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standard operating procedure

Clarity of the Plan is Key to Knowing What to do and How to do it

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How an Operating System Can Help Your Construction Company Navigate the Business Fog

The past couple of weeks we’ve discussed how an operating system can help you build a successful business and a list of what should be included in a standard operating procedure. This week we’ll look at style and formatting ideas for putting together a plan for operating your company.

It takes thousands of pieces to construct a building. If these pieces aren’t put together in the right place and in the right order, the end project is not what was expected. It might even lead to the building collapsing.

This can be avoided with a clear plan and good communication.

The same is true for a business. There are thousands of pieces that need to be put together in the right place and in the right order if the company is going to survive and become successful.

You don’t want your business to collapse, do you?

A Standard Operating Procedure (SOP) is the current hot title for this document. I will agree that these three words do a pretty good job of summarizing what this is, but don’t want to get caught up in what it’s called. You can call it whatever you want.

Just like you can call it what you want, you can design it however you want. Here are some ideas that you might want to include in your operating system.

  • Determine the format – This can be as simple or as complex as you want it to be.
  • Gather the relevant stakeholders – When you start discussing the system you should include anyone who has a stake in the process.
  • Define the structure – Bigger companies will likely have a more formal structure and startups, or smaller companies may use a more informal process.
  • Determine the scope – Keep in mind that you should have a clearly defined scope. It may involve multiple areas and people but be sure to not lose focus on your goals.
  • Be consistent in style – This makes it easier for the person who’s going to be using it if it’s a clear consistent style throughout the whole document.
  • Include all steps of the process – Record all steps that are required to complete a certain process.
  • Choose the right metrics for measuring success – To understand if you’re achieving your target results, you need to determine what the key performance indicators are.
  • Test the process – To make sure that your system is good or to make any final edits and tweaks, ask some of the team who will be using it for their feedback.
  • Implement the process – Once you’ve completed the above steps, you’re ready to implement. Keep in mind that these procedures are dynamic and will change with time.
  • Plan for regular reviews and updates – Since the construction industry and your business processes are changing all the time, your standard operating procedures should too!

An SOP is not a document to be made and forgotten about. It’s a manual that people use daily. So…it must be reliable.

Revising your SOPs every 6 or 12 months is a must if you want to stay on top of any changes and keep on delivering the best possible results.

As the owner or operator of a construction company, your head probably feels like it’s going to explode with all the things you’re trying to keep track of and do. Wouldn’t it be great if you had some help doing some of those things?

The problem with this is…now you have to teach and train them, and either you or they are going to forget something. Wouldn’t it be nice if there was an operating manual that they could refer to?

There could be. You just have to decide if you want to continue doing things the way we’ve always done it, hit and miss way. Or use the better, clear plan that can be implemented by a new hire or used by the most experienced team member.

If you would like to discuss this more set up a free 30-minute construction company consultation.

What Should be Included in Your Company’s Standard Operating Procedure?

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Like Everything Else in Your Business, the Answer to That Question is Up to You

Last week we talked about preparing an operating system for businesses and how it can help you build a successful construction company. I pointed out that a standard operating procedure is a set of detailed step-by-step instructions that describe how to carry out any given process.

I discussed that it would allow you to –

  • Achieve consistent results
  • Reduce costs and increase productivity
  • Create a higher level of standards

This all sounds great, but what does it really mean?

Let’s break standard – operation – procedure down as it applies to business.

Standard – Is a consistent basis of comparison, an approved model, as determined by you as the owner and/or your leadership team. It recognizes a level of acceptable excellency. It is the level that the bar is set and where you let everyone on your team know what is expected.

Operation – Is a highly organized activity involving many people doing different things that contribute to the outcome of the whole. It is the performance of practical work involving practical application of principles and processes.

Procedure – Refers to a comprehensive set of instructions that prescribes a certain way of performing a process, or part of a process, in relation to time. It states a chronological sequence for undertaking activities, to achieve the objectives. Procedures are meant for members of the organization, including directors, managers, and workers to be pursued. It states exactly what course of action is to be followed by an employee in a specific circumstance.

Like everything in your company, you get to decide what and how things are done. Your operating procedures are no different. You get to decide…

  • What your standards are going to be
  • How your operations are going to be organized
  • What procedures you are going to implement

Constructing your Standard Operating Procedure.

Here is a list of things that are typically used in a SOP –

  • A Title Page
    • Title
    • Names of people who created the document
    • Dates when the document was created
    • Departments, divisions or people who will use this document
  • Table of Contents
    • A table of contents allows team members to easily find sections and areas quickly.
  • Introduction
    • The purpose and scope of this document
    • Roles and responsibilities of team members who are involved in the process
    • Resources and materials that team members will need to complete procedures
    • Cautions and warnings related to the procedures used in the process
  • Procedures
    • This is the essence of your SOP. Here you describe what needs to be done, the order of the tasks, and methodology team members need to follow. You can list the different steps here and if the process is more complex, include sub-steps to describe all activities in detail. You can include diagrams, images, and/or illustrations when appropriate. Imagery can be an effective way of explaining how to get things done.
  • Quality Control
    • Team members can keep track of performance on a case-by-case basis or over a period of time by consulting with this section.
      • Best practices related to a specific procedure
      • Guidelines on how to measure their performance
      • Samples of previous results
  • References and Glossary
    • Here you can include all the terms, resources, and documents that might be in the procedure section. This is especially helpful if you’re onboarding a new hire, and they’re not familiar with your company and business concepts.

These are examples of things that should be included in your company’s Standard Operating Procedures. Like I said before, it’s your company so you can pick and choose what will be included in your business.

As we go forward on this topic I will continue to go deeper and provide more specific about how to prepare an SOP for your company. Keep in mind that this process is like every other part of building your dream business.

It takes a lot of bricks to build a successful business.

Like I said last week, your company’s SOP is an important part of the Blueprint for Building a Better Business. and is one of the tools that we plan to include in the Business Building Toolbox.

How Can I Prepare a Standard Operating System for My Company

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Why Building a Successful Construction Business Requires Having a Plan

Over the past few weeks, we’ve discussed how building your business is critical to the success of your business and the importance of keeping your business in balance. After more than forty years of construction experience, I tend to view most things from a “building perspective”. Today we’re going to compare once again building a business and a construction project.

One of the most important parts of the plan for building a good building has nothing to do with physical construction. It has to do with processes and systems.

I have written about how building and operating a business can be like standing in the shadow of an overwhelming mountain and not knowing how to get past it. When you find yourself facing a mountainous obstacle it helps to have a plan.

One of those mountains when running a construction company is being pulled in too many different directions. Trying to operate all the different pieces of a business can be a big mountain. Having a clear plan and being organized can help you manage your mountain.

In your business, you have a specific way of getting things done.

But things are constantly changing, employees come and go, customers come and go, and if your company is going to stay in business you need to keep delivering high-quality construction projects regardless of the obstacles. This chaos just makes the mountain bigger.

So how can you maintain steady consistency with your company’s end results?

In an online article Workflow Automation shares how having standard operating procedures (SOPs) can help your business eliminate confusion around processes that are performed daily. This will allow your employees to be more productive and minimize mistakes! These procedures help you break down even the most complex processes so even a novice can manage these tasks from start to finish.

So, what exactly is a standard operating procedure?

A standard operating procedure is a set of detailed step-by-step instructions that describe how to carry out any given process. Companies that are serious about process management use SOPs to manage their day-to-day activities.

Having Standard Operating Procedures allow you to:

  • Achieve consistent results. With standard operating procedures, you complete your processes in the same way and achieve the right results every time.
  • Reduce costs and increase productivity. When everyone does the same task in different ways, eventually your organization will run into inefficiencies that cost you time and money. With SOPs you can streamline the process and increase productivity.
  • Create a consistently higher level of standards. SOPs are very useful when it comes to getting everyone on the same page and provides a standard way of getting things done.

Organizational paperwork is critical to having a business that operates smoothly and successfully. Having an organizational plan can answer a lot of questions before they’re ever asked.

This whole operational procedures thing sounds like a great idea, but also sounds like a lot of paperwork.

And the problem is…most construction people don’t like paperwork.

In a future post we will dig deeper into what is included in an operating procedure and how to prepare and implement one in your business.

Having an operational procedure is an important part of the Blueprint for Building a Better Business and is one of the tools that we plan to include in the Business Building Toolbox.

Portions of this are from a previous post on 10/27/18