Tips for Standard Operating Procedures (SOP):

  • An effective system of rewards and penalties is crucial to ensure the quality of service provided by employees.
  • ‘Work Instructions’ are required to standardize all procedures, serving as a valuable reference for employees and ensuring consistent service across all branch locations.
  • Patience is key. Begin by standardizing operations in a single store, then expand this process to multiple locations, and, ultimately, establish a central headquarters team.

Every entrepreneur dreams of expanding their business, and opening more branches seems like a great way to earn more.

However, many business owners face a common problem. It is not always a lack of money that stops them from opening new branches. The issue often comes up when they try to expand rapidly after one successful store. Unfortunately, the new branches do not perform well, receive criticism, and this can crush the confidence they had, leading them to reluctantly close down these additional stores.

The primary concern is that negative reviews from these branches can harm the reputation of the main branch, which was initially doing well.

Based on our experience, we have observed this happening frequently, and the main issue is that many owners lack a clear understanding of how to effectively manage multiple branches.

Regardless of running a single or multiple stores, particularly in service industries, there is a persistent challenge that haunts business owners, which is to ensure and manage the quality of service delivered by their staff.

Business owners, while your products may be consistent, there is always performance variability when it comes to tasks that require human involvement.

If the employees are in a good mood, their service is likely to be exceptional and will be done meticulously. However, if they are in a bad mood, there may be various mistakes, lack of attention to detail, affecting the overall service quality and consistency. Therefore, it is crucial to find solutions for such issues especially when branching out your business.

Solution 1: Improve Human Resources and Management

As the idiom says, ‘you can’t expect the horse to run fast but not let it graze’, resonates with many employees and is a critical concern for business owners.

To bring out the best in their employees, incentives and rewards play a crucial role. This becomes even more critical in multi-store management.

Business owners must make sure that employees have a clear understanding of their benefits, which should encompass the rewards and penalties system, creating a sense of purpose and motivation for employees to not only fulfill their roles but also exceed expectations when necessary.

Solution 2: Implement Standard Operating Procedures and Work Instructions

To ensure that all employees in every branch can provide consistent service, business owners should gradually compile all the services offered into a comprehensive ‘Work Instructions’ with standardized procedures. The ‘Work Instructions’ will serve as a valuable guidance for all employees to perform their tasks.

In business operations, we can break it down into two main segments: the first half and the second half.

The first half includes aspects like finances, human resources, and information technology, which are often termed “supporting operations.” Its primary aim is to facilitate the seamless flow of operational activities. With the support of the first half in place, the second half encompasses the core operational tasks, focusing on how to effectively provide services to customers.

Implement SOP

For business owners looking to expand into multiple branches, it is essential not to delay in developing standardized operating procedures (SOP) until the moment of new branch launching. The SOPs should be prepared well in advance.

When it comes to standardizing work processes, preparing ‘Work instructions’ for all kinds of services offered is a good start. These manuals systematically document each work process, and the inclusion of relevant images for clarification can greatly enhance their effectiveness. Standardizing the operational processes with training provided could help to ensure quality service consistently.

Following this, business owners could let the employees perform tasks according to the SOPs on their own and assess if they can achieve the desired results when working independently.

Subsequently, in terms of operations, it is important to develop a higher-level work instructions manual for single-store management, encompassing everything from store opening to daily closure. This manual should cover aspects like financial management, personnel administration, procurement, service operations, customer service, reports to be submitted from the branches to the headquarter, etc.

Since creating these guidelines requires time to validate their effectiveness and test their efficiency, it is not advisable to rush the process or rely too heavily on templates that are purchased online. (template purchases are recommended for reference purposes only).

Instead, it is best to gradually begin standardizing operations starting with a single store, then expand to multiple stores, and finally establish a central headquarter team.

Although this is time-consuming, it is a prudent and stable approach. If you have substantial financial resources, it is advisable not to overinvest to prevent excessive management costs that could turn the business unprofitable.

Interested in reviewing your company’s SOP or have any questions? Feel free to reach us at WhatsApp | info@3sadviser.com | Facebook | LinkedIn .

Read More:

 

Any questions? Contact Us!

If you would like to understand better about SOP optimization and how could we help to drive growth, please contact us at:

WhatsApp | Facebook | LinkedIn | info@3sadviser.com

一家企业不能只有单一SOP!

常听闻指定“标准作业程序”(SOP)的重要性,但真正了解其意涵,并懂得如何从无到有建立SOP的人少之又少。究竟该从何下手?

SOP,不要偏离企业目标!

老板们的经商之道:别被过时且不合适的标准作业程序(SOP)拖后腿!SOP不仅仅是营运宝典,更是让企业实现目标的必需品!

不懂SOP?做好这4件事,打造成功企业之路!

无论小本生意或大企业,制定标准作业程序(SOP)是不败的运营秘诀,只要做好这4件事就对了!

Understanding SOPs: The Key to Operational Success

Understand the type of SOPs and start transforming your operations to success!

Quality: The Make or Break for Business Survival

Quality is the determining factor for business survival. It encompasses every aspect of operations to ensures customer satisfaction, reputation, and competitiveness. Read to know why!

为何你公司有SOP,却没用?

中小企业赶潮流撰写作业程序,但为何没用?难道企业需要达到指定条件才能有SOP吗?这几种迷思和陷阱,你不得不知!

ISO 9001:2015 in Malaysia: What You Need to Know

ISO 9001 is a worldwide recognized standard that specifies the standards for a world-class Quality Management System. Read to know now more about QMS!

The key to effective SOPs for SME: WHY to do it?

Achieve Goals with aligned processes! Learn how to bridge the gap between your Standard Operating Procedures (SOP) and your company’s aspirations. Read more in our article!

Why SOPs are not helpful for your business?

People know SOPs are essential, yet they do not want to use them because they are not helpful, or view SOPs as optional because they do not see the value in using it.

Chains VS Franchises: Which is right for your business?

Interested to dive into Franchising market? Read this before action and choose the right way to expand your business!