Mastering Process Optimization: The Power of SOPs in Gap Audits

MASTERING PROCESS OPTIMIZATION: THE POWER OF SOPS IN GAP AUDITS

The reality show “Project Bakeover,” starring chocolatier Steve Hodge (how do I get his job?) and the fabulous designer Tiffany Pratt, features a different failing bakery in each episode. Each bakery receives a one-week “bakeover” (ha ha, get it?), courtesy of Hodge and Pratt. The owners put their businesses into the professionals’ hands and, at the end, they get to experience a delicious, glorious, and exciting re-opening. Everyone goes home happy.

It’s a terrific show.

But watch enough episodes, and a theme begins to emerge: hard-working, self-sacrificing owner works themself into a pretzel—all the while losing employees and customers alike—in short, because nothing is written down. Over and over, Hodge tells these bakers ‘You’ve got to write your recipes down!’ Otherwise, the business’ entire operation rests on their shoulders alone. It’s a clear recipe (pun intended) for burnout or worse.

Over and over, they insist that it’s all in their head: They “bake from feel.” They don’t know where to begin.

Over and over, Hodge tells them: Too bad.

By the end of the week, inevitably, Hodge has convinced his mentee to write recipes down, teach them to their employees, and let go of some of the responsibility and control.

A scary thought, for sure. But guess what happens?

The business succeeds—every single time.

And the viewer is left with a tear in their eye and a growl in their stomach.

We see the same phenomenon—though, perhaps, with less fanfare—in other businesses too.

Wintress Odom, a Texas-based writer and owner of The Writers For Hire, Inc.(TWFH), has experienced this firsthand. “A couple of years ago,” she says, “[Our office manager] was sick for a while, and I realized that nobody could do accounting or run payroll.” Happily, it all worked out in the end, but it was a wake-up call for Odom: “That is a key for small businesses—and even some large businesses—especially if they’ve had a really long-term employee. You just don’t ever see that risk until it’s an emergency.”

Suzanne Kearns, another Texas-based TWFH writer whose projects have included Krispy Kreme, Bobby’s Burgers, and Power New Mexico agrees: “If one person had [information] in their head,” she says, “and something happened to them, it would be disastrous.” Equally difficult is when there’s no one source for employees to find information. “It’s just a mess,” Kearns says, “rather than a very straightforward process.”

If there is one lesson we can learn from the bakers of “Project Bakeover”and from Odom, Kearns, and thousands of business owners the world over, it’s this: Write down your standard operating procedures.

What are Standard Operating Procedures?

Standard Operating Procedures—or SOPs—are defined by Bit.AI as “detail-oriented documents [that] provide step-by-step instructions as to how employees within an organization must go about completing certain tasks and processes.”

That’s the wordy way of saying that they are your organization’s secret weapon in the fight against inefficiency, noncompliance, and employee frustration and turnover.

They will help you identify gaps in your planning and optimize your processes, saving you scores of headaches and, potentially, significant amounts of money.

But that’s only if you’re using—and writing—them the right way.

Great! So, how do I do that?

If you have been tasked with documenting your organization’s SOPs—or if you’re taking it on voluntarily—the first thing is to realize that SOPs are living documents.

Odom describes a four-page guide sent to new employees: “It started out as one page, and then over the years…it became this thing,” based on recurring questions or errors that she and others had noticed. Odom’s willingness to tweak her guide as necessary has ensured that expectations are communicated clearly, gaps are identified early, and processes are continuously optimized.

Kearns advises those writing the SOP to “start with a very high-level outline of the process and then drill down from there. If you start with the smaller details, and you don’t have the big picture, you aren’t going to get the most out of it. Starting with the big picture is going to allow you to see holes in your process—duplicate actions, things like that.”

Peter Albrecht, a New Jersey-based TWFH writer who has also worked with Power New Mexico, offers a more big-picture approach to those writing SOPs for their department or organization. “Writing an SOP can feel like a boring task,” he acknowledges. “But you do have a fair amount of power. This is your chance to be a hero! To make the process that managers and employees always wanted everybody to follow official.”

Empowering, no?

Albrecht continues: “Imagine degrees of magnification,” when writing your SOP, “from the 30,000-foot view right down to your desktop,” so you cover all the necessary components: the process overview, the practice, and the work instruction. (Picture a “Project Bakeover” baker writing down the general flow of an 8-hour shift—that’s the process overview—then the tasks that need to be completed before opening the bakery—that’s the practice—and, finally, the recipe for blueberry scones—that’s work instruction.)

If you’re stumped on how to format your SOP, Bit.AI offers some ideas: a simple checklist, a step-by-step list, a hierarchical list, and a flowchart. The utility of each will depend on the size and complexity of your organization’s needs and may, in fact, change over time or between departments.

Ultimately, this process “is a good chance to square up some procedures that were kind of hairy…a little bit too loose [or] not always followed,” says Albrecht.

How do SOPs identify gaps and optimize processes?

Have you ever had a job where you didn’t quite know what was expected of you?

Maybe you thought things were going great, only to realize three months in that you had never been told you were in charge of sending the follow-up emails after team meetings.

Or maybe you spent three months sending those follow-up emails, only to realize that you were stepping on someone else’s toes and creating an enemy at work.

Or maybe it wasn’t quite that extreme, but you spent your workdays feeling like you were just missing…something.

Those jobs are never fun, are they? They leave employees anxious, uncertain, frustrated, unproductive—and ready to quit.

The good news is that, by documenting procedures and disseminating them widely, you can avoid a lot of the damage caused by muddy communication and unmet expectations.

You might be surprised, too, by what you learn about your own processes.

In working with several companies, Kearns has found that, many times, “companies think they’re doing things the right way, but when we’re talking about [their processes] they realize, ‘Oh, this could probably be streamlined.’”

Odom has experienced this too: “People aren’t always aware that their processes have gaps or inefficiencies, but then you discover them during the writing process. Employees often surprise themselves when they come to a certain step that they didn’t know was unclear.”

Boom. Gap identified. Process optimized.

Process Optimization = Reduced Costs

According to Nintex, the American workforce is experiencing some frustration: Sixty-seven percent of employees complain that broken processes at work hurt their potential, and 86 percent of employees cite broken processes as a reason for leaving their jobs altogether.

In fact, it’s gotten so bad that 69 percent of managers say they are uncomfortable communicating with their own employees, according to Bit.AI.

The result? “A drop in productivity and revenue, unengaged teams, and a high employee turnover,” says Whale.

All of this unhappiness and dissatisfaction unsurprisingly affects businesses’ bottom lines: Take a drop in productivity, add a high rate of employee turnover, and what do you get? Plummeting revenue.

But guess what? By putting the insights of Odom, Kearns, Albrecht, and others into practice and documenting SOPs for your own organization, you can significantly turn the tide in your favor.

Clear communication reduces the occurrence of broken processes, leaving employees feeling more engaged and useful.

And having a specific document that engenders communication relieves managers of the discomfort they feel when laying down the law among disgruntled employees.

Furthermore, well-written and thorough SOPs allow everyone in an organization—from the CEO to the brand-new office assistant—to work from the same understanding, reducing the need for endless back-and-forth about which job is whose and what method is best.

When employees don’t have to spend their time and energy fretting over processes, they are free to excel.

Putting It All Together

At the end of every “Project Bakeover”episode, there’s a brief update from the bakery owner. They’re usually bubbling over with good news, barely pausing to take a breath in their recitation of how their business and its finances have improved.

They are happier, and more relaxed, despite the increase of customers and orders to fill.

How is that, you say? Easy.

With Hodge’s help, they’ve documented, communicated, disseminated, and implemented their SOPs.

Even if they’re just check-lists on a chalkboard.