Posted initially on LinkedIn: Claudia Craia
Businesses are run by people, NOT through policies and procedures.
I strongly believe that.
And I know it might be a funny one coming from a former internal auditor, a current risk management professional, AND this is a good one, a person who has implemented and led a policy management process for the last 18 months. 😊
Yes, so I am the one who pushes everyone to update their policies, follow a framework etc… But I still strongly believe what I said above.
HOWEVER
Policies and procedures have their own purpose.
This is how I see the role of a policy.
Let’s say that you own a restaurant, and a Chef works for you. Why do you document the recipe and for whom? For your Chef? I doubt that.
The Chef knows it, they probably created it. They probably test, as we speak, new ingredients, different cooking temperatures etc… (i.e., the common product development process).
And then for whom do you document it? Or do you still document it?
My advice is yes. There are many reasons why, but here is one of them.
Let’s say that the Chef doesn’t show up one day, unexpectedly. And you have me in your team. I worked with the Chef, and I cook well … if I have detailed instructions.
This is not anymore imagination 😊. I really cook well, as long as I follow a good recipe. Want to make fun of me? Give me a recipe for pancakes that does not include flour and I will not have a clue that you are testing me.
So, you have me. With the Chef’s recipe I will probably keep your restaurant running. Maybe even the performance of the restaurant will be good as I work hard and follow the recipe.
Yes, no Michelin stars for you, but your restaurant will be running.
Back to my policies. They are not in place really for you to run your business through them, but they are useful in certain situations:
💡Departments with many people, like sales, call centres etc…
💡Departments impacted by regulatory requirements, like underwriting, complaints, sales, accounting etc…
💡Departments with a wide span of control
💡Departments affected by new processes
#RiskMentoring
#StrategicApproach
#RiskRoundup
#ExecRiskInsights
#PoliciesProcedures
