Standard Operating Procedures-Why Every Organization Should Have an SOP on Regular Activities
A standard operating procedures (SOP), is a written document or instruction that describes the activities that must be performed to accomplish a task or process. SOPs describe the interaction between departments and usually include who is responsible, what work needs to be done, and when the work should be performed. Details about “how” work should be done are included in other documentation, such as a standard maintenance procedure or work instructions.
The optimization of business workflow can be effectively done by outlining a specific standard guideline for each of the tasks. These operating procedures help an organization simplify its processes and improve its quality. As a manager or team leader, outlining a standard operating system may allow you to streamline your daily workflow and that of your team and improve productivity and output. In the article, we will answer the question “What is an SOP?” with examples, give you a step-by-step guide on how to write one and highlight the essential tips to consider when you write an SOP.
Purpose and Importance of SOP
SOPs ensure that employees or any team member know how their responsibilities should be carried out to meet the organization’s quality and regulatory standards. They are also helpful in smoothing operations, reducing errors, and providing a reference for training and auditing purposes. SOPs are an excellent tool for any organization to ensure consistency, efficiency, and quality in its various operations.
- Readiness for Future Growth
If your long-term goals include expanding your business to branch offices, ready-made SOPs make your proven work processes portable. New employees at new locations can uphold your reputation by using the SOPs to replicate the products and services provided at your original place of business.
- Standard Operating Procedures Simplify Performance Management
The SOP framework helps managers establish target ranges and conduct evaluations of individual performances. Employees working on the lines of SOPs know precisely what is expected of them, and they plan their work schedules to meet their goals efficiently.
When all employees follow the same processes, it’s easy to measure them against the same standards. Performance can be fairly appraised. This is especially important when high performers are rewarded and low performers are retrained or placed on probation.
- Control the Quality and Consistency of Your Product
When your business produces a product you’re proud of, you want to maintain a high-quality standard. Standardized procedures inform workers and prevent any skipped or other steps that may harm the final product’s quality. Well-carried-out SOPs ensure your product or service is consistently produced from start to finish. The blueprint given out for the line of production promotes consistency and maintains the integrity of your product.
- Prevent Loss of Knowledge
If the details of your business processes exist in a critical employee’s head rather than in a procedures manual, the loss of the employee can be disastrous. Documenting job processes survives employee attrition due to retirement and resignation, thus allowing your company to continue as usual. It is hard to replace experienced, skilled workers, but comprehensive, well-written SOPs ensure that your valuable business processes stay with your business.
- Save on Training Costs
- With more complex tasks and the lesser experience of the employees, SOPs might only partially replace training. Written procedures are an excellent part of the new hire toolkit and can shorten the training time. They serve as reference material and enable the recruits to work occasionally without bothering the supervisor. New hires are a perfect testing ground for how effective SOPs are. If a new employee can execute the job, the steps written are ready to go. Any grey, confusing, or no longer used steps indicate that the SOP needs revision or updating.
Objectives of SOP
Now that you know a bit about SOPs, let’s discuss their benefits. Businesses in any industry benefit from using an SOP, but some business owners are hesitant to invest in creating them. An extensive SOPs network removes disorganization from your business, improves operations, and much more. Once you start to see the SOPs working for your business, you’ll wonder how you could’ve gone this long without them.
- Promote Positive Change
Do some of your staff grumble that they need clarification on what is expected of them on any given day? Are there managers who have pointed out that some processes might be pleasant around promotion time? Would you like a vehicle for guaranteeing that things get done well? Good SOPs help promote the change people want to see at the office. They’re supposed to improve how things get done at work and can be changed when called for. You are writing an SOP to give them the efficiency, reliability, and predictability needed for success. When there are fewer questions about how and why things are done, people can start performing as they’ve always wanted.
- Produce Reliable ResultsÂ
Consistency is the key to running a successful business. Companies may sell different things, but overall, they rely on the consistency of the products and work they produce to satisfy their customers. When you write SOPs, everyone follows a standardized procedure to deliver results. It leaves little room for error and is designed to produce consistent results. If there are procedures in place, it’s easy for employees to remember key steps, make mistakes, and slowly lower the quality of what you produce. When you have an SOP, you’re setting yourself up for success. You will reduce room for error. Hence, you can always ensure that you provide the best results for your client.
- Improve Employee Training and ManagementÂ
You have set operating procedures that will facilitate easy hiring and retaining employees. New workers use SOP to learn some essential things related to the business. They’ll understand how often processes must be done, what it takes to take a process from start to finish, and how everyone in their department plays into it. Let this be a tool that helps them get up to speed in their own time and take the pressure off you. You can spend fewer hours training and give everyone on your team more time to let the new employee get used to things. Overall, the SOP acts as a guide that helps everyone on your staff improve their work and make sure everything is running correctly. You can remove the ambiguity from some tasks and make the desired outcomes apparent. Employees will be more productive. This can help you save money on overtime fees for extra work and can reduce the possibility of errors in the work they produce.
- Find GapsÂ
You’ll be surprised how many business problems you can solve when you take the time to write down your procedures. Writing down how people do things makes it much easier to see where you have gaps in service. You should remember an essential step in the billing process that would improve your records. Writing down steps to your employee onboarding process may reveal that you’re omitting essential details about operating procedures. See how many things you revise regarding how you operate after inspecting how you operate. It would help if you always discovered what you might uncover when you write everything down.
- Increase Safety
There is no business where the employees’ safety concerns are not an issue. No matter what business or industry you’re in, you want to make sure you’re doing whatever you can to make the workplace safe. An unsafe environment can do more than result in injured employees. Equipment or merchandise could be damaged, or in some cases, customers and clients could get hurt. You won’t have to worry about damage to your business, customers, or employees. When employees follow an SOP, they’re following proven safe and efficient procedures. Writing an SOP can also help you with compliance. Having the proper SOPs in place can help make it easy for your employees to follow compliance procedures and keep you from getting fined.
- Improve EfficiencyÂ
Just imagine how even the most straightforward question about how to do something can tie up business decisions. A contract can’t be signed because someone isn’t sure who has the signature authority. You can lose talent because someone in human resources is not aware of who is authorized to approve new employee salaries. SOPs can eliminate a lot of questions that can slow down essential business decisions. When you have an SOP for your most important tasks, you make it easier for your employees to follow directions and get things done right the first time.
- Standardize Customer Service
If someone were to complain about a product or your service, do you know exactly how it would be resolved? Without such SOPs, companies find themselves wanting in customer service when the need arises for problem-solving. For instance, action might only be taken to call back an angry customer if there are procedures for follow-up times. The service requests could be misplaced because there are no procedures to inform people of a new customer service inquiry. It goes back to what was stated about reliability. It not only creates the proper outcomes for the customers but also assures that the employees do the right thing for your customers.
Who Writes SOPs?
Ideally, Standard Operating Procedures should be written by a multidiscipline team. But In reality, they are usually written by one individual. If this is the case, the individual responsible for developing them should interview the person performing the job, a supervisor, and persons responsible for ensuring that the quality, health, safety, and environmental requirements are met. They should also ensure that people from other places review and comment on them before releasing the final Standard Operating Procedure.