Opinion: How to write organizational procedures

Recently, I’ve updated procedures in my company’s operations manual to respond to the COVID-19 environment. It was helpful to have solid systems in place already. Still, I was reminded of the exhausting process of creating and implementing new procedures.

Maybe you’re just getting started with your operations manuals? Or are you realizing they’re in need of an update? Here are a few suggestions.

First of all, it’s time to write a procedure when you “step in it” over and over again. In other words, when you or a team member consistently fail. For example, a service technician is on the job looking for a part that should be on his truck but isn’t. Again.

Secondly, it’s time to update procedures when your business environment changes and you are dealing with a new “normal.” I suspect a pandemic is something we should be prepared to deal with again. So, we are updating our procedures for personal protective equipment, safety, phone scripts and accounting. You may be in a similar position.

Here’s how to write a procedure:

Let’s say you have successfully secured a Paycheck Protection Program loan. You need a procedure that will keep track of the PPP transactions. As the owner or the manager, it’s your job to make sure the procedure gets written. The very good news is that you shouldn’t write it.

Consider which position in the organizational chart would use the procedure. The accounts payable position is responsible for entering and paying bills. Tap the AP position holder to help you write this procedure.

Schedule a meeting with the AP person, and maybe one other person. Define the scope of this project by answering the what, why, who, by when and how questions. It goes something like this:

What? Define the project: “We need a procedure for entering and paying bills and payroll, and a way to keep track of PPP specific expenses.”

Why? Come up with one or several reasons why this is necessary: “It’s frustrating to keep asking for help. It’s bad for all of us if we miss payments. Our PPP program requires documentation or we won’t get credit for the eligible expenses.”

Who? Pick someone to lead, and another to help: “Susie/AP and Devon/dispatch are responsible for writing the first draft of this procedure. Owner Louie will review and approve. Then, Susie and Devon will learn it and use it.”

When? Pick a due date: “Written, trained and implemented by Friday.”

How? A procedure is generally a bulleted, step-by-step list for doing a task. Brainstorm ideas for fleshing out the procedure. It may be a good idea to review the U.S. Small Business Administration website and consult with your banker and accountant. “Susie and Devon, take a swing at figuring it out.”

They may get it done with very little input from Louie. Pretty cool, right?

Once you’ve got a procedure written, you now have to get it implemented. Talk to team members as you roll out the procedure. Share the why. You may have to adjust the procedure, based on their feedback. If you don’t shortchange the training process, you will know if they can do it. If they have been signed off on the process, it’s your job to hold them accountable for doing it.

Ellen Rohr is an author and business consultant offering profit-building tips, trending business blogs and online workshops at EllenRohr.com. Her books include “Where Did the Money Go?” and “The Bare Bones Weekend Biz Plan.” She can be reached at ellen@ellenrohr.com.