Workflows, Systems, and SOPs: What’s the Difference?

Who doesn’t love a good process? Workflows, systems, and SOPs make life easier, keep our businesses on track, and pave the way for efficiency.

At the fundamental level, workflows, systems, and Standard Operating Procedures (SOPs) are all processes. Each one can be used to support different areas of your business, keeping it organized, streamlined, and automated.

So, what’s the difference? Is one better than the other?

Let’s take a closer look.

What Is a Workflow?

A workflow is a sequence of connected steps or tasks that help you complete a project.

One example is the workflow you go through when invoicing clients. You have to gather information, create and send the invoice, chase payment, and then close off the project by logging your time and filing any documents. Your main project is invoicing, and each step of the workflow helps you to complete it.

Other example workflows are:

●     Setting up an employee in the payroll system

●     Processing an expense report

●     Adding a new lead in your CRM

●     Onboarding a new client

What Are Systems?

While a workflow involves the tasks necessary to complete a project, your systems are the procedures and routines (essentially, the tools) that work together to produce a desired result.

Systems are critical building blocks for every business, particularly small businesses. If workflows are the “vehicles,” then your systems are the roads — they guide you where you want to go.

Lead generation is an example of a system. It involves a series of interdependent processes that lead to acquiring new customers. For instance, this can include activities such as creating content, helping potential customers find your business, and converting leads into customers.

Other examples of systems include:

●     Email marketing

●     Social media posting

●     Website management

●     Advertising

●     CRM (Customer Relationship Management)

●     Discovery calls

●     Prospecting

●     Operations

●     Customer Services

What Is an SOP?

A Standard Operating Procedure (SOP) is a detailed set of step-by-step work instructions that describe how to complete a process from beginning to end. The main difference between SOPs and workflows is that SOPs are more specific. As SOPs account for all the minute details, they are essential to a company’s operations. They ensure everyone understands what is expected of them and tasks are completed consistently and efficiently.

Consider them your roadmap. An SOP takes your employees on a journey, much like your GPS tells you which way to turn when driving from point A to point B. SOPs ensure that your vehicle (workflows) follows the correct path (systems).

The main drawback is that SOPs take time to create, so as a result many small business owners put them off. However, since they offer a ton of benefits for your company, they should be prioritized.

The three major benefits of SOPs are:

1. Improved efficiency and decreased costs: SOPs help employees finish tasks more quickly and with fewer mistakes by offering clear instructions.
2. Consistent results: SOPs can be used to standardize the level of quality for any task, so that customers receive consistent results in all areas, from product production to customer service.
3. Quality control and assurance: SOPs can help identify areas that need improvement and offer guidance on how best to implement changes.

Workflows, Systems, and SOPs: Where Should You Start?

At Modern Penny, LLC, we understand the complexity of running a business. We can help you create workflows, systems, and SOPs that will increase efficiency, reduce costs and provide consistent results.

Whether you’re just starting out or have an established business, there is always time to organize and streamline your processes. Together, we’ll look at the unique needs of your business and help you create a plan of action. Book a free discovery call today so we can talk about your goals and business needs. The bottom line: you don’t have to do it all alone!