System Improvement for the Biggest Business Gains in 2025

What is system improvement? When organizations experience ongoing trouble, when objectives and goals are constantly unmet, the underlying problem likely lies in one of your systems.

What does this mean?  An organization’s systems refer to its formal structure—the processes, policies, and procedures that govern operations. When I go consult, I typically break down an organization’s systems into four key areas—the voice of the customer, management systems, work systems, and people systems. All four must be mature and harmonious to feed into a consistently positive customer experience.

4 Key Areas for System Improvement

1. Voice of the Customer – a system where organizations collect and utilize data to gain insights and respond to customer needs. Rather than sporadic programs, I gradually move companies into mature, regular patterns with integrated AI to provide ongoing strategic insight to fuel effective decision-making and improvements.
2. Management Systems – all organizations need outcome-focused operating rhythms that link strategy and execution. An adaptive governance model steadily removes impediments and improves workflows while reinforcing a science-backed problem-solving model in a safe-to-fail environment. Maturity eliminates busy work, While OKRs become achievable through light-touch governance and continuous improvement.
3. Work Systems – represent your processes, technology, and data. This system is responsible for the quality and speed of value delivery to customers. A mature work system leverages reliable, easy-to-consume data and IT architecture, carrying a team from isolated, inconsistent practices to interconnected processes, data, and technology that support the customer experience. I look to work systems to eliminate bottlenecks and improve the rapid prototyping essential to operational excellence.
4. People Systems- this refers to skillsets and behaviours, including areas like talent management, skill building, empowerment, and performance management. High-performing people systems lead to thriving, cross-functional teams that drive innovation and customer service, even under minimal management.

These systems are more than just processes—they’re a collection of interdependent elements that lead to a thriving, healthy organization. As W. Edwards Deming famously said, “90% of problems in organizations stem from their systems,” making these issues the responsibility of top leaders.

Organizational systems are often invisible and difficult to describe, diagnose, or improve because they are so enmeshed in day-to-day operations. Instead, leaders usually choose to lean on process-level fixes, an approach that addresses the symptoms instead of the underlying cause. Operational issues are left in the domain of teams in hopes of improvement, an approach that often misses the mark.

To create company-wide improvements, executive leaders must focus on identifying and addressing systemic issues while their team tackles internal and external project improvements. Systematic problems manifest as recurring challenges across multiple processes or roadblocks that resist change. By understanding and improving core systems, executives can empower their teams, enhance organizational resilience, and adapt to rapidly evolving customer demands.

AI is Disrupting All Industries

In a world disrupted by smart automation and AI, the need for system-level improvements is urgent. Frontline teams often recognize the need to improve speed and customer service but frequently progress stalls without leadership willing to address issues like a systematic drag, which slows down processes and leaves both customers and staff frustrated.

I’ve co-developed a useful diagnostic tool to help senior leaders visualize and address systematic challenges. This includes:

1. Identifying critical systems for organizational success
2. Establishing a common language to discuss system maturity and deficiencies
3. Providing a pathway to guide system improvement and problem-solving 

Amid challenges and disruptions caused by AI-driven change, companies that ignore systemic improvement risk stagnation, burnout, and eventual irrelevance.

Let’s evaluate the maturity of your Customer, Management, Work, and People systems and discuss how to use the results for meaningful business outcomes as you start setting goals for 2025.

In today’s fast-changing landscape, the most impactful business changes lie at the systems level. Reach out to learn more about my systems diagnostic. Together, we can gain insight into your organization and where it stands before building a shared language and metrics aimed at improvement. Let’s discuss how to foster a resilient, customer-centric approach as your path to prosperity and growth in 2025.