A standard operating procedure (SOP) is one of the most overlooked, but extremely valuable tools of many Australian businesses.
While SOPs are typically within the realm of technical writers, it would be a mistake to think you can’t have a go at it yourself.
After all, an SOP is one of the best ways to scale your business and improve the efficiency of all team members within your organization – just from a simple document!
So, What Exactly Is An SOP?
Simply put: a standard operating procedure is a document that outlines the exact steps taken to complete a procedure within your business.
This document can be drawn up to account for functions small and large, including:
- Step-by-step instructions for how to onboard a new employee
- Documentation on how to use a certain piece of software
- The process involved in dealing with a negative customer experience
- You can even document the steps needed for watering your office plants!
Your team would then refer back to these documents whenever the relevant process is initiated.
But How Can An SOP Help Your Business?
An SOP is itself a very technical document. It is meant to dive deep into a single process, with a narrow focus.
That doesn’t mean, however, that an SOP’s application needs to be narrow; it can help your business in plenty of ways. Below are just a few examples.
Make Your Onboarding Process Smoother & More Reliable
An SOP can help your onboarding efforts tremendously. It will give you a systemic step-by-step process for how to integrate new staff into your team in a manner that can be repeated as you scale.
You won’t have to personally oversee each new hire and their first few months, knowing that your process has been adhered to by senior team members.
Typically onboarding can be a bit chaotic for new hires. However, a standardized process will ease their transition into their new role. They’ll be aware of the steps required of them so they can stay focused.
Senior staff will also feel more confident in giving directions now that they have a clear process.
An SOP Can Function As A Checklist During Busy Periods
If you or your team are feeling the pressure of a particularly tight deadline, then an SOP can help speed up your work process.
You won’t have to constantly check back and forth between emails and previous projects, remembering how to do certain steps: it’ll all be in your SOP.
Additionally, the document will prevent missteps that could cost you crucial time. A standardized process – recorded in the SOP – will free you up mentally from having to remember every tiny detail and minor step.
In Order To Scale, You Need Standardised Systems In Place
An SOP forces you as the business owner to standardize key processes.
You may feel averse to this at first: but it’s a step essential for scaling any business.
When it comes to key processes – whether it be sales, onboarding, or something technical – you need to be sure a team member can pick it up and perform the process without your input.
Otherwise, you’ll be stuck doing and overseeing every step yourself – making it impossible to scale.
This also rings true for specialized team members of yours: if a process can only be operated by one person, that person becomes the bottleneck of your business.
Catch Outdated Systems
An SOP is a great way of letting you catch outdated systems that might be holding back your business.
By listing out all of the steps in a process, you’ll get a clear picture of what is making it run smoothly versus what is bottleneck time & efficiency.
This is particularly useful for practices conducted by your staff, where you may not be aware of every step.
Accounting With A Difference
At The A Firm, we’re all about increasing your business efficiency: an SOP can help improve your team’s efficiency, but we can help scale your finances.
Our experienced accountants & bookkeepers can craft a financial solution to help you in any way you need, including business strategy.
Contact us today to learn how we can help!