Standard operating procedure (SOP)
Last updated
Quick Answer
A standard operating procedure is a written, repeatable description of how a specific job is done, owned by someone and used by the person doing the work.1,2
What it is
An SOP describes a process at the level of detail a competent person needs in order to do it the same way twice — inputs, sequence, decision points, output. It is distinct from a checklist, which verifies steps were taken, and from a policy, which states a rule without describing execution. The useful test is whether a new hire could run the process from it without asking.1,2
Operational context
What good looks like
Why It Matters
In a business you just bought, most of the important procedures are not written anywhere — they are in the previous owner's head or in two long-tenured employees'. Documentation is how that knowledge stops being a key-person risk. Whether it gets followed is a different problem from whether it gets written, and it is the one worth planning for.1
Common mistakes
Term Family
Related concepts
Frequently Asked Questions
What is Standard operating procedure (SOP) in venture capital?
An SOP describes a process at the level of detail a competent person needs in order to do it the same way twice — inputs, sequence, decision points, output. It is distinct from a checklist, which verifies steps were taken, and from a policy, which states a rule without describing execution.
Why is Standard operating procedure (SOP) important for startups?
Understanding Standard operating procedure (SOP) is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
Sources & References
- 1.B1-01 — EOS Worldwide, eosworldwide.com/eos-modelEOS Worldwide, eosworldwide.com/eos-modelFramework author (canonical)(A standard operating procedure is a written, repeatable description of how a specific job is done, owned by someone and used by the person doing the work.)secondary · B1 · operating-cadence · concept
- 2.B1-10 — Lean Enterprise InstituteLean Enterprise InstituteFramework author (canonical)(A standard operating procedure is a written, repeatable description of how a specific job is done, owned by someone and used by the person doing the work.)secondary · B1 · operating-cadence · concept
- 3.INT-01 — network-keyword-registry-v1.json v1.2 - 217 operatorbeast termsnetwork-keyword-registry-v1.json v1.2 - 217 operatorbeast termsInternal network artifact(A standard operating procedure is a written, repeatable description of how a specific job is done, owned by someone and used by the person doing the work.)orientation · INT · operating-cadence · concept
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