Policies and procedures (P&Ps) are critical in an organization, especially if the organization is part of a heavily regulated industry. P&Ps ensure consistency across cross-functional divisions by providing the who, why, when, and how (3Ws) to staff, which can result in eliminating chaos and promoting efficiency and effectiveness.

You may hear policy and procedure used together, but know that they serve two different purposes. A policy gives the general who, when, and why. Think of it as a position statement. Meanwhile, a procedure details the how and sometimes when. The ‘how’ involves the steps completed to support the policy, and the ‘when’ specifies the timing, such as quarterly, annually, or in response to an action triggering the procedure.

For simplicity purposes, it is recommended not to lump P&Ps into a single document. The language and tone in a policy differ from what is in a procedure. However, because procedures support a particular policy, they should be linked. So, when a policy changes, the relevant procedure is reviewed and updated appropriately, and vice versa. Linking the relevant P&Ps is most appreciated during audits. Instances occur when a policy changes, but not the procedure or vice versa, and these mishaps are reported in audit findings, sometimes incurring costs to an organization. The good news is that it can easily be avoided if P&Ps are linked and reviewed in conjunction with one another.

This is especially important in organizations with multiple cross-functional divisions. An ideal policy program will offer one policy that governs potentially various relevant processes across various departments. Those various departments will have their individual department procedures that support the policy. If the policy changes, each department will review and update their relevant procedure to ensure continuous compliance. If a department is changing its procedure, it will consult the policy to ensure proposed changes remain compliant with the policy.

For guidance on what P&Ps your organization may need or for P&P creation and implementation contact us today.