To truly systemize your business and ensure that it continues to run
smoothly, you have to document your processes and create a Standard
Operation Procedures Manual, or SOP. Standard operating procedures are
an essential part of the operating system for any company. The idea is a
simple one and is used by the US military and successful businesses like
McDonald's.
The SOP guidelines are created to facilitate the entire way that you do
business. They are designed to make things run smoother and more
effortless and help to prevent costly mistakes from occurring. Not only do
SOPs simplify and formalize every task in your business, but they also
make it, so no process in your company rests solely in the hands of a
single member of your team.
The lack of SOPs in your business creates a condition that if key people
were to leave, their knowledge and expertise wouldn't disappear with
them. Without these systems in place, you are running the risk that your
business may eventually be crippled because you have an operational
reliance on the expertise of a handful of individuals who are the only ones
who know the “secret sauce” of your business model. Having SOPs in
place means you won’t have to worry that the loss of key people could
cripple your business.
How to Document Your Business Systems
When documenting your business systems and creating an SOP, it is
essential to include both how the task is done and the reason why the task is done and the importance of the task to the overall success of the
business. Your employees must understand that no matter how menial
they might think a function is, it is, in fact, an essential part of the overall
design for the success of the business. The initial draft of each procedure
should include the following:
• The Title of the SOP
• The reason for the SOP
• The specific action steps that are required to complete the task
These three items must be covered in the draft for the process to be
successful. The method of drafting the document is simple. You want to
think about it as having a conversation with a person that you want to
complete the task. You are essentially having a written communication and
covering every step of the process from inception to completion. You may
find it helpful to include photos in the document. Illustrating the tasks
could be essential for the person to be able to comprehend the task. Videos
of the process can also prove to be helpful in showing a multi-step process.
Your goal, when documenting your methods is to completely illustrate the
task to eliminate any potential questions that might be raised as to the how
and why.
Develop Naming Conventions
The first thing you need to do before you even put pen to paper, is to
develop a standardized naming convention for the documents you are
going to create. Having a standardized naming convention will allow you to
remain consistent and will make it easier for employees to find the correct
material. While you may only have a few documented procedures to start
with, as your business grows, so will your SOP. Here are some tips for
developing naming conventions that will help you control how procedures
are written, reviewed, published and archived.
What are Naming Conventions?
Simply put, naming conventions are how you name your documents in a
structured manner. The key is to have consistency across the SOPs. Your
primary goal in adopting a naming convention is so that you and others can
quickly identify the type and purpose of all the SOP documents. You want
to make sure you use a naming convention that is easy to follow,
understood by everyone in your team, and that is meaningful. You want to
avoid using obscure or cryptic terms because if they aren't practical, those
tasked with writing the SOPs may stop using the guidelines. The following
are important guidelines that you should follow for naming your SOP
documents.
• Client Name or SOP Document Owner - e.g., RAM
• Project Name – e.g., PUR for Purchasing or ADM for Administration
• SOP to show that it is a standard operating procedure
• Abbreviated Title – e.g., ReceivingProducts
• Version Number – e.g., v1_0, v1_1, v2_0
• Document Number – e.g., 21
Using these guidelines, the official name of the SOP would look like this:
RAM_PUR_SOP_RecievingProducts_v1_1_21
Before you start writing your SOPs, it's essential that you give some
thought to how they will be managed in the future. You need to consider
how hundreds of documents, with different versions, and status controls
will be managed. Be sure to create meaningful conventions and document
them so that if someone takes over the process of creating SOPs, he or she
will be able to use the same standards and keep your documents uniform.
Writing Your First Procedure
Your standard operating procedures are nothing more than instructions
for completing a given task. To fully understand the process that you’re
documenting, you need to put yourself in the shoes of those who will be
performing the task and write the document from their perspective. When
you start recording your procedures, you'll want to keep the following in
mind.
• Write in the present tense. Keep in mind that the person who is
following the procedure is performing the task now.
• Avoid being vague with your instructions.
• Be concise.
• Get to the point and keep the words short.
• Keep the steps in a logical order. Steps should follow each other
logically.
• Highlight any exceptions. You can use a symbol to flag the
exceptions and how to go about handling those exceptions.
• Highlight warnings. Warnings that the user must use caution
when performing the task, have to stand out. If you have
warnings in your procedures, use a larger font or different color
to highlight these areas.
• Include the meaning of acronyms before placing them in the text.
• Number each step in the process.
Finally, the process of writing your SOP requires you to consider all the
action steps in the procedure and perform a risk assessment before any
work can begin.
Numbering the Steps in the Procedure
Every procedure should list all the actions that need to be done to complete
the task. To keep things simple, record the action steps in sequential order,
starting at 1 and continue working upward. The most critical aspect of
numbering the actions steps is keeping the style consistent. Don't change
styles in the middle of creating your SOP.
By numbering each step in the procedure, you ensure that the reader will
start in the correct place and it removes any ambiguity or
misunderstanding that could happen if you don’t number the steps.
Numbering also ensures that there is an agreed upon way for all
employees to perform the same task.
Creating the Action Steps for Your Processes
The action steps are nothing more than the individual steps that are
performed in each procedure. Most of the systems that you will document
will be presented as a sequence. However, you also need to consider other
factors, like multiple choices when performing a task, any secondary
functions that may need to be completed, and other related procedures. To
finalize the system, it can help to put it in context. You want to consider
where the system occurs in the larger scheme of things and if there is
anything the user should complete before getting started and things that
should be avoided.
Procedures for Creating Action Steps
1. Include a summary sentence. Before you write any steps in your
procedure, you will want to open with a summary sentence that
explains what will be achieved by performing the process. The summary sentence helps to orient the reader, so they know with a quick
glance if they are on the correct page. You want to keep the summary
sentence short and concise. Below is an example of a summary
sentence for receiving products.
When receiving products, there are several steps that you must take
to ensure the correct quantity of products have been delivered and
that the number of products ordered, accepted, and paid for are
accurately reflected on the invoice.
2. Identify the main task.
In the procedure heading, you will need to
identify the primary task. Identifying the main task defines the starting
point for the procedure. It should be written using a verb that ends in
ING. For example:
Receiving Product Orders
3. Write out the action steps.
Clearly write out each step in the
procedure, making sure that each step is numbered in sequential
order.
1. To verify that the items that are being received match what was
ordered, you need to perform the following checks.
2. Confirm the product quality matches your product’s
specifications.
3. If everything meets your expectations, accept the order by
signing the invoice. If you are not satisfied with any of the
product, follow the procedure for rejecting product and request a
credit memo for the product you are refusing.
4. Once you have accepted the order, move the product to storage.
You will need to deal with all refrigerated and frozen products
first.
4. Include any sub-steps.
If the procedure requires a series of
options, instead of continuing with the numbering, you'll want to create sub
steps, for example, 1.a, 1.b and 1.c. This helps the reader see that these steps
occur under step number 1. To highlight this even further, indent each sub-
step like the example below.
1. To verify that the items that are being received match what was
ordered, you need to perform the following checks.
a. Check the product quantity and weight to ensure that the
amount that is stated on the invoice matches the order that
you are receiving.
b. Check the product unit price to ensure that the unit price on
the invoice matches the unit price on the purchase order.
5.Identify secondary tasks. Identify any secondary functions that
might need to either be performed with the primary task or if the task is
complicated, the second series of steps. This shows the reader that the
procedure is really two parts, preparing them for what’s coming up.
6. Include warnings and notes. You want to be sure to highlight
any potential risks that the reader may encounter while performing the
task and any notes to provide the reader with more information. For
example, if dangerous equipment is being used to complete the procedure
highlight those dangers using icons to make them stand out.
7. Include Related Information. Each procedure is a part of
something larger; no one system stands alone. At the end of each process,
create a "For More Information" section that lists any related process.
For More Information:
Checking Temperatures of Key Items
Storing Products
Chemical Storage
Rotating Products
Your goal is to ensure that the reader has enough information to complete
the task without having to ask for help or look at another document. One of
the challenges that you will face when writing your procedures is being
able to determine the readers’ experience and knowledge of the system.
Here is what a process for creating a sales receipt in QuickBooks would
look like.
Creating Sales Receipts
1. Open QuickBooks
2. One the QuickBooks homepage, select the “Create Sales Receipt” icon.
3. Track the sale by entering a customer or job name into the space
designated “Customer Job.”
a. For existing customers, use the arrow next to the space to
select an existing customer from the pull-down menu.
4. Click on the item column to enter the item sold. Either select an
existing item from the drop-down menu or enter a new item name in
the space provided.
a. If the item is new, select the item type from the “Type” menu
located in the “New Item” pop-up window.
b. Enter a description of the item in the "Description" window.
c. Select the account type that the income from the sale will
apply to using the “Account” menu.
d. Enter the price of the item and tax code in the appropriate box.
e. Press the “Save & Close” button to return to the sales receipt
window.
5. In the Sales Receipt Window, select the quantity sold.
6. Click on the “Payment Method” arrow to select the payment method
used for the sale.
7. Place a check in either the “to be printed” box or the “to be e-
mailed” box to select whether to print or email the receipt to the
customer.
8. Click on the “Save & Close” button to save the receipt for your
records.
Implementing Your New Standard Operating Procedures
After you’ve documented your business systems, you will need to begin
implementing them in your daily operations. Before you fully implement
them, you will want to take the time to test and measure each documented
process to ensure that it works, without your involvement.
Implement the new systems for a period, like a week or a month. Allow
your employees to use the documentation that you've created to follow
the new processes. At the end of the agreed upon timeframe, speak with
your staff, vendors, suppliers, and customers and ask them for their
feedback. Use this feedback to revise and improve the systems. You will
need to do this on a regular basis to keep all of the processes up-to-date.
Get Employee Buy-In
As you develop and revise your new business systems, involve your
employees as much as you can. Your employees are the ones who have been
completing the tasks and will be the ones who will be using the newly
documented systems moving forward. You can even have the employees
develop the initial draft of the processes, leaving you to review and establish the final versions. This can help to speed up the process and gives
your staff ownership of the process.
Developing and documenting processes for your business will allow you
to systemize your processes to help free up your time to focus on the
more critical tasks related to running your business and keep your
business running smoothly when you're out of the office.
