What is SOP in Business? Importance of SOP ?
With each business having an idiosyncratic style of running operations and style of management, it would be more to the aid of business, if a proper structure is present to carry the operations. This would help to run the operations effortlessly, even if the core person is absent, and ensure that the business doesn’t come to a halt, becoming the key to sustainability. For those businesses, whose daily operations revolve around a set of tasks, a well-defined structure is a must. This requirement of the structure is satisfied by the Standard operating procedure or SOP, which aims to bring the organization of tasks in the firm.
Why is SOP important for your business?
With a standardized set of procedures, or SOP from Business Advisory any firm- small, medium, or large can significantly reduce the time required for carrying out operations, increase the productivity of the team, eliminate induced errors and reliance on anybody, and improve industry compliance. This will increase the profitability of the firm and provide a defined path for the solution creation, and protect employees in a healthy and safe environment.
Benefits of having SOP:
- Effective Team Management: Through SOP, training recruits of the team becomes much easier as they are facilitated with a go-to manual which resolves the majority of their questions in the proceeding. Also, they will get to know entire particulars associated with the process such as frequency, responsibilities, and completion signals, so that they can act fast even while being in the training period. By the following SOP, employees work within specified timeframes and generate confidence; reducing errors and can easily delegate their work, if required.
- Quality Improvement: If a certain set of procedures or SOP is followed, the quality of the product delivered is consistent. This is achieved by different quality checks at different phases in the process of product development. Through SOP, necessary amendments for quality improvement can be communicated with staff and officials. This also assists in creating a benchmark for product development or improvement.
- Mitigating business risk through compliance: In a highly regulated activity business, compliance is the firm’s utmost priority. Through SOP, the set of procedures for compliances can be documented, acting as a guideline for staff and firm activity, deemed quintessential for compliance. This can be carried out in guidelines such as OHSAS etc.
- Reducing risks of accidents: The majority of the businesses around the world are accident-prone- both tangible and intangible. For ensuring a safe and secure environment for employees, employers provide guidelines through SOP in handling complex or sensitive procedures where there is a high degree of risk involved.
- Finding flaws: Complex business problems can be simplified and resolved by jotting down the procedures via SOP documentation. The flaws and gaps are thus revealed, such as any avoided or forgotten step in the process. A thorough examination will also reveal how the procedure can be improved to hasten the process and make it efficient.
- Standardizing Customer service: Through SOP, the proper process for any customer complaint or issue resolution can be drafted for a quick resolution. Through the process, critical problematic areas can be identified and improved. Sometimes, an unsatisfied customer is not reached, as there is no well-defined procedure regarding follow-up. A similar approach can be utilized in requests for service for enforcing reliability and credibility in the business.
SOP or Standard Operating Procedure can be written for hire, customer satisfaction, risk mitigation, and improving business, by the management or SOP experts too. A symbol of a good or perfect SOP is its conciseness, easily comprehensible, and easy to follow. Make sure not to make the process complex at all, and assume knowledge of any associated process for granted. On the contrary, guidance from the SOP and Business Advisory experts can be sought, who have immense experience in drafting procedures like NSKT Global.