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I need to understand how virtual/remote teams can design effective internal processes using SOP (standard operating procedure) documents. It would be good to learn how successful companies, big and small, do this.
Hello! Thanks for asking about how virtual/remote teams can design effective internal processes using SOP, with a focus on how successful companies have devised SOPs. In short, this research found the core principles of designing effective SOP documents.
While I was unable to find a lot of successful companies across the Web that mentioned their implementation of SOPs, this research helped me gain some insight into how UPS and Fed Ex use SOPs, and how an entrepreneur Stefan James uses SOPs to successfully run operations in his 7-figure internet business. Also, across my research, I found ideal, and not so ideal, ways to write SOP documents, as well as the common benefits or pitfalls to each way, respectively.
What follows is an explanation of the methodology used to address your request, and then the findings.
METHODOLOGY
To best address your request, my colleague and I searched through user forums, review sites, corporate websites and industry reports. We familiarized ourselves with the structure of SOP documents by consulting Bizmanualz for templates and related blog topics.
Having learned that SOPs are used to standardize procedures, we performed multiple search engine searches in the hope of yielding several successful companies that standardize procedures by using SOPs, but this proved difficult. However, we did find a number of articles, cited below, that we obtained information from about what SOPs can do for organizations, how to write up procedures, the elements of effective SOPs, identifying ineffective SOPs, and empirical evidence of a few known companies that use SOPs.
FINDINGS
The following shows what this research found to be the key principles of creating effective SOPs.
UNIFORMITY OF PERFORMANCE
Bizmanualz, a company that provides templates of company policies, procedures and forms templates for businesses of all sizes across many industries, states in its article as follows:
"An SOP or Standard Operating Procedure is used to ensure business processes are well thought through, that each task in a process is performed the same way every time, and important data is recorded, along with errors or deviations so corrective action can be taken."
PROCESSES THAT CAN BE DOCUMENTED IN AN SOP
According to Brampton Small Business Enterprise Centre, "An SOP is a procedure specific to your operation that describes the activities necessary to complete tasks in accordance with industry regulations, provincial laws or even just your own standards for running your business."
An SOP can outline the following list of operations for a small business:
This list is not exhaustive, since each and every business will have its own unique market and industry standards that will dictate the scope of each SOP.
ELEMENTS OF AN EFFECTIVE SOP
An effective SOP should incorporate the following elements:
-- Responsibilities: This should state the persons that are responsible for carrying out the procedure and what they are required to do.
-- Procedure: This should contain the details of the activities, tasks, or step-by-step instructions of the procedure.
-- References: A list of references that support the procedure should be included.
CREATING AN SOP WITH EMPLOYEES IN MIND
SOPs should be created in collaboration with any employee that performs the tasks that are described in the procedure. This enables more accuracy, giving readers, including employees and supervisors, a clear picture of the procedure. Also, SOPs enable a quick onboarding process. New employees can consult the SOP manual so that they will know exactly what to do in their new role.
IDENTIFYING AN INADEQUATE SOP
-- It is not sufficiently detailed
-- It is not compliant or updated to industry standards
-- It is written without the employees' input, who perform related tasks
-- It describes out-of-date procedures or technology
-- It does not facilitate employees’ best performance
-- It does not support training efforts
REAL-WORLD EXAMPLES OF COMPANIES USING SOPS
Unfortunately, after an extensive search, we found very little information regarding small and big companies reporting success through implementing SOPs. However, we found the opinion of a Tech Republic.com author, cited by Comprose, to be useful.
According to Comprose, Padilla Ramon, the author of "Mastering the Mundane with SOPs that fit," mentions:
"I have witnessed the logistical operations of UPS and Fed Ex, and I can tell you that these organizations have truly mastered the mundane. Their cargo-handling capability is literally a science and they have achieved mastery not just by creating SOPs and sticking to them, but by constantly re-examining their processes to make them more efficient, effective, and consistent."
This indicates that implementing SOPs — especially, down to a science — was successful to both organizations.
REMOTE TEAMS USING SOPs
Similarly, internet entrepreneur Stefan James discusses in his blog how he ensures successful operations within his virtual team:
"... in my virtual team we have standard operation procedures (SOP) for different systems in my business so that team members can follow directions and be able to ensure that they are doing their job correctly."
On that note, Montrium — a company that provides cost-effective solutions to life science organizations — states in its blog that SOPs convey the correct way of carrying out an activity within an organization. The blog also highlights that SOPs at a minimum give an organization consistency, reduction of errors, and communication.
CONCLUSION
In summary, this research found a number of principles that can be followed in designing effective SOP documents; outlined a few real-world examples of companies that use SOPs, and an entrepreneur who uses SOPs to manage his virtual team; and, finally, summarized how to identify a badly written SOP.
I hope this information helps. Thanks for using Wonder! Please let us know if we can help with anything else!