“What do you mean by ‘process’?” is a question I hear a lot in the session rooms. The fact is terms like process; procedure; SOP all get used interchangeably, but they are distinctly different.
Let’s break down these terms more clearly — so you and your team can move from confusion to clarity.
Processes: The Big Picture
A process is a high-level sequence of activities that transforms inputs into outputs. Think of it as the what and why behind the work.
- Example: The “Customer Onboarding Process” covers steps from initial contact to a fully onboarded client.
- Key points: Big picture flow, often cross-functional, focuses on outcomes.
Procedures: The How-To Guide
A procedure is a more detailed description of how to carry out a specific step in a process.
- Example: Within onboarding, a “New Client Setup Procedure” might describe exactly how to enter information into your CRM.
- Key points: Step-by-step guidance, often more detailed than a process, may include roles and responsibilities.
SOPs: The Standard for Consistency
Standard Operating Procedures (SOPs) are documented, formal instructions designed to ensure consistency and compliance. They typically include procedures but are often more robust — including safety precautions, required approvals, and compliance standards.
- Example: An SOP for “Client Data Handling” would detail data security steps, legal compliance checks, and sign-off requirements.
- Key points: Formalized, standardized, typically approved and version-controlled.
Standard Work: The Gold Standard for Execution
Standard work (a term often used in Lean and manufacturing environments) describes the current best-known method for performing a task safely, efficiently, and consistently.
- Example: A “Standard Work Instruction” for assembling a product includes exact sequence, time standards, tools, and quality checks.
- Key points: Emphasizes optimization and continuous improvement, often visual and easily accessible at the point of use.
Why This Matters
When we don’t distinguish these terms, it causes confusion at a minimum, but maybe worst of all it fosters a combination of inaction and dysfunction. I find that many teams think they need to document at a SOP/Standard Work level of detail right out of the gate, which can be a big mental hurdle (causing inaction). That said, I’ve seen that a lack of process control (starting with documentation) negatively impacts client outcomes because the business doesn’t produce consistent results (caused by internal dysfunction).
Clarification and simplification is key.
You don’t need to create a 700 page manual that nobody follows. In the EOS Model, we teach and coach a 20/80 method to strengthening how companies manage processes:
- Determine 6-10 key processes that make the business run.
- Determine which 3-5 high-level steps must always happen to get the result you want.
- Document 20% of those steps that get you 80% of the results.
- Effectively train & retrain the individuals who work within those key processes. Review and revise both the process(es) and the training regularly. We call this making it “Followed By All.”
It really can be that simple. I’ve seen this approach generate predictability and consistency in how businesses operate, and in most cases it makes operating the business more fun. Of course, the extent to which businesses document their activities largely depends on the scale, scope, and complexities of the business.
Bringing It All Together
Consider a simple “taxonomy” or hierarchy diagram for your team that shows how processes flow into procedures, which inform SOPs, which are reinforced by standard work. Remember you don’t need to over-document to get more consistency and predictability in the business.
Get Into Action
If you want to strengthen execution and empower your team, start by clarifying your language around these terms. Then you need to do the work… define them, document them clearly, and share them widely — you’ll be amazed at how much friction you remove.