009 Process Vs Procedure

Transcript

Welcome And The SOP Problem

SPEAKER_00 0:01

Hi, this is Serena, and you're listening to the Business Strategy Podcast. Today we're talking about the concept of a process versus a procedure. If you've talked to anyone in the business world, they will talk to you about putting some standard operating procedures or SOPs in place. I am absolutely for you as a business owner having SOPs into your business, but I like to take a pause with clients and make sure that they understand the difference between a process

A Gas Tank Process Example

SPEAKER_00 0:32

and a procedure. I use this example that I learned in one of my chemical engineering classes from my professor that she used in one of in our opening, one of our opening lectures about the difference between a process and procedure. So she detailed out what and asked, asked, she asked us all the question and asked us, what do you do when you need to go and refill your gas tank? The the answer you more likely would think of is all right, well, I'm going to go to go to the pump. I'm going to pay. I'm going to unscrew the nozzle or open the thing, pick up pick a type, and then put the

What Makes It A Procedure

SPEAKER_00 1:10

gas into your car. That would be considered a process. But the procedure is you're going to make sure your car is off. You're going to open, unlock the gas thing, you're going to open the door, and then you're going to close the door behind you, and then you're going to walk around to the pump. You're going to pull the wallet out of your pocket, look for the right card, pick the right card, and then you're going to pay. And then you see, and so on and so on, the level of detail that's in a procedure versus a

Picking The Right Level Of Rigor

SPEAKER_00 1:36

process. The difference between these two is what can make or break some operations in your business and being clear about what is a procedural thing you're trying to document versus what is a process. The difference between these two can be helpful because you want to make sure that you have processes where you need processes and procedures where you need procedures. There are certain things in accounting that you need procedures on because they can have financial impact. But there are processes where it's like, well, you might not need as high level of detail, but it's just about getting that job done. You'll find a working rhythm. But your goal here is to, yes, document everything, but start at the higher level and find out do you need more rigor? Because if you start at the level of rigor that's over the extreme, you're less likely to follow it. But also it's really unclear at that point to know if you need to, if you need that level of rigor.

Avoiding AI Over-Documentation

SPEAKER_00 2:28

Now, if you're using a large language model, they'll likely go into over detail on every single step. And so I caution you to lay out the process first without a large language model and then bring in a Claude or Chat GPT if you're using those tools in your daily workflow. If you're not using those tools, please ignore that note. That is just for my friends who are specifically using those tools.

Work With Us And Closing

SPEAKER_00 2:50

I hope this is helpful. And if you'd like to work with us directly, you can reach out to us at www.baseboederlabs.com where we help our clients accomplish anything they're looking for. And sometimes the anything they're looking for means making more money, make their teams work together. We'd love to work directly with you. Thank you for listening to this episode and tune in for more.