Organizations across sectors must regularly develop and revise their policies, procedures, and other governance documents, collectively known as “policy work.” This process extends beyond mere policy creation, encompassing vital internal frameworks essential for organizational management and leadership, often mandated for compliance purposes.
Given the legal and compliance implications, lawyers frequently play a pivotal role in policy work, ensuring alignment with legal standards and best practices in various domains such as cybersecurity, privacy, employment law, occupational safety, and operational protocols.
Key Frameworks for Compliance
As highlighted in a recent column, policy work involves integrating Three Platforms for Compliance:
- Laws and regulations: External rules established by governments and contractual obligations with third parties.
- Policies and internal rules: Internally established guidelines and directives.
- Practices: Actions and operational behaviors of the organization.
Achieving compliance necessitates harmonizing these three platforms effectively (John Bandler, “Management, policies, cybersecurity and compliance,” Reuters Legal News, April 23, 2024). Organizations begin by assessing external regulatory frameworks, followed by developing and maintaining robust internal policies and operational protocols.
Additional Components to Consider
In addition to the three platforms, two critical components further enhance policy work:
- Mission: The organization’s core purpose and revenue-generating activities, integral to aligning all aspects of governance.
- Best Practices: External guidelines and industry standards that inform policy development and operational practices.
The Internal Rules Platform Concept
The concept of the internal rules platform underscores the holistic approach to policy work. It encompasses all governance documents, including policies and procedures, as well as informal aspects like verbal instructions, organizational tone, and cultural norms (“unwritten rules”). While not every rule can be documented, these informal aspects significantly influence organizational behavior and compliance outcomes.
Consideration of Scenarios
Effective policy work balances formal and informal rules:
- In organizations with a strong culture and clear verbal instructions, compliance and ethical conduct thrive, even without exhaustive written documentation.
- Conversely, organizations with weak cultural foundations struggle with compliance and operational efficiency, despite comprehensive governance documents.
The Faces of the Platform
The “faces” of the platform—culture, tone, and verbal rules—signify how these informal aspects support or undermine governance:
- In well-structured organizations, these faces are robust, guiding employees to make informed decisions aligned with organizational goals and legal requirements.
- Conversely, poorly constructed faces lead to confusion and non-compliance, regardless of documented policies.
The Role of Written Documentation
While verbal instructions and cultural norms play critical roles, some rules necessitate written documentation:
- Start-ups and small businesses often begin with foundational policies that cover broad operational areas, gradually refining and expanding them as the organization grows.
- Policies provide the structural pillars supporting the governance platform, with procedures offering detailed guidelines for specific tasks.
Building and Improving Policies
Policy work is a continual process of review and enhancement:
- Organizations periodically update and expand their governance documents to reflect evolving legal requirements and operational needs.
- Verbal instructions should complement written policies to reinforce compliance and ethical conduct among employees.
Addressing Policy Pyramid Analogy
Unlike the traditional policy pyramid analogy, which prioritizes policies at the top without integrating other management aspects, the internal rules platform offers a comprehensive framework aligned with laws, best practices, mission, and operational practices.
Implementation and Beyond
Organizations implement effective policy work by engaging stakeholders, aligning with legal requirements, and continuously refining governance documents:
- Principles applicable across diverse areas, including cybersecurity, guide robust policy development and management practices.
- Leaders and legal advisors must prioritize cybersecurity and information governance, adhering to legal mandates and industry standards to ensure mission success and regulatory compliance.
Source: reuters.com
