How Standard Operating Procedures can Increase Profitability of your business?

SPOT International Services specializes in Process Improvement and Process Standardization.  We had helped 5 employee to 20,000+ employee companies worldwide.  With our experiences with small businesses, a lot of them have no standard of operation in place.  They had scribbly notes here and there but nothing that can be used when they bring new people in the company.  When business starts to fail or grow they will start to cram, sink, swim and will quickly put it together.  By then, the structure of their processes are in accordance to what the manager wants and not what will be the most efficient and productive way for the company to succeed. 
Having established Standard Operating Procedures (SOP) is one of the most useful tools to streamline and structure company product and services.  The listed tasks in your SOPs are essential for your business success, how to do these tasks, who is responsible for the tasks listed and if your SOPs are vetted and approved by your department head /team members.  Well written SOPs will likely save you a lot of money on lawsuits, training and financial responsibility.

Can you measure the improvements if you (and your team) follow the SOP?  Absolutely!  Your productivity will improve and your waste and bottlenecks are easily defined.

Here are the 8 of the many benefits of having your SOP in place.

1. Saves money training employees

When a new employee comes, the SOP gives a shorter learning curve.   A well designed template gives both visual and written information making it easier and faster for the employee to learn.  It will then be easier to review it until the employee has mastered the task.  Thus, your well-written SOP can be a lifeline to them to be able to know how things work.  For example, if an employee is required to wear a uniform at work, by referring to the SOP, your new employee will know exactly where to get his measurements, where to get it, how to maintain it and who to give it to when the day is over.  It’s not only a time saver but it defines who’s responsible to certain things.

2. Protect money loss when employee leaves

When a key stakeholder gets fired or is on leave, work does not have to stand still or end.  By referring to the SOP someone else can take over the urgent tasks or responsibility and the operations continue without delay or mistakes.

3. Lower cost with better teamwork

The SOP makes it easy to find out what policies and procedures are in place to handle repetitive situations/tasks. It allows everyone in the team to work in a synchronized manner.

4. Get more results per employee with easier delegation

A good SOP will include the structure of the operation, as well as have a short job requirements/statements and updated information for an employee to execute the specified task. If you need to delegate a certain task, you can see at a glance who you will be reporting this to, who will be able to help you or advise you.  You can stop micromanaging, as it is clear who is responsible for what.

5. Increase profit with happier customers

Because there is a standard way of dealing with client queries, refunds, promotions, follow-up etc., you can make sure that each client is treated fairly and equally, enhancing their interactions with you.  You then provide the best possible client service.

6. It builds a consistent high quality culture

Uniformity of behaviors, products and services brings a defined characteristic and perception of your company.  For example, Les Schwab when you buy tires with one location, the services you get with one outlet will be exactly the same as the others.  Their friendly client interaction are uniformed anywhere you go.  Because of their consistency it is easier to make a decision when you think of tire services.

7. High commitment to use processes because of participation

Building your SOP must be done with collective collaboration.  Involving your team will not only give you a clearer picture of what would be the flow of the process but will also give your team a sense of belonging and ownership of the process.  A buy in is extremely important when executing a new process.

8. Higher productivity with young generation employee

Because of our current generation of workers- a process driven era, the minute they login and manipulate their games, social media and other gadgets, they know exactly how to control their interaction & destiny within their parameters. Without SOP, turnover will be high.  This generation of workers has a very high ability to understand processes and management, without SOP, they will feel uncertain and unsure of what lies ahead of them.  They will seek to find companies that have clearer structure and direction, thus turn over may be catastrophic to small businesses.  On the other hand, a company with a clear SOP will assist them to pursue higher level of service and competitiveness within the company.  They can envision their career path in your organization.

A Standard Operating Procedure is a living document, which is subject to change.  (It is good to review it semi-annually for the first 2 years of operation and yearly afterwards). It is therefore useful to have it in electronic format on a web /cloud based collaborative system so that all employees have access to the latest version.  Creating a universal library brings the efficiency of the employee to the next level.  They can access and learn it at their own pace.  Standard Operating Procedures becomes the way to continuously increase productivity and quality.  Stakeholders are strongly advised to review it when they want to increase their productivity and /or quality.

Do you need to put together a clear and straightforward SOP, compiled in simple language to convey practical information?  If you have SOP in place, how do you know if your team understands your processes?  Please contact SPOT International Services, it’s the best thing you will give your most valuable asset- your employee.

Our team had over 61 years of experience in hospitality, customer service, banking, manufacturing & IT related businesses.  We are also experienced Six Sigma specialists who thrive on bringing innovative ideas to streamline the processes to perfection. We have created thousands of multilingual Standard Operating Procedures for international Five-Star hotels and software companies.

Effectively structuring your processes benefits not only the value of your company, but also consistently improves your profitability, employee performance, and your internal and external relationships. We are experts in creating Standard Operating Procedures that is right for your company.

Give us a call at 208- 780- 1188 or email us info@spotinternationalservices.com

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