Standard Operating Procedures: The Key to Predictable Revenue Growth
The formula is simple: SOPs plus Revenue Operations (RevOps) equals predictable revenue. Yet, so many businesses continue to rely on ad hoc processes, creating volatility and inefficiency. Without SOPs, even the most sophisticated RevOps strategies fall short of their potential. Here's wh
What Are SOPs and Why Do They Matter?
Standard Operating Procedures (SOPs), often referred to as playbooks, checklists, or manuals, are detailed instructions for executing specific processes. Effective SOPs answer critical questions:
What needs to be done?
Who is responsible for doing it?
How are tools and systems used?
What are the quality standards - think Service Level Agreements (SLAs)?
What happens when something goes wrong or is unclear?
The ultimate measure of a great SOP is continuity. If a key team member is out sick, operations should not grind to a halt. A clear SOP ensures work proceeds seamlessly, reducing bottlenecks and keeping the team on track.
The Reach of SOPs Across Business Functions
SOPs can be applied across the board. They apply to:
Sales: From lead engagement to contract closing.
Marketing: Campaign execution and performance tracking.
Customer Success: Onboarding, issue resolution, and renewals.
Invoicing and Finance: Billing workflows and payment reconciliation.
And can be used for any other business function.
Proper documentation of these processes transforms guesswork into predictability, creating a foundation for sustained growth.
The Cost of Ad Hoc Processes
When businesses operate without SOPs, inconsistency becomes the norm. For instance, sales reps might engage leads differently, leading to scattered outcomes and unreliable data. This variability creates a cascade of challenges:
Unreliable Reporting: Without uniform processes, metrics such as conversion rates become meaningless.
Missed Learnings: It’s impossible to identify what works (or doesn’t) when everyone follows their own playbook.
Short-Term Gains, Long-Term Pain: Star employees might succeed with their "own way," but their success is not scalable or repeatable.
One common objection to SOPs is, "What I’m doing works for me." This may be true at an individual level but is irrelevant for organizational growth. Businesses must prioritize consistency over individualism to achieve predictable revenue.
Standard Operating Procedures: The Key to Predictable Revenue Growth
The formula is simple: SOPs plus Revenue Operations (RevOps) equals predictable revenue. Yet, so many businesses continue to rely on ad hoc processes, creating volatility and inefficiency. Without SOPs, even the most sophisticated RevOps strategies fall short of their potential. Here's why.
What Are SOPs and Why Do They Matter?
Standard Operating Procedures (SOPs), often referred to as playbooks, checklists, or manuals, are detailed instructions for executing specific processes. Effective SOPs answer critical questions:
What needs to be done?
Who is responsible for doing it?
How are tools and systems used?
What are the quality standards (e.g., Service Level Agreements or SLAs)?
What happens when something goes wrong or is unclear?
The ultimate measure of a great SOP is continuity. If a key team member is out sick, operations should not grind to a halt. A clear SOP ensures work proceeds seamlessly, reducing bottlenecks and keeping the team on track.
The Reach of SOPs Across Business Functions
SOPs are not just for isolated departments; they are the connective tissue that aligns all revenue-generating processes. They apply to:
Sales: From lead engagement to contract closing.
Marketing: Campaign execution and performance tracking.
Customer Success: Onboarding, issue resolution, and renewals.
Invoicing and Finance: Billing workflows and payment reconciliation.
Proper documentation of these processes transforms guesswork into predictability, creating a foundation for sustained growth.
The Cost of Ad Hoc Processes
When businesses operate without SOPs, inconsistency becomes the norm. For instance, sales reps might engage leads differently, leading to scattered outcomes and unreliable data. This variability creates a cascade of challenges:
Unreliable Reporting: Without uniform processes, metrics such as conversion rates become meaningless.
Missed Learnings: It’s impossible to identify what works (or doesn’t) when everyone follows their own playbook.
Short-Term Gains, Long-Term Pain: Star employees might succeed with their "own way," but their success is not scalable or repeatable.
One common objection to SOPs is, "What I’m doing works for me." This may be true at an individual level but is irrelevant for organizational growth. Businesses must prioritize consistency over individualism to achieve predictable revenue.
Predictability Versus Volatility: The Power of SOPs
Consider these two scenarios:
Reps hit their targets with wide variance—80%, 50%, 154%, 90%.
All reps consistently land between 90–95% of target.
Although the average might be the same, the second scenario is vastly superior for forecasting and planning. Predictability enables better decision-making, resource allocation, and long-term growth strategies.
Bridging the Gap With RevOps and SOPs
When working with new clients, I often ask to see their documentation. Nine times out of ten, it’s incomplete or nonexistent. This is a missed opportunity. Without proper documentation:
Teams waste time reinventing workflows.
Reporting becomes anecdotal rather than data-driven.
Scaling becomes a gamble rather than a strategy.
RevOps can’t fix everything, but integrating SOPs into RevOps efforts is a game-changer. It creates the consistency needed to scale successfully and aligns teams to achieve shared goals.
Take Action: Building Your SOP Library
Start small. Create one SOP per week. After a year, you’ll have 52 processes documented, a significant competitive advantage. Use these steps:
Identify a recurring task that causes confusion or delays.
Document the process, focusing on clarity and simplicity.
Review and refine the SOP with input from the team.
Store it in an easily accessible location for future use.
Ready? Let’s SOP!