Systems
The E-Myth Revisited
Michael E. Gerber
Why most small businesses fail — and how systems save them.
Recommended for: We Keep Making the Same Mistakes
All Challenges
Operations
We Keep Making the Same Mistakes
The same problems keep coming back. Turn each mistake into a lesson, a principle, and a better process.
The Challenge
The same problems keep coming back. Turn each mistake into a lesson, a principle, and a better process.
Why This Happens
- People problem — the wrong person in the role
- Training problem — never shown the right way
- Communication problem — expectations unclear
- Process problem — no defined steps
- System problem — tools or schedule cause it
- Leadership problem — no follow-up or accountability
Questions to Ask Yourself
- 1.What exactly happened, and when?
- 2.Why did it happen?
- 3.Is this an isolated event or a system problem?
- 4.Has this happened before?
- 5.Was anyone trained on the right way?
- 6.What principle should come out of this?
- 7.What process should change so it doesn't happen again?
What to Do First
1
Write down the last mistake that repeated.
2
Find the root cause with five 'why' questions.
3
Change one process step and tell the team.
Step-by-Step Solution
- 1
Record the problem.
- 2
Find the root cause.
- 3
Name the lesson.
- 4
Write the new principle.
- 5
Update the process or checklist.
- 6
Assign a responsible person.
- 7
Set a follow-up date.
Three Levels of Solutions
Quick Win
Do this today
Pick one repeated mistake and write down its root cause today.
Build the System
Next 30 days
Keep a business-learning journal: every repeat mistake becomes a documented process change.
Long-Term Transformation
Where you're headed
A company that gets better after every mistake instead of repeating it.
Lessons From the Pass It On Library
From Principles
Mistake → Lesson → Principle → System.
Framework: Mistake → Lesson → Principle → System
From The E-Myth Revisited
Fix the system so good people can succeed.
Framework: Technician (does the work) · Manager (creates order) · Entrepreneur (builds the future)
Pass It On Action
Turn one mistake into a written checklist this week.
Practical Tool
Business-Learning Journal
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 “We Keep Making the Same Mistakes” 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 exactly happened, and when?”
- Day 4 — Choose one change: Write down the last mistake that repeated.
- Day 5 — Assign responsibility: name ONE owner, a deadline, and the expected result.
- Day 6 — Implement: Find the root cause with five 'why' questions.
- 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 exactly happened, and when?
- Answer: Why did it happen?
- Answer: Is this an isolated event or a system problem?
- Complete the 7-Day Action Plan.
Week 2 — Build
- Keep a business-learning journal: every repeat mistake becomes a documented process change.
- Record the problem.
- Find the root cause.
- Name the lesson.
- Write the new principle.
Week 3 — Implement
- Update the process or checklist.
- Assign a responsible person.
- Set a follow-up 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.
#72 · Growth
Build on a strong foundation
Matthew 7:24–27
#89 · Wisdom
Learn from correction
Proverbs 15:31–32
#90 · Wisdom
Remain teachable
Proverbs 9:9
Related Challenges
Recommended Books
Approved Bookshelf resources related to this challenge.
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