By standardization, we mean imposing a certain norm or standard for the design, construction, testing, or use of a product, service, or process. Standardization provides organizations with structure, consistency, and efficiency, enabling them to achieve their goals and compete more effectively in the market.
Standardization minimizes variations or deviations that can disrupt normal processes. This is practically implemented through very clear instructions and/or work methods.
The intended benefits are that a standardized process yields more consistent results. This is because a product (or service) is always produced and delivered to customers in the same way. This method of working significantly reduces deviations from the set norm, resulting in fewer product defects and less wasted time. At the same time, standardization leads to a much higher level of quality.
Essentially, standardization makes processes much more predictable. This also benefits the throughput time of processes, as they tend to proceed more quickly.
Regardless of the size of your organization, we advise striving for standardization as much as possible. This forces you to consider whether or not something should be done. In many organizations, things go wrong in sales because promises are made that either cannot be fulfilled or are not profitable.
Even with the pursuit of standardization, there is still room for unique opportunities that deviate from the standard, provided they are sufficiently profitable. So, while the range of choices might decrease, if you can convince your target audience with strong arguments, this need not be a problem.
An additional advantage is that it becomes easier to make reliable predictions regarding expected results and cash flow. Your company will be working with a manageable number of types and quantities of incoming and outgoing transactions, reducing the risk of unpleasant surprises. It’s quite simple: less complexity leads to greater effectiveness and efficiency. That’s why we at ICR always say, "Better first, then bigger."
Understanding individual business concepts is valuable. Connecting them and putting them into practice is what makes the difference. It all begins with clarity.
The ICR Organizational Operating System, brought to life through the ICR Growth & Success SaaS Platform, connects the Ultimate Stakeholders’ Ambition, business model, strategy, organizational design and daily execution into one coherent organizational system. It helps leaders and teams make direction, responsibilities and decision-making explicit, reduce dependence on specific individuals, and make progress, risks and opportunities for improvement visible.
Clarity. Confidence. Peace of Mind.
But why was ICR developed in the first place?
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