Business Word

It's a Matter of Policy

by Peter Zvalo

In the above scenario, the notion that the movie theatre even has a policy against allowing boa constrictors into the theatre is perhaps more astonishing than the act of someone trying to bring one in!

This policy formalizes what most people would consider to be a "common sense" rule of conduct. The existence of the theatre's anti-boa constrictor policy suggests that the theatre had faced a similar problem in the past and that individuals have differing views on what constitutes common sense.

Policies respond to the need to set boundaries. In the corporate world, as in the world at large, policies set the boundaries of what is reasonable or unreasonable. For example, in the absence of a corporate travel policy, determining what is a reasonable amount to spend on lunch is open to individual interpretation. Where one individual considers $10 to be reasonable, another considers $25 to be reasonable. Effective policies apply structure, consistency, and fairness to everyday business activities for all members of an organization.

But what kinds of policies are effective and respected?

1. Policies on issues that require them. Policies should be created for areas that present potential problems or areas that have demonstrated problems in the past. Establishing a policy for the sake of establishing one may create a problem where one did not exist. For example, if absenteeism is not a problem, introducing a policy on sick leave may actually create a problem by encouraging absenteeism. Numerous policies are often required for large organizations in areas such as human resources, procurement, communications, media relations, business travel, Internet and e-mail use, and so on owing to the large number of employees in, and the complexity of, operating a large organization.

2. Policies that can be implemented. Policies should be the basis of the procedures that employees follow to do their jobs. If the procedures needed to implement a policy are unclear, cumbersome, or unachievable, the policy may be flawed. (Remember that policies are not the same as procedures: policies are like compasses — they set the direction; procedures are like road maps — they guide you along your chosen course to help you reach your destination.)

3. Policies that are simple. A good policy must be logical and easy to understand. A policy should start with a concise statement of approximately one or two sentences in length that answer the question What is our policy on …? Additional information needed for clarification, such as exemptions and examples, should follow the initial policy statement.

4. Policies that are up-to-date. Policies will be effective and respected if they are regarded as current and authoritative. Therefore, policies need to keep pace with changes in the organization. A departmental reorganization, company restructuring, or the introduction of a new technology are examples of events that will likely necessitate changes to one or more policies.

5. Policies that are communicated. A policy will only be effective if it is properly communicated. New or revised policies should be communicated to staff and managers in the form of a memorandum or by e-mail. Corporate policy documents should be regarded as reference material, and therefore must be easy to access. Many organizations post their policies on corporate intranets, thereby allowing any employee with a desktop computer to view them.

Developing, documenting, communicating, and maintaining corporate policies is clearly a lot of work, and few organizations do all these tasks well. When things start to "get out of hand," chances are that the root of the problem is a flawed, miscommunicated, or absent policy. When organizations devote the necessary resources toward effective policy making and maintenance, they are on the right track to continued stability and prosperity.