Creating Systems

“Systematize everything, and find peace”

Brandon Turner (The Book on Rental Property Investing)

Why create systems?

Having goals is a fantastic way to be productive and build a life by design, but the most productive results come from having systems. When we have a goal, there are a series of choices we have to make. Usually, goals are things we haven’t done before, so all the choices we’re going to have to make require a lot of attention and energy. Even if the goals have been accomplished before, having to deal with the challenges that arise time and time again can be exhausting.

Systematizing everything makes these processes a lot easier, especially if there are goals that need to be completed regularly. Creating systems gives us the opportunity to make fewer choices and the freedom to do other things. Despite what many people think, our energy is like our time, limited and nonrenewable. The return on saving energy is virtually infinite. Systems allow us to be more productive as well, in terms of quantity AND quality.

Systems also make processes easier when we have to do them. Having a reliable proven strategy for conquering whatever scenario in front of us cuts the effort down tremendously. It’s much easier to just “start the process” than to try really hard just to discover that it wasn’t going to work anyway.

Focusing on systems, not goals, is the key to long-lasting, reliable, and fruitful results.

In order to focus on systems, we first have to understand what they are and how they work. I wrote two posts on systems so far: Gall’s Law & System Components and Analyzing & Improving Systems. I highly recommended checking those out, I go over the fundamental information about systems and how they work. This post synthesizes some of the information discussed in those two posts and emphasizes the concepts that will make creating systems much easier.

When we understand how systems work and how to create our own, then we can engineer our own systems to fit our unique needs perfectly.

Marks of an Effective System

Human beings need purpose and intentionality in order to have fulfilled lives and content with existentialism. I talk a little bit about that in this post. We need something to aim at and a system is no different.

What is the purpose of a system & how we do know if it’s working well?

According to author of The Personal MBA, Josh Kaufman, an effective system does the following:

  • Fulfills its functionality
  • Has great infrastructure
  • Ready connectivity with other systems
  • Versitile
  • Adaptable
  • Reliable
  • Produces benefits which far exceed the initial investment

Keep in a mind, all of these criteria don’t need to be met to have a functional system. A system can work without all of these, however, these are all qualities that a great system can build towards.

How to Create Systems

“If you want to build a system that works, the best approach is to build a simple system that meets the Environment’s current selection tests first, then improve it over time. Over time, you’ll build a complex system that works.”

Josh Kaufman (The Personal MBA)

Keep Gall’s Law in mind when you first start – work on creating a simple system, then add complexity over time. Don’t try to make a system that does too much at once right off the bat.

Creating a complex system immediately will result in failure.

When it comes to building a system from scratch, just try to figure out how to get the task done in the first place. Once we’ve completed the task, we developed a neural pathway that knows exactly how to get that task done. Every single time we work on that task in the future it gets easier and easier. (Exactly like Active Recall.) Once we’ve gotten to this point, it will be much easier to create a system because we will know the steps intimately. Creating a system will speed that process up even more!

Once we know how to get the task done, we need to identify the key components of the system and improve each step of the process so it becomes more efficient and effective. Just make one change at a time. Creating a good system takes time and patience, like building habits.

Systems are almost never correct right off the bat. It takes a few tests to get all the details right and have a system that runs smoothly. All systems start off terribly, but all the best ones improve over time and the only way to objectively improve a system is through experimentation.

Fans of history can probably name a few times human beings have tried to create something but had to revamp the system because they found out it wasn’t working too well. I remember working with a student on history work and I was stunned to discover that this process is the exact process that the American government evolved from. Today, the American government is a massively complex system with multiple branches and precedence for almost every conceivable situation but it did not start off that way. It started off with just the Articles of Confederation, and that system didn’t even have an executive or judicial branch. Then it grew with the Virginia Plan, then the Constitution, then the Bill of Rights, and finally with the amendments we have today. The point is that this extremely complex system didn’t start off how it is today, it grew over centuries through experimentation.

Humans never get anything right the first try.

When I was a noob at creating systems, I thought that I needed to know each step of the process and it had to work perfectly before I even started, but that prevented me from even starting in the first place. There’s no way to know every single step and account for every single variable without testing a system.

All, if not most, problems can be handled with systems. If there isn’t a system for it, then we can create one. We just have to go into the process expecting the system to fail and be willing to make adjustments or we won’t have any systems at all.

Guiding Questions

If you’ve read some of my Importance of Questions post, then you know that I believe questions hold the key to everything we want in life. They can allow us access to other people’s minds as well as guide our thinking to solve problems that we haven’t seen before.

Here are some questions that could be useful when creating systems:

  • How do I make this process easier next time?
  • How can I make this process more reliable next time?
  • How can I prevent ____ from happening again?
  • In a perfect world, how would I want to deal with this situation?
  • How can I make _____ happen again?
  • What is the end result? What am I producing?
  • What are we starting with? What do I need to get this going?

Tips for a Great Checklist

Systems can take many different forms. One of the most simple forms, checklists, have also been proven to be one of the most effective. I talk a little about checklists in my post Analyzing & Improving Systems and in that post, I mention how checklists are fantastic for creating processes that haven’t been articulated yet. Checklists are my go-to method for ordering the chaos and are fantastic simple systems to build upon later.

In Dr. Atul Gawande’s fantastic book, The Checklist Manifesto, Gawande lays out the proof that checklists are more reliable than the instincts of even the highest trained professionals. Pilots, especially when confronted with an emergency, are more than willing to turn to their checklists.

The first tip for making a great checklist is to have normal and non-normal checklists. Normal checklists are for normal everyday situations, things that come up often. Pilots have normal checklists for things like take-off and landing. Non-normal checklists are less often used but are for emergencies or other scenarios that wouldn’t occur on a regular basis. Pilots have more non-normal checklists than normal checklists. They have checklists for all conceivable emergency situations.

There are two types of checklists: do-confirm and read-do. Do-confirm lists are when team members perform their jobs first, then pause and run the checklist to make sure that everything was done correctly. Read-do lists are when people do the tasks as they read them on the list. Do-confirm lists act more like a double-check while read-do lists are more like a recipe. Know which type of checklist you are creating and when to use it.

Great checklists are specific and precise. If a checklist is too vague and inaccurate is becomes hard to use and impractical.

They also need to be short and to the point, if a checklist is too long it becomes another hurdle. Try to keep the length of the list within the bounds of our working memory, 7+2 items (5-9). They can be longer, but keep in mind that if checklists take longer than 60-90 seconds then people start shortcutting and they become more hassle than they’re worth. Focus on the critical few.

They also have to be easy to use in the most difficult situations, keeping it short and sweet helps a lot with this.

Contrary to popular belief, a great checklist should not spell everything out. They just simply provide a reminder of the crucial steps. Operators of the checklist should be trained and know what they are doing. The checklist is just an aid, not an instruction manual.

Checklists must, above all, be practical.

Checklists cannot solve problems for us, they simply help us manage complex processes and clarify priorities. They are not comprehensive guides, just reminders of the critical steps. If we include every little step, then the checklist just adds friction to the system. Checklists are designed to remove friction and add ease and clarity to a scenario.

When creating a checklist, I highly recommend clearly defining a point WHEN the checklist will be used.

Like all systems, checklists have to be battle-tested in real life. Experiment with the checklist and pay attention to what works and what doesn’t. The first drafts never stick and revising is always required.

A Few Systematic Principles

A few principles that I’ve noticed systems follow. It’s helpful to keep these in the back of our minds when planning and executing systems.

The Matthew Effect

“For to every one who has will more be given, and he will have abundance; but from him who has not, even what he has will be taken away.”

Gospel of Matthew (25:29 Revised Standard Version)

I talk about this in my post The Myth of Motivation, when I talk about aiming for success spirals.

The Matthew Effect is pretty simple — success breeds success and failure breeds failure. The best part is that this relationship is not linearly, it’s exponential. If we do something like writing a book and some people like it, then we’re more likely to write another book which makes it more likely that more people are willing to like it.

We can see spirals like this is so many things. If we get an A on an exam, it’s easier for us to get an A on the next exam. We know the concepts and are more likely to sacrifice because our sacrifice led to a positive outcome last time. Likewise, if we fail an exam, it’s easier for us to fail the next one. We don’t know the concepts, so we’d have to learn those ones on top of the new stuff. The previous failure adds friction to the next challenge. Our actions compound on each other and it can stack up quickly. This is definitely one of the reasons for the massive wealth inequality in the modern world. It’s much easier to make money when you’re already making money.

When building a system, try to keep in mind that the actions of the system will affect the actions of the system later. The Matthew Effect also provides a fantastic foundation for another systemic phenomenon, the Pareto Principle.

Pareto Principle (The 80/20 Rule)

The Pareto Principle definitely needs it’s own post because it’s such a pervasive idea and we can dive into it for hours. Famous entrepreneur and investor, Richard Koch was able to write 4 books on the topic! 4 books!! While the principle itself isn’t complex nor long, Koch focused more on applying the principle to every aspect of our lives. I’ll go more into that later.

While there is a lot to say about the Pareto Principle and its accommodations, it can be summed up relatively quickly:

80% of the output of any system is from 20% of the input.

This principle can apply to all domains of human creation. This shouldn’t be a surprise though. For most of us who have worked on a group project, we know that most of the work ends up getting done by a small portion of the group. This also happens in companies too – 80% of the work is done by 20% of the employees.

There are many names given to this idea because it shows up in so many places. The Pareto Principle is also known as the 80/20 Rule or the Square Root Rule: being that 50% of the work is done by the square root of the number of employees. The numbers aren’t perfect, but the idea is the same:

The majority of the results come from a critical minority of effort.

This principle is game-changing when it comes to creating systems. Knowing that the majority of the results comes from a critical few, we can focus our energy on optimizing for those critical few inputs rather than wasting energy on processes or steps that yield a lower rate of return.

I talk a bit about how the Pareto Principle came to be in my post Analyzing & Improving Systems.

Vilfredo Pareto, the 19th-century economist and sociologist, discovered an interesting pattern when analyzing data regarding land ownership and wealth distribution. He discovered that 80% of the land was owned by 20% of the population. Pareto didn’t just find this pattern in wealth and land distribution, he also saw it in his garden. 20% of his pea pods produced 80% of peas.

We can see this in book sales and album sales too, pretty much any domain of creative production. 80% of the book sales are from 20% of the authors. 80% of music streams are from 20% of the artists.

Richard Koch also noticed a similar pattern when studying for his final exams at Oxford. At Oxford, the students are graded by their performance on a final exam which is a collection of essays on a wide variety of topics. Richard determined that in order to prepare for every possible question they could ask him he would have to memorize somewhere around 550 essays. Obviously, this wasn’t reasonable so Richard found another way around it. He analyzed all the past exams and discovered that every exam asked questions on similar topics. 20% of the topics accounted for 80% of the questions. Upon realizing this, Richard figured that all he had to do was prepare for 20% of the topics. This significantly cut down the work he needed to do to prepare for the exam.

Spoiler Alert: he did great on the test.

The best part about the Pareto Principle is that it can apply to all systems, in business and our personal lives. We can a Pareto analysis of our own lives, as well as any systems that we’d like to optimize.

I love doing the 80/20 analysis of everything. I’m constantly trying to figure out what I really need to do. Trimming the fat automatically maximizes our time and effort. It’s much easier to just focus on what is important than trying to find ways to do everything better.

It can apply to happiness – What 20% of things give me 80% of my happiness?

It can also be applied in reverse – What 20% of things are giving me 80% of my unhappiness?

It can be applied to anxiety, relationship satisfaction, costs, food, anything our hearts desire.

This principle helps us optimize.

Whenever I’m creating a system I try to keep in mind that principles are more valuable than knowledge. If we can understand the principles behind something, then we have the ability to predict and manipulate the system across many different scenarios.

Richard Koch likes to ask people:

“What would happen if we spend all of our time on the critical aspects?”

Parkinson’s Law

I first talked about Parkinson’s Law in my post 5 More Tips for Better Scheduling because I first learned it as a scheduling principle but now I see how it can be applied in a broader sense.

Parkinson’s Law states that work expands to fill the time allotted for it.

So if we have a week to get a project done, it will take us a week. If we have a day to get a project done, then it will take a day. Parkinson’s Law helps explain how people are able to finish massive projects the day before it’s due or how an unmotivated student finds the strength within them to get something turned in. It’s not that we aren’t capable of doing the work, it’s that we know we still have time and we’ll use all of it if we can.

What I do to try to account for this is give myself less time than I think I need to complete a task or I set finite deadlines to work on a project. Either way, they both prevent me from spending extra unnecessary time on something.

There’s something about having our backs up against the wall that makes us perform. I’m not sure what it is, but it’s definitely there and we can use it to our advantage if we want.

However, Parkinson’s Law is more than just a cool scheduling hack. It can also apply to budgets and other resources too.

Parkinson’s Law applied to budgets – spending expands to fit the budget allotted for it.

Now, the spending doesn’t have to expand to fit the budget but it usually will.

The resources we allocate for something determines the fundamental perspective of our approach.

If we are pressed for time or if we don’t have a lot of money, then we’ll be on the lookout for creative ways to solve problems that could otherwise we solved with time or money.

Parkinson’s Law really just highlights another quality of human nature which is that humans are creatures of necessity and we will always try to solve problems with the least amount of effort possible. Keeping this in mind when building systems is extremely valuable and perhaps we can go further with what we already have.

When I think of the word “successful,” who’s the first person who comes to mind and why? (2020)

“On hearing of the interesting events which have happened in the course of a man’s experience, many people will wish that similar things had happened in their lives too, completely forgetting that they should be envious rather of the mental aptitude which lent those events the significance they possess when he describes them; to a man of genius they were interesting adventures”

Arthur Schopenhauer (The Wisdom of Life)

This question was originally pulled from Tim Ferriss’ Tools of Titans and I thought it would be fun to answer it for myself. However, instead of just naming one person and analyzing that answer I wrote a list down. Partially because Tim Ferriss was the first name that came up, and I’m pretty sure it priming has something to do with that. Partially because I like reflecting on people that I admire.

When I think of the word successful when it comes to people many different kinds of people come to mind. Honestly, I could go on all day writing people’s names down. I originally was just doing to write 1, then I said I’ll just do 5, but I’ve managed to stop myself at 15.

Successful to me at least

They are all kind of random, but I think the aspects that I admire of each of these people’s lives are an indication of what success looks like for me.

From what I can tell, I believe each of these people are successful because of a few reasons:

They’re known as people who have made a positive influence in the world.

That positive influence was brought out in a way that can out live them and will exist long after they die.

They’re all financially well off.

They all took the attention people gave them and created something incredible out of it.

They all have a certain kind of freedom that I don’t quite have the words to explain. (It’s now my job to figure that out.)

They all have embraced the miracle that life is and live in a way that does it justice.

I could go A LOT deeper with these ideas and perhaps someday I ought to, but I’ll leave that here for now. I didn’t have as much time to write this week, and I spent most of my allocated writing time to research for a behemoth of a blog post I’m working on.

In the future, I think it would be fun to make a list of people who are considered conventionally successful, but for one reason or another I personally don’t consider them successful. Comparing what this second group has in common will give me a clearer picture of what unsuccessful will look like for me.

Defining success for ourselves is crucial for our mental health. The higher the level of articulation, the less we find ourselves needlessly suffering on a hedonic treadmill or chasing phantom pleasures. We can level up our articulation through analyzing our personalities and inclinations as well. Discovering what we are and what we like helps us recognize success if we are fortunate enough to meet her.

Categories
Lifestyle

What purchase of $100 of less has most positively impacted my life in the last year? (2020)

“Judge a man by his questions rather than his answers.”

Pierre-Marc-Gaston (1764 – 1830)

This question was originally pulled from Tim Ferriss’ Tools of Titans in the Rapid-Fire Questions section. I thought it would be fun to answer it for myself, plus it’s an opportunity for me to take a break from writing research heavy content. I’ve noticed I’ve been feeling a little burnt, so I’m going to take the foot off the gas and change gears, at least just for this week.

When I first pondered this question I was thinking of just putting one item, but I couldn’t pick just one item and say this provided move value than anything else I bought (less than a $100). So I’m going to answer this question with a few different things simply because they gave me value in different and incomparable ways. This list isn’t going to include books, otherwise I’d never get this post finished!

The first purchase I’m going to name is going to have to be my Yoga Mat. I started doing yoga consistently at the beginning of 2019 and I’m so glad I did. I’m more flexible and I feel like I have more physical control over my body in a way I didn’t realize I could. It has been a way for me to practice holding my body in between chaos and order – to practice cultivating myself as an individual.

Someone once told me “You should never let my body figure out it’s dying” referring to working out consistently to slow the aging process. Stretching and practicing yoga has given me a whole new relationship to my body. I used to just feel generally okay/kinda shitty all the time, but now that my body knows what it’s like to not be tight, I actually notice when my body isn’t feeling right. One of my favorite things to do at the end of a long day is some yoga to stretch out all the stress and tension of the day. Most days I can’t believe how good it feels. Sometimes I think about people who haven’t stretched their muscles for decades and how stiff and rigid they must feel – their bodies definitely know they’re dying. Anyways, the yoga mat has been an invaluable purchase. I invested in a pretty pricey one so I had incentive to take it seriously at the beginning and it worked!

The next thing on the list would have to be my Kettlebell. I bought a 25-lbs one sometime last year to start doing some kettlebell swings because I read they are some of the most efficient and effective workouts. I have found this to be true! I love my kettlebell, it’s inexpensive and incredibly versatile. I can get a great cardio workout in if I do high reps, but I can also do slow and controlled swings for a more strength focused work out. I also use it to make my crunches more interesting as well as a free weight to target other muscle groups. I definitely want to get more once COVID-19 blows over.

The next purchase isn’t a physical product, but a digital one. Notability has been my personal #1 app purchase in the last year. It is a note-taking app made for tablets and it is phenomenal! I use it for organizing all of my tutoring sessions as well as a portable whiteboard and a sketch pad. I never buy paper anymore and I never lose any of my student’s work. It also makes online tutoring seamless! If you are someone who needs notebooks all the time, invest in a good tablet with a high quality stylus and get notability. I can go on for a while about it, but purchasing Notability has opened the floodgates (so to speak) to spending money on other digital products.

My Splice Subscription is going to be my next extremely valuable purchase. Splice is a website that has thousands and thousands of high-quality royalty-free sounds that are excellent for music production. For many years I was producing songs with whatever free sounds I could find online or from other producers I’d meet, but that limited me in ways that I couldn’t imagine. I had the toughest time trying to mix songs perfectly. I spent so many hours trying to become a better music producer by learning technique after technique, but I never could get them to sound professional. Finally last year, I found out why I could never get that professional sound. It was all because

garbage in, garbage out.

The sounds I was trying to work with could only sound so good, I needed to get better music quality at the source. Investing in splice gave me tons of high quality samples and just in a few short weeks, I was making mixes that sounded better than anything I could have made before. I was being cheap, but honestly for less than 10 bucks a month, I have been able to make my best music yet. Can’t put a price on that.


Honestly, I can go on forever, but I’ll cut it short here. Those 4 purchases we’re probably some of the best I made in the last year. They all give me something different and if I didn’t make any of these purchases, then my life would be in a very different place. The biggest changes in our lives don’t need to come from high ticket purchases or grandiose gestures, sometimes they can be a simple as a yoga mat or an app.

Something interesting happens when we are asked questions – we come up with answers. So I ask you now, what purchase of $100 of less has most positively impacted your life in the last year?