This is part 6 of an 8 part series on the BI Triangle(TM) featured by Robert Kiyosaki in his book “Rich Dad’s Guide to Investing”.
An example of a system is the human body. The human body is essentially a system made up of systems. Each system is made up of organs and depends on the functions and processes of each body system. If just one system is out of balance or malfunctioning, the entire body system suffers as a result.
An example of systems that I am quite familiar with is the collection of systems on a submarine. The systems there include things like the ventilation system, water systems, hydraulic systems, air systems, sewer/sanitary systems, and the list goes on. We as submariners must gain a deep understanding of each system and how systems interrelate with other systems. Again, if just one system is down, the entire system suffers or the other systems must be allowed to compensate in some way, leading to degraded operations.
In business, systems are vital to the long-term growth and survival of a company. Business systems are basically a collection of steps and procedures designed to perform routine tasks. These tasks are designed and executed taking into account the Mission of the company.
As an example, I am currently employed at Pizza Hut as an overnight delivery driver. The systems there include things like making sure the pizza dough and pans are ready for the next day. This is necessary because the dough requires a minimal amount of time to rise before it is used to build those delicious cakes. All of these steps are performed each night, in the proper sequence, to ensure that we can fulfill our mission of feeding as many customers as possible. A system is basically a procedure that, if followed, will improve the chances of accomplishing the task for which it was designed.
The power of trading systems comes from the fact that they take the emotion, guesswork, and confusion out of day-to-day trading. Systems are even found in our personal financial lives. A family budget is an incredible system that, if designed and used correctly, ensures that a family will always have enough money to meet basic financial requirements (also known as BILLS) and can save money for retirement or investment in the future. . I hope this article sheds some light on the importance and power of systems. Of course, I’m open to any feedback you may have to help get more information.
Steve Pavlina has an excellent article he wrote called Getting Organized, which describes using the power of systems to keep your office (and your life) clutter-free.