Insights on Robert Kiyosaki’s Guide to Investing – Chapter 34


First it was Cash Flow Management, followed by Communications Management, now we go to chapter 34 about “Systems Management”.

System management also traverse through a wide definition but the book is referring to the systems implemented by management in the business. It refers to the system in use by the business in its daily operations. Without a feasible and reliable system in place, there will be a lot of problems in the future.

A lot of businesses benefit heavily from the result of a systematic operating procedures. Having one is a must for every business to continue its growth and market share. When robotics has been introduced, General Motors availed it to replace the workers who have been paid their salaries, allowances and benefits. That move of GM has been criticized but it paid dividends in the end. Their production of cars has become more consistent. They have reduced their future liabilities because they have no pensions and benefits to pay for every employee who retires. But the best benefit they got is that they been recognized as producers of high quality cars.

Once quality has been established through the market, earnings will follow. If a systematic process of producing the same product over a period of time can be achieved, it will be easy for the business to grow because they will have a reputation and that reputation will easily traverse through people by word of mouth which is the most effective (and also destructive) way of marketing. The same goes for a service provider, if the service rendered is of high quality, there will surely be repeat customers and referrals would be easy to get by word of mouth.

Having an effective business operations is vital for every business. It is as important as the cash flow management as well as the communication management as discussed on the earlier chapters. Those three are inseparable and must be keenly observed for the overall growth and development of the business. Once it becomes a concern for the enterprise, it must be taken up seriously because it could lead to unsatisfied customers, potential client loss and even negative connotation. Thus, one should not leave an odd eye on the operating side of the business.


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