Creating the Company standard; The Backbone of our success
- Zoran Vidovic
- Nov 19, 2024
- 5 min read
Updated: Nov 29, 2024
So, we got our company mission and vision sorted out. Now we get to our business and make the world a better place.
Is it that easy? No, unfortunately, it is not.
We need to create a standard for our company to be able to get everyone on the same performance level in line with our company's mission and vision and applicable regulations.
What is a company standard?
Marriam-Webster dictionary recognized a standard as "something established by authority, custom, or general consent as a model or example; something set up and established by authority as a rule for the measure of quantity, weight, extent, value, or quality."
If we apply this to the company, the company standard will be the set of company policies and operating guidelines governing every aspect of the operation.
So, the company standard is the backbone of our company, as it will set all the processes, procedures, training requirements, job descriptions, and hiring expectations in line with the company mission and vision.
We must not think the standard is not important and that things can get done on the fly. They can, but what long-term effect is that approach going to have on the company and its employees?
Why is it important to have a company standard?
Regardless of whether we are running a small or large enterprise or being self-employed, we must ensure our delivery is always presentable and accurate.
This is important for several reasons:
It speaks confidence and reliability, which builds trust with our consumers.
It speaks ingenuity and dedication, which resonates with our potential employees.
It speaks integrity and stability, which attracts investments.
If we look at any service or a product we are loyal to, we will discover a pattern behind its success in making us trust and invest in it. It is a standard.
If we look at our favorite coffee shop, we will see that the reason we go there time after time, perhaps each day, is because the coffee is great each and every time. The coffee cup is at the exact temperature not to allow for the cream to disperse as the coffee gets cold too quickly after being purred. We then enjoy that perfect croissant with that tasty filling, which doesn't stop tickling our taste buds each time we bite into it. The lovely and friendly staff makes it harder for us to find a reason not to come and spend our money on that guilty pleasure. So, we are hooked, and we know it. We are looking to cut expenses, but this is not part of it. We somehow cannot find the strength to deprive us of this pleasure, regardless of the reasoning for it.
Why is this the case?
It is because of their standard in making and presenting the products as well as their relationship with customers, establishing great customer service.
The only way to make the coffee great each and every time is if we have a set process that is followed by the complementing procedure.
Most importantly, it all needs to be in line with all safety regulations to prevent harm to employees and customers.
The process will tell us what needs to be done.
The coffee beans need to be ground to a certain size depending on the humidity level.
The coffee cups need to be heated to a certain temperature.
The milk needs to be of a certain fat percentage to produce strong and long-lasting foam.
The milk needs to be purred into the coffee cup at a certain angle and within a certain time.
The coffee then needs to be served to the guest immediately.
The procedure will tell us how we do it.
It will tell us to first check humidity and temperature measurements to determine the powder size coffee beans are going to be ground to.
Then it is going to tell us how to set the required coffee powder size.
It will then tell us the temperature at which coffee cups need to be heated, also directing us to put freshly washed coffee cups to the back of the coffee machine heater shelve to allow them to heat up before use.
It will then tell us how to heat the milk and not overcook it.
It will then tell us how to properly pure the milk in the coffee cup to produce firm but fluffy milk foam in the desired shape.
It will then tell us how to serve the coffee to the guest.
We will obviously have the same for each segment of the operation, which includes service.
That is how the same level of quality is assured for our products and services.
How do we create a company standard?
To achieve this, we need to identify what our product and service are and which level of quality we are aiming for.
We are then going to identify what makes a product or service satisfy the set standard.
Then we are going to parse each product and service to determine which steps need to be taken to achieve the desired level of delivery up to the set standard, each and every time.
We are going to determine the critical elements of each product and service to be able to determine two things:
Which steps need to be taken to create a product or deliver a service up to the set standard?
This is going to tell us the number of critical steps the final product or service can be delivered in.
How much time is needed for each step?
Which resources and how many are needed to deliver it?
Which safety concerns have been identified and how are they going to be mitigated?
Which skill set is needed to be able to achieve it?
This is going to tell us which tasks need to be completed to deliver the product or service.
It will reveal which performance abilities are needed for each task.
It will also reveal how complicated, difficult and time consuming each task is.
All of the above will give us a list of tasks that need to be completed to deliver a product or a service with a clear understanding of performance abilities required to be obtained by the performing person.
Example:
Let's see how it would look for our company dedicated to delivering fresh, organic food from local farmers to our community in a single day.
Firstly, we would determine whether the delivery would be outsourced or run by us. If run by us, the same process would be followed to establish which trainings, processes, procedures and resources will be required to achieve the final result. This will then highlight the timeframe needed to achieve it.
If the process would be outsourced, then we would need to analyze the standards used by our partners, which also apply to the organic farms. We would need to determine whether the processes used to grow, harvest, store, package, and deliver the products are in line with our set standards, along with current government regulations, and if not, how they can get aligned.
An option would be to develop our standards and have them applied across the board, or have every partner develop their standards in line with ours and government regulations. In which case we need to set the monitoring and compliance process to maintain the set standard across the board.
How do we implement and maintain the set standard?
We need to create and schedule trainings for each position.
We need to create company policies to assure all behaviors are in line with the company's mission, vision, and values.
We need to establish the compliance process to detect opportunities for improvement in each segment of the company.
We need to have a performance review process allowing for two-way communication to receive constructive feedback from the employees.
To be able to implement and maintain our standards, we need to be realistic in our assessment process and develop comprehensive and achievable standards that can be related to by our employees.
