Setting Standard Operating Procedures to Increase Efficiency for Your Business
Wondering what Standard Operating Procedures are? Continue reading this post to find out what they are and their applications.
“Organizations cannot experience sustained growth until they make a set of standards to guide their operations”
What Are Standard Operating Procedures?
Standard Operating Procedures are detailed and systemized instructions in a step-by-step sequence showing how employees should carry out their responsibilities. An employer creates the standard operating procedures to develop a company culture. This culture transcends individual differences in carrying out activities related to business and office management.
The Need For A Standard Operating Procedure
Standard operating procedures ensure that a business can be successful. The reason is that it helps employees to operate with precision and uniformity while working across different business segments.
When regulatory agencies visit an organization they check for standard operating procedures. If they find these, it sends a positive image of control and proper management of activities. SOPs serve as the foundation of a good quality management system. As such, an organization can become responsive when errors occur, thus making it possible to get back on track.
Application of Standard Operating Procedures in Organizations
Cloud Storage of Electronic Documents
Different organizations have specific procedures for saving electronic documents. An easy procedure is to create a folder that holds electronic documents for a month. Employees can embed weekly folders in these monthly folders to save activities done for the week.
Also, the weekly folder should contain daily folders to save activities done for the day. Each folder will contain a set of specific documents, images, or visuals bearing the document’s name, client’s name, or date. Employees can then upload the folders to the cloud or an external hard drive for backup purposes.
Receiving and Answering Calls
Imagine an organization where there is no procedure for answering and receiving calls. Without initiative on the part of the handler of the device, it appears to anyone like a chit-chat. A recommendation that provides flexibility is as follows:
Good afternoon Sir/Ma,
I am XYZ, the customer center head
How may I help you?
The outline here for calls is to accord the client or prospect with the level of respect despite their age. Only refer to them on a first-name basis only if they make such a request. What if all the information that the customer requests is not available while the call is ongoing? Ensure that you let them know that you would call back once you gather further information. Doing this prevents furnishing the customer with wrong information and misrepresenting the organization.
Choosing a font style and size in every document
Every organization must maintain uniformity across the board. One way to achieve this is in the preparation of documents. These could be documents in use within the organization or sent out to clients or prospects. Below is an example of font style and size for an organization:
Font Size: Georgia
Font size: 12
Line spacing: Double line spacing
Document format
Sometimes, employees send documents in editable formats. Doing this exposes them to viruses and unwanted alterations. In the end, it could affect the way the client or prospect receives the document or accesses the information. Professionals recommend that employees use a PDF (Portable Digital Format) format for sending documents. Using this format ensures that the document maintains its authenticity regardless of the platform over which it is sent.
Procurement
Different organizations have different SOPs for their procurement processes. A simple procedure will be that the store manager will first communicate a depletion in the specific item. They can do this by sending a notification through the procurement officer to the manager. In turn, the manager passes information to the accounts officer to verify the duration for the depletion of the item.
After then, he can request a list of eligible vendors to generate an invoice for the items requested. The accounts officer then transfers the funds to the chosen vendor. After confirming the receipt of cash, the vendor releases the item along with a receipt. The procurement manager then upon delivery ascertains that the item requested is exactly what was purchased. He then sends it to the stock manager through the storekeeper who enters this as new stock.
Conclusion
An organization can create different standard operating procedures depending on the culture they intend to build. Doing this helps them to ensure accuracy and avoid duplicity of procedures without authorization from the management. You can check out other interesting articles about running an organization at SME360.
Emmanuel Otori has over 9 years of experience working with 100 start-ups and SMEs across Nigeria. He has worked on the Growth and Employment (GEM) Project of the World Bank, Consulted for businesses at the Abuja Enterprise Agency, Novustack, Splitspot, and NITDA.
He is the Chief Executive Officer at Abuja Data School.
