Putting Standard Policies and procedures in place

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Putting Standard Policies and procedures in place

• NNEW June 2008 General Meeting
• 26th June 2008, Sheraton Hotel, Ikeja
• Abiola Popoola fcipm
• Managing Partner, CONTEXT CONSULT

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Presentation Outline

• Business environment
• Policies
• defined/ why important/ steps/ example
• Procedures
• defined/ why important/ example
• In Closing

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The Business environment

• Change
• Irregular /Fast paced /Violent
• Technology
• Legislation
• Globalisation
• Corporate Governance
• Demographics

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The Business environment

• Competition
• Vicious/ Unrelenting/ Pervasive
• Customers wallet
• Investors wallet
• Supplier services
• Talent

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Key issue in Business Strategy

• How do we gain/maintain competitive advantage
  in the challenging marketplace to enable
  accomplishment of our long term objectives?

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Competitive advantage

• Sustainable Competitive advantage arises when a
  company is able to
• select markets in which it can excel
• create value for its customers
• present itself as a moving target to competitors
  by continually improving its position
  
• 
  Porter(1985)

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Competitive advantage - Sources

• Financial capability
• Access to funds/ value offers to customers
• Marketing Capability
• Identifying/ Creating / Meeting needs
• Research/Advertising/ Promotion/ Delivery
• Technological capability
• Superior equipment/ processes
• Quality products (fitness for purpose)
• Organisational capability
• How people are organised/led for competitive
  advantage

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Organisational Capability (as critical source of
competitive advantage)
Financial Capability -Lower cost/ price -Capacity
to invest
Marketing Capability - Perceived value added -
Different offering
Organisational capability - Winning from inside
out

• Technological capability
• Innovative products
• - Latest technology

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Standard Policies

• Continuing guidelines on the approach the
  organisation intends to adopt in managing its
  business
• Policies are usually statements of practical
  wisdom and prudence to which the organisation is
  deeply committed

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Standard Policies

• Policies provide the definitive boundaries within
  which the operations of the business are to be
  conducted
• E.g HR Policies reflect philosophies and values
  of the organisation on the handling of people
  issues

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Why important

• To act as reference point for the design of
  processes and procedures
• To enable consistency in decision making in the
  conduct of business activities
• To guide choice of action that is appropriate
  from the organizational point of view
• To provide uniformity in the frame of reference
  of different officers of the company from diverse
  backgrounds

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Policy coverage

• HR Policy could be expressed as an Overall
  Statement espousing the people philosophy of the
  organisation e.g on
• Equity
• Consideration
• Working conditions
• Quality of working life

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Policy coverage

• HR Policy could also be expressed as statements
  in specific areas of particular interest to the
  organisation e.g on
• Recruitment and Selection
• Training Devpt
• Compensation and benefits
• Health Safety

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Policy statement - example

• AOP Nigeria PLC is committed to ensuring that
  its employees work in the healthiest and safest
  conditions that are reasonably practicable to
  provide
• To this end, we would do everything reasonably
  practicable in the design, construction and
  operation of all working areas to provide a safe
  and healthy working environment for our employees
  and other members of the public who may visit our
  premises

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Policy statement - example

• AOP Nigeria PLC recognizes that people are its
  most critical resource towards attaining and
  maintaining its competitive positioning in the
  challenging marketplace towards the achievement
  of its long term objectives.
• Every reasonable care shall therefore be taken to
  avail the organisation with the best talent the
  market can offer.
• To this end, recruitment into the organisation
  shall be based solely on the objective criteria
  of merit and comparative fitness for the vacant
  position through an open and competitive
  recruitment and selection process coordinated by
  the HR Function.

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HR Policy -formulation/implementation

• Determine Scope of policy
• Research/Develop policy options
• Create draft with key publics
• Review/edit written drafts
• HR Review/ Managers review/ Final revision
• Obtain Executive Management sign-off
• Disseminate and Train on new Policy
• (and associated Procedure)
• Implement

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HR procedures

• HR Procedures - set out the ways in which certain
  actions concerning people should be carried out
• Procedures are formalised practical approaches to
  dealing with specific matters of policy

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HR procedure why important

• The Procedure unpacks the policy statement to a
  series of sequential steps to guide practical
  implementation
• What is to be done? How? In what sequence?
• Procedures seek to minimize the inconsistencies
  that might arise from differing interpretation
  and application of policy
• They enable transparency and auditability.

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HR Procedure - example

• Recruitment procedure
• Vacant position HR to obtain sign-off (formal
  requisition)
• Agree job requirement/ Access to candidates/
  Selection mode
• Implement agreed steps (HR Linked others)
• Conduct Pre-testing/ Selection interview (as per
  approval)
• Compile reports with recommendations to the MD
  (depending)
• Obtain MD sign-off (including Salaries etc)
• Make formal offer letter (HR)
• If accepted, communicate with Host Department
• Arrange Reference checks/Medical exam/ Induction
• Announce to relevant Internal publics

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In closing

• People perform at their best when they
• understand the teams big picture (what journey?)
• know the objectives they are expected to achieve
• know the rules (policies and procedures) that
  guide their performance
• know the standards by which performance will be
  measured
• receive support for what they are to do
• receive reward for their effort and achievement

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Thank you