Over the past decade most organizations have had to become lean, dynamic, and adaptable. However, in many cases as corporate structures have changed the policies and procedures have not. A significant problem is beginning to reveal itself, the corporate policies and procedures are holdovers from what was a very different company. The result has been significant deficiencies and material weaknesses in internal control over financial reporting.
As organizations change, the policies and procedures must be adapted to meet the new business.
Policies and Procedures provide a link between the company vision and its day-to-day operations. Well-written policies and procedures allow employees to clearly understand their roles and responsibilities and allow management to guide operations without constant intervention.
While Policies are general in nature, Procedures provide the details as to what to do, often with examples and forms.
All organizations have policies and procedures. Whether the policies and procedures are formal written documents or informal and unwritten they exist and guide daily decisions and help determine how stakeholders are treated. A clearly understood set of policies and procedures establishes an overall tone at the top which enables employees to execute the vision and strategy of management in their daily activities. Plus policies and procedures are not simply used internally; policies also communicate to stakeholders and third parties the vision of the company.
If you are uncertain when the last time you reviewed your policy and procedure manual, donít know if you have one, or have recent internal control deficiencies, now is the time to get started and we would be happy to help.