What is the concept of standardization? Which area of standardization interests me? Specifically, I am referring to process standardization within the realm of supply chain management.
What does standardization mean? Standardization, also known as standardisation, is the procedure of establishing and developing technical standards through consensus among various stakeholders, including companies, users, interest groups, standards organizations, and governments. Standardization aims to enhance compatibility, interoperability, safety, repeatability, and quality. It can also promote the normalization of previously customized processes. In social sciences, such as economics, standardization is closely related to resolving coordination problems, wherein all parties can achieve mutual benefits by making mutually consistent decisions.
What is process standardization? Process standardization refers to organizing and formalizing different tasks, approaches, and administrative steps within a business. It involves documenting these processes and ensuring consistency. A process typically consists of inputs, transformation steps, and outputs (delivery).
Why is process standardization important? To illustrate the importance of process standardization, let's consider a simple example. Suppose a company has five sales representatives, each maintaining their own list of clients and using it according to their preferences. This approach stems from the notion of "this is my work, and I need to protect it." While this may seem reasonable, it has several drawbacks:
Limited data sharing: By allowing only individual access to client data, valuable information remains siloed, preventing other employees from benefiting from a broader client database.
Dependency on a single salesperson: If the main sales representative is absent or unavailable, others cannot access the data to continue their work.
Company-wide access: All client databases obtained should belong to the company and be accessible to all employees.
Can this situation be standardized? How? To address these challenges without creating organizational gaps, process standardization can be implemented using the following steps:
A. Establishment of rules:
Define rules regarding data ownership (e.g., prohibiting salespersons from contacting clients in someone else's list).
Assign ownership of each client to a specific sales representative.
Determine whether a salesperson will work independently or as part of a team based on client size.
Reward salespeople based on the volume of sales to their assigned clients.
B. Creation of a shared client list:
Develop a shared list that is accessible to all relevant employees.
Ensure the data on the list is accurate, complete, and easily readable. The level of data structure can be determined later.
C. Instruction and training:
Provide guidance on how to populate and utilize the shared list effectively.
Emphasize the importance of respecting data ownership.
D. Implementation of a standardized approach:
Establish procedures to enable database access and make all sales and contract data available.
Facilitate the seamless substitution of an absent employee with a colleague or team.
This example demonstrates how process standardization can have significant impacts, including:
Legal protection against employee misuse of data.
The ability to make informed decisions regarding ownership changes or support for sales representatives.
Easy support for absent employees through database access.
Retaining client lists within the company even when an employee resigns, allowing for easy reallocation to a new employee.
In conclusion, standardization in general improves processes, eliminates negative gaps, and significantly enhances communication.
In small companies, standardization may not be essential and it is possible to operate without actively pursuing it. However, in larger organizations, standardization is a valuable strategy that can have a significant impact.
Comments