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In this presentation we identify and illustrate the key elements of planning, writing and bullet-proofing organizational policies and procedures. We cover: Does it matter? The why’s and what’s of policies and procedures. Building company values into policies and procedures Legal and ethical costs of bad policy. Down to pen, ink and sweat: Policy-writing and research considerations. Prevention: How to prevent against litigation threats. Computerizing the process: What to look for in automating policy & procedure management.
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CLIENT CONFERENCE
Jay Rush, Contracts & Legal Compliance Manager
How to Write Effective Policies: Values, Process and Prevention
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Background and Overview
Speaker Bio
What You Will Learn
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Presenter Bio
Jay R. Rush, J.D., CCEP Manager of contracts and legal affairs for PolicyTech product line
• Oversees contracts, compliance/regulation and intellectual property
• Former government and corporate lawyer
• University professor and management consultant
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Session overview: Policies that work
Does it matter? Why’s and what’s of policies and procedures
Building in company values: Improving morale and discipline
Legal and ethical co$ts of bad policies: courts and regulators are watching!
Down to pen, ink and sweat: Policy-writing and research considerations
Prevention: How to bullet-proof policies against litigation threats
Digital policies: Automating policy and procedure management
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The differences between policies and procedures
Do these difference matter?
Introduction
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Policy & Procedures = Values & Roadmaps An organization’s value statements are maps or compass headings that guide policy creation in a specific direction.
Procedures are the roads and traffic signals that get you efficiently to that destination.
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What is a Policy?
Documented, broad-ranging guidelines that:
o Reflect values, plans and operational guidelines
o Support basic organizational internal/external functions
The ‘who, what, why’ of your organization:
o Prudent principles for administering long-term objectives
o Organizational strategies, tactics and management plans.
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Fixed steps or sequence of activities that are:
o The start & end points for a course of action; the order of, or steps, to correctly
perform a task
o Continual, regular succession of actions
The “how” & “when” of your organization:
o A sustained course or series of operations
o Tactics, measures, steps, techniques or plans
What is a Procedure?
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And the Difference is …
Policy: Guidelines, Standards Procedure: Methods, Steps
Who, what, why? How, when?
Rules, mission and values Instructions, processes
Direction, setting criteria Implementation guidelines
Broad, imprecise, visionary, ideal state Precise, specific, measurable
Statement of the goal; results How actions, warnings
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Does the Difference Matter?
It does to the guy with the wrench.
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Organizational Values
Quality Guidelines
Strategic vs. Tactical
Policies and Procedures at Work
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Policies and Procedures Involve Values at Work
How do employees know what you stand for? Values!
Do the firm’s values translate into policy and procedure & daily
actions?
o Value: “We want to be a humane, worker-friendly organization.”
• Q: Does XYZ Organization have sick leave?
• A: NO. We expect employees to be at work daily.
So, what is the value transmitted by NO policy?
o “We say we’re worker-friendly, but everyone knows we aren’t.”
Policies & procedures demonstrate your values in action
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Policies and Procedures are Strategic and Tactical
STRATEGY: plan of action or goal
TACTIC: device to accomplish the goal
Good policies and procedures integrate organizational strategy, and
demonstrate tactics in your business processes:
Provide decision-making parameters
Define employee roles & responsibilities
Promote understanding & hands-free operations “Let’s move the piece this way
so that we can get here.”
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RHA
Doctors Hospital
Cases
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Case: The Lost Checks
Regional Health Alliance fires an accounts receivable clerk for mishandling
checks
Clerk sues RHA for wrongful discharge, job discrimination: $200k actual,
$1.2 mil punitive.
o Claims: Gender discrimination; poor accounting policies and procedures; manager didn’t
follow discharge procedure
That’s $1.4 million of RHA profits!
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If You Were on that Jury?
Facts: Her manager gave her a recent, good appraisal
She was fired without an exit interview or appeal
RHA’s employee manual was pre-written policy and procedure
EEO notices not posted at RHA
Yes, clerk was sloppy in accounting for checks
But, RHA had poor accounting policies and procedures overall
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Are There Any Defenses?
The U.S. Supreme Court says: You can limit liability for employee
discrimination & harassment lawsuits if you:
o Have reasonable preventive measures in place
o Couple good faith actions w/policy & compliance steps (*This limits damages to
supervisor’s bad faith actions.)
Have good policies and procedures, publicize them, train managers and
others on them = you may defeat some lawsuits
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Case: The Anesthetized Manager
A female RN at Doctors Hospital complained of sexual harassment
by a male RN during their work hours
o Her supervisors said, ‘file a complaint’
o She was afraid to, and so they did nothing about it
Six months later, she was fired for alleged treatment and decision
mistakes, without warning or chance for appeal
She got $1 million jury verdict for harassment and retaliatory firing
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Lessons Learned
Create clear, fair and consistent policies
Post them, inform and train people on them
Apply them consistently and objectively to all
Investigate employees’ concerns
o Managers must do their jobs: listen to complaints, investigate all sides,
seek timely resolution
o Provide an anonymous way to report for employees who feel uncomfortable
Leave clear paper trail; give complaining workers due process and a fair
hearing within the organization
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More Painful Lessons
Most litigation is avoidable, provided you make wise decisions
Courts are unimpressed by bad policies and procedures and
by poor training
Poor application and training hurts finances and reputations
Professional resources can help with law, strategy and creation of
policies and procedures
prevention
cure
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The Lighter Side …
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Factors in Writing Policies
Tips for Writing Good Policies
Tip Sheets
Observations and Answers
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Fear Factors in Writing Policies and Procedures
Fear of Failure: Looking stupid, being humiliated
o Solution = learn from mistakes, admit imperfection
Fear of Success: Responsibility, others’ jealousy , also fear of mediocrity –
failed perfectionists?
o Solution = Do what you’re good at; celebrate your talents
Fear of Rejection: never being good enough, and fear of taking risks: is it
worse to be hostage to fears?
o Solution = some will like it, some won’t; suck it up -- try anyway
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Four Tips for Writing Good Policies and Procedures
1) Planning [ConteXt] 2) Analysis [ConteXt]
• Tasks, teams, time
• Set realistic goals
• “Murphy was an optimist”
• What/why/who requested policy?
• Politics, urgency, users, parties
• Conditions, up-dates, functions
3) Research [ConteNt] 4) Prewriting [ConteNt]
• Complexify 1st, simplify 2nd
• Talk to others:experts, stakeholders
• Read: files, memos, reports, books
• Data-crunch, map, outline
• Organize content for logic
• Sticky note flow chart
Xs & Ns
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Planning Tip Sheet - X
How to plan & monitor progress for policy writing:
1. Break into phases, steps, tasks
2. Who’s responsible; how much time needed?
3. What could derail schedule; what’s the back-up?
4. Be flexible; use task list or charts
5. Discuss timeline w/ project requester
6. Set realistic writing goals
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How to identify decision & choice factors:
Ask questions about, and list relevant factors
o What? Reasons for policy, desired results, sensitivities, legalities, urgency, complexity,
conditions, time frames, audience, resources, formats, surprises?
Brainstorm with self, requester, others – write it down;
o Ask what’s missing?
o What are the weaknesses/needs?
Analysis Tip Sheet - X
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Research Tip Sheet - N
How? Interviews, conversations, staff meetings
o Read & study topic, stay disciplined, start with the hardest things
Who / Where? Content experts, users, approvers, files & past policies,
similar organizations, data-bases
What? Issues, cost factors, standards, laws, operations, competition,
practical factors, legislation / legal sources
1st – Complexify = look for difficulties
2nd – Simplify = basic needs
Simplify
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Pre-writing Tip Sheet - N
How to organize content clearly and logically:
1. Mind-map, random lists, then review notes
o Eliminate unnecessary, add missing detail
2. Review policies and procedures with others for additions
o Organize related ideas, placing in logical order
o Create key word or sentence outline; use play-script
3. Use forms, format, issues, audience, impactful ideas
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A Policy-Writing & Morale Problem
Your supervisor sends you the following memo:
“We are having a problem managing ______. Please do a quickie
procedure to handle it.”
What problem do you see with the quickie approach? How
should you respond?
Does this request say anything about corporate values or about
attitudes toward policies and procedures (or policy writers)?
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The Lighter Side …
There is nothing
hard about writing.
“You just sit with your hands poised over the keyboard and
wait until drops of blood appear on your forehead!”
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Learn to Spot Problems
To-Do’s
Dangers of Canned Policies and Procedures
Let Your Professionals Help
Bulletproofing Your Policies & Procedures
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Learn to Spot Policy and Procedure Problems
Are we ignoring organizational values in writing policies and procedures?
o Going through the motions; delegating to lowest corporate rung
Do our policies and procedures barely meet the lowest common
denominator?
o Are we just at the minimum of the practical regulatory considerations?
• Consider doing more to weave values and goals into policies and procedures
• Gov’t. harassment guidelines are minimums, not protections or guarantees
against being sued
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Spotting More Policy Issues
Are policies and procedures window-dressing, and everyone knows it?
o “It doesn’t affect my bottom line”
Are policies and procedures being applied inconsistently and subjectively?
o Favoritism, bias and circumstantial decisions
o Haphazard distribution; training inadequate on policies and procedures
Is there poor managerial/corporate due diligence?
o Deadwood policies and procedures; few or no revisions; tardy approvals
o No reading or comprehension of new policies and procedures by employees
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To-Do’s: Bulletproofing Policies and Procedures
Make sure you create effective & lawful policies
o Organization/human relations values, no boilerplate forms
Champion the benefits of good policy-writing
o Boldly influence leaders to seek out best practices.
Consistently follow and fairly apply policies
o No excuse for sloppy, ill-informed actions
Train managers in solid technical & human relations
o Teach what harassment & discrimination look like
Problems: never let sleeping dogs lie
o They may lie quietly, but their harmful potential isn’t restful
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To-Do’s: Bulletproofing Policies and Procedures
Learn how to use professional advisors
o Temper advice with company’s values
Make necessary revisions and deletions
o Clean-up, delete, track ongoing policy changes
Use a reliable system for policy creation
o Computerized, flexible, conserves resources
Avoid costly hiring/firing errors
o Hire best candidates, follow good procedures
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Danger of Canned Policies and Procedures
Many vendors sell canned policies and procedures, manuals
o What’s your view on the value of using them?
o Good starting point, or red herring?
How about canned advice on what never to do with policies and procedures?
o Never require approval for overtime (Workflow controls)
o Never treat medical conditions differently (Logical differences)
o Never require notice prior to an employee quitting; ($$ lost)
o Never prohibit discussion of compensation (confidentiality)
Take opinions with a grain of salt; consider the law & your own needs
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Let Your Professionals Help Be prepared w/good questions
and issues
Write memos, present
best information
Follow through on your assignments
Use your advisors’ network of contacts
Talk candidly about fees and billings
Use attorney/CPA time wisely; it’s
an hourly rate
Be aware of their deadlines and
other demands
Keep them informed about
your business
Practice preventive AND
defensive tactics
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Critical Questions
Common Categories
Policy and Procedure Management Software
Sources
Where To Go From Here
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Critical Questions for the Policy and Procedure Staff
Are there policy and procedure issues needing your attention now?
o In your department, division, organization?
What are the greatest areas of risk?
o Employment processes, grievances, benefits?
What are the most timely, specific or troublesome problems?
o Use common sense, but be bold about speaking up
Who should be consulted? What resources are there?
o Identify your sponsors and advocates; grow grassroots
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More Questions
What policy area will most benefit you to work on?
o List 2 or 3 policy issues to work on immediately!
Are there training issues for creating good policy?
o Encourage training for policy analysts/HR people
Is training needed for those who implement policy?
o Do supervisors & others know it’s encouraged, available?
Choose ONE timely policy project can you start now?
o Don’t procrastinate!
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Common Policy and Procedure Categories
Personnel/HR processes
o Attendance and leave policy
o Hiring, discipline & dismissal
o Wage & hour laws
o Union/labor relations
Financial processes
o Monitoring/auditing
o Tax withholding
Legal & regulatory P&P
Operational controls
o Quality processes
Compliance & ethics
o Corporate oversight
Fair sales & marketing
Administrative rules &
reporting requirements
Accreditation standards
DRP & BCP processes
Telephone etiquette
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Now That You’ve Heard This Presentation …
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What’s Good in Policy and Procedure Software
It must be easy-to-use, and easy-to-learn
Must use common word processing software
Must have categories and departments
Must control access, roles & responsibilities
Must track history of creation, review, approval,
archives, and prompt for revisions
Be web-based, easy to link with, import into
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Choosing Software: Be Aware of Good Policy Life Cycle
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Using NAVEX Global’s PolicyTech
Helps with organizing, writing, approving and publishing of
policies and procedures
o PolicyTech tracks, up-dates, revises, archives or deletes policies
o Invites management buy-in & testing policy comprehension
o Uses templates, creation wizard & report features to save time
• PolicyTech can create a report card on pending, obsolete and revision-worthy
policy? Even by departments, etc.?
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Sources
Writing Effective Policies & Procedures, Nancy Campbell, AMACOM (1998).
Establishing a System of PnP, S.B. Page (2002)
Best Practices in PnP, S.B. Page (2002)
How to Write Policies, Procedures & Task Outlines, L. Peabody (3rd ed.) (2006)
Commercially Prepared PnP materials (look carefully):
o Pre-written Policies: http://www.bizmanualz.com/
o Employee Handbook Company Policy Manual
o Downloadable | Employee Handbook | $19.95
