Guidelines for Creation of Functional Company Policies

Company policies need to focus on genuine business needs, communicate the business spirit and prioritize people.

last updated Saturday, March 30, 2024
#Policies and Procedures #Flexible Process

John Burson     Subscribe
How to Create Effective Policies


To create functional policies, you need to base them on genuine business needs and formulate them so that employees can follow them easily and get genuine results. Every company policy you create must be clear and consistent and apply to employees at all levels. Insisting on consistency shows employees that the policy is reasonable and relevant to everyone. Additionally, introduce incentives to encourage employees to follow the rules and to live in the spirit of the document.

Define the objectives and details of the policies you are creating clearly.

You need to have a clear understanding of your objectives and the role of the policy in the company culture and current operations. Your policies also need to fit in with the general business goals. For example, if your business promises exemplary customer service, you need to have provisions that allow customers to complain if they receive any other type of customer service.

Create a list of steps and procedures you need to enforce the policies.

Include an evaluation model to help you measure the effective implementation of the policies. For example, if you are in charge of a day time parking lot, communicate to customers the opening and closing times clearly, and include a fine for anyone who stays past the closing time, which is charged at the exit. Ideally, a policy should include limits and consequences for those who fail to abide by the guidelines. In the above situation, you can measure the success of the policy by the percentage of customers who leave before the closing time.

Try to create a flexible process as much as possible.

For example, create considerations for situations you need to know are beyond your employee's or resources ‘control and to accommodate human error. If there comes a situation where you have to make an exception, make sure everyone understands the reasons behind your judgment. Additionally, make sure that your policies prioritize the overall well-being of your employees and other stakeholders in the business. 


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