As a business grows, there is a need to standardize processes, outputs or jobs. This continuity is needed so that the business can continue indefinitely without the consistent detailed attention of its founder in all areas. Key events and processes that should be documented are:

• Organization history, mission and vision: organization history is not a process but should be well documented
• Strategic management
• Finance, forecasting and budgeting
• Marketing
• Human resources and payroll management
• Operations
• Information technology

Standard Operating Procedures

Standard operation procedures or SOPs are documents of processes. These documentation are required to ensure consistent delivery of products and services. It is a mistake to think these documents can be created once and then set aside. For these document to have meaning to the organization, they have to be interwoven into the systems of the organization. If you have ever had a job where you are handed a big book of rules then you understand how boring it is to read through a bunch of rules. The less attractive the procedures look, the less likely new hires will follow them.

Standard Operating Procedures could take one of many forms:

To make SOPs relevant, the processes documented should be highly depended on the purpose of the documentation. For example when documenting operational procedures more detailed steps are needed than if documenting strategic planning where highly skilled staff is involved. Below are common forms standardization can take:

The standardization of work processes:
Work is broken down into detailed components to be rigidly followed. This is well suited for documenting operational steps.

Standardization of outputs:
Processes are not as detailed but the desired outcomes are well documented. This is well suited for strategic or tactical plans in which different units or people are responsible for achieving different aspects of the plan.

Standardization of skills:
The type of worker needed to achieve the desired results are clearly documented: This include education, knowledge and any other skills required for a variety of jobs needed by the organization. This style of documentation is used to document the human resource processes.

Standardization of norms:
Norms are acceptable social practices in the organization. A business is a living organism that takes on the personality shaped by its founders either implicitly or explicitly. Norms are not written documents but are evident in the other documented processes. It is also highlighted in the organization history, mission and vision documents.

With documentation in place, a company can grow even if the founder exits the business. Moreover, these procedures increases the value of a business if the business owner decides to sell.