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Reasons for having processes and procedures


paperfree Aditi Bansal


Updated on Friday, August 11, 2017

You may have heard several times the question “why do we have processes and procedures?”  One primary reason for having processes and procedures in place is business growth. Many times, individuals struggle to give a vibrant and meaningful meaning to the question.

tags  #Policies and Procedures  #Internal Control System #

 

Do you need to have processes and procedures?

There are many reasons as to why you should have processes and procedures. Therefore a simple tactic to understanding the importance might be useful. The objective of creating an internal control system by outlining and recording the business processes with well-written procedures comes down to a few straightforward reasons.

  • Operational wants
  • Obedience
  • Managing threats
  • Continuous upgrading

 Policies and procedures increase obedience

An essential function of the business should be obeying the laws and regulations. Even if the firm is small, it must abide by the rules of tax, state and local laws, for instance licensing and zoning. On the other hand, some businesses must deal with an endless federal and state legislation and regulations.

Other obedience issues might meet quality standards, for example, ISO9001, ISO22000, or UL. Procedures might not show compliance. However, well defined and documented processes like training materials and procedures together with records that show process competence can make an operative internal control system and compliance to regulations and standards.

Organizations that are having difficulties in observing the laws and guidelines are likely to struggle even more at being productive and fruitful in accomplishing its core mission. If this is the case in your company, you should create a distinct process documented by procedures to meet your legal and governing needs.

Make sure the operational needs are met through policies and procedure.

 You should ask yourself several questions. Like:

  • What is essential for your business success?
  • What is vital in your business?
  • Are practices linked to them being driven by top supervision?
  • How much clearness and visibility is there into the efficiency of the critical business processes?

This will bring you to the next vital role of the procedures which is to make sure the processes fundamental to the business success are properly guided by the administration and are done in a dependable way that meets the requirements of the organization and data are taken and communicated.



This page has a focus on Policies and Procedures, Internal Control System was shared by Aditi Bansal.

 
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