Life runs on systems, whether you realize it or not. These systems guide your movements and help you run your day. They don’t need to be complex or tied to technology; they simply provide a methodical way to manage interrelated information, tasks, or resources. 

Just take a morning routine as an example: 

• Shut off alarm
• Go to the bathroom
• Brew coffee
• Brush teeth
• Wash face
• Get kids ready
• Make breakfast
• Drink coffee
• Depart on time

Of course each of these steps involves processes and decision points, but this chain of related steps forms a morning system. Personal systems like these bring structure to your day and create an expectation so everyone knows what to do, when, and how.

Similarly, you have built multiple business systems in your life. (Whether they are efficient and intentional or chaotic and reactionary is another matter – get on my calendar if you need help sorting that out!) Business systems allow you to manage finances, communicate with clients, assign work, and run day-to-day operations. Without strong systems in place, you’re not truly running your business—your business is running you. 

So what differentiates a strong system from a weak one? The quality and documentation of your processes and policies.

Processes and Policies are Key to a Strong Business System

Processes and policies bring systems to life. Think of it like building an ice cream sundae. Systems are the ice cream scoops – a strong foundation for any sundae. The processes and policies? They’re the fudge, whipped cream, and sprinkles on top.

Systems are what you need to do. They describe the interconnected parts, like a highway system that gets you from your house to grandma’s, or a CRM helps you convert a lead into a client.

Processes are the how. They outline the steps needed to complete a task, from onboarding a new client to delegating assignments to your assistant. Without a process, your team is left guessing, leading to inefficiencies and misaligned expectations.

Policies define the why and when. They’re the rules and standards that shape how decisions are made. While processes provide the roadmap, policies set the guardrails. They're especially important as your team expands and you begin to delegate more responsibility.

How Systems, Policies, and Processes Work Together

Together, processes and policies inform your systems, which are constantly refined to allow your business to run smoothly and grow without requiring constant oversight. So what does this look like in action? Let’s use finances as an example, something every business has to manage. 

Imagine your team uses QuickBooks to track income and expenses. That’s your system. But your system could be dysfunctional, messy, and a waste of money if you don’t know how to use it properly. In other words, as you grow and scale, the power of QuickBooks is unleashed when your team follows clear processes and policies.

Let’s say a wire confirmation comes in. Your process outlines exactly what happens next: Who receives it? In what format? How quickly does it need to be sent? How should it be input into your system? With those steps clearly documented and communicated, your team knows what to do – no scrambling, no guessing, no bottlenecks.

Now layer in your invoicing policy. Maybe your standard is “net 14” or payment due within 14 days of the invoice. If a vendor asks for net 60, you’re not stuck negotiating from scratch. You can say, “Our policy is net 14, but let’s set up a meeting to discuss a mutually beneficial schedule for this contract.” Suddenly, you’re not winging it. Instead, you and any other team member can operate from a place of clarity, confidence, and (most importantly) consistency.

Document, Document, Document!

Maybe you're thinking, "I already have systems, policies, and processes!" but your days still feel chaotic. You're bogged down by tasks you thought you'd be able to hand off by now.

Here's the reality:

If systems only live in your head, then they’re not systems; they’re assumptions.

Documentation is what turns ideas into action. Documented processes and policies guide your team members as they use your systems. It sets the standard for how work should be done by dictating consistency, enabling training, and providing a baseline for improvement and advancement.  

No, you don’t need documentation for a system to run. Just look back at the morning routine. But if you ever need to delegate that system to a grandparent who watches the kids while you take a much-needed beach vacation, chances are you’d need to write everything out so the kids get to school on time.

Treat your business like a business. Document it your processes and policies.

Related: 5 Steps for Screen Recording Work Tasks to Document Processes and Train Others 

Refine and Repeat Your Systems Over Time

Improving your business systems isn’t about perfection; it’s about progress. And even the best systems evolve. To start designing better systems for your business, I recommend choosing one area and starting small. 

• Write down the policy.
• Document or build a process around it.
• Test it.
• Refine it.
• Repeat, repeat, repeat. 
• Delegate or automate it.
• Tweak as needed.

Then move to the next system and do it again. Common systems our team often tackles first for our solopreneur and small business clients are:

• Invoicing (including accounts receivable/accounts payable)
• Onboarding and training
• Business development and sales

This is how you build up your systems and create a business that doesn’t depend entirely on you. You will be able to delegate those tasks smoothly, freeing up your time for revenue-generating tasks, travel, quality family time, or anything else that needs your attention.

Ready to level up your systems? 

Systems are part of life, but strong systems require documented processes and policies. Download our free Systems and SOP Quick Guide to jumpstart your journey toward more freedom, clarity, and control as the CEO of your business. Or, schedule a discovery call if you’d rather have LVL-Up #GetItHandled for you.