Standard Operating Procedures - A complete guideStandard Operating Procedures (SOP) are key to many ...
What Are Policies? Definition, Purpose and Why They Matter
Policies, procedures, compliance and adherence are terms used throughout organizations worldwide. Yet rules intended to maintain standards can still be interpreted and implemented in very different ways. Although organizations create policies for their own circumstances, the underlying goal is consistent: to guide decisions and help people work toward agreed standards and objectives.
What is an organizational policy?
An organizational policy is a formally approved statement that sets out the rules, principles and expectations people should follow when making decisions or carrying out work.
Policies translate an organization’s values, objectives and responsibilities into consistent guidance. They explain what is expected, who the policy applies to and the boundaries within which employees, managers and other stakeholders should act.
A policy normally states the intended outcome and governing rule. The detailed steps for carrying it out belong in a supporting procedure.
Why organizational policies are important
Organizational policies define acceptable conduct and provide a consistent basis for decisions. Clear policies help employees understand what is expected, support fair and repeatable operations, and reduce the risk of activities drifting away from the organization’s objectives.
Well-designed policies can help an organization:
• maintain consistency and control across its operations;
• communicate expectations to employees and other stakeholders;
• make repeatable decisions in similar circumstances;
• align day-to-day activity with agreed values and objectives; and
• identify ownership and accountability.
Policy goals provide direction for the people responsible for applying and reviewing a policy. They also provide a practical basis for checking whether the policy remains relevant and useful.
Need to ensure policies get read?
Find out how DocRead allows organizations to distribute policies, procedures, and important documents to employees and track acknowledgments, ensuring compliance and accountability. All without leaving SharePoint.
DocRead has enabled us to see a massive efficiency improvement... we are now saving 2 to 3 weeks per policy on administration alone.
Nick Ferguson
Peregrine Pharmaceuticals
Feedback for the on-premises version of DocRead.
The purpose of organizational policies
The purpose of an organizational policy is to turn an agreed objective or principle into guidance that can be applied consistently.
A useful policy should define the expected outcome, identify who and what it applies to, assign ownership, guide decisions without documenting every procedural step, and provide a basis for communication and review.
Policies are most useful when they are current, accessible and supported by practical procedures. Publishing a policy is not enough: affected people must be able to find it, understand it and know when it applies.
Common types of policies and examples
The policies an organization needs depend on its size, sector, activities and responsibilities. Common examples include:
• People and workplace policies: recruitment, conduct, equality, leave, remote work and disciplinary policies.
• Health and safety policies: workplace safety, incident reporting and emergency response.
• Information and technology policies: acceptable use, access control, information security, data retention and privacy.
• Operations and quality policies: purchasing, records management, quality assurance and business continuity.
• Communications policies: social media, marketing, brand and external communications.
Policies, procedures and metapolicies: what is the difference?
A policy states the governing rule, principle or expected outcome. A procedure explains the steps used to follow that policy in a particular situation.
A metapolicy defines how an organization’s policies are created, approved, published, reviewed and retired. It governs the policy-management process rather than replacing subject-specific policies.
For example, an information-security policy may require access to be controlled; an access-request procedure explains how access is requested and approved; and the metapolicy sets the rules for approving and reviewing both documents.
Get your free Standard Operating Procedures guide
Creating Standard Operating Procedures for your organisation doesn't have to be complicated. This guide will introduce you to the whole lifecycle from creation to training and distribution.
How to create and manage effective policies
Effective policy management is a lifecycle, not a one-time publishing task. Give each policy an owner, use a consistent structure, approve it through the appropriate governance process, communicate it to affected people and review it on a defined schedule.
1. Define the policy objective and scope.
2. Assign an accountable owner and appropriate reviewers.
3. Use clear language and a consistent policy template.
4. Approve, publish and communicate the policy.
5. Record acknowledgement or training where required.
6. Review performance, currency and continued relevance.
7. Update or retire the policy through a controlled process.
A consistent format helps readers know where to find the information they need. The existing free policy template provides a practical starting point, while organizations using Microsoft 365 can also link key data to a SharePoint policy library.
Policies should not be left to gather dust. A review should ask whether the policy achieved its intended result, whether affected people understand it and whether it is still current. Where organizations need to distribute important documents and track acknowledgements in SharePoint, DocRead provides a dedicated workflow for that purpose.
Policy Resources
Get your free policy template
OEGC
The Open Compliance and Ethics Group (OEGC) was founded in 2002 and quickly became the leading authority on compliance, ethics, risk management, governance and more. They have taken GRC management to a whole new level and offer training and other resources that we highly recommend. For more information please visit their website: OCEG - The Ultimate Resource for Governance, Risk and Compliance (GRC)