What Kind of Things Do I Need Procedures For?
Nov 12, 2018
Procedures help make life easier – they tell us how to do something and bring consistency to our businesses. In a perfect world, procedures ensure that a particular task is done the same way every time no matter who does it.
Do you need a procedure for everything? No, you don’t.
So, how do you determine what needs a procedure?
- Think about the complexity of the task.
- What is the impact to the business if the task is not done correctly & consistently?
For example, for most companies, it’s probably not that important how the break room cabinets are organized. Is it the end of the world if the coffee is on the left side instead of the right? However, there could be a procedure on how the break room supplies are ordered since this impacts how much the company spends. This procedure might list such things as who is responsible for ordering the supplies, approved vendors, quantities, budgetary requirements and approvals needed.
Examples of tasks that would most likely have procedures are:
- receiving inventory
- shipping orders
- customer service
- accounts receivable & collections
- accounts payable
All of these tasks have a high impact on the company if something goes wrong or if performance is not consistent. They are complex tasks requiring a deeper knowledge and understanding of the company’s brand and how the company makes its money.
Don’t overburden your business with procedures for things that aren’t impactful. Focus on the ones that develop your brand and impact cash flow. Examine your business for problem areas. If you are receiving negative feedback from a customer, supplier, or your own employees about something, listen. Take a look and see if you need to bring clarity to a task by developing a procedure or modifying one you already have in place.
I’ll be writing more about procedures in upcoming posts. Check back to read the rest of the series!
Prior articles in this series: