Policy Development

A Lecture-presentation for Goodminds Empowerment & Training Specialists and Advocacy Cooperative

February 26-27, 2014Calasiao, Pangasinan

Policy Development

Policy Development

The direction and management of the affairs of a cooperative shall be vested in a board of directors elected by the general assembly (Art.37, RA 9520). The directors’ responsibility are to strategize, direct,

mobilize and formulate policies in the best interest of the cooperative

This training provides frameworks, techniques and tools

that can be used by the board of directors in identifying policy problems, establishing criteria, assessing policy alternatives, deciding on the policy and managing policy implementation

What is a policy? Importance of policiesTypes and Components of Policy (Ethical, Strategic, Operational ) Policy goals Policy formulation and processes Documenting/Codifying Policies Implementation of Policies Monitoring

Topic Outline

OutputTo be able to formulate effective and acceptable

policies for implementation

Effective Formulation means that the policy proposed is regarded as a valid, efficient, and implementable solution to the issue at hand

Effective Formulation

Acceptable Formulation means that the proposed course of action is likely to be authorized by the legitimate decision makers, usually through majority-building in a bargaining process

Acceptable Formulation

The Need for Policy Analysis

Policy Analysis –so often fails because of:a. Ignoranceb. Conflicting goalsc. Policy designd. Problems in implementation and

politics

Many people think of organization policies in a negative light which is a means to control employee behavior. However, there is a more positive side to policies. They can actually empower employees. It is true that many policies seem restrictive in nature and may need to promote good internal control however, policies also provide staff with a degree of freedom within defined boundaries.

With good policies in place, staff is able to execute their duties and are free to act within the limits set by policy without constant managerial oversight. In that way, policies empower staff to do the right thing.

What is a policy?

POLICY is to guide the actions of all persons involved or connected with the cooperative in regard to any area of activity in which the cooperative has jurisdiction. Policies are guidelines for directors, committee members, employees and members

A policy is a predetermined course of action established as a guide toward accepted objectives.

A policy is a statement, verbal, written or implied, of those principles and rules that are set by Board of Directors as guidelines on organizations actions

Importance of Policies

In some cases policies must be observed (mandatory) while in other cases policies serve as only as guidelines (advisory) for the ethical, strategic, operational.

The Role of Policies• Provide specific guidance toward

implementing strategies to achieve the cooperative’s vision

• Provide general guidance about the cooperative’s mission

• Provide a mechanism to control the behavior of the cooperative

• Enable the management to relate properly to the organization’s work and its objectives

The existence of practical and comprehensive policies tends to increase efficiency

Decisions made within a policy framework have a higher probability of being synchronized with other decisions within the cooperative

Vision Statement“what we want to become”

Mission Statement“who we are What we value”

Goals & objectives

“How we measure our degree of success

Strategy

“how we will achieve our vision”

Policies &Procedures

Communicating Purpose to Stakeholders

Policy Goals

A policy is not formulated unless it is thought to be necessary or to have a benefit. In other words the policy exists for a purpose and this may be often expressed in the form of an "underpinning principle".

Policy Underpinning Principles1. Gender Equality Policy

Equality and coexistence of men and women

2. Quality Customer Service Policy

Increase satisfaction of members/customers and encourage membership renewal

3. Social Responsibility Policy

Concern for the Community

Policy Legal Basis1. Policy on Savings Mobilization and Capital Build Up

"ART. 6. Purposes of Cooperatives. A cooperative may be organized and registered for any or all of the following purposes"(1) To encourage thrift and savings mobilization among the members;"(2) To generate funds and extend credit to the members for productive and provident purposes

2. Loan Policy

"ART. 7. Objectives and Goals of a Cooperative. The primary objective of every cooperative is to help improve the quality of life of its members. Towards this end, the cooperative shall aim to:"(a) Provide goods and services to its members to enable them to attain increased income, savings, investments, productivity, and purchasing power, and promote among themselves equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing;"(b) Provide optimum social and economic benefits to its members;

Policy Formulation and Processes

Crafting a mission and vision is not easy, it helps to follow the right steps.

Vision Mission Objectives, Policies and Policies/Procedures

Both statements should be meaningful to all in the cooperative.

It should be shared to all members to create a unified direction for everyone

Vision A vision statement is a future-oriented declaration of the organization’s purpose and aspirations

“ We envision ourselves to be the best, efficient and productive cooperative, dedicated and committed in bringing prosperity and positive transformation to its members and the community”.

Vision Statement

VISION The best economic and social cooperative center in Luzon MISSIONTo pursue sustainability by providing quality and affordable financial products and services responsive to members needs in a gender fair environment.To deliver complementary solutions in enriching the lives of members and communities.To ensure employees satisfaction for professional growth and advancement.To promote good environmental stewardship through innovative programs, projects and socially responsive services

VISIONVISIONA Globally Competitive and Gender Fair Credit Cooperative MISSIONThe TUBAO CREDIT COOPERATIVE, a prospering and growing institution uplifting the socio-economic conditions of the members through its various gender responsive financial products and services.

From a well written mission statement, objectives can be set and from objectives, policies can be created. Just as a mission or vision for your organization is a prerequisite to policy development, so too are strategic objectives.

Objectives are like goals. They direct the staff attention to important factors in running the cooperative and help define unique ways to enhance performance of individuals and the organization as a whole.

Policy-making is only one part of the entire policy process.

start with a decision and consider how research can feed into this decision.

Source:http://www.impactandlearning.org/2012_11_01_archive.html

decisions are being made in response to a new situations, and often where there is no previous policy.

decisions are being made in response to a new situations, and often where there is no previous policy.

STRATEGIC MANAGEMENT MODEL

MISSION

OBJECTIVES

STRATEGIES

PROGRAMS

PROJECTS

PROCEDURES

BUDGETS

STRATEGY FORMULATION

STRATEGY IMPLEMENTATION

F E E D B A C K

VISION

PERFORMANCE

Models of Policy Change

• Rational decision-making model - policy-makers make decisions on the basis of rational calculation of advantages and disadvantages,

• This model tries to understand all the alternatives, take into account all their consequences, and select the best. It is concerned with the best way to organize organization in order to assure and undistorted flow of information, the accuracy of feedback, and the weighing of values. Related to techniques such as PERT, CPM, OR, and linear programming. This model tries to improve the content of public policy.

Models of policy change2. Incremental model - views public policies as continuation of

past government activities with only minor modifications

Models of Policy ChangeIncremental Model - This model relies on

the concepts of incremental decision-making such as satisficing, organizational drift, bounded rationality, and limited cognition, among others. Basically can be called "muddling through." It represents a conservative tendency: new policies are only slightly different from old policies.

Policy-makers are too short on time, resources and brains to make totally new policies; past policies are accepted as having some legitimacy. Existing policies have sunk costs which discourage innovation, incrementalism is an easier approach than rationalism, and the policies are more politically expedient because they don't necessitate any radical redistribution of values.

Models of Policy Change3. Two-Stage Mixed Scanning Model - suggests that decision-making process

consists of two stages: a “pre-decisional” stage of assessing and framing problems, which can be explained by incremental model, and a second analytical phase in which rational decision-model is more relevant

incremental

model

rational decision-model

Models of Policy Change4. Garbage Can Model - The Garbage Can model of

organizational theory was developed in 1972 by Michael D. Cohen, James G. March and Johan P. Olsen.

"The theoretical breakthrough of the Garbage Can Model is that it disconnects problems, solutions and decision makers from each other, unlike traditional decision theory. Specific decisions do not follow an orderly process from problem to solution, but are outcomes of several relatively independent stream of events within the organization." (Richard L. Daft, 1982, p.139).

5. Elitist Model — the preferences of the elite (key politicians, top military leaders, or corporate elites) dominate policy outcome

Models of Policy Change

Steps in Policy Development

Research and consultation are key steps in the process. A sound policy is built upon good consultation with those who will be affected by the policy.

Workshop 1Identify and define the problem or issue that

necessitates the development of a policy

Steps in Policy

Development

The cooperative also needs to know and understand the purpose of policies and to recognize that the issue or problem can be effectively dealt with by the creation or modification of a policy.

Typically, policy making starts with perception of a problem. Getting the diagnosis right is the key!

Identify and define the problem or issue that necessitates the development of a policy

1. Issue Identification and Definition

Issue identification

and definition

There are many factors which influence policy choices including timeliness of response, responsiveness to member needs, cost of implementation and projected impact on the desired outcome supported by reliable and timely evidence

Systematic collection and presentation of information is the backbone of policy development. Thorough research and data analysis provides the body of evidences necessary to justify decision making

2. Policy Research and AnalysisPolicy Research

and Analysis

Policy Analysis and Other Types of Research

Major Objective Client Time Constraints

Academic Social Science Research

Construct theories for understanding society

“Truth” as defined by the discipline; and other scholars

Rarely external time constraint

Policy Research

Predict impacts of changes in variables that can be altered by public policy

Actors in policy arena; the related disciplines

Sometimes deadline pressure, perhaps mitigated by issue recurrence

Policy analysis

Schematic comparison and evaluation of alternatives available for public actors for solving policy problems

Specific person or institution as decision-maker

Strong deadline pressure – completion of analysis usually tied to specific decision

The Use of COOP-PESOS ToolIndicators/Items

Very Poor

Poor Satisfactory Good Excellent

ComplianceOrganizational Structure and LinkagesOperations and ManagementPlans and ProgramsPortfolio QualityEfficiencyEffectivenessStabilityOperations Structure of Assets

3. Generating Policy Solutions and Alternatives

The worthiness of a list of policy alternatives, and the recommended policy option, must reflect the thoroughness and rigor which is applied to the definition and analysis of the issue, the degree and types of consultation undertaken and pre-considerations of the measurability of the policy once its been implemented.

Furthermore, the potential viability of policy alternatives is not only about integrity of process, it is also dependent on the degree to which political realities, the public's /stakeholder's tolerance of risk, and policy response times are considered.

Generating Policy

Solutions and Alternatives

Policy Solution in Loan Operations• approval • collection• payments by checks• cash collections (who is authorized?)• aging of accounts• credit limit policy• amnesty program• loan disbursements are covered by a promissory

note

4. ConsultationAgenda Setting

Policy Formulation

Policy Adoption

Policy Implementation

Policy Evaluation

The Policy Making Process

revision

revision

revi

sio

n

Consultation helps to build trust and transparency and good working relationships which are necessary for successful policy implementation.

Consultations are carried out :Within the lead Agency with their technical expertsWithin Other Government Agencies which may be directly or indirectly impactedWith Among committees, management and stakeholders

Consultation

• collection of capital share, savings, dues, fine,• imposing penalty• disciplinary measures • legal actions • profit generation• capital build-up• members benefits• accounts payables

The proposal often consists of a written paper outlining the basis for the policy and the facts supporting various policy options. It articulates the consultation process followed and the potential impacts of the policy alternatives on the members and various stakeholder groups

The proposal often consists of a written paper outlining the basis for the policy and the facts supporting various policy options. It articulates the consultation process followed and the potential impacts of the policy alternatives on the members and various stakeholder groups

While policy proposals generally list more than one alternative to address the issue; the paper should clearly articulate the preferred or recommended option considering the balance of the evidence gathered.

While policy proposals generally list more than one alternative to address the issue; the paper should clearly articulate the preferred or recommended option considering the balance of the evidence gathered.

5. Developing Policy Proposal

Developing Policy

Proposals

Gather EvidenceNon-operational and non-functional cooperatives

are product of mismanagement, lack of disciplined staff and managers, uncollected loans, infrequent training of management and members, dormant membership, inability to evolve strong communication and public relations, dependence on local government, lack of awareness, lack of quality management, poor infrastructure

The final policy document needs to be formally adopted by the member of the Board of Directors with an appropriate record entered in to the minutes

Following formal adoption of the policy it should be communicated far and wide throughout the cooperative and stakeholders. Training sessions may need to be conducted to ensure that personnel are fully informed and able to implement the policy. If the policy is not well communicated it may fail.

Communication

6. Policy Implementation Policy Implementation is the stage in the policy process where policy action occurs to address a recognized policy problem. At this stage, the design of a policy proposal is put into effect and the policy is executed by respective administrative agencies.

Issue identification

and definition

Policy Implementation

Example: Education and Training Policy

The implementation of education and training program to professionalize the officers, staffs, to train members for future officership and for their familiarization to the day-to-day operations of their cooperatives and to inculcate among members the cooperative’s principles and values

6. Policy Implementation

According to Theodoulou and Kofinis (2004), how well policy is implemented is affected by the three criteria:

1. Clarity. A goal stated with clarity and specificity not only provides direction but also improves the basis by which policies can be evaluated, for accountability, efficiency, and effectiveness.

1. Clarity. A goal stated with clarity and specificity not only provides direction but also improves the basis by which policies can be evaluated, for accountability, efficiency, and effectiveness.

2. Constant feedback as to how implementation is progressing, as well as preliminary assessments of impacts2. Constant feedback as to how implementation is progressing, as well as preliminary assessments of impacts

 3. Strategic Planning. Essentially, strategic planning is a tool with which the agency can evaluate its ability to achieve the goals of the policy, as well as plan for how the policy will be executed 

 3. Strategic Planning. Essentially, strategic planning is a tool with which the agency can evaluate its ability to achieve the goals of the policy, as well as plan for how the policy will be executed 

7. Policy Monitoring and Evaluation

Evaluation considerations must begin early in the policy development process as objectives are formulated and indicators are established in order to determine policy effectiveness.

Evaluation is not simply about assessing whether an initiative was a success or failure. Instead, evaluation is about creating the information and data about the initiative's success and why. Evaluation findings can lead to more effective and efficient program delivery

Evaluation is not simply about assessing whether an initiative was a success or failure. Instead, evaluation is about creating the information and data about the initiative's success and why. Evaluation findings can lead to more effective and efficient program delivery

PolicyMonitoring and

Evaluation

Policies Success/Failure Whyloan operationsmembershipexpansion programhuman resourcecapital build-updepositscommunity development fundInternal control

The implementation of the policy should be monitored. The policy may still require further adjustments and furthermore the reasons for the policy existence may change. A general practice is to set a date for the policy to be reviewed, this might be one a year or once in every three years. It just depends on the nature of the policy.

Evaluation is simply one component of the policy cycle and an overall performance management framework. As an initiative is implemented, the outputs and outcomes are monitored, refined and then evaluated. Findings from the evaluation results will allow for adjusting and modifying the various outputs and outcomes of an initiative and the process gets repeated.

Evaluation as Part of a Larger Process

This process is shown in the Evidence Wheel, a diagram that is part of a curriculum given by British Columbia’s Knowledge and Information Services Branch.

Evaluation as Part of a Larger Process

http://policynl.ca/policydevelopment/pages/evaluation-larger-process.html

Evidence Wheel

Assessment Criteria• Policies are proposed and thoroughly discussed in

the board meeting.• Policies formulated and agreed on are consistent

with the vision, mission and goals of the cooperative.• Policies agreed on are in accordance with existing

laws and regulations.• Policies are reviewed and changes or updates

properly discussed and documented.• Implementation of policies is regularly monitored.

Review of Policies or Programs

Started Continued Modified Stopped

Evaluate policy alternatives to arrive at the best decision and the latter focuses on how to implement policies and programs successfully.

Policy Content1. Subject of Title2. Policy Statement3. Purpose4. Scope5. Responsibility6. Effectivity

Optional:1. Background2. Definition of Terms

Subject or Title

• 01-s-01 2013• Membership Policy

Policy statements. Indicating the specific regulations, requirements, or modifications to organizational behavior that the policy is creating. Policy statements are extremely diverse depending on the organization and intent, and may take almost any form.

A purpose statement. Outlining why the organization is issuing the policy, and what its desired effect or outcome of the policy should be.

Policies are typically promulgated through official written documents. Policy documents often come with the endorsement or signature of the executive powers within an organization to legitimize the policy and demonstrate that it is considered in force. Such documents often have standard formats that are particular to the organization issuing the policy. While such formats differ in form, policy documents usually contain certain standard components.

An applicability and scope statement. Describing who the policy affects and which actions are impacted by the policy. The applicability and scope may expressly exclude certain people, organizations, or actions from the policy requirements. Applicability and scope is used to focus the policy on only the desired targets, and avoid unintended consequences where possible.

A responsibility section, indicating which parties and organizations are responsible for carrying out individual policy statements. Many policies may require the establishment of some ongoing function or action.

An effective date which indicates when the policy comes into force. Retroactive policies are rare, but can be found.

Some policies may contain additional sections including:

• Background, indicating any reasons, history, and intent that led to the creation of the policy, which may be listed as motivating factors. This information is often quite valuable when policies must be evaluated or used in ambiguous situations, just as the intent of a law can be useful to a court when deciding a case that involves that law.

Some policies may contain additional sections including:

• Definitions, providing clear and unambiguous definitions for terms and concepts found in the policy document

Be specific – mean what you say and say what you mean.

- if action is mandatory, use “must” or “will”

- if recommendatory, use “should”

- if permissive, use “may”

- avoid “shall” – confuses between mandatory or recommended

Writing Good Policies

Source: Sumajit (2013)

Need to know how they can appraise it, how to draw lessons from evidence for policy decisions etc

Source: http://www.impactandlearning.org/2012_11_01_archive.html

Evidence

Types of Criteria for Policy Analysis

1. Consequential criteria — “good” or “bad”

2. Categorical moral principles — “right” or wrong“

3. Political constraints

Tools & Techniques

Stakeholders Analysis

Resource-Based Approach to Strategy Analysis

-Identify & classify the orgn’s resources. -Appraise SW related to competitors.-Identify Opportunities for better utilization of resources

-Identify the ogrn’s capabilities-What can the orgn do more than the competitors?-Identify input resources per capability & complexity of each capability

Appraise the rent-generatingpotential of resources &capabilitiesa)Potential for sustainable advantageb) Appropriability of their returns

Select a strategy that best exploits the orgn’sresources and capabilitiesrelative to opportunities

- Identify resource gaps that need to be filled . Invest in replenishing, augmenting and upgrading of organizational resource base

RESOURCES CAPABILITIES COMPETITIVEADVANTAGE

STRATEGY

1 2 3 4

5

STRATEGIC MANAGEMENT OPTIONS

C R I T E R I AS-O S-T W-O W-T

1 2 3 1 2 3 1 2 3 1 2 3MAGNITUDE

ACCEPTABILITY

RELEVANCE (VMO)

DOABILITY/ VIABILITY

COST-EFFECTIVE

IMPACT

SUSTAINABILITY

OTHERS

T O T A L

Policy No. Subject Resolution No

Date Approved /

Adopted01-s-01 2013

Membership Policy

01-s-01- 2013 Jan 7, 2013

02-s-02 2013

Lending Policies & Guideline

02-s-02-2013 January 15,2013

Documenting/Codifying Policies

PERFORMANCE AUDIT REPORT1. Duties and responsibilities of the Board well defined and segregated and duly approved

Board Resolution

- Special Order - Appointment paper2. Officers performing their duties and responsibilities at all levels (peers, self evaluation and other form of evaluation formulated and implemented

Board Resolution

3. Oversight functions of the Board

Board Resolution

Board Policy

Adherence to laws, rules and regulations

4. Polices are reviewed regularly Board Resolution

5. Adherence to laws, rules and regulations,

Board Policy

6. Duties and responsibilities of the management well defined and segregated and duly approved

Board Resolution

7. Human Resource Policy(recruitment, selection, hiring, promotion, salary scaling program, recognition, incentives, and benefit packages of employees disciplinary action, termination and retirement

Board Resolution

Board Policy

Adherence to laws, rules and regulations

4. Incentives, and benefit packages of employees (Insurance protection program, awards and recognition, scholarship, social, cultural, sports, team and staff development)

Board Resolution

Board Policy

5. Polices are reviewed regularly

Board Resolution

Board Policy

Adherence to laws, rules and regulations

SOCIAL AUDIT REPORT

1. Feedback mechanism (feedbacks and suggestions of Members ) membership meetings, area consultation, suggestion and grievance box, telephone logbook, email, internet, social network, correspondence, mail, SMS, Freedom Board)

Board Policy

2. Responsiveness to gender, elderly, youth, and person with special needs

Board Resolution

Board Policy

3. Collaboration of programs/projects with any of the ff: NGO, PVOs, CDCs, LGUs, GOS, Business Organization and individual)

Board Resolution

Board Policy

Adherence to laws, rules and regulations

Adherence to Policies formulated in accordance with laws, rules and regulations, and by-laws

Legal basis1. Establishment of a cooperative branch MC 2011-17 2. Training requirements for cooperative officers

MC 2011-27

3. Article 27 (2) of RA9520 provides that "AII elective officials of the Government shall beineligible to become officers and directors of cooperatives:

MC 2011- 03

4 Article42. Officers of the Cooperative (Degree of consanguinity and affinity)

MC 2011-04

5. 10 % Limitation on Share Capital MC 2011-056. ARTICLE 37 OF R.A. 9520 – Term of Office MC 2012-20

Adherence to Policies formulated in accordance with laws, rules and regulations, and by-laws

Legal basis7. Implementation of training requirements for cooperative officers

MC 2012-17

8. Accountable officers MC 2012-099. Put up Signage in cooperative places MC 2012-0510. Membership Registry MC 2012-1611. Establishment of Satellite Office MC 2012-1712. Prohibition of elective officials MC 2012-1913. Organization of Subsidiary cooperative MC 2012–0914. Art 46 Compensation MC 2012-17

Adherence to Policies formulated in accordance with laws, rules and regulations, and by-laws

Legal basis14. Training requirements for directors, officers, and committee members

MC 2013-02

15. Continuing subscription of share capital MC-2013-0416.Gender and Development & gender Equality MC-2013-22

Policies on Products and Services

Savings Mobilization

Lending

Marketing

Savings Mobilization

Lending

Trading

Marketing

Objectives

Evangelista MPC Banerle CreditTimpuyog ti

Barangay MPC

Lending

Financial Services

Policies on Products and Services

Accounting system

Internal control system

Linkages

Lending

employee benefits

Retirement

Objectives

LCCrC CPRC E MPC CFSCC

Various loans

Education Program Services

collectionCommunity Development

Condotel mgmt

Membership Expansion

Programs and Services of

Cooperatives

Regular Savings Deposit Time Deposit Members Contingency Deposits Youth Saver’s Club Dream Savings Funds Retirement Savings Pension Savings SAFE Savings Build Savings Emergency Savings Fund

Savings

Share Capital

Common ShareCommon Share

Preferred SharePreferred Share

Express Loan Regular Loan Special Loan Privilege Loan

Loan

LOAN Regular Loan Providential Loan Commercial Loan Financing Loan Commercial Loan

LOAN Special Loan Salary Loan

Financing Assistance for Brgy Officials Livelihood Loan

Show Money Loan

Pension Loan

Receivable Financing Loan

Loan Against Time Deposits

Allotment Loan (OCW, Seaman)

Micro and Small Enterprise Loan

LOAN Privilege Loan

Petty Cash

Farmers Assistance Rice Loan

Other Services Automated Teller Machine (ATM)Health Care Assistance Program Mortuary Assistance Program Life Insurance

If you are charged with the responsibility to develop a policy, it will be important to consider that the policy you write will be constrained by policies, laws and regulations of federation, union, regulatory bodies, community expectations, government policy and legislation. That is why wide consultation is a key to successful policy formulation.

Policy Constraints

Who Makes Policy?

Organizational policy makers i.e. Board of Directors, and Management, must go about the process of policy formation in a careful way. Policy makers must engage, and be seen to engage, in the process of consultation

A charge of 'failing to consult' is a charge of considerable magnitude. While much information can be gleaned by listening to people, there is also often a need to conduct research i.e. statistical surveys, monitor events, etc.

Hence we should not operate in a vacuum but instead a policy space. Our space overlaps the space of many other organizations with whom we must so-exist peacefully Webb, Rowland and Fasano, (1991) .

• The role of the policy maker is act as a funnel to gather information through consultation and research and to reduce and extract from the information, a policy or a set of policies which serve to promote what is the preferred course of action.

• Seeking information from experts from outside the organization (this may include government personnel, other cooperative managers and practitioners)

Some of the skills that policy makers need to ensure the development of effective policies are:

• Collecting statistical information• Convening and chairing discussion

forums• Be able to write policy documents in

appropriate language and without ambiguity.

Causes of Bad Policy

• A failure to consult the people who will be affected by the policy or who will implement the policy

• A lack of communication between persons who are involved or should be involved in the policy formulation process

• A failure to define the problem or the essential issue(s), or an oversimplification of the issue(s)

• Policy makers are unable to reach agreement over basic facts.

• Policy makers are biased in their research for the policy formulation process.

• Policy makers take a different and conflicting position on key aspects of the policy

• Prejudice and stereotyping by policy makers

• A change of key players in the policy development process before it is completed

• A lack of understanding of the importance of policies in organization management

Cooperatives leaders must be able to communicate openly and honestly which promote healthy relationship and excel at problem solving despite the challenges posed by unintended events and circumstances

Communicating Policy

When decisions are made about what actions must be taken in certain situations, it is necessary that they are:

Written down and recorded for future reference

Communicated to all persons who need to be aware of the new policy

• The process of writing down a new policy (documenting) is very necessary. If this does not occur, then there is likely to be confusion about the decision made, what was agreed and what actions should be taken.

• At the very least the policy decisions should be noted in the minutes of the meeting during which they were made. However it is very unlikely that members of the organization, or customers, will ever read the minutes of meetings.

Methods for communicating policies• When a policy is put into

writing it can be communicated in a variety of ways including:

• Put on notice boards• Sent to the membership by

email or in a letter• Put on the organization's

website for download

• Displayed in a newsletter• Placed on the back side of forms such

as the membership form• Inserted into a "member's handbook"• Made available in a policy manual

kept in the organization's office

Benefit of Policy Manuals• It would be prudent for organizations to have

a policy manual. This could be a ring binder that collects all policies together in one place.

• Once a policy manual is in existence everyone has the chance to look up the policy on a particular matter and then follow the recommended course of action.

• As a policy is amended, the policy manual must be updated.

StrategicPolicy

Business/Operational

PolicyEthicalPolicy

A. Organizational Policies

SMCBUP

Membership

Education & Training

Internal Control

Ethics

Human Resource

B. Business/ Operational Policies

Lending

Trading

Marketing

Reference

• Oro Integrated Cooperative orointegratedcoop.com

• Sacred Heart Savings Cooperativehttps://www.facebook.com/sacredheartsavingscoop

• Narra Multi Purpose Cooperative www.narracoop.org

Reference

• SACDECO www.sacddeco.com• Tubao Credit Cooperative tubaocreditcooperative.com• Gledco www.gledco.org.ph• Griffin, Michael. How to write a policy

manual at www.gobookee.org

References

• Leo Isaac. What are policies? http://wwwleoisaac.com

• Maribeth R. Sumajit (2013) Policy Formulation at www.sliddeshare.net

• Josefina B. Bitonio (2012) What is policy? www.slideshare.net

• California State University Long Beach (2002) Models of Public Policy Makinghttp://www.csulb.edu/~msaintg/ppa590/models.htm

Workshop 2From the issues identified formulate a policy for your cooperative