What is business standardization? Explain the benefits and basic steps to implement

Now that the shortage of human resources has become the norm in many companies, it can be said that improving operational efficiency and productivity is an urgent issue. Among them, “personalization” can be a bottleneck in problem solving. If there is a task that depends on the individual, it is easy for the work flow to get stuck, and the burden on the employee in charge increases . In order to achieve efficiency and maintain business quality, it is necessary to promote “business standardization” first.

Standardization not only improves operational efficiency, but ultimately increases the value of products and services that can be provided to customers. In this article, we will explain in detail the benefits, procedures, and points to note about standardization.

Table of Contents

Business standardization refers to a situation in which it is possible to establish and execute rules for optimizing the business flow and achieving the same results regardless of which employee is in charge. Even if the work is the same, if the flow and methods are different depending on the employee, the results will vary and the quality of the work will not be maintained. Promoting work standardization stabilizes the quality of work and leads to efficiency . Manuals, flow charts, and SOPs (standard operating procedures) are useful for standardization.

Risk of “personalization” that hinders work standardization

The antonym of work standardization is “individualization.” It refers to a situation in which only one person in charge or a limited number of personnel can handle a specific task. Work that should belong to an organization has become dependent on individuals, and if the person in charge is absent, the work will be delayed .

As Japanese companies become larger, they tend to become more vertically divided and tend to divide labor. However, if the work becomes dependent on the individual due to the division of labor, it is likely to lead to a decrease in work efficiency, and there is a possibility that even if mistakes are concealed or fraud is committed, it may not be noticed. Also, if the person in charge leaves, there is a risk that the know-how up to that point will not be accumulated as internal knowledge.

It is possible to avoid risks by promoting the shift from individualization, which carries such risks , to standardization .

Background behind the promotion of work standardization

In recent years, the standardization of operations has been promoted in public institutions such as local governments. The background to the promotion of work standardization is thought to be the impact of the “collapse of the lifetime employment system” and “work style reform. “

Until now, it was common to belong to one company for a long time, and it was an environment where know-how was easily accumulated as in-house knowledge. Also, the span until handover was long, and there was a low awareness of the problem of personalization. As a result, operations were carried out through partial optimization.

However, now that the lifetime employment system is collapsing, the mobility of human resources is progressing, and it is thought that there are more cases where human resources leave without sharing know-how. In particular, if the work is highly dependent on the individual, problems arise when the person in charge leaves, such as the efficient flow not being shared with the successor, or being unable to be replaced by another person in charge .

In addition, due to recent work style reforms, work hours have been shortened and the use of IT has progressed, leading to greater demand for improved productivity. As mentioned above, the work that depends on the individual can easily become a bottleneck. Now that the optimization of the organization is required, not the work flow that depends on individuals, the promotion of work standardization is synonymous with the elimination of personal dependence, and it will lead to further efficiency and productivity improvement. is an urgent issue for many companies .

I will explain the four main benefits of standardization.

1. Improved productivity

A major advantage of standardization is that it can be expected to significantly improve operational efficiency. If we can clarify the work flow, which has become a black box due to individualization, and make it possible for anyone to handle it, it will be possible to prevent work stagnation even when the person in charge is absent. leads to transformation .

Especially for new hires and newly transferred employees, it can be difficult to deal with unclear workflows. Asking questions to your predecessor or those around you, or searching for materials, can lead to time loss and delay your work. If the rules are clarified through standardization of work, not only will the speed of work processing improve, but the lack of ambiguity will also reduce time loss, which has the advantage of allowing employees to concentrate on their original work .

2. Improving work quality

By utilizing manuals and flow charts, the work quality of the entire organization is improved because the work is carried out according to the same flow regardless of who does it . Since important checkpoints are shared, omissions and mistakes are less likely to occur. The result is increased compliance and reduced costs. If the standardization of customer service progresses, trust in the company will increase, and customer satisfaction can also be expected to improve .

3. Accumulation of know-how

There is a drawback that it is difficult to accumulate know-how in work that is dependent on individual skills. If know-how can be visualized through standardization of operations, it will be easier to accumulate it as internal knowledge . Information and skills can be inherited even if the person in charge suddenly becomes absent or retires.

4. Easier to set clear performance goals

In tasks that depend on individual skills, the results tend to be qualitative analysis because the workflow is ambiguous. Process evaluation is also important, but if quantitative analysis becomes possible through standardization, it will be easier to clearly set performance targets . For employees, it also has the advantage of making goals more concrete and making it easier to understand what action to take.

As mentioned above, standardization has many advantages. But it’s not always all about the positive side. Let’s also check the disadvantages of business standardization.

1. Some tasks cannot be standardized

Business standardization is an effort to build and optimize highly versatile flows regardless of skills. Therefore, if you try to standardize highly specialized or special operations, you will need high skills, and considering the cost of human resource development, generalization may actually become a risk for companies.

In this way, for some specialized work, it may be possible to improve work efficiency by depending on the individual . Also, some business processes cannot be manualized, so not all business can be standardized. It is important to work flexibly with the right person in the right place.

2. Low employee motivation

Manualized work tends to become routine, so there is a risk that some employees will feel dissatisfied with monotonous work. Tasks that anyone can do do not feel special and tend to get stuck in a rut, which can lead to a decrease in motivation .

3. Business improvement may be delayed

Once the work flow has been standardized, there is a risk that it will be mechanically continued and the opportunity for improvement will be lost. In an organizational culture that thoroughly follows the manual, employees may hesitate to make changes even if they are presented with improvement plans. Note that sticking to a single set of rules can hinder organizational development .

Business standardization has the above disadvantages, but most of them can be solved by how to proceed with business standardization. Effective standardization should be promoted to avoid disadvantages.

So how can we effectively standardize our operations? The detailed procedure is divided into 8 steps.

1. Understanding and analyzing the current situation

First of all, we start by understanding the current situation from the perspective of “Which business process is stuck?”, “Is business efficiency declining?” It is better to set clear selection criteria based on quantitative evaluation, rather than focusing on qualitative research .

2. Decide which tasks should be prioritized for standardization

Based on the results of the analysis, we will select operations that need to be prioritized for standardization . It is also essential to have a strategic perspective, rather than focusing only on tasks that have become dependent on individual skills. It is also a good idea to give priority to operations that have a high improvement effect through standardization. However, if you aim to improve multiple operations at once, it may get out of control, so consider the urgency and priority and decide which operations should be standardized .

3. Clarify the conditions for standardization

Clarify the detailed conditions for the standardization of the identified operations. Let’s analyze the business flow after incorporating the conditions essential for business execution, such as compliance and delivery priority .

4. Organize and analyze work flow

In order to organize and analyze the business flow, interview the person in charge and confirm the details. The point is to use flowcharts and the like to visualize it. We quantify the work process, work frequency, degree of difficulty, etc., and identify problems based on the analysis results .

5. Business flow design (manualization)

We will design specific procedures while also considering the improvement of the business flow. While clarifying the important checkpoints in manualization, we will drop down to the detailed operation level and at the same time consider creating SOP (standard operating procedure) .

However, when considering the utilization of existing systems or the introduction of new systems, it is necessary to consider the flow according to the conditions of the system. Also, depending on the nature of the work, creating a manual may lead to problems. In particular, the manualization of customer support, individual correspondence, customer service, sales, etc. is expected to have adverse effects. It will be necessary to appropriately judge how far manualization can be done in the business flow .

6. Create a manual for troubleshooting

Consider in advance how to deal with problems that are not described in the manual. Decide on possible problems, how to deal with them, the final administrator, etc., and create a flow for dealing with irregularities . It is also a good idea to create a basic Q&A so that even employees who do not have a certain level of skill or experience can respond.

7. Temporarily divide labor and check the situation

According to the created manual, temporarily distribute the work and proceed with “pre-standardization”. This is a good opportunity to get feedback from not only the person in charge, but also other employees. It would be a good idea to correct any points for improvement and brush up the manual. The key to implementing standardization is not to switch all at once, but to proceed while making adjustments .

8. Turn the PDCA cycle to improve the optimal flow

Once the manual is created, it is not finished. It is necessary to constantly turn the PDCA cycle and improve the flow to be more efficient and versatile . It is also important to determine indicators in advance so that quantitative analysis can be performed.

Here, we introduce examples of companies that have achieved results through the standardization of operations.

Elimination of personal dependence by visualizing operations through outsourcing (Mitsui Life Insurance Co., Ltd.)

At Mitsui Life Insurance Co., Ltd. (currently Taiju Life Insurance Co., Ltd.), which handles insurance products, part of the work at the time of contracting was dependent on individual skills, resulting in inconsistencies in productivity and quality. In addition, it seems that there was a problem that the know-how was not inherited when the veteran person in charge retired.

Therefore, as a business improvement project, we are implementing visualization of business by outsourcing .

When creating the manual for visualization, we were conscious of unifying and systematizing the description levels of all organizations, and when we proceeded with the creation of a system that allows us to grasp the results, we eliminated the dependence on individual skills and achieved stable work quality. It is said that it became possible to keep In addition, we have achieved results such as reducing working hours and reducing mistakes.

Improve reproducibility by visualizing operations. For knowledge accumulation (Cork Co., Ltd.)

Cork Co., Ltd., an agency that connects creators and fans, had various problems in business operations in management. With the introduction of the system, we have standardized the format and created an environment that facilitates the accumulation of knowledge.

Efforts to standardize operations by creating manuals and SOPs (standard operating procedures) are meaningless unless they are established within the organization. Again, let’s do it based on the points that are likely to be a problem so as not to become dependent on the individual.

Thinking about management after work standardization

Even if we talk about promoting standardization, there are cases in which cooperation cannot be achieved if we work blindly. It is important to take an inventory of the work in advance and determine the priority of the work that should be standardized. In addition, when standardizing multiple operations at once, it is necessary to create a manual and make a manager’s decision. Let’s carry out internal maintenance based on the subsequent management .

Share the purpose of business standardization in advance

Even if only the top management of a company calls for work standardization, it will be difficult for it to take root unless the employees who actually deal with it understand the purpose. It is important to know and share the purpose of standardization in advance . In particular, it is a good idea to set aside time for the people involved in standardized work to understand the purpose of the training. It is necessary to proceed while communicating, rather than implementing it unilaterally.

Don’t make manual creation the goal

Business standardization will lead to results only when it is firmly established. It is necessary to be careful not to forget the original purpose by spending too much time on manual creation. Manual creation itself is not the goal. Let’s understand that the goal is to establish business standardization and achieve results while using the manual .

Post-implementation analysis and improvement are essential

The manual is in constant need of updating and is by no means complete. As long as employees with different skills are in charge, the necessary information will always increase and improvement will be required. The point is to proceed with optimization while obtaining feedback from other parties involved in the work, as well as interviews with the executor.

It is also important to periodically run the PDCA cycle and work on improvements. Set up metrics to track your progress . However, it is assumed that it is based on KPI setting as a corporate policy rather than setting a single indicator . Be conscious of the original purpose of promoting work standardization, and clarify what will be the result. Along with improving the business flow, it is also a good idea to visualize the process for standardization.

Incorporate employee feedback

As I mentioned earlier, work standardization carries the risk of lowering employee motivation. Standardization is not something that can be implemented mechanically, but can be said to be a part of human resource development . Flexibly considering and incorporating improvement measures and suggestions from employees will help maintain motivation. As a synergistic effect, the optimization of the business flow will also progress.

By promoting the standardization of operations, it is possible to improve operational efficiency, improve productivity, stabilize operational quality, and eliminate dependence on individual skills. Not only will it create a smoother work flow, but it will ultimately increase the value you can provide to your customers .

However, standardization does not end with the creation of manuals. Even after creation, it is important to work on improvements while periodically turning the PDCA cycle. In addition, it is essential to improve the internal environment for establishment. Let’s think strategically and execute it so that the results can be seen in the standardization of operations.