Why Policy, Process and Procedures are Important in any Business.

Policy, Process and Procedures provide a standard of operational expectations for your business which is important in order to provide your product or service in a consistent and efficient manner. No matter what you provide to your customers or clients through your business it is important to implement a standard, this forms the basis of your product or service, it’s your promise to your customers or clients, vendors and employees.

Here’s an example of product policy standards: “YETI products adhere to rigorous product standards focused on material safety, durability, and performance, with a commitment to sustainability. YETI drinkware” (YETI products) With this policy YETI is letting their Vendors, Customers and Employees know that they are committed to designing and manufacturing quality products that exceed expectations.

Your policy is a set of standards within your business that assist in guiding behaviors and procedures to ensure consistency, compliance, fair work practices and environment for employees, along with consistency within your finished product or service that is delivered to your customers or clients. Business standards include core values and objectives, this includes your company mission, vision and values, what are your business objectives; you need to focus on identifying your product quality, safety and compliance, employee performance and customer service along with overall operational efficiency.

Let’s dig a little deeper in regard to setting a standard for your business; it all starts with your policy, even if you are a one-person business, you need policy.

Policy: Sets the standard, it is important to implement a standard that assist in regulating internal and external processes once you have set these standards they will assist in ensuring fair practices in the areas of hiring and maintaining employee relations along with consistency and efficiency. What are your standards for your product or services that everyone including you will adhere to while in the process of manufacturing product, working with customers or providing a service on behalf of your company.

Process: How will your standard be monitored or evaluated; this is the combination of steps that need to be completed in order to manufacture your product. What is your process this should be laid out from start to finish. Your process is similar to a job description; it outlines or defines the tasks within the process 1.) Discuss the project with your potential client 2.) Provide design to your client 3.) locate specific materials the client is requesting and or substitute materials 4.) provide your client with an estimate or bid for the completed project 5.) schedule time to fabricate project along with completion date 6.) ensure you have the appropriate tools and equipment 7.) schedule time for delivery and or installation of project 8) provide your customer with an invoice for payment. With this example you would now create 8 different procedures, because each step will have a specific process in order to complete.

Procedure: is when you break your process down into more detailed steps, outlining the equipment, skills, knowledge, experience, abilities, and other potential characteristics that are necessary to ensure consistency and efficient outcomes. Have you ever assembled furniture without reading the directions and end up with a couple extra parts? Well, those directions are the manufactures procedure to ensure that the item is assembled according to their standard process, they are included with every purchase to ensure that every shelf is sturdy and looks the same regardless of who assembles it (when procedure is followed that is.)

All of this will help you outline training and development, communication, code of conduct, along with reducing risk. Once you have set standards within your business you will be able to review and analyze those standards in order to implement any form of modification to the process to cut cost, increase productivity or improve quality or efficiency. You want the same consistency within your business regardless of if you provide a service or product, when you are consistent in your process you have a higher percentage of repeat customers and less returns on products due to defects.

To learn more on Creating Procedures see our Article: Creating Efficient Procedures for your Company