How to Build SOPs and Approval Matrices for a Small Company

“Everything goes through me” is a common phrase from SME owners—and a major bottleneck for growth. Building simple SOPs and approval matrices can free you from daily operations while maintaining control. Here’s how.

Why SOPs and Approval Matrices Matter

The Problem

Without documented processes:

Decisions wait for the owner
Employees can’t act independently
Quality varies depending on who does the work
Knowledge walks out the door when staff leave
Scaling becomes impossible

The Solution

Simple, documented processes that:

Define who can approve what
Establish clear steps for common tasks
Create consistency across the team
Enable growth without adding management layers

Building Your First SOPs

Step 1: Identify Critical Processes

Start with processes that are:

Repeated frequently (daily/weekly)
Involve money or risk
Cause confusion or delays
Different people do differently

Common first SOPs:

Purchase requests and approvals
Leave requests
Expense reimbursements
Customer complaint handling
New employee onboarding

Step 2: Document Current Process

For each process, capture:

What triggers the process
What steps are involved
Who does each step
What decisions are made
What the output/result is

Step 3: Simplify and Standardise

Ask:

Can any steps be eliminated?
Are approvals really needed at each point?
Can technology help?
Is the process clear to anyone reading it?

Step 4: Create the SOP Document

Include:

Purpose: Why this SOP exists
Scope: What it covers
Process steps: Numbered, clear actions
Responsibilities: Who does what
Approvals: What needs approval and by whom
Forms/templates: Supporting documents

Designing an Approval Matrix

What is an Approval Matrix?

A table showing:

Types of decisions/transactions
Value thresholds
Who can approve at each level

Example: Purchase Approval Matrix

Purchase Value	Approver
Up to QAR 1,000	Department Head
QAR 1,001 - 10,000	Operations Manager
QAR 10,001 - 50,000	General Manager
Above QAR 50,000	Owner/CEO

Common Approval Categories

Financial: Purchases, payments, expenses
HR: Leave, overtime, hiring
Operations: Contracts, commitments, exceptions
Customer: Discounts, credits, special terms

Implementing Delegation of Authority

Start Small

Begin with low-risk areas:

Routine operational decisions
Standard purchase orders
Basic HR approvals
Customer service responses

Build Trust Gradually

Expand authority as:

Employees demonstrate competence
Processes prove reliable
Monitoring systems work
Mistakes are manageable

Keep Some Controls

Always retain approval for:

Large financial commitments
Hiring and firing decisions
Legal agreements
Strategic changes

Making It Work

Communication is Key

Explain why you’re implementing SOPs
Train everyone on new processes
Make documentation accessible
Encourage feedback

Monitor and Adjust

Review approvals periodically
Track any issues or exceptions
Update SOPs based on experience
Celebrate efficiency wins

Technology Helpers

Simple tools can help:

Shared document folders for SOPs
Email approval workflows
Simple project management tools
Expense management apps

Common Mistakes to Avoid

Making SOPs too complex: Keep them simple and usable
Too many approval levels: Every level adds delay
Not updating: Old SOPs become ignored
Inconsistent enforcement: Everyone must follow the process
No training: People can’t follow what they don’t understand

Sample SOP: Purchase Request

Purpose

To ensure all purchases are properly authorized before commitment.

Process

Requester completes Purchase Request Form
Requester’s manager reviews and approves (if within authority)
If above manager’s limit, escalates to appropriate approver
Approved request goes to Procurement/Admin
Purchase Order issued to vendor
Goods received and verified
Invoice matched and processed for payment

Forms

Purchase Request Form
Purchase Order template

Ready to Build Your SOPs?

Lineati Consultancy helps SMEs:

Identify processes that need documentation
Create practical, usable SOPs
Design approval matrices
Train teams on new processes
Review and optimize existing workflows

Want to free yourself from daily approvals? Contact us to discuss building your operational foundation.