Introduction to ..

Art of SOP Writing

And it’s relevance to

Performance Management System

09th March 2015

Facilitator:- Ranjith Raddalgoda (MBA-SriJ-- Sri Lanka)

Agenda

1. What is a Standard Operating Procedure (SOP) ?2. Benefit of writing SOP to a department3. SOP writing itself has a SOP- 10x thumb rules of writing SOP

4. What is performance management system?

1. What is a Standard Operating Procedure (SOP)?

Standard operating procedure (SOP) is the documented process that a company has in place to ensure services and/or products are delivered consistently every time.

Key Points:

1. It’s a documented process2. It ensure Service/ Product delivered

constantly to a standard

2. Benefit of writing SOPs to a department

The existence of documented standard operating procedures can

increase the value of a company. It shows a buyer that the company is "process

driven", rather than “people driven".

When a company has well documented SOPs, it will help to increase productivity and

there by profitability of an organization.

1. Clear on how department link with organization mission and vision

2. To understand the process flow with a clear guideline

3. Can define departmental Key Operation Indicators (KOIs) scientifically

4. Easy to define SMARTs individual Goals and Tasks

5. Cycle time definition, management and improvement

6. Create scientific way to define CI (Continuous Improvement) projects

7. Crete meaningful information background for departmental progress meetings

8. Create a firm platform to conduct process audits

9. Easy to train new recruits

10. Departmental processes can aligned with other departmental processes

3. SOP writing itself has a SOP- 10 x thumb rules of writing SOP

Day - 1

1. Develop vision for the department which aligns with organizational mission and with organizational vision. (What?)

2. Develop departmental mission. (How?)

Day- 2

3. Creating a tree diagram and breakdown main processes to sub processes

4. Define scope for segregated each processes (define play ground and players–internal external customers and suppliers)

Day- 3

5. Prepare process mapping guide line

6. Draw the process flow

Day- 4

7. Explain process steps explicitly in Standard SOP format

Day- 5

8. Define (PLT) Process Lead Times and (DCT) Dynamic Cycle Times each process step

9. Define process measurements for each process (KOIs and KPIs)

Day --6

10. PDCA- Weekly progress monitoring on KOIs and KPIs and CTs and defining Continuous Improvement projects

Effective leaders create a compelling vision

and translate it into reality.

• Values define our behaviors – what are your values?

• Mission is our passion of achieving vision– what is your mission?

• Vision reflects what are we as a team - what is your vision?

Your Mission is your key to

achieve your Vision a Reality

4. What is Vision?

A vision is a picture of future success.

A vision forms when we think far

enough ahead to realize there will be

important challenges that we can

prepare for now.

Why company exist for?

Your vision should beyour dream!

“Nothing happens unless first a dream.”

A Vision….

engages the heart and the spirit.

leads toward a worthwhile goal.

gives meaning to an effort.

is simple.

is attainable.

can change over time.

Effective leaders have the capability

to create a compelling vision, but they

must also be able to translate that

vision into reality.

5. What is Mission

A mission communicates an organization’s

long-term objectives

Further; mission reflects core values of

an organization

A Mission Statement …

Defines directions for change and growth

Aligns people with a purpose; it fosters commitment and unity

Acts as an evaluation tool to help measure activities and programs

Serves as a communication tool for an organization

Mission Statement - Examples

• “To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow” –Starbucks Coffee

• “To solve unsolved problems innovatively” –3M

• “To offer all the fine customers in our territories all of their household needs in a manner in which they continue to think of us fondly” – Wal-Mart

6. What are Values?

“Acting in accordance with our beliefs and values is one of the greatest challenges each of us faces every day.

It’s true for individuals in all aspects of life … and equally true for organizations of every kind and size.”

Personal Values

- Communication- Being organized- Living healthy life- Caring for others

- Honesty- Loyalty- Integrity- Enthusiasm- Openness to others

Personal Values can be visible through

Connection betweenValues, Mission, and Vision

• Vision – A picture of success , purpose of existence

• Mission – reflects values and the overall, long-term objective to achieve Vision

• Values – Core beliefs or desires that guide or motivate our attitudes and actions.

Vision: why we exist

(WHAT)

Mission: how we do it

(HOW)

Values: What do we have

to do it

(HAVE)

Well known example of Vision,

Mission.

People: Be a great place to work where people are inspired to be the best they can be.Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture

Our Winning Culture defines the attitudes and behaviors that will be required

of us to make our 2020 Vision a reality.

Focus on the Market

Focus on needs of our consumers, customers and franchise partners

Get out into the market and listen, observe and learn

Possess a world view

Focus on execution in the marketplace every day

Be insatiably curious

Work Smart

Act with urgency

Remain responsive to change

Have the courage to change course when needed

Remain constructively discontent

Work efficiently

Act Like Owners

Be accountable for our actions and inactions

Steward system assets and focus on building value

Reward our people for taking risks and finding better ways to solve problems

Learn from our outcomes -- what worked and what didn’t

Be the Brand

Inspire creativity, passion, optimism and fun

3. SOP writing itself has a SOP- 10 x thumb rules of writing SOP

Day - 1

1. Develop vision for the department which aligns with organizational mission and with organizational vision. (What?)

2. Develop departmental mission. (How?)

Day- 2

3. Creating a tree diagram and breakdown main processes to sub processes

4. Define scope for segregated each processes (define play ground and players–internal external customers and suppliers)

Day- 3

5. Prepare process mapping guide line

6. Draw the process flow

Day- 4

7. Explain process steps explicitly in Standard SOP format

Day- 5

8. Define (PLT) Process Lead Times and (DCT) Dynamic Cycle Times each process step

9. Define process measurements for each process (KOIs and KPIs)

Day --6

10. PDCA- Weekly progress monitoring on KOIs and KPIs and CTs and defining Continuous Improvement projects

What is a performancemanagement system

(PMS)?

4. What is performance managementsystem (PMS)?

Performance management system is a tool crated to plan, monitor, improve and reward performances. It serves four purposes in an organization.

1. it acts as a light house for the employee, with respect to set goals which each individual should perform in terms to achieve company mission and vision.

2. it acts as a performance assessment system to understand the capabilities and performances of each individual to the time period which goals were set.

3. it act as a feedback system to understand each individual’s strength areas and need to improve areas thereby to have a perfect people development process.

4. It create the base for unbiased reward & recognition process.

Model of the Performance Management System

Organizational Vision and Mission

Business Strategy

Business goals & measures : KFI’s, KOIs

Departmental/ Functional KFIs, KOIs

Team KRAs

Individual KRAs

Objectives/ Activities

PerformanceMeasures,

Hoshin Kanri Model – as the goal cascading down tool

The “hoshin kanri” model very effectively defines who needs to do what, by when and how will the objectives get achieved.

The model is ideal for linking business objectives with individual objectives in a very effective manner.

HOSHIN KANRI

WHAT?

WHO?

WHEN?

HOW?

Japanese:

方針管理 (hōshin kanri); composed of

方針(hōshin)="plan"/"policy“

管理(kanri)="management".

Hoshin Kanri Planning Meaning….

The image most often find in U.S. literature on HoshinPlanning (also commonly known as Hoshin Kanri, and Policy Deployment).

Hoshin Kanry is that of a ship’s compass distributed to many ships, properly calibrated such that all ships through independent action arrive at the same destination, individually or as a group, as the requirements of the “voyage” may require.

Hoshin Planning is more than a compass for steering the direction of your business processes. It is the strategic means of control that allows your organization to make quick turns, changes, and adjustments before you become trapped in a crisis. Success in a highly competitive world requires more than focus and direction. You must have innovation. Hoshin Planning is the means for keeping the actions and innovations of your people aligned with your organization’s strategic intent.

Hoshin Kanri goal planning process using PDCA

Vision/ Mission/ Corporate Objectives

Sector Objectives Sector Goals

Departmental

Objectives

Departmental

Goals

Team Objectives Team Goals

Specific Activity

What to be done ?

How to be done ?

Weekly and monthly

reviews to monitor

progress and implement

counter measures if

required

This symbol represents Deming’s Plan-Do- Check-Act Process

Goals should not be conflicting each other

what we need is…

what we need is…

Profile

Our Vision

“To be the inspired focus business management solution

provider for local and global manufacturing and service

organizations”

Our Mission

Provide guidance ,directions and expert knowledge to

solve management issues, in order to create value,

maximize growth and improve the business performance

of it’s clients..

Our Approach?

“Focus Business Solutions” uses it’s professional skills to provide

objective advice, expertise and specialist skills which the organization

may be lacking.

FBS primarily analyze concerns with the strategy, structure, culture and

operations of an organization.

FBS identifies options for the organization and suggest

recommendations for change, as well as helping with additional

resources to implement solutions.

FBS operate across a wide variety of services such as business

strategy, financial and management controls, human resources,

information technology, manufacturing operations and supply-chain

management.

FBS offer end-to-end solutions to smaller or niche firms that required

special expertise, skills and industry knowledge.

Typical work activities of “Focus Business Solutions”

Day-to-day activities of FBS are often complex and varied. Projects

can vary in length depending on the type of consultancy, organization,

industry and the demands of the client. FBS can involve an individual

or an extended team based in one location or across various sites

including overseas.

Typical tasks of “Focus Business Solutions”

• carrying out research and data collection to understand the organization culture

• conducting scientific data analysis in order to identify real problematic areas of

the client’s organization

• interviewing client's and its employees, management teams and other

stakeholders

• running focus group discussions and facilitating workshops

• identifying issues and forming hypotheses and solutions

• presenting findings and recommendations to clients

• implementing recommendations/solutions and ensure client receives the

necessary assistance to carry it all out

• managing short term and critical barrier removal programs at client requests

• liaising with the client to keep them informed of progress and to make relevant

decisions

Present Contact:-

Ranjith Raddalgoda

+8801730304934/ +94773243649

Bangladesh / Sri Lanka

Email:- ranjithraddalgoda@yahoo.com