Creating a well written policy and procedure manual communicates company philosophy and guidance, ensures consistency of process and procedure and improves training. Often referred to together they are two separate types of document with different functions.
Policy Manual
Polices are high level guidelines that communicate organizational culture and directives for the proper way to engage in the business of the company. They are directed at management and reach down to the staff. These are the “thou shall” and “thou shalt not” rules. The polices provide a statement of approach, sets expectations and protect the legal interests of the company. When carefully drafted policies allow flexibility to meet circumstances. It is important to ensure that actual practice follows the directives of the policies.
Policies are directives of the board or management. As such they should be reviewed at least annually and approved by the governing body. Depending on the policy the document should be reviewed by legal counsel or other professional. For example, the employee handbook generally sets forth policies for the relationship between employer and employee and is subject to multiple rules, regulations and statutes. There are multiple professional organizations and law firms that can help create an employee manual.
Procedure Manual
Procedures contain tactical information providing steps to accomplish specific individual tasks containing standard processes and reflecting the best practices of the organization. The procedures are generally not very flexible except as required in specific circumstances. Well written procedures will ensure consistency in process, enhance productivity and significantly improve the training process.
A single complete activity such as payment processing may have multiple procedure documents that address steps taken in multiple departments. A single set of steps may be referenced in multiple procedure documents that address variations of a similar task.
Procedure manuals are generally drafted by, or with the direct support of the staff involved in the day-to-day activity. Once drafted they go through an approval process and then implementation. The level of detail included depends on the company, the drafter and the task. In general, the more detail the better, but the longer it takes to draft.
Drafting Policy and Procedure Manuals
Policy manuals and procedure manuals generally have different audiences and different drafters. They should each be based on a template to ensure consistency across the organization. Include an organizing numbering system and a table of contents. The exact information to be included for each statement should be determined at the start of the process. Creating policy and procedure manuals can be a big effort and should be managed as any project.
- Identify a leader
- Determine the participants
- Create a schedule of activity
- Launch the project
- Involve management, legal and other advisors
- Follow up regularly until the activity is completed
- Put the information online if appropriate
- Train the company in the information
- Review and revise the documents as changes happen or at least annually.
In addition to the minimum information of a policy statement or a procedure list I like to include information that will aid in understanding the intent of information. That way successive users of the information will not need to wonder about where the information applies or what the procedure intends to accomplish. The larger the organization the more formal and extensive the explanatory information needs to be
Policy Manual Template
- Entity Name – which includes company and affected department or division as appropriate
- Numerical or other classification identifier
- Statement of purpose of the policy
- Reference information for the policy such as a cite to a statute
- Statement of Policy
- Details and clarification
- Delegation of authority – this may be handled elsewhere
- Characteristics
- Clear, concise, simple
- State the rule – not how to accomplish it
- Identify who to contact in case it needs interpretation
- The policy manual should reflect a consistent, logical framework
Procedure Manual Template
- Entity Name – which includes company and affected department or division as appropriate
- Numerical or other classification identifier
- Position responsible for completion of the task – use title not the name of the person completing the task
- Description of the task being accomplished
- Refer to related procedures
- Refer to policies as appropriate
- List of items required to complete the task
- Step by step instruction to complete the task
- Subtitle major sections of the task as a reminder for quick review
- Include screenshots, form fill information, location of on/off switches
- Characteristics
- Developed with the user in mind. I prefer very detailed descriptions including where to get information, where to post, who to contact, charts to follow…
- Owned, used and updated by the end user
- Understandable, appropriately detailed for a new user
- Offer options if necessary
Creating a policy and procedure manual will help to communicate company philosophy and expectations to staff and create a store of company knowledge that will be very useful in helping the company grow with consistency as circumstances and personnel change. These documents are also beneficial when it is time to make procedural changes to accommodate changes in the organization. I have been involved in the creation of many policy and procedure manuals and would enjoy helping you create yours.