You can't outwork a dysfunctional business. If you're overwhelmed by constant staff questions, demanding customers and razor-thin margins, this article will show you how to reclaim control.
You've been running your snow removal business for a while now, and while you're always busy, it feels like you're focusing on the wrong tasks. Between tracking down project updates, double-checking invoices, and helping your team with estimates, you're worn out. No matter how often you explain things, your team still comes to you for answers - or, worse, they skip asking altogether and handle things their own way.
It sounds like you need some standard operating procedures. Hang on! Before you nod off, hear us out. You can't field every question, handle every detail, or put out every fire. You need to concentrate on more important things, like your company's vision.
You need to extricate yourself from the day-to-day craziness. In this article, we'll show you how standard operating procedures (SOPs - or SnOPs, mind the pun) can enhance your business and improve your life.
Plow through contracting chaos
Still not convinced that SOPs can make a substantial impact on your business operations? How many of the following scenarios feel familiar?
- Your estimating process is inefficient, and your team reinvents the wheel with each estimate.
- Getting bids out the door drains way too much energy.
- If you can even find the labor you need, you don't have time to train new employees.
- Scheduling is a nightmare - you're constantly herding sheep.
- Your sales team's execution could best be described as "varied."
- You have a few systems for your operations; it's just that you're the only one who knows them.
Dealing with menial administrative demands and getting bogged down in day-to-day operations takes you away from more important matters: strategy, culture, landing clients - you know, the big stuff! Without SOPs, quality inevitably suffers, and it becomes nearly impossible to scale a business.
SOP basics
Ready to chill the chaos? Let's start at the top. What exactly is a standard operating procedure? For a solid definition of these under-appreciated little suckers, we turn to Tom Hughes, GembaDocs co-founder and author of "Improvement Starts With I." He explains that: "An SOP is a clearly documented, understood, and agreed-upon way of carrying out a task." Basically, it's how stuff gets done. But there are a few key elements in Hughes' definition that are worth digging into. A good SOP should be:
Documented. It's important to share the wealth...of knowledge. Every SOP has a purpose - make sure it's not a secret. Get your processes out of everyone's heads and into a centralized place, whether that's onto paper, a Google doc, a flow chart, even an iPhone video.
Understood. The SOP needs to be done in a way that;s easy for everyone to understand.
Agreed upon. The process can't be a pie-in-the-sky idea of how something should be done or a single person's way of doing things. Everyone needs to be aligned with the method that is chosen.
Where do you start?
Whether you realize it or not, you're probably already running your business with some SOPs.
- Do you have and use any checklists? Those are basically SOPs. Boom. Yup, that counts.
- Repeating yourself (...again...and again...)? Those topics are good candidates for an SOP. Boom. Another head start.
- Next time you're explaining something to someone, have them take notes. Boom. Another SOP is drafted.
See? You have them...you just need to write them down.
Need some more ideas on where to begin? Find a mirror. If you want to start dumping expertise onto the page, the best place to begin is with yourself. Start with the stuff that annoys you the most and prioritize the things you just don't want to do anymore. What causes you headaches? Those are great SOP candidates. Consider things like:
- Scripts for what to do when field staff arrive on site
- How to close a sales call
- How to put together a winning estimate
- Quality control inspections that ensure nothing gets missed
- Safety protocols for specific sites
- End of project close and review capture
If everything's in your head, you become the biggest bottleneck; so download your processes first. SOPs keep the tires turning, even when you're no longer behind the wheel. Plus, if your future plans for your company involve selling it, one of the first items potential buyers will look for is whether you have SOPs in place and whether they're being followed. Well-entrenched operating procedures mean that the company can continue running smoothly without you, which is the most essential element when you sell.
The zen of SOPs
The frenzy of being a grass-roots entrepreneur can be exciting, but you'll need to calm that down if you want to become an enterprise-level business owner who's not constantly bombarded by demands from every direction at all hours.
We get that SOPs are boring. But embrace the boring. Boring means satisfied customers, stronger profits and less stress. There's bliss in the bland. Maybe we should rename them Soothing Operating Procedures.
SOP Do's and Dont's
As you embark on your SOP journey, here are some points worth keeping in mind.
Do's
- Create an SOP Index. This is a master list of all the SOPs you expect you'll need. Add to it as you encounter other processes.
- Have someone test the SOP. When the same person who carries out a process is the one writing it, they can forget steps that have become implicit or intuitive for them.
- Trust your team. Once SOPs are ingrained in your business, your staff will build on them as they go.
- Have newbies take a breath. Give new people a month to settle in and learn the ropes before they start drafting (or changing!) your SOPs.
Dont's
- Don't overcomplicate it. You don't need a 10-page SOP when a one-pager will do. It's a procedure, not "War & Peace."
- Don't outsource it. It can be tempting to just bring someone in to bash these out, but you'll have better buy-in if you keep the process in-house.
- Don't let perfect be the enemy of good. SOPs don't need to be pristine right out of the gate. They can evolve. And they should.
- Don't make updates an annual event. Avoid updating your SOPs only once a year. It should be ongoing, with people doing it for their benefit.
Snow operating procedure categories
- How-to's : The simple tasks that people do infrequently, can be tricky to remember and annoying to explain over and over again. Think: How to mix snowblower fuel, brew a pot of coffee or ship a box.
- Essential processes: These are everyday tasks you really don't want to mess up because they're important to the functioning of the business. Think: The process for assembling a product, raising an invoice or closing a deal.
Danny Kerr is a founder of The Breakthrough Academy, created to help you evolve from a doer of all things to a builder of smart systems and a leader of great people. Learn more at btacademy.com.