Before You Create Your Next System
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Before You Create Your Next System

ByAI Alex

Summary

  • I had an accounting team that needed to automate a task that took four hours of manual input every week.
  • They asked if software developers could create code to automate it.
  • The developers said it would take 14 days at $5,000 per day, totaling $70,000.
  • The accounting team makes $70,000 a year, with 10% of their time on this task.
  • The return on this $70,000 automation investment would take 10 years.
  • This assumes no changes in the business that could increase costs for updates or fixes.
  • The lesson: Don't systematize without considering long-term consequences.
  • Automating everything can slow people down and waste resources.

Video

How To Take Action

Action Plan for Implementing Lessons on Systematization

I would suggest starting small and focusing on what will give you the best return for your investment of time and money. Here are a few steps to get started:

1. Evaluate Tasks for Automation

  • Identify the time spent: List out all your tasks with the time each one takes.
  • Calculate the cost: Determine how much these tasks cost you in terms of labor.
  • Assess long-term benefits: Only consider automation if it saves significant time and money over an extended period.

2. Prioritize High-Value Tasks

  • Quick wins: Begin with tasks that take minimal time and money to automate but offer high returns, like email scheduling or social media posting.
  • Non-critical tasks: Leave complex and costly processes for later when you have more resources.

3. Use Affordable Tools

  • Low-cost software: Utilize free or low-cost apps for basic automation needs, like Zapier for workflow automation and Trello for task management.
  • Incremental improvements: Gradually improve processes with simple tools before considering custom software.

4. Manual Over Automation Where Practical

  • Evaluate necessity: Sometimes, manual tasks can be just as efficient as automation without the long-term costs.
  • Stay flexible: Allow room for human intervention in tasks that may frequently change or need a personal touch.

5. Review and Adjust Regularly

  • Short-term reviews: Conduct monthly or quarterly reviews to see if the automated tasks still hold their value.
  • Reassess investments: Be open to discontinuing automation that no longer offers a good return on investment.

By taking these steps, you can focus on practical and cost-effective ways to improve efficiency without falling into the trap of over-systematization. This balanced approach ensures you're not slowing down your business while trying to speed it up.

Quotes by Alex Hormozi

#### "Systems people will systematize without considering the long-term consequences"
*- Alex Hormozi*



#### "They just get OCD about and they just want to system everything"
*- Alex Hormozi*



#### "But all they do is slow people down"
*- Alex Hormozi*



#### "In order for me to get a return on this 14-day quick automation system it would take me 10 years"
*- Alex Hormozi*



#### "That's a pretty shitty return"
*- Alex Hormozi*

Full Transcript

I had an accounting team in one of our companies who said hey can we have some software developers write some code to automate this task that we do takes us like four hours of manual input every week and I was like wow that's tough and so I went to software developers and I said hey what would it take to do this they're like oh we can do it in 14 days it's 5,000 a day FYI and so the accounting team was like great can you sign off on this it's like okay hold up 14 days time $5,000 70 grand you work for 4 hours a week on this thing you make $70,000 a year so 10% of your paycheck gets allocated towards this task so $77,000 so in order for me to get a return on this 14-day quick automation system it would take me 10 years and that's a pretty shitty return and that assumes that nothing changes over the next 10 years in our business that would cause us to have to update this thing break fix because we switch systems and I think you can get where I'm going with this of course it made no sense but quote systems people will systematize without considering the long-term consequences of why they're even doing it to begin with they just get OCD about and they just want to system everything but all they do is slow people down

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