Business Operating Systems

The term business operating systems (BOS) refers to standard, enterprise-wide collection of business processes used in many diversified industrial companies. The definition has also been extended to include the common structure, principles and practices necessary to drive the organization.

Meeting rhythm, standard operating procedures and processes. Communication systems, hiring systems, all the items 'between' each department fit into Business Operating Systems. Also simply referred to as Business Systems, and Business Operations. 

Establishing a Business Operating System

Creating a business operating system for your company will clarify responsibilities and establish precise systems for resolving issues and improving processes. Understanding how to create an efficient business operating system could help you become a more effective leader and prepare your company to scale.

But wait… what the heck is a business operating system anyway?

A business operating system refers to the standard, enterprise wide collection of processes in a business that’s used in many diversified industrial companies. Is similar to a business playbook, it houses all your processes, policies, and procedures in one place so that your business can run like a well oiled machine.

With a comprehensive business operating system, your business could run independently — whether you’re there to supervise the operations or not. It allows you to direct your time, efforts, and focus into more productive tasks and trains your employees to be responsible.

The Problem

Often owners and management can be so busy 'doing' no one is looking at what is being done or why. "Sacred Knowledge" problems can run amok.

For example, maybe only 1 or 2 key employees know where everything is. There is no 'company wiki' or index of resources. Good people may be unable to execute. Or sales & opportunities lost due to inefficiencies in the supply chain or elsewhere. Inventory over stocked or under stocked due to lazy systems. All these types of issues require someone who's sole focus is smooth operations.

Listen to our podcast interviews to learn more about this and other topics.

It’s time to stop running your business blindly. It’s important to know what you do, how you do it, and most importantly, why you do it. That way, everyone on your team has the information they need to own their role and live up to expectations.

Here’s how you can create a business operating system:

Develop and document processes

Establish and document systems

Determine how you’ll measure goals.

Address the issues in your processes and systems.


Set clear expectations.