Determined by the manager (s), corporate policy is the foundation on which the success and sustainability of an organization is based. When well-defined and aligned, it provides a strategic framework that guides behaviors and facilitates decision-making. But how do you build a good corporate policy? Why is it so important for your organization? We answer all of these questions.
What is a corporate policy?
A corporate policy is a set of principles, guidelines, and rules that guide behaviors and decisions within an organization.
The company policy is established by the manager (s). It then becomes a guiding framework for all activities of the organization.
What are the steps to build a business policy?
Here are 5 steps to follow to help you build a thoughtful and sustainable business policy.
1 — Define mission, values and vision
These three fundamental elements are simply the foundations of your business.
La mission is why the business exists, what it aspires to achieve, what it brings to customers and society.
Les values are the fundamental principles and beliefs that guide business decisions and behavior. They define what is important and are a reference for evaluating the actions to be taken.
La vision is an ambitious and inspiring definition describing the future that the organization wants. It expresses its long-term aspirations and therefore provides a clear direction for development and growth.
These three elements are essential to determine because they allow you to have a solid base before building your business policy. This exercise is difficult and can take time. Do not hesitate to be accompanied by a specialist!
2 — Consult stakeholders
While the mission, values, and vision are defined by leaders, it is important that leaders involve all stakeholders in the process. This makes it possible to compare their opinion with those of all the people who work around the company. The diversity of the profiles of the individuals consulted makes it possible to have a very global idea of the issues, and to develop a fair and representative policy that is representative of the needs of all.
Unfortunately, a lot of leaders don't involve their teams in this process at all. However, this collaborative approach promotes the commitment of all stakeholders to their company policies. So it's beneficial in the long run.
It is also important to consider your organization's environment when defining its policy. By analyzing the market around you, you create a business policy that is consistent with reality, taking into account its opportunities and threats.
3 — Define strategic goals
Once again, defining strategic goals allows you to guide the direction of your business. They should be aligned with your mission, values, and vision. They need to be ambitious but realistic. They must also be measurable and over time.
4 — Develop specific policies
Once the goals are defined, you can develop specific policies, covering different aspects of the business. These should be clear, concise and understandable by everyone.
La HR policy should include guidelines for recruitment, training, professional development, and performance management. It must be inclusive and support equal opportunities as much as possible.
La commercial policy establishes guidelines for the activities of selling your products or services. It can include pricing strategies, distribution channels to choose, or ethical practices to put in place.
La operational policy includes procedures for daily tasks, such as project management or communication.
La CSR policy (Corporate Social Responsibility) articulates your commitment to sustainable and responsible practices. It must include working conditions, environmental impact, the promotion of inclusion and diversity, etc.
This list of policies to be developed is not exhaustive: you can choose to define others if you deem it necessary.
5 — Ensure the proper execution of the chosen policy
Finally, you must ensure that your company's policy is regularly monitored. It has indeed been designed to be applied over the long term and you must try not to deviate too much from it.
It is of course possible to adjust it over time, in particular to adapt to new market realities. However, these changes should be in line with what has been established and should not constitute a total reversal. Maintaining consistency is essential.
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Why is it important to build a good corporate policy?
Building a good corporate policy first of all allows managers to make decisions that are coherent and in line with the values and vision of the company. It is an essential tool for managing problems, setting priorities, and making the most appropriate choices.
Corporate policy also has a major influence on corporate culture. Offering a coherent work environment makes it easier for employees to work.
Finally, clearly defining its values and vision makes it possible to establish a relationship of trust between the organization and its employees, partners, investors and customers. This plays a positive role on reputation, recruitment, but also on talent loyalty. This therefore improves the overall performance of the company.
Building a corporate policy based on a mission, values and a vision is essential to ensure the sustainability of an organization. By following the five steps outlined above, you can create a solid framework to guide behaviors and facilitate decision-making for everyone. Having a clear and coherent corporate policy strengthens reputation, engages employees, influences corporate culture and establishes a lasting relationship of trust with all stakeholders. Don't wait to get started!
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