Policies are important for it is providing consistency, guidance, accountability, clarity and efficiency on how a business or organization should operate. This is offering members of cooperatives guidelines and even principles to follow.

Keep reading to discover the true importance of having a policy in place.

Guidance

Policies can serve as guide by defining the key goals of the organization and providing guidance on how to hit those objectives. In addition to that, it helps in identifying the key activities that must be done similar to the collection of rental arrears, capital replacement planning and the likes. If you think that’s it, no! It’s because policies are designed to address things similar to:

  • General building rules
  • Pets
  • Parking
  • No smoking

Consistency

With an established procedure and policy in place, this can ensure that the processes implemented by the organization will not deteriorate or deviate over time.

This is if even when the key contractors, employees or board members left.

Consistent policies are big in helping new board members to quickly get the pace of how the organization is operating and what is expected from them as new board member. Thus, policy can help maintain continuous growth of the organization.