Standardization in Business: 10 Real World Examples

Standardization refers to the process of establishing uniform policies, procedures, materials, products, and services within a business. It aims to increase efficiency and quality by reducing variability.

Many companies rely on standardization to deliver consistent results This article will highlight 10 great real world examples of standardization across various business contexts

1. Franchising

Franchising is built on standardization. Franchisors provide franchisees with an established brand identity operating model and products/services to follow. This allows easy replication and scaling while ensuring uniform customer experience.

McDonald’s is a perfect example. They have standardized menu items, ingredients, preparation methods, branding, and store layouts. This standardization is key to McDonald’s rapid global growth while maintaining consistent food taste and quality worldwide.

2. Manufacturing Processes

Standardized processes are crucial in manufacturing. They reduce defects and variability in production.

For example, Toyota pioneered process standardization in automotive assembly lines through platforms like ‘Just in Time’ and ‘Jidoka’. Workers follow prescribed, regimented procedures to assemble each car. This improves efficiency, quality and safety.

3. ISO Standards

The International Organization for Standardization (ISO) publishes worldwide standards for products, services and systems. ISO standards ensure uniformity so that global consumers get similar quality and safety.

ISO 9001 for quality management and ISO 14001 for environmental management are widely adopted by companies worldwide to standardize their processes. Certification helps them compete globally.

4. Enterprise Software Platforms

Large organizations invest heavily in ERP (Enterprise Resource Planning) systems like SAP, Oracle, Workday etc. These systems standardize and integrate business processes across finance, HR, manufacturing, inventory etc.

Standardizing on a single enterprise platform brings consistency, optimizes workflows, and provides organization-wide transparency.

5. Customer Service

Brands codify customer service standards so that users enjoy reliable, consistent support. Service reps follow common protocols for issue resolution, complaint management, product training etc.

Zappos is renowned for its standardized 10-point customer service framework emphasizing traits like being helpful, caring, timely and going ‘above and beyond’.

6. Branding & Design

Corporate branding and visual identity elements like logos, color palettes, and marketing templates are highly standardized. This strengthens brand recognition and retention.

Coca-Cola and Nike have globally consistent logos, slogans, ads, and visual designs. Standardization helps them stand out and be instantly recognizable.

7. Retail Store Formats

Retail chains use extensive standardization strategies. They replicate layouts, merchandise displays, signage, and even employee uniforms across locations.

For example, Starbucks optimized store layouts and processes to enable faster service. Their formula retail strategy allows easy international scaling.

8. IT Infrastructure

Tech teams standardize network configurations, servers, software stacks, security tools and endpoints. This simplifies maintenance and change management.

Many organizations adopt ITIL best practices for standardizing IT service support processes like incident management, problem resolution, and disaster recovery.

9. Financial Reporting

Publicly traded companies must follow standardized rules like Generally Accepted Accounting Principles (GAAP) for financial statements.

Standardized reporting makes financial data consistent, transparent and comparable across companies and reporting periods.

10. Certifications & Compliances

Compliance with regulations and standards helps standardize quality and safety. For example, GE appliances are certified to meet the standardized UL safety requirements.

Similarly, ISO 9001 certification indicates standardized quality management processes. The Project Management Institute’s PMP certification standardizes project management skills.

Benefits of Standardization

Here are some key advantages companies gain through standardization:

• Consistent quality – Standardized processes deliver uniform quality and reliability. This builds customer confidence and satisfaction.

• Efficiency – Repetitive standardized tasks are faster to perform. Workers need less training as methods are prescriptive.

• Cost savings – Economies of scale from standardized activities lower costs. Standardization also reduces errors and waste.

• Interoperability – Components/systems integrating with standards work seamlessly together. This optimizes workflows.

• Best practices – Mature standards encapsulate proven techniques and knowledge. Deriving standards from best practices improves performance.

• Regulatory compliance – Standardization helps meet legal and regulatory requirements in areas like finance, environment and safety.

• Vendor support – Products/services adhering to widely adopted standards enjoy better third-party integration and after-sales support.

While extensive standardization has advantages, companies must find the right balance. Some customization and controlled variation in non-critical areas retains flexibility. Absolute uniformity can potentially stifle innovation and improvements over time. Nevertheless, standardization will continue enabling business success and growth into the future.