5 Advantages of Documented Policies and Procedures
Many organizations believe that formally documenting policies and procedures is too time consuming to prioritize as a key company objective. Standard Operating Procedures (SOPs) can be challenging but they are essential to the success of any organization. The core purpose of SOPs is the same even though the specific policies and procedures may differ across companies. Every policy and procedure should have a clear goal or objective. A SOP is a living document that should be reviewed and updated annually.
Listed below are five advantages connected to the formal documentation of SOPs to consider:
- Consistency: Ensures that everyone is following company policies and executing their duties in compliance with predeveloped procedures. Key internal controls are present and functioning consistently.
- Efficiency: Employees have a clear road map to follow on performing their job duties. Timeliness of operations is enhanced, time wasted on rework and duplicative questions is eliminated. Trying to remember how to complete procedures performed on an infrequent basis, such as once a year, wastes time.
- Accountability: Documented policies and procedures provide a clear delegation of roles and responsibilities whereby employees are easily held accountable for their areas. Expectations and performance metrics are transparent. Performance scorecards can be developed, monitored, and employees adequately rewarded for their accomplishments.
- Risk Minimization: Well drafted policies and procedures incorporate key laws and regulations. Documented policies and procedures can be reviewed and monitored to ensure key laws and regulations are followed, documented, and can be easily audited by regulatory authorities. The policies and procedures can be changed easily so they still are current. Decreased fines, penalties and increase in employee safety all reduce risk to the organization.
- Employee Satisfaction: Documented policies and procedures enhance employee satisfaction by providing consistent guidelines to build trust among employees. Having the accountability mindset empowers employees to be more productive and makes them contribute effectively to the organization’s goals and success.
Policies and procedures are extremely important to your company. Whether it be for the reasons listed above, for succession planning, or when you deal with unexpected staff turnover. Ensuring sustained success can come down to something as simple as having formally documented policies and procedures. While it may be difficult to prioritize the creation of these SOPs, there is no time like the present, and here at WM we can help drive the process based on your specific goals and needs.
As always, should you have questions on this or other matters affecting you or your business, please call 215.675.8364 or email us to speak with a business advisor today.
DISCLAIMER: The WM Update, WM Wednesday Wisdom, WM Daily Update, and other related communications are intended to provide general information, as of the date of this communication, and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.
