David Jenyns
David Jenyns
When Karl Schwantes took over Xennox Diamonds, a 47-year-old second-generation family jewelry business started by his parents in 1976, he faced the challenge of transforming an established but unsystematized operation. With 27 years of experience in the jewelry industry, Karl recognized that to scale the business beyond its current limitations, fundamental changes in how it operated were essential.

The Daily Reset Challenge: Running Without Systems

In the early days under previous management, Xennox Diamonds operated with virtually no systems in place. As Karl describes it, they were “running each day as a fresh day and seeing what happens.”

This absence of structure created several challenges:

  • No documented processes for consistent service delivery
  • All knowledge trapped in the owners’ heads
  • Difficulty transferring skills to new team members
  • Inconsistent workflows causing inefficiency
  • The business dependent on key people being present daily

As a self-described “50,000-foot visionary thinker,” Karl recognized his own limitations in creating detailed systems. He needed to find the right person to help translate his vision into repeatable processes.

The Offsite Turning Point: Creating Space for Leadership

The pivotal moment came when Karl made the deliberate decision to step away from daily operations. Rather than merely delegating responsibility while maintaining a presence, he took the bold step of relocating to another office entirely.

“Sometimes as business owners, we can cast a shadow,” Karl explains. This physical separation allowed his Systems Champion to truly step into a leadership role without the founder’s unconscious influence affecting decision-making.

This transition marked the shift from Karl being integral to daily operations to becoming a mentor focused on system improvement rather than direct management. When issues arose, they “looked towards the system and how could we improve the system, rather than blaming the people.”

The Visual Systems Approach: Daily Reinforcement Strategy

Karl’s implementation strategy focused on making systems visible and reinforcing them daily. His approach included:

  • Appointing a Systems Champion from within the organization who naturally gravitated to systems thinking
  • Creating visual representations of all major processes
  • Implementing a 15-minute daily team reading session using business books
  • Developing flashcards with systems information and prompting questions
  • Reviewing core values and systems in daily morning meetings

This systematic approach created what Karl calls “scaffolding” around team members, making it “super easy and simple to follow the system.” Rather than expecting team members to absorb systems knowledge in a single exposure, he implemented “daily indoctrination” through consistent reinforcement.

Double Circle Pendant

Engagement Ring

Transformational Results: Operational Freedom Through Systems

The implementation of systems yielded significant improvements across multiple areas of the business:

Operational Improvements

  • Consistent service delivery regardless of which team member is involved
  • Reduced dependency on Karl’s daily presence
  • Streamlined workflows with clear expectations
  • Enhanced ability to identify and resolve bottlenecks

Management Evolution

  • Systems Champion promoted to General Manager with full operational control
  • Karl transitioned to a strategic advisory role
  • Creation of a true turnkey operation
  • Freedom for Karl to start and develop a new business (Reputable)

Team Development

  • Enhanced training through documented processes
  • Greater autonomy for team members to make decisions
  • Improved ability to cover for absent colleagues
  • Team members empowered to create their own SOPs

Essential Jewelry Business Insights: Lessons from Scaling Xennox

Karl’s experience offers valuable lessons for other jewelry business owners:

  • Start systemizing as early as possible: “If I have to do this job more than twice… that’s when I can create a system around that.”
  • Empower your team: Finding and nurturing a Systems Champion who thrives on creating order is crucial.
  • Visual representation matters: Make systems easy to understand and follow with visual elements.
  • Daily reinforcement is key: Consistent review of systems creates lasting behavioral change.

The Freedom Beyond Systems: Building a Self-Running Jewelry Business

Today, Xennox Diamonds operates efficiently without Karl’s day-to-day involvement. The business has become a true asset rather than just a job, allowing Karl to focus on his new venture, Reputable, which helps businesses generate organic leads through Google reviews.

For jewelry business owners looking to scale, Karl’s advice is clear: “Once you commit to systemizing your business… you’ll just start to see opportunities everywhere.” The journey may begin with simple, imperfect systems, but the momentum builds as the benefits become apparent.

What if your jewelry business could run as smoothly as Xennox Diamonds, even when you’re not there? SYSTEMology’s 30-day free trial gives you access to the exact tools Karl used to create visual systems, implement daily reinforcement strategies, and develop a self-running operation. Stop resetting each day and start building a jewelry business asset that truly sparkles.

 

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