Analytica Portfolios

Standard Operating Procedures (SOPs)

What is SOP?

A Standard Operating Procedure (SOP) is a set of written instructions that describes activities necessary to complete the task under industry regulations. A Standard Operating Procedure is a document containing step-by-step instructions. SOP means simply a step-by-step production line procedure used to make products and improve staff efficiency. 

SOPs can create

  • Efficiencies and therefore profitability
  • Consistency in service
  • Way to resolve conflicts
  • Roadmap to resolve issues
  • Minimization of errors
  • First-line defense in case of defaults

This process is administered by a business advisory and consulting firm. 

Why are standard Operating Procedures important?

Standard Operating Procedure aims to achieve efficiency, quality output, and uniformity of performance. This documentation is important because it allows the organization to standardize the process, and keep all stakeholders and team members on the same page. It is a piece of instruction that all the team members will remain in alignment and the organization will continue to work in a positive space. It gives an edge to the business.

SOP is important in the following ways.

  • Assure adhesion to best practices
  • Ensure consistency
  • Enable proper onboarding and training
  • Maintain organizational knowledge

The SOP Format

While creating Standard Operating Procedure, decide the best format for your organization. Most common are simple and complex, depending upon the needs of your organization. 

Choosing the SOP format also depends upon the audience, purpose, and detail you need. 

The following formats are usually used in the market.

1. Simple SOP(Standard Operating Procedure) format

A simple SOP format is best for procedures having low complexity and straightforwardness. A simple format is easy to digest and shows all your information well. Keep the document length to three to five sections and include;

  • Statement of purpose
  • Short Summary
  • Step-by-step instructions with bullets
  • Responsible person for each step 

2. Hierarchical SOP format

This format is best for complex designs and is called the Complex SOP Format.

 It includes a table of content, and headings to help organize the information. It also includes

  • Statement of purpose
  • Short Summary
  • Step-by-step instructions with bullets
  • Responsible person for each step

3. Flowchart SOP format

This format applies to both simple and complex procedures. A flowchart can vary in length and a few essential components it includes are;

  • Statement of purpose
  • Flowchart or diagram outlining various scenarios
  • Responsible people for each step

Types of Standard Operating Procedures

These procedures communicate across all levels within the organization. They are categorized as Technical and Management SOPs. 

Technical SOPs

Technical SOPs point to how to perform and complete a certain task. They are often in the form of work orders or preventive maintenance.

Management SOPs 

Management SOPs point to how all procedures are created, detailed, maintained, distributed, and revised. It is a document explaining the implementation of all SOPs. 

What is the Standard Operating Procedure Template?

The Standard Operating Procedure template is a document that is used by the company as a starting point. A company might have Standard Operating Procedures managed by different people within the same organization speculating methods of completing a variety of tasks. The SOP template creates a single style and spacing, likely giving instructions to all the stakeholders and team members to follow those rules. 

How to write the Standard Operating Procedure

template?

Building the SOP template makes it easy to write SOP for every task. The first step is to select the style and layout. Build a framework that contains the same style for the flow of information such as font style, and section spacing, and apply it to all other SOPs templates. 

Building the section of your templates includes the following points.

  • Title

Every SOP has a unique title and selecting the title depends on the information you are going to give in.  

  • Introduction

Some SOPs include the reminder of organizations’ commitment.

  • Scope of SOP(Standard Operating Procedure)

This section covers the purpose of SOP and the process. It also includes what information is necessary to follow. 

  • Contacts

List roles, responsibilities, and contact information for coordination.

  • Glossary

Include the glossary of terms if SOP includes particular languages. 

  • Step-by-step process

It is the section where the process is written step-by-step and includes flow charts or tables if any. 

  • Checklist

Include checklists as it reflects an easy description. 

Challenges of developing Standard Operating Procedures

Creating effective Standard Operating Procedures that are followed come with challenges as well.

i)   Categorized development

One of the main challenges that we encounter while writing Standard Operating Procedures is compartmentalization. This means that SOP may not include the necessary instructions that are encountered by lower team members but not the higher stakeholders. This can cause the ground-level team to run into a variety of obstacles that the executives may not have anticipated. 

ii)   Problems with Accessibility, Visibility, and Centralization of Information

Make sure that all stakeholders can engage with documentation whenever necessary. All your team members must have access to the same documentation across the board. Make sure that all team members are following the right documentation at all times. 

iii)   Lack of management and maintenance

Your team needs to be properly trained to implement the procedures in question. This means ensuring they have access to any equipment or other resources needed to complete the tasks defined within the SOP. With the improvements in technology, day-by-day advancement demands that your SOPs also need to be updated. Make sure to update them also. Following old procedures can harm as well. 

You May Also Like

Gap Analysis

Business Gap Analysis

A Business Gap Analysis is a strategic analysis tool that helps to identify the gap between two business states, expected and current, and comes up with an action plan...

Tips For Managing Business Through Finance

All successful businesses have a strong finance function, and that differentiates the best from the others. Here are quick tips for...

Mergers And Acquisitions

Undertaking mergers and acquisitions have become an integral part of boardroom business strategy, for many companies. Entrepreneurs are taking a pragmatic...

Treasury Management

Treasury management is the management of enterprise holding. It is a key component of business operations. In the business landscape, the importance...