ever made good use with is "The EMyth," which you are also aware of, and it appears your book willbe in that category. I like the way you toss in verses from the great-est Book ever written (Bible) as you don't see that in business booksany longer. Well, to cut to the chase, I want my own copy and I wantto buy a few extra for my brother's business as well as my dad's busi-ness, and I want to send some as Christmas gifts to many of my cus-tomers. Glad to see you are making a success at this.

…Mark Hurt, VIP Print Solutions, Indianapolis IN


INDEX

100 Percent System of Cleaning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99Act of God . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86Adams, Scott (Dilbert) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Anderson, Kristin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Animal Planet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Anti-System Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9Aunt Ducy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Barter and Trade Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129Benchmarking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Beyer, Henry T. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i, 123Bible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Bill of Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Blanchard, Kenneth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Books We Recommend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Buck Stops Here System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Capezio, Peter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93Chickens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Coca Cola Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Code of Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79, 135Complete - Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Constitution of the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20Consultants / Consulticks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Cranky Story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Daily Routine Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73Declaration of Independence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Deming Award for Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41, 51Deming, W. Edward . . . . . . . . . . . . . . . . . . . . . . . . . . .24, 41, 51-53, 87, 98, 100Dilbert by Scott Adams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Dorff, Pat (File, Don’t Pile) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Douglas, Fredrick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Downloading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Driver/Quality Control System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78


E Myth / Michael Gerber . . . . . . . . . . . . . . . . . . . . . . . . . . . .12, 27, 40, 137, 143Ebiz Products Contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118Embrace Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124Employee Performance Evaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Endorsements (What Others Are Saying) . . . . . . . . . . . . . . . . . . . . . . . . . .139-143Fish Bowl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104Ford Motors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Forms Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69General and the Private, The . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64Gerber, Michael . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12, 27, 40, 137, 143Goldratt, Eli (The Goal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115, 137Helen story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Inventory System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 ISO (International Standards Organization) . . . . . . . . . . . . . . . . . . . . . . . . . 51-53Job Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73Johnson, Spencer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Josephs, Ray . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Lagniappe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123Mama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Mark Campolo story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100Martha story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Maxwell, Dr. John . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47, 137McDonald's Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 58-59Michelangelo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19, 20, 79, 102, 134Morehouse, Debra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Moses story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Mystery of the Circle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 6-7, 119, 121NintendoTM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54-55, 59Operations Manual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68-69 Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136Orientation System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81OSHA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107Pay Your Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128Philip Paul & Patrol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48, 149PIAS (Printing Industry of the South) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94


Policies Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79Procedures Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Production Scheduling System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109Profile of Ideal Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19, 132 Quality/Service Control Checklists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63, 75Rework Due to Error System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Roadie Proof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66, 71Rodgers, T. J. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Sacred Cows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Ramsey, Dave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Sales/Marketing System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96Small Business Administration (SBA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3, 129System Buster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83System to Change the System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Tasks/Projects Management System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91The Goal (Eli Goldratt) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115Thompson, Van . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12TQM (Total Quality Management) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Truman, Harry S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Turn-key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Union of Japanese Scientists and Engineers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51View From My Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133What Others Are Saying (Ensorsements) . . . . . . . . . . . . . . . . . . . . . . . . . .139-143Zempke, Ron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Ziglar, Zig . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125


QUOTES

Psalm 127:1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .DedicationJohn 3:16 (Jesus) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Psalm 86:7 (David the Giant Killer) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13Proverbs 25:19 (King Solomon) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17Luke 14:28 (Luke the Physician) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18W. Edward Deming (Deming Award) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Rabindranath Tagore poem Waiting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27I Corinthians 12:18-21 (Paul the Tentmaker) . . . . . . . . . . . . . . . . . . . . . . . . . . .28Proverbs 24:30-34 (Solomon the Wise) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31Arthur Schopenhauer, German Philosopher . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Proverbs 22:10 (Solomon the Wise) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36Mark Twain (American Humorist) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Sir Winston Churchill (British Prime Minister) . . . . . . . . . . . . . . . . . . . . . . . . .40Proverb 24:10 (Solomon the Wise) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42Woodrow Wilson (28th President of U.S.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Proverb 27:17 (King Solomon) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Proverbs 24:23 (Solomon) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Vince Lombardi (Former Green Bay Packer Coach) . . . . . . . . . . . . . . . . . . . . . 54I Timothy 5:18 (Apostle Paul) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Nathaniel Hawthorne (Author) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Proverbs 24:3-4 (King Solomon) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Lee Iacocca (Former Chairman, Chrysler Corp.) . . . . . . . . . . . . . . . . . . . . . . . . 79Abraham Lincoln (16th U.S. President) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89Proverbs 27:23 (King Solomon) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 961Corinthians 14:33 (St. Paul) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106Matthew 23:11-12 (The Word) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128Will Rogers (American Humorist) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129Proverbs 3:28 (King Solomon) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131


ABOUT THE AUTHOR

PHILIP PAUL BEYER is founder and president of Beyer Printing,Inc. in Nashville, Tennessee.

Born and raised in Louisiana, Philip's interest in the art and craftof printing began at Tex Lyons' printing establishment in BatonRouge. At fourteen, and already a budding entrepreneur, Philip wasfascinated with his visits to the print shop and watching his brotherBilly run presses. He marveled at the workings of the printing indus-try, and Tex soon offered him a job collating in the bindery depart-ment. Being able to work beside his brother, learning such excitingskills, and making fifty cents an hour was, for young Philip, thebeginning of a deep appreciation of the printing trade—a life-longcalling to a business that had revolutionized the world and changedthe very course of history.

Philip entered into this creative industry during one of its mostsignificant changes in half a century. Only a short forty years ago,printing was much different than it is today. It was a craft that foundyoung people working as apprentices for years. Master printerswere, and still are, a rare breed. Back then, a lot of printing was doneon letter presses—slow by today's standards, but able to producehigh quality results. The offset press was fast replacing the letterpress, and the industry was changing rapidly.

While attending high school, Philip took a job as an apprentice atKennedy Print Shop in Baton Rouge, where owner Carl Williamson,a Linotype operator, became one of Philip’s most admired rolemodels. During those years, he gained a wealth of knowledge aboutthe trade that would build the foundation for his future.

After graduating from high school, Philip took courses briefly atLouisiana State University until the lure of yet another powerfulinterest began to fill his thoughts. He had begun playing music andsinging in school. In the late 1960s and early 1970s, music was justabout every young man's fantasy, and Philip believed he had foundhis true calling. Leaving college, he worked all the harder as a


printer to be able to afford and pursue his music interests. With thisnew incentive, he made it a point to learn everything he could aboutall facets of the printing trade—even keeping up with the latestindustry trends. But, music had become his greatest passion.

By 1974, Philip's music was keeping him busy full-time and,although he would not enter the printing trade again for many years,his printing experience was put to good use in promoting hisincreasingly popular band, Papa Joe & Riverboat, later known asPhilip Paul & Patrol. Looking at printing from the other side of thefence taught him lessons that would prove invaluable later as herelated to his customers.

Eventually, however, the success of Philip's music was the verything that began to take the greatest toll. He missed his family, andafter twenty years on the road, with heavy performance andrehearsal schedules, Philip Paul hung up his microphone.

Philip Paul Beyer returned to a lifestyle he had longed for,instilled by Christian parents whose values and ideals were tobecome the solid basis for all his future endeavors. He had learnedmuch from being a performer, bandleader and manager of a touringshow—discipline, marketing and promotion. He learned how to takecare of business, plan and keep schedules, meet payrolls, managefinances, and the importance of well-considered tools and equip-ment. He also learned about people—most importantly, aboutintegrity and relationships—where real success begins!

Still the entrepreneur, Philip remains dedicated to the highestquality products and service, and has found yet another passion—helping other entrepreneurs and business people reach their personalgoals through strategic systematization of their operations.

PHILIP PAUL BEYER and his wife Susan make their home inTennessee.


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