Monthly Archives: October 2013

Five Reasons to Implement Written Policies and Procedures

As with putting goals in writing and getting agreements in writing, successful organizations follow the best practice of documenting policies and procedures in writing. Here are five reasons to put time and effort into documenting policies and procedures:

  • As with writing down goals and agreements, the process of documenting policies and procedures forces senior management to step back and carefully think about how they run their business. Rather than spending days “putting out fires” that are often created by having no formal standards, management can work toward smoother operations by documenting policies and procedures for every area of the business that requires judgment and discretion or involves risk.
  • New hires will quickly get up to speed on how management runs the organization. To be sure, documenting policies and procedures takes some thought and effort on the front-end. However, in today’s world of high employee turnover, the initial new hire training process will be more effective when supervisors have a standard approach to bringing employees up to speed.
  • Employees will appreciate knowing what is expected of them and what they can expect from management. No one appreciates rule-makers who “make it up as they go along.” Take time to systematically document clear answers to implicit questions that every employee asks. Never assume that employee assumptions — absent clear and documented guidance — about organizational policies and procedures will align with management’s intentions.
  • Employees, investors, customers, vendors, regulators, and other stakeholders will have the perception that the company is well-managed by people who care.
  • Implementing consistent and predictable processes will facilitate company growth. Putting out fires all day long is not a scalable management style; the organization can only grow so far until one of the fires gets big enough to finally burn it down. Enhance scalability by standardizing processes, policies, and procedures. The constantly changing marketplace provides more than enough uncertainty for every senior manager that I know. Consistent policies and procedures provide a welcomed oasis of stability and predictability in today’s business world. This is often more than a luxury; it is a requirement for growth and survival as the organization adapts to external challenges.

I once heard a senior-level manager communicate his preference for leaving policies and procedures unwritten so as to avoid legal ramifications in case the organization diverged from them. This is a good strategy for managers who are unwilling to put thought and care into formulating good policies and procedures and maintaining effective enforcement mechanisms. However, it is a bad policy for an organization that plans to significantly scale operations over time. There are plenty of reasons why large organizations take time and exercise care to document and communicate their expectations for consistent, reliable operations and behaviors within formal, written policies and procedures. Finance professionals can contribute needed professional judgment toward every area of the policy-making process.

Create a Company Wiki

Knowledge sharing is crucial for organizational success in the Information Age. Knowledgeable, dedicated employees are often eager to add value and contribute to the organization’s success by sharing what they know. Finance professionals are fundamentally information workers who give and receive valuable insights to contribute to the success of the organization. There is not always a clear line of distinction between the finance and technology groups because tech tools are integral for the finance professional’s work.

Fortunately, in an environment that relies upon systematic information sharing, wisely deployed technology can facilitate the free flow of knowledge. CIO Magazine provided some best practices for implementing a company wiki:

  • Initially, what is a wiki? The article says it is “a software application that allows groups of users to create, edit and comment on online documents.” Wikipedia is undoubtedly the most popular example.
  • Companies use wikis for collaboration and employee communication, among other reasons.
  • The first implementation step is to define why the organization wants a wiki. This sets the direction and defines the parameters of the wiki’s purpose.
  • The second step is to choose a software platform. Options vary from free to fee-based, open-source, hosted, or deployed on the organization’s own system.
  • The third step is for the wiki implementation team to define the structure: “These include defining to what extent end users will be able to edit wiki pages, setting standards for how administrators will respond to updates from users, and setting rules around uploading text files or videos.”
  • The fourth step is to put someone in charge for maintenance. A wiki “gardener” can help the project grow, root out “weeds” (i.e., old information), and bring contributors on board.
  • The final step is to promote the wiki to end users. Start uploading useful content, refer to the wiki in communications, and encourage employees to read it and contribute what they know.

One helpful website referenced in the article for comparing wiki options for different purposes is http://www.wikimatrix.org/.

Bottom line, wiki implementation and maintenance is a good tool for finance professionals to consider adding to their skill sets.

For Best Results, Avoid Drama

We have all known people who have a flair for the dramatic. Some of them end up in Hollywood, while others might end up in our workplaces. The gossip, petty arguments, political maneuvering, and other extracurricular activities of these dramatists have nothing to do with creating value in the marketplace. Depending on your personality and proclivities, you might have no problem avoiding such office place dramatics. That said, it never hurts to carefully think about how to position yourself professionally in the midst of office place drama:

  • Stay above the fray – Make a decision to simply go to your desk and not participate in the drama. If coworkers are gossiping about one another, cutting down the boss, or complaining about the latest item of discontent, demonstrate by your actions that you don’t participate in such antics.
  • Don’t gawk – It’s human nature to enjoy a good drama. But if fellow employees are putting on a show, don’t stick around to watch. Find something productive to do that will build up the organization.
  • Contribute professionally – Sometimes it is hard to draw a fine line between office drama and legitimate matters that need handled. Sometimes the dramatists themselves need to be brought into line, which requires professional handling. If you are in a supervisory or HR role, you have to deal with drama as part of your job. The key is to do this professionally while, again, staying above the fray.
  • Be warm and personal but not dramatic – We’re not recommending being dour. Develop a reputation for being approachable. But position yourself as a professional, not a dramatist.
  • Bring calmness and stability to the office place – Some people bring constant commotion to their surroundings. Others tend to calm down everyone. It takes all types to have an effective team. Regardless of our natural tendencies, the best approach is to actively discern what is needed. When everyone is riled up, it is best to have a calming presence. Be steady and dependable, someone who can be relied upon to perform well under pressure.

Unless your career path leads toward Hollywood, you are unlikely to gain any professional advancement by being a dramatist. Position yourself as a leader who can resist the clever attempts of coworkers to drag you into the fray.