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Procedures


Procedures, on the other hand, are the means for putting policies into action. Procedures offer specific instructions necessary to perform a task.

Procedures describe who does the task, what steps must be performed, when those steps should be performed, as well as how the procedure should be performed. Procedures also tell the important "why" something is done at your company. These "whys" are important ways of distinguishing your brand and of reflecting your particular mission.

Procedures can be written as a series of steps that must be accomplished to achieve a desired result.

Here is an example of an accounts receivable procedure:

In order to get timely results, accounts receivable employees will follow the following procedure:

  1. Send the first-notice invoice the same day as the sale.

  2. Add invoice to receivables report.

  3. Send a second notice to any invoices outstanding for 30 days.

  4. Place a call for all invoices outstanding for 45 days.

  5. Send a third notice to all invoices outstanding for 60 days.

  6. Call all invoices outstanding for 75 days.

  7. Send all invoices outstanding for 90 days to collections.

In many cases, a procedure can be written as a checklist. Forms may be part of your company's procedures, as well. For example, your company may require that every employee who is terminated complete a form as part of an exit interview. Your manual could include this form, as well as a checklist on how the exit interview is to be conducted.

Keep in mind that the goal of both policies and procedures is to streamline your business and to maximize consistency.

Here is an overall checklist for an effective policy and procedure manual. As you grow through this course, you will learn how to develop each of these areas so that they are right for your business.


An effective policy and procedure manual:



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