Procedures in the company – how to create them and ensure their effectiveness?

Generally speaking, to be effective in any field, you need to know what you are doing. For this reason, companies often develop procedures for their employees. While these may seem unnecessary to many, they can often not only speed up work, but even protect against loss of health or life.

What are the characteristics of effective company procedures? What is essential to bear in mind when creating them?

What are company procedures?

Company procedures are a set of guidelines that define the steps and processes to be undertaken within a business. They are particularly important for organisations operating in industries where safety, quality or compliance are key. We are talking, for example, about the aerospace, pharmaceutical or food industries. Procedures ensure that a company’s employees act according to certain standards and rules, which will translate into concrete results.

Procedures are also documents providing guidelines for specific actions and activities, such as the production process, ensuring work safety, project management or customer service. They contain the next steps to be taken in order to achieve specific results. Such documents also protect the company from undesired consequences – loss of reputation or financial penalties.

Procedures are also used to manage risks and to control the company’s various processes. They provide employees with clearly defined standards of behaviour, making it easier for them to perform tasks efficiently. Procedures also help to minimise the risk of human error and facilitate the verification of activities for compliance with standards and requirements.

It is also worth remembering that company procedures must always comply with applicable laws and recommendations of state bodies. They should also meet the standards set out in e.g. ISO or EN standards (European standards, their Polish version is PN). This will not only increase the overall level of safety and quality of work in your company, but also, in a way, influences building brand awareness.

General procedures

General procedures are a set of rules, standards and guidelines that define how to deal with specific situations or business processes. They contain detailed instructions on what actions to perform, what documents to prepare and what standards to follow to ensure consistency, quality and efficiency in the company’s operations.

General procedures can be used in different areas of the business.

In customer service, they may describe how to respond to customer enquiries or what documents need to be prepared to perform a specific task.

In marketing, they are used in developing advertising campaigns e.g. in Google Ads, conducting market research or in social media marketing for community management.

In short, general procedures are applicable throughout the company, although they may describe detailed processes. They differ in their scope of impact, e.g. an evacuation procedure will apply to all employees in the event of an evacuation, but a procedure describing a production process will apply mainly to production line employees, although it is a general company procedure.

Job-specific procedures

Job-specific procedures are detailed instructions within a specific job. They differ from general ones by focusing on the specific activities necessary for the job. They describe the tasks, how they should be performed and the standards for an employee occupying a particular job. They usually include instructions for operating equipment, completing documents or other job-specific activities.

They are developed on the basis of an analysis of the tasks of the job and general standards and procedures. They are updated when the requirements and needs of the company change. For example, SEO specialists may have an audit procedure developed, but it may change when search engines update their guidelines.

Company procedures and business indicators

Procedures describe the steps in a specific process and KPIs are used to determine the effectiveness of the process and what results need to be achieved. For example, a procedure may describe the process of selling a product in several steps, and a specific sales indicator will monitor its effectiveness (e.g. the number of units sold or the time elapsed between contact and the customer’s purchase decision).

Company procedures influence indicators by defining standards and processes. By describing exactly what needs to be done, in what order and how it needs to be done, they enable employees to act effectively and consistently, which can affect qualitative indicators, such as customer satisfaction levels.

On the other hand, indicators can influence company procedures by providing feedback on the achievements and results of activities. Managers are able to assess whether the company is performing as expected. Based on the results, they can adapt procedures to meet changing needs and objectives. Indicators can also help identify areas for change in procedures.

Procedures and company objectives

Company objectives define what the company wants to achieve and define the overall direction and expected results. Objectives can be, for example: profit, sales growth or market share. They are defined on the basis of analyses of the market, customer needs and competition. They are intended to motivate employees and encourage teams to take action. Procedures describe how to do this and define the activities and processes required to do this. They are described in documents and include standards that must be followed to ensure consistency and quality in the company’s operations. Sometimes objectives may require new procedures to be established or existing ones to be amended to best fit the business plan.

What are the benefits of using procedures in a company?

The use of procedures (among other things) improves the quality of operations – by specifying what activities need to be performed and what standards need to be observed, employees can work not only calmly but, above all, efficiently.

This also translates into a minimisation of risks – this is particularly useful in emergency situations – and an increase in efficiency. Employees can achieve goals faster and more efficiently, leading to an improvement in the company’s financial performance and competitiveness.

Other benefits of using procedures in a company include the improvement of the training process for employees, both new and experienced.

Proceduresare also indispensable for management and give greater control over the company’s processes and activities.

Procedures allow managers to plan and improve activities more effectively. This, in turn, can improve customer relations. This is influenced not only by the standards of customer service or complaints processes, but also by adherence to procedures in other processes.

What can a lack of procedures in a company lead to?

Alack of procedures in a company can lead to serious consequences that can even shake up its operations.

The risks include, first and foremost, a lack of consistency in operations – without guidelines and instructions, each employee acts as he or she sees fit, leading to chaos and negatively affecting customer satisfaction and your brand’s reputation. It can also lead to serious errors in the company’s operations, which can result in the loss of money or customers, or even life and health-threatening situations.

A lack of procedures and guidelines generates high costs – non-standardised business processes can be slow and inefficient. They can also lead to errors, generating additional costs.

Thelack of procedures makes it difficult to manage the company’s processes and activities. This has a negative impact on the organisational culture – employees may feel lost and uncertain in their actions, which usually leads to frustration and stress.

It is also worth noting that without clear procedures and standards, it can be difficult for a company to prove its compliance with regulations and industry standards. This also generates problems with the law or ethical breaches. In the event of inspections and audits, this can lead to financial penalties or loss of customer confidence.

Who should create the company’s procedures?

Depending on the size and structure of the company, procedures can be created by different individuals or teams. It is important that the people or teams responsible for this in the company have knowledge and experience, related to the specific area of the company or the industry in which it operates. They should also have the communication skills to be able to transfer knowledge and ideas to other employees in your company.

The most common people responsible for creating procedures in a company are:

• Managers – have the necessary knowledge of the company’s needs and requirements and its processes;
• Quality specialists – ensure through their work that the company’s processes and procedures comply with industry requirements and quality standards, so they are also often involved in their creation;
• Operations staff – have direct contact with the company’s business processes, so may have valuable knowledge of them;
• External consultants – specialists in specific fields, they stand out for their broad experience and knowledge, so they can effectively help the company to create effective procedures;
• Training specialists – have knowledge of the company’s training processes and can help create courses for new employees;
• Safety specialists – are responsible for ensuring the safety of the company’s employees and customers, so their knowledge can be useful in creating safety procedures, handling emergency situations, and following health and safety rules;
• IT staff – can help create security procedures, data backup, network management and other IT-related procedures;
• Project teams – are often responsible for the implementation of new projects within the company, so can help create procedures to ensure successful implementation and delivery;
• Customer representatives – have a unique perspective about customer needs and requirements, so can provide guidance on which procedures and standards are relevant to them.
• Supervisory board – in some cases, can influence the creation of procedures by identifying the company’s objectives and requirements to be addressed. It can also oversee the creation and implementation process.

Creating company procedures

The process of creating company procedures should be carefully planned, thought through and tailored to the specifics of the organisation.

Here are some steps to consider when creating company procedures:

Needs analysis

Start by identifying the areas of your business that require formal procedures.

For example, when developing marketing procedures, consider conducting an audit to understand where there are gaps and what processes can be improved. This applies to other departments as well.

Defining objectives

Identify what objectives you want to achieve with the introduction of new procedures. These could be, for example, to improve efficiency, increase safety or reduce errors. The goal could also be, for example, to increase sales or improve the position of your online shop.

Create a team responsible for procedures

Set up a team responsible for developing procedures. It should be made up of experts from different departments of the company to ensure a diversity of perspectives.

Ensure that the company’s departments work together when creating, implementing and updating company procedures. Such collaboration avoids unnecessary repetitions and conflicts, and allows a better understanding of the needs of other departments.

If the company does not have sufficient knowledge or resources, consider working with external experts, such as marketing consultants or management specialists.

Develop procedures

Prepare detailed instructions for each procedure, including specific steps, responsible persons, required resources and quality standards. Use simple and understandable language to make it easy for employees to follow the procedures.

Consult employees and other stakeholders, such as management or business partners, before implementing procedures in your company. This will allow you to gather feedback and comments that can help you improve your procedures.

Consider investing in technology that can facilitate the creation, implementation and monitoring of company procedures. Document management systems, procedure creation software, project management tools or training platforms can significantly streamline the process and make the organisation more efficient.

Implement procedures and train employees

Ensure that all employees are aware of the new procedures and receive adequate instruction. You can do this by organising workshops, training sessions, meetings or providing handouts.

Communicate regularly with employees about company procedures. Remind them of the importance of complying with these rules and of the consequences of non-compliance. Also share successes and progress resulting from the implementation of new procedures to keep employees engaged.

Ensure that all company procedures comply with current legislation, industry standards and best practice. Regularly check for changes in regulations that may affect the company and update procedures accordingly.

Company procedures should be flexible enough to adapt to changing market conditions, customer needs and other external factors. Maintain a balance between the need for clear guidelines and the flexibility to adapt to change.

Ensurethat company procedures are consistent with the mission, vision and values of the company. Introducing mismatched procedures can lead to resistance from employees and a loss of commitment. Open communication and employee involvement in implementing change help to build an organisational culture based on shared values and principles.

Monitoring and evaluation

Once procedures have been implemented, regularly monitor their effectiveness and impact on the organisation. Include in this process measuring performance indicators, analysing results and gathering feedback from employees. Based on the results, make necessary changes to the procedures and improve them to better serve the organisation’s goals. Remember to update procedures regularly as the needs of the company change.

Employees are the key users of company procedures, so their feedback is very important. Encourage employees to share comments, suggestions and problems they encounter when using the procedures. This will help to identify areas for improvement and to continuously improve the system.

Make sure that company procedures are easily accessible to everyone and that they are clear and understandable. This makes them easier to follow and minimises the risk of errors. Where possible, use graphics, diagrams and visuals to make procedures more accessible.

Introducing new procedures can be a challenge for some employees, so it is important to help them through the adaptation process. Provide support in the form of consultations, additional training, and feedback on their progress in applying the new procedures.

Documentation, integration, reviews

All company procedures should be properly documented and kept in one easily accessible place. This will ensure that employees can quickly find the information they need and familiarise themselves with current procedures. You can create a dedicated internal repository, for example in the form of an intranet, knowledge base or document management system.

Strive to integrate company procedures with other management systems in the organisation, such as quality management, risk management or environmental management. A coherent approach makes better use of resources, reduces costs and ensures easier compliance with different standards and regulations.

Conduct regular reviews of company procedures to ensure their continued relevance and appropriateness. Schedule reviews every year or every few years, depending on the dynamics of change in the organisation and the external environment.

Measure success

Develop indicators and targets to assess the success of the implemented company procedures. Indicators should be based on concrete results, such as improvements in quality, reductions in turnaround times or reductions in errors. Regular monitoring of these indicators allows you to identify areas for improvement and to make the necessary changes.

The process of creating and implementing company procedures can be time-consuming and requires patience. It is worth taking care to keep employees and the team responsible for developing procedures motivated and involved. Encourage the sharing of achievements, celebrate successes and acknowledge the contributions made by employees.

When developing company procedures, try to maintain a balance between the need for formalisation and practicality. Too much bureaucracy can lead to a decrease in productivity, so focus on developing procedures that really make a difference to efficiency and quality of work.

Ensure continuity of procedures

Company procedures should include contingency plans and business continuity scenarios for emergencies such as equipment failures, natural disasters or other unforeseen circumstances. This enables the organisation to respond quickly and effectively to threats and minimise potential losses.

Tools for developing procedures

The tools your company uses should suit its needs and allow procedures to be easily created, edited and managed. They can be divided according to their functionality and the way they are used:

• Wordprocessors – programs such as Microsoft Word or Google Docs are used primarily for creating and editing text, which can be useful when working on more descriptive procedures.
• Spreadsheets – the best known program of this type is Microsoft Excel. It is used to create tables and charts, which is useful for procedures involving the management of large amounts of numerical data.
• Project management platforms – tools such as Asana or Jira are used to manage procedures related to projects and tasks, making it easy to track progress and assign tasks to specific employees.
• Diagramming and flowcharting tools – Lucidchart, Visio or Draw.io are used to create diagrams, mind maps and workflow charts, making it easier to understand and present business procedures.
• Procedure management platforms – this group includes tools such as Process Street. They are designed to create and manage procedures, making it easy to track progress, manage tasks and monitor the progress of procedures.

Procedure book

A procedure book is a document that contains descriptions of procedures and instructions for performing specific tasks in a company. It is usually created by the quality management department or procedure specialists and is an essential tool in managing the company’s processes.

The procedure book unifies the way certain activities are performed in the company and ensures that everyone performs them according to standards. It can contain descriptions of procedures for different areas.

The procedure book should include:

• detailed descriptions of the steps required to perform specific tasks,
• instructions on the use of tools and equipment,
• documentation and reporting requirements,
• information on quality control and audits.

It can also be supplemented with sample documents and forms that are used in the company.

The procedure book is usually updated regularly to keep abreast of changes in the company’s processes and procedures and to ensure that all employees are using the latest versions of documents and procedures.

Company procedures – when to implement?

As soon as possible.

A lack of procedures and operating standards (both in the short and long term) leads to higher costs, reduced efficiency or even risks to the life or health of employees. However, it is important to bear in mind the specifics of the industry and process for which specific procedures are being developed. For example, in the case of creating standards for interacting with people on your brand’s social media profiles, it is a good idea to seek help from a specialised social media agency. In other cases, too, it is advisable to enlist the help of experts or employees of your company who are qualified in the field.