MDT Business Consulting

What are Policies and  Procedures

  1. Policies & Procedures outline a business’s Management System.
  2. Policies are principles, rules and guidelines formulated and adopted by a business to reach its long term goals.
  3. Procedures are the specific methods employed to implement policies into day-to-day operations.
  4. Policies and Procedures are documented step-by-step methods on topics, such as:  
  •    Setting and implementing corporate policies.
  •    Outlining the Internal Control process.
  •    Establishing accounting, monitoring and quality controls procedures.
  •    Selecting and training employees.
  •    Selecting suppliers and getting the best value from them.   


Benefits of effective (written) Policies & Procedures

  1. The organization is aligned and delivering the objectives of the business on a consistent basis.
  2. Clearly written policies & procedures allows managers to exercise control by exception rather than “micro-manage” their staff.
  3. Employees understand the constraints of their jobs without using a “trial and error” approach, as key points are visible in well-written policies & procedures.
  4. Employees are provided with the information that allows them freedom to carry out their jobs and make decisions within defined boundaries.
  5. Provides clarity of accountability and responsibility.
  6. Provides clarity of the processes within the business.
  7. Allows for better utilization of resources.
  8. Provides for easier training of new employees (they become productive quicker).
  9. Improve and make things more effective and efficient.
  10. The process of preparation of Policies & Procedures facilitates and prioritize improvements.


Are your Policies & Procedures working effectively

  1. Are they written?
  2. Are they widely distributed and available to all?
  3. Are they reviewed periodically and updated as needed?
  4. Are they tested (audited for compliance)?


Approach to improve your Policies & Procedures  

  1. Develop an understanding of what is currently in place.
  2. Develop an understanding of what would be appropriate (ensure fit for purpose so as not to over-complicate).
  3. Develop a Gap Analysis.
  4. Develop a Plan to close gaps.
  5. Ensure proper buy-in and training.
  6. Implement the Plan.