The speaker (David Jenyns) introduces Stage #1 of a systemization process: identify the first 10–15 mission-critical systems to create rather than trying to systemize everything at once. He recommends applying the 80/20 principle to focus on systems that deliver the core product or service, noting that existing non-systemized work will continue functioning while prioritized systems are built.
But the seven stages are define and that is just about identifying what are the first 10 to 15 systems that you're going to create. First, because you have to start somewhere, you can't systemize everything. And the good thing is though, just because you don't systemize something doesn't mean it's going to magically stop happening in your business. Your business is already working. So we apply the 8020 in this step number one to say what are the mission critical systems that help us deliver a core product or service?
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