‘1118122, 12:59 PM What are Standard Operating Procedures (SOP)? - MentorConnex. What are Standard Operating Procedures (SOPs)? James Sewell + February 16, 2022 Wondering what are Standard Operating Procedures (SOPs)? In this SOPs 101, we cover the what, why, how & when. Includes examples & templates. Have you ever wondered what are Standard Operating Procedures (SOPs)? Or whether your business should be using them? In this blog we will cover everything you need to know about SOPs, so that by the end you will know what they are, why you need them, how to create them and even how to get your team creating them for you. We'll include examples, case studies and even a template for SOPs. Want to fully understand what SOPs are, why they matter and how to use them? Read from the top. Looking for something specific? Click the link in the Table of Contents on the left to skip ahead, hitpsiImentorconnex.comiblog2022102/16iwhat-are-standard-operating-procedures-sops! 12‘1118122, 12:59 PM What are Standard Operating Procedures (SOP)? - MentorConnex. Exclusive Free Bonus: Discover the secret to freeing your time and improving quality, while scaling your business: click here. What are Standard Operating Procedures (SOPs)? SOPs are like flat pack furniture instructions for your business. The ones that make assembly a real breeze. Imagine that someone joins your company tomorrow, and instead of you physically showing them how to perform their role, you simply hand them a set of instructions that explain everything they need to do. It may not be the most personal of introductions to a new role, but it could possibly be more effective at teaching them than you are. Because SOPs are clear, well-thought-through, step-by-step instructions that explain how a team member should perform an activity or job within the business. They should be specific to the job and define what to do in different circumstances, what authority the team member does and doesn't have, and when and how to escalate a problem. Why you need SOPs To answer that question, let's start with a story. hitpsiImentorconnex.comiblog2022102/16iwhat-are-standard-operating-procedures-sops! 222‘nisai22, 12:59 PM What are Standard Operating Procedures (SOP)? - MentorConnex. Frozen Daiqu Imagine... is and angry customers It’s the first holiday you've taken since you started your business. You've finally made it to that resort you've been dreaming about, and you can feel yourself starting to unwind. You were up early this morning to get the perfect sun lounger, metres away from where the waves gently lap the shore. “Another frozen Daiquiri?” the waiter enquires. Why not? I'm on holiday, you think to yourself, “Yes, thank you’, you reply, then you smile to your beloved on the next sun lounger. This is what it’s all about, you think, as you lie back and contemplate opening that thriller you've been dying to read. Then the phone rings. You glance guiltily at your better half. Eyes roll. “| thought you were going to leave that in the room.” “Sorry...” you respond sheepishly. “I'm sure it's nothing...” If only. You answer and Janine from sales, sounding stressed, launches straight in. “Look, sorry to bother you on your holiday, it’s just that I've got this potential customer, they sound keen, but they want a discount. What can | give them?” “Janine, | don’t know any of the details. Have you asked John? He is head of sales, after all!” “I did, but he said he wasn’t sure what you would want to do, so..?"” and off you go. Fifteen minutes later, you hang up, your zen-like state long gone. Worst yet, your Daiquiri has melted in the sun. As you start searching for the waiter to order another, the phone rings again. Your loved one mutters something under their breath you're glad you didn’t hear and gets up to leave. It's Dave from customer services. hitpsImentorconnex.comyog/2022102/16)what-are-standard-operating-procedures-sops! 322‘1118122, 12:59 PM What are Standard Operating Procedures (SOP)? - MentorConnex. “Hey boss, sorry to bother you on your holiday. It’s just I've got this customer and they aren't happy. They say the product isn't want they ordered, and they want their money back. What do | do?” Off you go again. You can sense the other sun worshippers staring at the back of your head and decide you'd better take cover, so you give up and head back to your room. So much for the holiday. Now imagine a different scenario Imagine, instead, that Janine from sales had a set of guidelines defining what discount she was able to give her prospect. If so, she'd have done the job quicker, saved John’s time, and wouldn't have called you. Perhaps you could have enjoyed that Daiquiri before it melted. Imagine also there was a set of instructions for Dave to follow in the event of a customer dispute. You could have stayed on your sun lounger (and avoided the wrath of your beloved). This is the fundamental reason why you need SOPs. When everyone has clarity over what is expected of them and how to perform their role, you save time and money and avoid stress. And this brings many benefits. Benefits of SOPs hitpsiImentorconnex.comiblog2022102/16iwhat-are-standard-operating-procedures-sops! 422‘nisai22, 12:59 PM What are Standard Operating Procedures (SOP)? - MentorConnex. Autonomy Take a holiday and actually have a break, knowing your business is running itself in your absence - you can even have some SOPs for reporting so you can keep an eye on the key data from afar. Save time Less ambiguity allows for faster decision-making. And the right decision will be made more often. There will be no more need for your team to keep asking you the same questions over and over again (if they do, create an SOP). Leaving you more time to focus on building your business. Greater Effectiveness Clear SOPs reduce the likelihood of errors. Plus, continual improvement of systems over time will lead to greater effectiveness. Reduced Costs Standard Operating Procedures mean fewer mistakes and less wasted expense. They could also help reduce your wage bill, with each employee doing more in less time, and you may even be able to hire lower-cost staff. A well-designed SOP leads to faster completion of tasks, as the process of writing SOPs can lead to identification of greater efficiencies. Greater sell-ability A “turn-key” business, with everything needed to operate it and scale it documented, is very attractive to potential purchasers. SOPs streamline the handover process. Reduce staff turnover exposure When you have a clearly documented role for everyone in the team, itis far easier, quicker and cheaper to onboard new staff - even if their predecessor left in a hurry. Happier team No one likes to be in the dark about what is expected of them - we all crave clarity. SOPs make crystal clear what is expected of each and every team member. And with less brain power (and time) taken up dealing with uncertainty in their regular tasks, team members have more time for creativity and focusing on what matters. Oh, and there's one more big one... Scalabilitv hitpsiImentorconnex.comilog/2022102/16iwhat-are-standard-operating-procedures-sops! 5122‘nisaiz2, 12:59 PM What are Standard Operating Procedures (SOP)? - MentorConnex. Tc Want to start a second office or expand overseas? Here's the blueprint: A well- known restaurant called McDonald's. When Ray Kroc first visited McDonald's to sell them milkshake makers, they were little known. And he was blown away. What he saw in McDonald's was not an exceptional burger, but an exceptional business. An exceptionally well-run business. Over the course of 17 years, the McDonald brothers had built a business that spanned 20 restaurants. The magic was in the system they had created. It was an ultra-efficient operation, where every part of the business had a documented process. Everyone knew exactly what they were doing and what was expected of them. This system could be repeated again and again and again. And the net result was a level of consistency of quality and delivery that no other burger joint could match at that time. And it laid the groundwork for McDonald's to become the global behemoth that it is today. How Standard Operating Procedures can be used What if | don't own a burger restaurant? You don't have to own a burger chain for SOPs to be effective. They have a wide range of applications across almost any business. Struggling to see how they apply to your business? Here are some high-level ideas to spark your creativity. > Hiring Procedures. > Test, measure and improve protocols. > Onboarding protocols and/or training > New strategy assessment. Procedures: > Brand alignment. > Meeting agendas and actions. > Marketing collateral reviews. _3_ Communication protocols and Campaign success reporting and Procedures: > measurement. Prospect identification and > Customer communication protocols. > hitpsImentorconnex.comilog/2022102/16iwhat-are-standard-operating-procedures-sops! 9122