Business Analysis Today

18 Benefits of Standard Operating Procedures

Nov 27, 2019 4:47:41 PM / by Venkadesh Narayanan

Standard Operating Procedure (SOP) is a great tool for organisations to document and streamline their business processes. SOPs are equally beneficial for startups, small, medium and large organisations. It is a great low-cost tool to transform an organisation from being a person-driven one to a process-driven one. The purpose of this article is to highlight some of the unique benefits of developing SOPs for your organisation.




  • Be it a new employee or an experienced employee, training with the aid of an SOP will sharpen their skills and reduce defects or errors in their day-to- day activities.
  • SOP conveys an organisation's intention in a court-of-law. A well developed SOP with supporting documentations showing that the necessary trainings were imparted to the employee will only speak in favour of the organisation in case of accidents.
Business Case for SOP: A Self-Evaluation Tool | Download for free at
  • SOPs clearly establish the roles and responsibilities of the staff working in various functions such as manufacturing, procurement, sales, marketing, accounts, finance, legal, customer service, human resources, administration etc. SOP introduces immense clarity in understanding one's own job, eliminates confusion among colleagues and avoids blame-gaming. 
  • Typically in organisations the employees working on the customer facing side may have less experience and qualification. A well crafted SOP will enable such organisations to deliver superior customer service at low-cost.
  • In organisations where they have multiple outlets or spread across a wider geography, SOP brings consistency in their operations and clearly establishes the brand image in the consumer mind. 
  • SOP identifies the process owners who are responsible to maintain the functioning of a process. It becomes the responsibility of the process owners to continuously improve the SOP with best practices.
  • SOP helps in auditing a process for its validity and to find out the deviation between the documented and actual performance.
  • SOP enables the process owners and process improvement experts to quickly get an understanding of the current state of the process. SOP establishes the foundation for all process improvement efforts.
  • While expanding the capacity of an organisation or while commissioning an additional production line, SOP comes handy to estimate the quantum of work especially the factors of production such as men, machine, material and money required.
  • SOP demonstrates a company's sound process orientation and their commitment towards process improvement, which is appreciated by the clients and boost your credibility, especially in a B2B environment.
  • SOP is a tool for communicating the organisations expectation in terms of the standards of performance with reference to functions, processes and activities.
  • When employees follow SOP, which is thoroughly evaluated for its best practices and safe operation, it tremendously increases the safety and security of not only the employees who are performing the activities, but also others in the vicinity.
  • Organisations that establish sound SOPs for their functions and processes can have a good negotiation with the insurance companies as it mitigates the exposed risk and its degree.
  • SOP provides a global view of processes helpful in identifying opportunities for small or large automations in processes.
  • A good document to capture and consolidate the business rules that need to be followed while performing a transaction or operation.
  • For public safety and national security, companies in industries such as pharma, healthcare, insurance, banking etc. are mandated by the respective national governments or regulatory bodies to establish and follow SOPs.
  • In case of a long repeated processes, human memory is limited and there is a possibility of missing certain activities. SOP along with a check list will be of immense help in these situations.
  • When companies want to implement an ERP system or to move from a legacy system to a new system, SOP will help the software implementers to understand the organisations processes with greater accuracy. In the absence of SOPs, the software implementers have to go through a phase of numerous meetings with the stakeholders and eventually create such documents that represent the organisational processes.

    Fhyzics Business Consultants Private Limited is a global leader in Standard Operating Procedure (SOP) identification, development, deployment and auditing and has been a trusted partner of organisations in 40+ verticals for their SOP needs. For more details, please email us at or speak to us at +91-900-304-9000.
Venkadesh Narayanan

Written by Venkadesh Narayanan

Venkadesh is a Mechanical Engineer and an MBA with 30 years of experience in the domains of supply chain management, business analysis, new product development, business plan and standard operating procedures. He is currently working as Principal Consultant at Fhyzics Business Consultants. He is also serving as President, PDMA-India (an Indian affiliate of PDMA, USA) and Recognised Instructor of APICS, USA and CIPS, UK. He is a former member of Indian Civil Services (IRAS). Fhyzics offers consulting, certification, and executive development programs in the domains of supply chain management, business analysis and new product development.

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