Systems
The E-Myth Revisited
Michael E. Gerber
Why most small businesses fail — and how systems save them.
Recommended for: Our Company Has Knowledge but It's All in People's Heads
All Challenges
Operations
Our Company Has Knowledge but It's All in People's Heads
Capture what your experienced people know before it walks out the door.
The Challenge
Capture what your experienced people know before it walks out the door.
Why This Happens
- Nothing written down
- Key people never documented their work
- No backup person
Questions to Ask Yourself
- 1.What would happen if your key person left?
- 2.Which processes live only in someone's head?
- 3.Who is the backup?
What to Do First
1
List your key experts.
2
Pick one process to capture.
3
Name a backup person.
Step-by-Step Solution
- 1
Identify employee / expert.
- 2
Name the process.
- 3
Capture important knowledge.
- 4
Create a checklist.
- 5
Decide if a video is needed.
- 6
Decide if an SOP is needed.
- 7
Assign a backup person.
- 8
Record last updated date.
Three Levels of Solutions
Quick Win
Do this today
Record a 5-minute video of an expert doing one task.
Build the System
Next 30 days
Capture one process per week in the Knowledge Capture System.
Long-Term Transformation
Where you're headed
Company knowledge that is documented, trained, and shared.
Lessons From the Pass It On Library
From The E-Myth Revisited
Document procedures.
Framework: Technician (does the work) · Manager (creates order) · Entrepreneur (builds the future)
From Principles
Write principles down so they outlast people.
Framework: Mistake → Lesson → Principle → System
Pass It On Action
Capture one process this week.
Practical Tool
Knowledge Capture System
Fill it in here, then download or print. Your answers stay on your device.
Your Action Plans
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7-Day Action Plan
- Day 1 — Identify the problem: write down exactly how “Our Company Has Knowledge but It's All in People's Heads” shows up in your business.
- Day 2 — Review the numbers: gather the facts, figures, and examples connected to this challenge.
- Day 3 — Find the root cause: answer “What would happen if your key person left?”
- Day 4 — Choose one change: List your key experts.
- Day 5 — Assign responsibility: name ONE owner, a deadline, and the expected result.
- Day 6 — Implement: Pick one process to capture.
- Day 7 — Review what happened: what worked, what didn’t, and what you’ll do next week.
30-Day Action Plan
Week 1 — Diagnose
- Answer: What would happen if your key person left?
- Answer: Which processes live only in someone's head?
- Answer: Who is the backup?
- Complete the 7-Day Action Plan.
Week 2 — Build
- Capture one process per week in the Knowledge Capture System.
- Identify employee / expert.
- Name the process.
- Capture important knowledge.
- Create a checklist.
Week 3 — Implement
- Decide if a video is needed.
- Decide if an SOP is needed.
- Assign a backup person.
- Record last updated date.
- Train the people involved and assign owners.
Week 4 — Measure & Improve
- Compare results to where you started.
- Write one lesson learned.
- Adjust the process.
- Share what you learned with someone in the fellowship.
Biblical Principles
Wisdom for the journey — encouraging stewardship, integrity, and service, never a promise of guaranteed success.
#15 · Work
Be faithful in small responsibilities
Luke 16:10
#25 · Leadership
Develop other leaders
2 Timothy 2:2
#72 · Growth
Build on a strong foundation
Matthew 7:24–27
Related Challenges
Recommended Books
Approved Bookshelf resources related to this challenge.
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