Episode Summary
In this episode of The Flywheel Effect, Brent Sonnek-Schmelz and Matt Bernath welcome Jason Sayen, Owner of I Am Sayen. They delve into the critical role of process in business growth, especially for custom integrators and home service providers. Jason explains his use of process visualization to pinpoint and rectify flawed systems within companies, ultimately boosting efficiency and profits.
He emphasizes how businesses often mistakenly purchase software to solve process problems without addressing the root behavioral issues. Jason stresses the importance of dedicating time to essential processes, such as proposal reviews and kickoff meetings, regardless of how busy things get. He illustrates these points with real-world examples from his client work, demonstrating the substantial impact of even small process improvements.
The conversation then shifts to the challenges of scaling a solo business and the importance of defining products or services. The group explores the misaligned incentives in the custom integration industry, where selling equipment often takes priority over building a healthy, profitable business. Finally, they touch upon the need for improved training and onboarding to attract and retain valuable talent.
Featured Guest
Guest: Jason Sayen
What he does: Owner
Company: I Am Sayen
Noteworthy: Process visualization expert, Lean Six Sigma Black Belt, helps businesses improve processes.
Where to find him: LinkedIn
Key Insights
Process Visualization Unveils Hidden Business Bottlenecks
Visualizing your business processes, as Jason Sayen explains, provides a crucial lens for identifying hidden bottlenecks. This approach goes beyond simply addressing immediate problems and allows for a comprehensive understanding of the entire operation. By mapping out each step, businesses can pinpoint knowledge gaps, software inefficiencies, and alignment issues that hinder growth. This holistic view enables companies to develop targeted solutions, optimize workflows, and create a more efficient and scalable operation. It shifts the focus from reactive problem-solving to proactive planning and strategic decision-making. Visualizing processes can be especially beneficial during periods of rapid growth, ensuring that systems can handle increased demand without breaking down.
Prioritizing Process Over Software Solves Root Problems
Many businesses mistakenly believe that purchasing new software will magically resolve their process problems. However, as Jason points out, software is merely a tool. If the underlying behaviors and processes are flawed, no software can truly fix the issues. Instead, companies should prioritize optimizing their processes first, then select software that supports those improved workflows. This approach ensures that technology enhances, rather than hinders, efficiency. By addressing the root causes of problems, businesses can achieve sustainable improvements and avoid the trap of constantly chasing new software solutions without realizing lasting results. This allows businesses to make informed decisions about technology investments, maximizing their return and minimizing wasted resources.
Time Constraints Hinder Growth and Development
The phrase “I don’t have time” is often a major roadblock to growth and development in business. When time becomes a constraint, essential processes, such as proposal reviews, client communication, and staff training, are often neglected. This can lead to errors, miscommunication, and missed opportunities. By prioritizing process and making time for these crucial activities, businesses can unlock significant growth potential. This might involve delegating tasks, streamlining workflows, or simply scheduling dedicated time for process improvement. Investing time in process upfront can save significant time and resources in the long run, leading to a more efficient and scalable operation.
Episode Highlights
The Power of the “I am” Approach
Timestamp: [00:02:00 – 00:02:30]
Jason’s unique business name, “I Am Sayen,” sparks a conversation about clearly defining your services. Brent highlights the importance of this, particularly for solopreneurs in the trades who often struggle to articulate their value proposition beyond simply stating their technical skills. This resonates with integrators who might say they “install networks” or “install TVs” without conveying the actual problem they solve for clients. This lack of clarity hinders their ability to connect with potential customers and showcase their expertise. Jason emphasizes the importance of clearly articulating the problems he solves for clients, which helped him stand out and gain recognition in a crowded market.
“I can install a network, I can install a TV, but that doesn’t really tell the problem you’re solving for the customer… and that’s something I had to go through… I had to go back and reiterate the problem I was solving.”
The Evolution of Lean Six Sigma Beyond Manufacturing
Timestamp: [00:07:30 – 00:10:00]
The discussion shifts to Lean Six Sigma, with Jason explaining its origins in manufacturing and its growing application in service industries like custom integration. He clarifies that Lean Six Sigma is a set of tools and methodologies designed to eliminate waste and improve processes. Jason recounts his experience implementing these principles at JL Audio, where a simple process change of having each assembly line worker check the previous person’s work significantly reduced defects. He explains how this approach can be applied to any business, large or small, to streamline operations and increase efficiency. The conversation emphasizes the importance of adapting and applying these principles to specific business contexts, rather than simply adopting them wholesale.
“So, Lean Six Sigma is a set of tools to easily identify those things. And over the last decade, it’s been moved into the services business. American Express has a main headquarters right around the corner from where I live in South Florida, and one of my friends is a master black belt.”
The Impact of COVID on Business Processes
Timestamp: [00:15:00 – 00:16:00]
Jason shares how the COVID-19 pandemic unexpectedly boosted his business. While working a sales rep job and doing consulting on the side, the sudden shift to remote work created a surge in demand for his process improvement services. Integrators experiencing rapid growth during this time found their existing systems breaking down, leading them to seek Jason’s expertise. The pandemic forced businesses to adapt and embrace remote communication, making it easier for Jason to connect with clients and demonstrate the value of his services. This highlights the unexpected opportunities that can arise during times of disruption and the importance of being adaptable and prepared to seize them.
“And our business grew, you know, 20, 30% as every integrator did. And what happens when you have extreme growth? Processes and systems break, right? So all these companies started remembering I was the guy that talked about process, and I started getting phone calls.”
The Broken Incentive System in the Custom Integration Industry
Timestamp: [00:53:30 – 00:56:00]
Matt points out a fundamental flaw in the custom integration industry: the incentive system is broken. With 60-70% of project revenue coming from equipment sales, the focus is on moving boxes rather than running healthy, profitable businesses. This misaligned incentive structure discourages integrators from investing in process improvement, talent development, and other crucial aspects of building a sustainable business. While manufacturers and buying groups contribute value, their primary focus remains on selling equipment. This leads to a short-sighted approach that prioritizes top-line revenue over long-term profitability and sustainability within the integration businesses themselves. The conversation highlights the need for a shift in mindset within the industry, emphasizing the importance of building strong businesses, not just selling boxes.
“Most of the issues in our industry can be solved. If our integrators ran better businesses and made more money themselves, they were healthier businesses. All of those problems that Jason brought up and many more could be solved because they could solve these problems themselves.”
