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Jul, 03 2015

How to replicate & grow via SOPs

All successful franchisors strictly adhere to (Standard Operating Procedures) SOP's & through which the entire network of its franchisees sustains its quality of product and services and sustains its business growth. Read on to know more about the signifi

We have witnessed an upsurge in the entrepreneurial ventures in India and so have been the failures. A report from Bloomberg reveals that 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. A whopping 80% crash and burn, But why? What can we learn from the colossal amount of failure with business that we can apply to our own business aspirations?

Strategic decisions, legal implications, financial breakdowns are certainly the major factors, but one of the most crucial limitation or hindrance behind the failure of budding and existing entrepreneur one doesn't pay much attention to is a need to have a streamlined approach towards the Operations. Operations, the backbone of any industry and if the backbone ails from a debilitating disease, the entire body ought to get shattered.

Quoted below are real life experiences and extract of the people from the past and their ability to allocate work to the men and get the best out of them. Today, we follow similar approach which is commonly known as Operations Management. 

“Analyse the career of the successful Business Manager and you will find that he has done two things: by elimination and selection he has fitted competent men to the places at which the work focuses; by system he has so shifted detail to the shoulders of subordinates as still to keep the essential facts under his own hand.” -William A. Field of the Illinois Steel Company, 1919.

The appeal of operational procedures lies in its ability to drive dramatic improvements in key business performance metrics. Experiences indicate that effective use of SOP's can help grow the top line of the business.

Rationale of SOP manual

The purpose of an SOP manual is straightforward: to ensure that essential job tasks are performed correctly, consistently, and in conformance with internally approved procedures.

SOP is exclusive for the different wings of an organisation, be it the supply chain management, management information system, front office, back office, maintenance, inventory, logistics, security and any other vertical.

For implementation of the procedures, there has to be a database of information which one can refer to and will act as a bible for the employees, with defined guidelines and policies, which everyone is expected to adhere to - SOP Manual is the key.

The core aesthetic of a SOP Manual is to set a benchmark for the employees, and ensure that the guidelines are being adhered to religiously. A SOP Manual is a guidebook with information pertaining to any vertical associated with the Business. Be it supply chain management, management information system, maintenance, human resource, finance, accounts, purchase, back end, front end or any other wing of an establishment, It address to the need of all.

Rahul Sharma is a Consultant, Operations, Francorp, India.

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