Putting Standard Policies and procedures in place :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


Presentation Outline :Presentation Outline Business environment Policies – defined/ why important/ steps/ example Procedures – defined/ why important/ example In Closing


The Business environment :The Business environment Change Irregular /Fast paced /Violent Technology Legislation Globalisation Corporate Governance Demographics


The Business environment :The Business environment Competition Vicious/ Unrelenting/ Pervasive Customer’s wallet Investor’s wallet Supplier services Talent


Key issue in Business Strategy :Key issue in Business Strategy How do we gain/maintain competitive advantage in the challenging marketplace to enable accomplishment of our long term objectives?


Competitive advantage :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)


Competitive advantage - Sources :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


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


Standard Policies :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


Standard Policies :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


Why important :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


Policy coverage :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


Policy coverage :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


Policy statement - example :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’


Policy statement - example :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.


HR Policy -formulation/implementation :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


HR procedures :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


HR procedure – why important :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.


HR Procedure - example :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


In closing :In closing ‘People perform at their best when they understand the team’s 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


Thank you :Thank you