How to quickly understand processes using SIPOC

Inside of nonprofits, there are many interconnected processes at play. Some are more formal and well understood than others. Most consultants jump in to try to understanding a process by adding a bunch of shapes to a page, connecting them with lines and then when they need to communicate to the user or stakeholder, they resort to swim lanes and eventually, you end up with several connected PDF pages that no one can understand or wants to read (including the author).

I agree that understanding the processes within a nonprofit is the first step in order to analyze and improve them, however we believe that in the majority of cases, the best way to understand a process is to have a high-level perspective. That’s where SIPOC diagrams are a great tool. While business processes can be complex, SIPOC diagrams are a simple way to visualize how each piece of the process fits together – on a single page.

What is a SIPOC diagram?

The SIPOC diagram is a type of process map that provides a high-level overview of a process. It breaks down the process into five key parts: Suppliers, Inputs, Process, Outputs, and Customers. By showing how these parts connect, it helps business teams at all experience levels to understand and identify ways to improve processes that affect member  and internal staff experiences.

Elements of SIPOC:

• Suppliers: Where the process gets its materials or data.
• Inputs: The resources needed for the process to work.
• Process: The main steps of the process.
• Outputs: What the process produces.
• Customers: Who benefits from the process.

What is a SIPOC diagram used for?

SIPOC diagrams are commonly used in lean project management, like Six Sigma, to improve processes and minimize defects. They help:

• Explain a business process clearly.
• Keep team members on the same page.
• Identify parts of a process that can be improved.
• Prevents teams from getting dragged into complex flow diagrams.

How to create a SIPOC diagram in 7 steps:

1. Choose a process: Decide which process you want to visualize.
2. Define the process (P): Break it down into high-level steps.
3. List the outputs (O): Identify what the process produces.
4. Identify the customers (C): Determine who benefits from the process.
5. List the inputs (I): Identify the resources needed for the process.
6. Identify suppliers (S): Determine where the inputs come from.
7. Share your diagram: Share it with your team to improve understanding and collaboration.

Here are 5 tips 💡 on how to create a well-designed SIPOC diagram:

1. Keep it Simple: The goal of a SIPOC diagram is to provide a high-level overview of the process. Avoid including unnecessary details or making the diagram complex. Stick to the most essential elements to make it clear.
2. Use Clear Words:  Use descriptive language that accurately reflects the role of each component in the process.
3. Consider Layout: Arrange the elements of the SIPOC diagram in a logical sequence that reflects the flow of the process. For example, start with Suppliers on the left, followed by Inputs, Process, Outputs, and Customers on the right.
4. Add Visual Elements: Use color, icons, or other visual elements to highlight important information or distinguish between different types of elements. However, avoid overdoing it, as too many visual cues can clutter the diagram.
5. Review and Revise: Once you've created the initial SIPOC diagram, review it carefully to make sure it’s accurate and complete. 

SIPOC diagrams are a valuable tool for understanding and improving processes in organizations. By using them, nonprofits can improve operations, enhance member satisfaction, and achieve their goals more effectively.