How Standard Operating Procedures are Created?

Updated: Apr 8, 2021

During the Organization Growth, When the number of Transactions Increases, uncertainty also increases. The operation needed to be aligned with the Revenue. Standard Operating Procedures helps to maintain the Runners activity and allows the Managers and Owners to easily Delegate the routine work.

Let's Jump into Understand the details:

Generally, Organization Performs 3 Types of Activities,

1) Runners: These activity organization performances daily, it requires Certain decision making which can be a delegate to one.

For Ex: Sales Purchase Entries in the account, Recruitment, Exit in HR, Sales Process, etc.

2) Repeater: These activities are like which needs to be done at a certain time-frequency, These jobs are monotonous. These activities include GST, TDS Filings, etc.

3) Strangers: This activity is arising due to uncertainty, it is difficult to predict, and to solve this problem, one needs problem-solving skills.

It is difficult to delegate, one can solve this based on experience only.

So, as an Organization, We can always prepare SOPs for Runners and Repeater activities.

Processes will help an organization to Achieve Reproducibility and Repeatability, It means the organization becomes less dependent upon any individual Manager, and Process demands every individual to produce a result as per process KPI.

We need a framework for the same:

  1. Scope and Purpose of Process :

  2. Scope: Defines boundaries, normally we say this as a start point and endpoint.

  3. Purpose: we try to find the ideal output for the activity

  4. Rules :

  5. The points which you can’t afford to make mistake or miss out.

  6. Detail procedure:-

  7. You define each and every step in detail

  8. Roles:-

  9. Each step has the responsible person to nail the job with the desired outcome

  10. The outcome is either discrete or measurable

  11. Key performance indicators:-

  12. The outcome of the entire process. It is also either discrete or measurable

  13. Documents, forms, and formats:-

  14. The forms, formats, and templates used to complete the process

  15. Process touchpoints:

  16. The process steps which overlaps to each other, when one process steps overlap to any other organization process

  17. Graphical Flow Diagram: Universal version of the flowchart

9)Attachments: Any policies, reference point for decision making

10) Checklist: The very important steps, critical to quality steps for the audit purpose.

Remember one thing, Process should not be placed only for the feel-good factor, it must give a great result, by generating another resource for the organization.

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