Setting up systems of policies, processes and procedures might take a lot of legwork up front, but will ultimately make your employees more efficient and confident in their work in the end. All three can help determine the most efficient way to complete a task, give your employees guidance about how to do their jobs and help ensure quality control of your products and services. A procedure is the recipe for a cake, giving you the exact ingredients and steps to make the cake.įrom the example, you can see that you cannot run a successful bakery (or bake cakes, for that matter!) without policies, processes and procedures. A process explains what the bakery makes and sells (i.e., does it offer just cakes, or does it also make cookies and cupcakes, too?), and who is involved at each level - from cashiers to chefs. Within a procedure, you should describe who performs it and what steps are performed, as well as when and how they are performed.Įxample: A policy establishes the rules of being a bakery, such as proper use of utensils or appliances for safety purposes. Because procedures are used by employees the most, their input is often sought in their creation procedures are the practical applications of the policies created by upper management. Procedure – While a process is a broad overview, a procedure is more detailed, offering step-by-step instructions on how to perform part of a process or a specific task. Within a process, you should include who is responsible for executing it, what tasks should be performed and when they should be performed. It follows the company’s rules, or policies, while giving a high level view of how something should work. Process – A process crosses departments, and explains how to produce a product or service. Within a policy, you should explain what it is about, why it is required, what department it falls under and who is responsible for executing and enforcing it. Most of the time, policies are made by upper management, which uses policies to guide their decisions. It ensures consistency and compliance with the company’s mission, values and strategic goals, and serves as a guideline for procedures. Policy – A business rule or company guideline that gives employees, their departments and the overall company direction. All three, however, are necessary to run a successful, organized business. Often businesses have issues discerning which is which or use the terms interchangeably, resulting in them lacking one of the elements. Businesses know that they need to have a system made up of policies, processes and procedures.
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