Policies vs. Standards
Let us start by defining the difference between policies and standards. After which we will delve a little deeper into the world of policies. Then we will look at how to develop your very own policies.
Standards
Standards tend to originate from without. In many instances organization's can adopt various standards voluntarily. External factors such as the need to comply with legislation or industry-wide recommendations may force an organization to adopt specific standards.
Standards infer compliance or opt-in. The degree of compliance tends to be rigid in areas where legislative regulations are enforced. In this case, failure to comply will ultimately result in the imposition of punitive penalties. Depending upon the breach incarceration may result.
Policies
Policies on the other hand originate from within an organization. The primary objective of policies is to deliver positive benefit or avoiding negative effect from the organization's perspective.
Compliance with corporate policy is generally not negotiable and the individual at fault will generally experience some form of penalty. This will vary from one organization to the next. The ultimate penalty for non-compliance with organizational policies would be termination of employment.
A policy is a deliberate plan of action (organizational intent) to guide decisions and achieve rational outcome(s). As such the term may apply to government, private sector organizations and groups, as wells as to individuals.
Policy also refers to the process of making important organizational, management, financial and administrative decisions. This includes the identification of different viable alternatives such as programs or spending priorities. This forms the basic pool of options from which the final selection will come. It is often the case that company policy will dictate which option wins.
Selection Criteria
Company policy influences the decision making process by defining the criteria for selection. Choosing from among a range of nearly equal prospects is one area where policy has considerable impact. Generally, company policy is to ensure the rapid attainment of specifically defined explicit goals.
Risk/Threat Impact Identification
Identification of real and potential risks and threats takes place. Each risk and threat is analyzed in regards to the impact that it would have upon the organization. Now conduct an impact evaluation.
Implement measures designed to avoid those specific negative effects or impacts identified as posing to high a degree of risk, threat or impact to the organization.
Maximize Positive Benefits
Policies may also be designed to address and maximize the organization's capacity to exploit the positive benefits (from the organization's perspective) of a given scenario or situation as identified by that organization.
Policy Examples
Examples of policies widely used today include corporate privacy policies and distribution policies regulating the distribution and sharing of resources within the organization are another.
Policy Development and Management
Without doubt the easiest way to create, develop, and maintain a consistent appropriate policy or set of policies across an organization's expanse is to apply structure and form to your organizational and personal policy objectives.
Since policy needs to respond to an ever-changing environment and/or environmental factors it is best; as is the case with other intangibles, to adopt a life-cycle managerial approach. One example of the life-cycle approach to policy management is the Bridgman/Davis policy life cycle.
The Bridgman/Davis Policy Life: Cycle1
- Issue Identification
- Policy Analysis
- Policy Instrument Development
- Consultation (which permeates the entire process)
- Coordination
- Decision
- Implementation
- Evaluation
Policy Documentation
Policy documents usually contain the following standard components:
- Policy Purpose Statement - Why the policy is being implemented & what it is supposed to achieve
- Policy Scope Statement - Who and what the policy affects. Express exclusions relating to specific individuals, organisations and/or actions
- Policy Time Statement - When the policy takes effect and when it is due to be terminated
- Policy Responsibilities and Obligations - Who is responsible for what including identification of governance structures
- Policy Statements - The specific organizational regulations, requirements, modifications and/or behaviors that the policy is creating
- Background Statement - The reasoning, motivation, and historical perspective for policy creation
- Statement of Definitions and Terminology - Clear and unambiguous definition and explanation of the terminology, concepts, methodologies and processes contained within the policy
