What do you call a standard procedure?

We have assisted many organisations over the years with their policies and policy framework. We’ve noticed that policy drafters are often confused about the difference between a policy, procedure, standard and guideline. They use these concepts interchangeably or include them all in a single document. These concepts are different yet dependent on one another. This article will look at the differences between the concepts and how they fit together. This article is also talking about these concepts in the context of the internal documents for a specific organisation. It’s not talking about public policy, Government policy, an insurance or funeral policy, or ISO standards for example. We’re not looking at what external regulatory requirements your organisation must comply with. We’re not also not talking about laws, which are something different. 

Find out more about how we can help you with your policies and procedures.

Having a good policy framework in place

Every organisation needs to implement a good policy framework with a document hierarchy. This enables you to distinguish between the different enforcement levels of your documents – are they compulsory or voluntary? We believe the hierarchy flows like this:

• policy
• procedure
• standard
• guideline

What do these concepts mean?

What is a policy?

Policy relates to a decision of the governing body of an organisation. A policy is typically an internal organisational decision that aids how it functions. A policy is a formal statement of a principle that should be followed by its intended audience. Each policy should address an important issue concerning the achievement of the overall purpose of the organisation. So a policy on health and safety in the workplace addresses the relevance of safety to the enterprise and to whom the principles apply. The policy must link with the strategic objectives (such as improved service quality, reduced costs and fewer injuries). 

Lewis S. Eisen, author of the book “How to write rules that people want to follow“, explains that a policy can be broken down into three aspects or components, namely:

1. “policy decisions are decisions a governing body adopts in the organisation;”
2. “policy statements are a written declaration of the policy decision;” and
3. “policy instruments are a document that contains either one or many policy statements”

When people talk about a policy they are really referring to a policy instrument – a grouping of policy statements that relate to one another and are aimed at a specific audience. When talking about policies, be conscious of the different aspects because, otherwise, it gets confusing.

The King Code deals extensively with a governing body setting policy. A governing body:

• sets the direction or strategy (through policy decisions) for how the organisation should approach and address something, and
• approves policy (in the form of a policy instrument) that gives effect to its direction.

We should draft policies with a particular audience in mind and use language that the audience will understand. People often couple policies with procedures, guidelines and standards leading to a policy that is either incoherent or not suitable for its intended purposes. You can read more about the characteristics of good policies. 

Policy is the most important document because it reflects strategy

An example of a policy that you will typically find in organisations is: “Legal services review all third party contracts”. In this example, the decision from the governing body is that legal services review third party contracts. This means that no other department in the organisation has permission to review third-party contracts other than legal services.

Policy is mandatory.

What is a procedure?

A procedure provides detailed mandatory steps (sometimes in the form of a checklist) someone needs to follow to achieve a recurring task or comply with a policy. These procedures can include step by step instructions or statements telling you where something needs to go. A procedure informs employees how to carry out or implement a policy. Procedures usually contain written instructions in logical numbered steps.

Some people use the phrase “process”, “practice” or “work practice” instead of a “procedure”. They are essentially the same but we prefer using the word “procedure”. In the public sector, these are often referred to as standard operating procedures or SOPs. 

An example of a procedure is: “When we receive a contract from a third party, we send the contract to Legal Services for their review.” Here, the policy that framed the procedure was that “Legal services review all third party contracts”. The procedure details the steps you need to take to comply with the policy. Examples of recurring tasks that procedures help someone achieve include granting access to information, assigning privileges, running daily backups and updating firewall rules.

Procedure is mandatory.

What is a standard?

A standard specifies uniform uses of specific technologies or configurations. Here we are talking about a specific internal standard of an organisation. People sometimes talk about employment standards or rules (like rules of conduct or performance). These do fall within this category. 

The other kind of standard is one that is issued by a third party (for example an industry body like ISO). For example, the ISO 27000 suite or data protection standards. Third-party rules (like professional rules) or codes (like the code of conduct of an association) are often associated with third-party standards.

An example of a standard is: “All contracts have the following typography: Font: Arial; Font Size: 8; Margin Type: Normal”. Standards are often standalone and referenced in policies. In your policy, you will find the following statement: “We use the contract standard to review our contracts”. In this example, the policy refers to the standard and the standard assists the target audience comply with the policy.

Most organisation specific internal standards are mandatory but it is the related policy that dictates whether a standard is mandatory or voluntary. A third party standard can be voluntary or mandatory. Sometimes an organisation decides or agrees that a voluntary third party standard will be mandatory. The default position is usually that they are voluntary.

What is a guideline?

A guideline provides general guidance, and additional advice and support for policies, standards or procedures. A guideline gives the reader guidance and additional information to help the audience. It will also assist the policymaker in explaining the policy to the policy audience in simpler terms. Many people confuse a guideline with a policy because a guideline contains similar content to a policy. The biggest difference between the two is that a guideline is voluntary and policy is always mandatory.

An example of a guideline is: “Before reviewing a contract, try to gather as much relevant information about the transaction as possible. Find out what the parties believe to be the significant risks“. One of the modules in our programme called having good policies in place is also an example of guidance for policies.

A guideline is voluntary or optional.

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