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What is a standard operating procedure (SOP)?

By Paul Kirvan

A standard operating procedure is a set of step-by-step instructions for performing a routine activity. SOPs should be followed the same way every time to guarantee that the organization remains consistent and complies with industry regulations and business standards.

SOPs provide the processes needed for an organization to succeed. They reduce errors, increase efficiency and enhance profitability. They also create a safe work environment and produce guidelines for resolving issues and overcoming obstacles.

Policies are essential because they reflect specific standards, regulations and other statutes the organization may need to comply with, such as company password governance. They often serve as the foundation for developing SOPs.

How to write a standard operating procedure

An effective SOP explains the steps taken to complete a task and informs the employee of any risks associated with the process. The instructions should be brief and easy to understand, focusing on how things should be done rather than what needs to be done.

If possible, the procedure should detail what the user can expect as a response when a specific SOP step is performed. The SOP should include a "get out of trouble" section with recommended solutions to potential problems. These troubleshooting instructions can appear adjacent to a particularly complex procedure that can potentially fail, so that the user can find a fix rapidly. An appendix can contain the "fix it" section if such situations are rare.

Before writing an SOP, the author should perform a risk assessment of all steps in the procedure. The assessment should identify all obstacles that might arise and any risks associated with them. The user should identify threats to the process and any potential vulnerabilities (e.g., a single point of failure) that may cause a disruption.

Key questions to answer in an SOP include:

• Who performs what role?
• Who backs up that person in case they are unavailable?
• What does each role do?
• What is the goal or outcome of each person's role?
• What steps should occur in the event of a process failure?
• Is what needs to happen clearly explained?
• Is there a help desk or equivalent function to answer questions?

Organizations should list all their business processes to decide which procedures would benefit from an SOP. Managers should discuss employees' daily responsibilities to ensure all procedures are accounted for. Routine tasks that multiple employees handle should be considered for SOP creation.

SOPs are especially important if the organization has (or is considering) a business continuity (BC) plan. Knowing the most essential business processes, as specified in SOPs, is foundational to a BC plan. The plan should be designed to provide guidance in the event of an incident that threatens the continued operation of the firm's SOPs. It does this by guiding recovery and restoration of mission-critical SOPs to mitigate the effect of any business disruption.

Here are the six main steps involved in creating an SOP:

Step 1: Define the task's goal and why it needs an SOP. Employees in decision-making roles and other stakeholders define the task's goal and explain why that goal needs an SOP.

Step 2: Determine format for the SOP. The author decides on the SOP format. Some organizations use templates. Software is available to help facilitate SOP development. Other firms let authors design their own formats. For consistency and compliance considerations, using a company-approved procedure format is smart. Examples of possible formats include:

• A flowchart or workflow diagram that displays procedures with unpredictable or various outcomes.
• A bulleted or numbered list of simple steps that is short and easy to follow.
• Hierarchical steps written as a bulleted or numbered list but intended for procedures with many steps and decisions; these might have a primary step followed by a collection of sub-steps.
• Again, if possible, describe what should happen – such as a confirmation message -- when a specific procedure is performed.

Include instructions for handling problems when they occur. Provide contact information for the help desk or similar function.

Step 3: Decide on the delivery medium. Once a format is selected, decide whether to make the SOP available as a hard copy or online and store it in a database. Ensure that SOPs and all related documentation are stored securely on-site or in a cloud service.

Step 4: Identify task dependencies. The task of the SOP in question could rely on other procedures in the organization. The author should identify these dependencies and decide how to incorporate them into the new SOP. An option is to incorporate the latest procedures into an existing SOP. A flow diagram, included as a supplement to the SOP, may help identify dependencies.

Step 5: Identify the audience. The author determines the SOP's targeted audience to ensure it's written appropriately. An SOP for experienced employees should differ from one written for new employees.

Step 6: Write the SOP. Once all these decisions are made, the author writes a draft SOP. These instructions use the present verb tense and an active voice. If the organization has a style guide, the author should follow it. It is important to circulate the draft SOP to employees who will be using the SOP to review it throughout the writing process to ensure all necessary steps are included.

Step 7: Test and gather feedback. Once the draft is written, it must be reviewed, edited and tested multiple times, with feedback collected. This process repeats until the SOP has buy-in from all stakeholders. It is then distributed to everyone who will use it as part of their job. The target audience should try out the draft SOP to ensure it works as intended. It might need revision if these employees have difficulty understanding or following the SOP.

Step 8: Implement the process. The SOP is made official once all issues are addressed, approvals have been obtained, and its intended target audience can use it without issues.

Step 9: Update regularly. As SOPs can be considered "living documents," their creation and maintenance are iterative processes. Once the detailed instructions are written, the SOP process should be analyzed and updated every six to 12 months to ensure it continues to support regulatory compliance and other organizational requirements. All changes must be recorded, and versions tracked using the organization's change management process.

Step 10. Provide ongoing training. Regularly scheduled continuous learning sessions will ensure employees become familiar with new procedures. A similar process should be available for new employees during their onboarding.

Components of an SOP

An SOP should include these components:

• Title page. This presents the title of the procedure, its intended audience, the specific role, department, team or agency, its SOP ID number, and the names and signatures of people who prepared and approved it.
• Table of contents. This provides easy access to the various sections in long SOPs.
• Glossary of terms. Include a list of terms the SOP user may encounter.
• A step-by-step list of procedures. This section will compose most of the SOP and include explanations of the task's goal, roles and responsibilities, regulatory requirements, terminology, descriptions of what needs to be done to complete each step, and a discussion of decisions that must be made. It should also include guidance to address system disruptions or failures.
• Appendices. These sections provide supporting information needed to perform the SOP.

SOP best practices

Some best practices for writing and using SOPs include:

• Establishing a common style and format for all SOPs in the organization. Using simple, clear language will help employees understand the manual. Headings, fonts, layouts and graphics should be consistent.
• Ensure employees can easily find content in the SOP. A table of contents can help.
• Guidance on handling disruptions or system failures in readily found locations.
• Keeping all SOPs in one place, preferably online. Organizations can use a knowledge base or other management system for this. These systems make it easier to locate and modify a specific SOP.
• Developing an ongoing review and maintenance plan for SOPs to ensure they stay relevant and correct. SOPs should evolve with the organization. Obsolete SOPs should be discarded, unless there is a reason to archive them.
• Distributing the SOP to the employees who will use them and training those employees in the procedures involved. Regular training -- in addition to the initial orientation training -- is beneficial and ensures all employees know and understand the most up-to-date procedures.

Using techniques like gamification can better engage trainees and help them retain information.

Uses of SOPs

SOPs let organizations better understand their business processes and identify areas that need improvement. Reasons to use an SOP include:

• Helping employees stick to a defined schedule.
• Assisting in training employees.
• Guaranteeing regulatory compliance standards are met.
• Certifying that the procedure doesn't negatively affect the environment.
• Incorporating safety standards in routine operations.
• Avoiding manufacturing issues and failures.
• Ensuring that any disruptions are mitigated quickly

SOPs are still needed even when other published instructions or methods of describing procedures (such as vendor documentation) are available. An SOP often describes a procedure in more detail than the published content and might explain any differences between the SOP and the published method.

The SOP will fail if employees don't follow it. Management, specifically the direct supervisor, should monitor the use of the standard operating procedure to ensure it is being properly employed and maintained.

SOP examples by industry

SOPs are essential in many industries. Here are some examples from various industries:

• Manufacturing. SOPs record production line procedures used to train employees and ensure a consistent workflow.
• Finance. SOPs record billing and collection processes. Banks use them to identify customers who have walked in.
• Customer service and retail. SOPs explain service delivery processes and response times, instruct employees on how to manage customer complaints, and prepare documents such as sales quotes.
• Healthcare. Medical providers use SOPs to create workflows for collecting and inputting patient data, billing patients and collecting payments.
• Government agencies. Government departments and agencies have various processes to ensure standards are met. The U.S. Food and Drug Administration uses an SOP to certify that a company's operations meet its standards.
• Food industry. Some crucial SOPs concern food handling, maintaining sanitary work areas and equipment in production facilities, and addressing hazardous materials.
• IT and cybersecurity. SOPs here address data backups, installing patches, performing security scans, updating firewalls and testing disaster recovery plans, cybersecurity software and incident response plans.

SOPs are widely used in hiring and training employees. They ensure that new hire orientation and training are consistent with how existing employees handle a job. An SOP can guide managers through routine tasks such as discipline, corrective actions and performance reviews. SOPs can also collect, track and store key performance indicator reports and create client onboarding processes.

Benefits of using SOPs

SOPs offer numerous benefits, including some that aren't obvious:

• Consistency. Employees in all departments understand and follow set processes, creating a common workflow and consistency.
• Fewer errors. Standardization ensures everyone is informed of how to complete a process correctly, thereby reducing errors and contributing to quality assurance efforts.
• Consistent training. SOPs simplify employee training, saving time and guaranteeing consistency. This reduces operational risks.
• Communication. SOPs can streamline communication. If a task changes, the SOP is updated and sent to anyone who uses it, facilitating change management. SOPs also reduce the chance of miscommunication because the detailed steps minimize ambiguity.
• Reflects the company culture. When an SOP reflects key attributes of the company's culture, it should be more readily accepted by employees
• Compliance. SOPs support specific standards, regulations and other requirements and provide instructions on how to comply with them.
• Audit evidence. Access to documented policies and SOPs is essential as audit evidence.

Challenges of using SOPs

Some challenges involved in SOP creation and use include:

• Keeping SOPs timely. Keeping an SOP current requires employee and senior management support.
• Rigidity. If a task or problem could benefit from a flexible approach or creative thinking, an SOP might not accommodate that.
• Inadequacy. Knowing what to include in an SOP document or flowchart could be challenging; it won't always be clear how to make an SOP for a specific task as comprehensive as possible. Also, the SOP must be maintained continually to remain useful.
• Noncompliance. Employees could fail to comply with an SOP if it isn't strictly enforced or difficult to understand.
• Training issues. A good SOP could be difficult for trainees to understand, or they might be reluctant to learn new skills.

SOP templates

SOP templates help organizations craft SOPs. They provide guidance on what elements to include, such as:

• The background or reasoning behind implementing the SOP.
• Who the target audience is.
• How frequently the SOP must be implemented.
• Which roles and employees use the SOP, and their responsibilities.
• Each step in the procedure, including the step number, the team members involved, the tools used and actions taken.
• A version history of the number of times the SOP is updated, providing a form of version control.

It's common for an organization to follow up the implementation of a new SOP with a business impact analysis (BIA). BIAs ensure the new SOP doesn't pose risks or potentially cause business losses. Learn about the benefits of conducting a BIA.