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In Fast Moving Times Can We Afford To Be Bound By Policies And Procedures?

Charles always got the sale. His numbers were always above target. He was one of those people who just got things done.

It wasnt until there was a call to the Managing Director from a competitor who had just hired a new Sales Director that Charles exploits became news. He had been arranging deals with the competitor to ensure they both managed to get the right prices. There was also a question from a customer about cases of wine being delivered to a Purchasing Manager. They had strict rules about such gifts and the managers employment had been terminated.

We often hear people say that bureaucracy and red tape can kill a business and these days we need people who can get on with their jobs without being constrained. However, the newspapers are always running stories of business people being charged for breaches of corporate laws. How do we balance these demands?

These people would never consider themselves to be criminals, but often they are. It sometimes starts small, grows and then becomes common practice. It may be accepting a lunch from a supplier, a weekend trip from a travel agent, a hotel room from a hotel selling corporate accommodation. It could be giving a bit of old stock away to a colleague or friend or doing a special price for someone that was owed a favour.

There is a place for policies when it is important to establish values and practices. And it is nearly always important when someone is dealing with someone elses property.

Outside of the examples given above, there is always the minefield of harassment, bullying, discrimination, internet use and anti social behaviour. Many people have different standards in these areas depending on how they have been treated in the past and how they think they should treat certain groups of people. There needs to be standards set in a business and consistently applied.

In addition to the moral issues above there are also varying standards of business practice and these too can be improved by establishing certain procedures that must be followed. These may apply to recruitment, training, handling performance issues, promotions or pay issues. They can seriously affect the bottom line, either directly or indirectly by causing dissatisfaction with staff if they feel there are inconsistencies in how people are managed. There could also be more serious consequences if an employee breaks the law and the employer had not taken all reasonable precautions.

Having the policies written down, procedures outlined and all employees informed of what is expected can save a lot of heartache - and money. It is a great insurance policy and sends a message that your business is professional, has standards and values its people.

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