Standardization

What is standardization?

Standardization refers to the imposition of a certain norm or standard for the design, construction, testing, or use of a product, service, or process.

By standardizing, variations or deviations that can disrupt the normal process are minimized as much as possible. In practice, this is made feasible by providing 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 made and delivered to customers in the same way. By working in this manner, there are far fewer deviations from the set norm. This means significantly less wastage of products and hours spent. At the same time, standardization ensures a much higher level of quality.

Essentially, standardization makes processes much more predictable. This also benefits the turnaround time of processes, as they tend to proceed more quickly.

Regardless of the size of your organization, we advise you to strive for standardization as much as possible. This ensures that your organization is forced to think about whether or not to do something. In many organizations, sales are where mistakes are made, as things are promised that cannot be realized, or not profitably.

In the pursuit of standardization, there is still room for real opportunities that deviate from the standard, provided they are sufficiently profitable. So, while the choices may decrease, if you can convince your target group with solid arguments, that shouldn't be a problem.

An additional benefit is that it becomes easier to make reliable predictions regarding expected results and cash flow. Your company then operates with a manageable number of types and quantities of incoming and outgoing transactions. The risks of unpleasant surprises are reduced. It's actually quite simple: less complexity leads to greater effectiveness and efficiency. That's why we at ICR always say, "First better, then bigger."

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Also read Successful entrepreneurship can be learned.