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Standard Operating Procedures (SOPs)

Added Thursday, 02 June 2011

There are many factors that go into making a company successful: creativity and innovation, continuous improvement, sufficient capital, strategic focus, excellent internal and external relationships, and the right employees doing the right things on a consistent basis to name a few. At the heart of these outcomes is the "how" of your business, the way things are done and whether or not that way generates predictable results. Developing and continuously refining a set of Standard Operating Procedures (SOPs) for your business can go a long way towards achieving these success attributes.

There are those of you out there who will be saying, "We run a creative business. We need freedom to change rapidly. We can't be constrained by rules and a set way of doing things. Each project is different. SOPs are a sure path to sameness and an inhibitor to innovation." In fact, the opposite is true. SOPs can create freedom through continuity, consistency of outcomes and knowing that the right things will be done each and every time.

SOPs bring other benefits, as well.

  • They help reduce waste and mistakes and improve product quality
  • They encourage businesses to review and continuously improve processes 
  •  They provide a basis for performance appraisals and management of Key Performance Indicators (KPIs)
  • They get everyone in the company rowing in the same direction, knowing what's most important to the success of the enterprise
  • They help to ensure a consistent customer experience with a company's brand

SOPs also provide an opportunity to increase employees' understanding of their impact on company results and how the quality of what they do can affect their colleagues' performance, as well. Further, they are valuable recruitment, training and retention tools. Employees really do want to do a good job and be successful both personally and as part of a team. SOPs go a long way to assisting them to know how to achieve that success.

Many of our candidates tell us that what they'd like most when they start a new position is a training manual, something they can refer to that helps them come up to speed quickly and perform well on a consistent basis. Don't forget that early and regular "wins" benefit both the company and the employee. SOPs can start that winning streak.

Writing an SOP isn't just an exercise in documenting what you're currently doing. It is an opportunity to review what's in place now and create new and better ways of doing things. When developing SOPs, be sure to involve representatives from a cross-section of the business. This will encourage diverse perspectives as part of the decision-making process and help create buy-in from those who will be affected by the end result.

The written document can take many forms. Regardless of form, though, it should clearly guide the employee through the execution of tasks. SOPs should explain the why and how of what is to be done. They should be easy to understand, and they should clearly state the desired outcome. As people learn in different ways, try to incorporate text, graphics and "exercises" within the SOP document. This will help to make it more user-friendly.

Finally, keep in mind that SOPs should not be considered as static documents. They should be considered an essential part of your continuous improvement activities. Be sure to review them regularly in order to capture new learnings and experiences, and institute ways to ensure compliance. SOPs can give you the freedom to be more creative, knowing that processes are in place to help your business grow and succeed year after year.

Gaye Harford at Rag Trade spent many years certifying companies in ISO9000 so has enormous experiences in developing SOPs. If you want to know more contact her on 09 522.5001.

Submitted by Managing Director, Gaye Harford in collaboration with Lorraine Warshaw

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