Importance of SOPs for Organizations

"SOPs Facilitate Better Planning".

There are many advantages of having SOPs (Standard Operating Procedures) for various operational aspects of an organization. Lets look at the ground realities that make SOPs completely indispensable for any progressive organization aspiring to be a leader in its category. 

Advantages of SOPs for Organizations 

1. Standardized Processes Lead to Predictable Quality:  An organization may hire highly competent professionals.These professionals may be capable of working out a large number of ways for carrying out various operations of the organization. If individuals are allowed to conduct operations based on their comfort , intelligence and style then it can possibly lead to unwanted and often unexpected consequences.These outcomes might be in stark contrast to the desired ones. All organizations are responsible for maintaining a specific quality standard at every stage of the organizational functioning.This quality standard may be in the form of recording accurate information , maintaining hygiene , delivering time bound service , final appearance of the product or its packaging at the time of delivery,etc.What ever may be the need to have a quality framework there is only one answer and that is standardization.Any call for standardization is possible only if quality benchmarks are defined in specific terms.Having defined the product/service delivery standards is just the beginning.This spirals up into a chain reaction leading to a host of activities that need to be standardized for guaranteeing desired quality outcome meeting predefined standards. 
2. Meet Ongoing Need to Reflect Brand DNA ;  Any brand is recognized by its DNA. Brand DNA must be reflected in its products/ services.Then only it can fulfill its quality promise. The market has expectations of the brand.These expectations must be met if the organization wishes to continue enjoying good reputation and recall. Moreover these expectations are set by the organization in question and must better be met.
3. Transparency in Processes: Through SOPs the domain knowledge is made open to the authorized actors within the organization. This openness lends clarity to the process input output cycle, including process management and implementation. Transparency  eliminates ambiguity, fosters trust & facilitates teamwork to carry out the process with optimum efficiency and effectiveness. Widely known SOPs lead to  greater transparency and accountability in the conduct of day to day operations.
4. Effective Knowledge Management ; Standardized processes get documented, systematic record is maintained with each improvement in the process.This facilitates creation of knowledge repository in the organization. It becomes more logical and scientific to raise the quality bar for different processes being followed in the organization. Documented SOP manuals lead to effective knowledge management by facilitating in-depth study of the processes and initiating improvements on the go.
5. Organization Wide Training and Communication ; Orientation & Process training gets more organized, ensuring that participating employees gain clarity regarding the steps involved, their multi dimensional interface and dynamic relationships among various constituents.SOP manuals become handy tools for organization wide communication & training.Standardized training formats thus evolved, lead to adoption of sophisticated training management system in the organization. 
6. Objective Process Audits ; Process audits become objective and free from personal bias. Healthy environment paves the way for a professional work culture geared towards meritocracy. The criteria for identifying quality performers gets objectively defined and the evaluation standards get communicated in advance to the employees.Such professional approach generates enthusiasm, healthy teamwork and win win for all concerned. 
7. Improved Planning; Documented SOPs facilitate better planning by imparting clarity on the process flow, steps,  human resources involved, estimated time frame to complete different steps to decide on the optimized turnaround time  , capacity optimization during peak and lean hours,etc. All these factors put together throw light on process optimization through cost benefit analysis of maintaining or not maintaining predefined quality standards. These insights may lead to simplification of the complex management decisions. 
8. Process Automation; Study of documented SOPs provides, process automation team, indications regarding the level of automation that can be achieved and the steps which can be optimized to help improve the efficiency of the operations by enhancing the productivity of responsible employees. Management may use the series of written SOP manuals in conjunction with the process M.I.S for evaluating the pros and cons of the applicable options while contemplating process automation.

Sanjay V Sharma