According to research, poor processes are the main cause of inefficiencies in 44% of organizations. This underscores the importance of clearly defined processes for improving operational efficiency. As a solopreneur, you can operate your business without much in the way of policy, process, and procedures because you are a one-person show. But, “going from one person to more than one” requires a lot of change.
Here’s the breakdown and definition:
- Implement a policy to get everyone on the same page with the rules.
- Document process to enable delegation.
- Procedures need to be written down, so others can follow the same methods based on your insights.
Policy, process, and procedures (3Ps) are topics we talk about every day with clients. We help set them up, implement them, and train other team members so your business can grow from a solid foundation. So, let’s break down each one.
Policy
The policies are “the rules.” They’re not negotiable… things like:
- what to do when you need a day off
- what the holidays are
- whether or not you have to fill out a timesheet and by when
- when the paydays are scheduled
- what the 401K or health insurance information is
- what software the team should use
Note that policy can be changed. For example, you can start without a 401K and add it later.
As you grow out of solopreneurship, you can no longer decide your holidays based on your workload. You can’t go on vacation without letting someone know. Rules and structure need to be in place to avoid frustration.
What if your part-time employee didn’t know they needed to tell you about a vacation/time off – or how to notify you?
Or, what if they told you, but you forgot because there was nowhere to document it?
Write down these policies and communicate them to your team. There needs to be a central place to store company documents and a process to communicate them company-wide. Make sure they’re written with clarity and simplicity. We keep our policy, process, and procedures in Teamwork.com. Changes are shared with the team when updates are made, and the versions are tracked.
Process
Processes are the steps to accomplish a task. They are things like:
- how you sell to a new client
- how to make sure the client gets a bill
- details on which app to use for what purpose
- how to start a new project
- how to post to social media
To grow beyond running your business all by yourself, you’ll need to hire help and delegate tasks. Your team can truly only help when you relay what’s in your brain to a documented process. For example, when opening a new project, certain steps have to be taken every time. Each step should be listed as a process so anyone can pick it up and follow through.
One way to document processes is to record and transcribe meetings. So, for example, when Susan began to delegate tasks, she’d walk through each step of the process, showing the team what to do. Then, the recording was available for viewing, and the text from the transcription was there as the written process. (We highly recommend Rev for transcription – fast and good!)
It is important to have processes in writing so that you don’t have to re-record every time something changes, like software or a small tweak. Also, it is easier to search words than recordings when looking for how to perform a certain task.
Having the process in a central place, like project management software or a tool specifically aimed at storing processes, also means that the team can collaborate on the process. For example, if a technology change is found, the person can edit the process and notify the team about the change.
For more insights on how to build processes that evolve with your business, check out our blog Clarity, Simplicity & Evolution in Business Process, where we dive deeper into creating adaptable, scalable workflows that ensure operational success.
Procedures
Of policy, process, and procedures, procedures are the most straightforward. Simply put, a procedure is a checklist. We keep procedures as task or project templates in Teamwork.com.
An excellent procedure to start with is for onboarding employees. As you go through the first hire, build a list of everything needed — from interviews to posting headshots and bios to the website to get them access to the assorted software.
You can duplicate that list to make an off-boarding procedure as well. So you’ll know what to do when employees leave, which can sometimes be urgent to address!
Other procedures can be things like:
- onboarding a new client
- kickoff call checklists
- project templates
- offboarding clients
- posting blogs to social media
Simply put, think of a procedure as something that can be duplicated over and over and followed, so you don’t forget a step – like a checklist for an airplane before it leaves the gate. In fact, most project management software allows you to create templates to replicate procedures easily.
Policy, process, and procedures are the backbone for growing your business. If your goal is to grow and sell your business, these operational guidelines will help your business be much more valuable to a buyer than just selling them a client list.
What are some of the policies, processes, and procedures you have – or need – for your business?
Whether you’re new or looking for advanced operational strategies, read more about operational success from our curated resources to tame the chaos and grow your business.
Creating Policies, Processes, and Procedures for Compliance
When establishing policies, processes, and procedures, it’s essential to differentiate their roles. Policies provide an overarching framework, processes outline the path to follow, and procedures detail specific steps for execution. Each of these elements must be designed thoughtfully to align with industry standards and government regulations.
Key Considerations:
- Clarity and Accessibility
- Ensure that your 3Ps are clearly documented and easily accessible to all employees. This promotes consistent understanding and implementation across the organization.
- Relevancy and Specificity
- While policies should address broad organizational goals, processes and procedures must offer specific guidance. For example, a meeting policy should define the purpose of meetings, while procedures should provide step-by-step scheduling instructions without delving into unnecessary minutiae.
- Review and Update Frequency
- Regularly review and update your documents to keep them aligned with evolving industry standards and government regulations. Consider setting a bi-annual or annual review schedule to maintain compliance.
- Employee Training and Awareness
- Provide ongoing training to ensure employees understand the practical application of the 3Ps. This knowledge is crucial for adherence and successful implementation.
- Stakeholder Involvement
- Involve key stakeholders in the creation and review process. Their insights can provide valuable perspectives and ensure that the 3Ps are both comprehensive and practical.
- Alignment with Legal Requirements
- Stay informed about relevant legal changes. This involves monitoring updates from regulatory bodies and integrating those changes promptly into your organizational documents.
- Consistency Across the Board
- Ensure consistency in how 3Ps are applied across different departments. This consistency helps in minimizing compliance risks and operational discrepancies.
By focusing on these aspects, your organization can create robust policies, processes, and procedures that not only promote a clear operational structure but also ensure compliance with industry and governmental standards.
For more on how to boost productivity and efficiency with structured approaches, read our blog Structure, Schedule, and Systems for Productivity & Effectiveness, where we break down the key elements to help you streamline your operations and drive business success.
Strengthen Your Business Foundation with Beyond the Chaos
Ready to streamline your operations and scale your business efficiently? At Beyond the Chaos, we specialize in helping small businesses implement clear policies, processes, and procedures to foster growth. Our team provides hands-on guidance, so you don’t have to navigate these complexities alone. Whether you’re a solopreneur or managing a growing team, we’ll build the operational backbone you need to thrive.
Contact Beyond the Chaos today to start building a more organized and efficient business.
Frequently Asked Questions
What should be considered when creating policies, processes, and procedures to comply with industry and government changes?
Businesses should ensure that their policies align with current regulations and industry standards, staying updated with any changes in legislation. It’s essential to consult legal or compliance experts and continuously monitor updates to remain compliant.
How can businesses ensure procedural control and performance outcomes?
Businesses can implement regular audits and performance reviews to ensure procedural control. Consistently measuring outcomes and adjusting processes as needed helps maintain operational efficiency and meet performance goals.
How often should policies, processes, and procedures be reviewed and updated?
These should be reviewed at least annually or when significant business or industry changes occur. Regular updates ensure they remain relevant and compliant with current standards.
What is the role of a process flow chart or project plan in defining processes?
A process flow chart visually outlines each step in a process, helping teams understand the workflow. It clarifies responsibilities and helps ensure the process runs smoothly by providing a clear guide.
What should a company policy on meetings include and exclude?
A company policy on meetings should include clear guidelines on meeting frequency, duration, and necessary participants. It should exclude unnecessary meetings that don’t have specific agendas or measurable outcomes.
Great article, thanks Susan!