What is a policy?

Formulating Policy for Cooperative

2. What is a Policy?
 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
The purpose of the policy is to enable
the management to relate properly to the
organization’s work and its objectives

3. What is a Policy?
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

4. A policy is a
predetermined course of
action established as a
guide toward accepted
objectives
What is a Policy?

5. 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

6. Both statements
should be meaningful
to all in the
organization.
It should be shared
to all members to
create a unified
direction for everyone

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

8. STRATEGIC MANAGEMENT MODEL
MISSION
OBJECTIVES
STRATEGIES
PROGRAMS
PROJECTS
PROCEDURES
BUDGETS
STRATEGY FORMULATION
STRATEGY IMPLEMENTATION
F E E D B A C K
VISION
PERFORMANCE

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

10. Vision captures as a
short tag line
such as Toyota’s “moving
forward” statement
Wal-Mart’s “Save money.
Live better
Buzz Cooperative “Give
Buzz, Get Buzz”

11. Narra MPC is likened to a
narra tree, a symbol of
strength and prosperity.
“ 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

12. The mission statement briefly, in
a sentence or two, identifies the
basic purpose and desire of the
cooperative. It makes a concise
statement that can be used to make
decisions about the cooperative’s
future. It answers four fundamental
questions:
1. What does the cooperative do?
2. Who are its clients?
3 . Who are the members of the
cooperative?
4. How does the cooperative conduct
itself?

13. The mission statement of the San Joaquin MPC are :
3.Utilize all resources efficiently and effectively and bring about more
better services to members, and in turn, more extensive utilization of the
cooperative’s services by the members for better economic and social
benefits;
4.Promote better social relationship between and among officers, staff,
and members
5.Bring its services closer to the members for a stronger mutual trust that
should expand membership and touch the lives of more people;
6.Motivate and encourage the development of technical and
management capabilities of officers and employees through continuing
education;
7. increase resources through continuous capital build up and savings
mobilization;
8.Strengthen existing cooperative businesses and activities; and
9.Provide affordable and quality services to the members’ satisfaction
Mission Statement

14. Values
•Provide a great work environment
and treat each other with respect and
dignity.
•Embrace diversity as an essential
component in the way we do
business.
•Apply the highest standards of
excellence
•Develop enthusiastically satisfied
customers all of the time.
•Contribute positively to our
communities and our environment.
•Recognize that profitability is
essential to our future success

15. The Cooperative Values
•WE are transparent
•WE are dreamers and visionaries
•WE are result-oriented
•WE value people and the environment
•WE trust people & God
•WE put premium on unity
•WE always march forward
•EXCELLENCE is our way of life

Baduang MPC

16. A goal is a long-term vision of
what the cooperative is striving to
become. It is a target for medium- to
long-range accomplishment.
Goals should describe what the
cooperative wants to achieve, They
should be bold and exciting and have
a clear finish line.
Goals should challenge the
organization but be attainable.
Finally goals must be ranked by
priority.

17. Goals should be developed
with the following criteria
in mind:

4)future oriented,
5)broad,
6)measurable,
7)action oriented (the goal statement must
have a verb in it) and
8)the outcome must be specified. Goals should
be well advertised to the membership and the
cooperative’s customers.

18. SMART
MEASUREABLE
ATTAINABLE
REALISTIC
TIME BOUND
S
M
A
R
T

19. Guided by our vision and true to our
mission, we aim to attain:
1. A well-informed and loyal membership
conscious of and performing its duties and
responsibilities, and actively involve in the
affairs of the cooperatives;
2. A strong and properly functioning Pook-
Tulungan system that would enhance the
active and democratic participation of the
members in the activities of their cooperative
and their community;
3. An enlightened and dedicated leadership
willing and able to share its knowledge, time
and effort for the welfare of the members,
the cooperative and the community as a
whole

20. A giant cooperative
4. A professional staff hired,
compensated and rewarded on
the basis of competence and
performance, who will run the
business and non-business
activities of the cooperative
with the full support and
participation of the duly elected
and appointed management
bodies of the cooperative;
5. An efficient and effective management
that would continuously strengthen the
financing status of the cooperative
through an effective savings and
capital build-up program, efficient
processing and collection of loans,
improved systems and procedures
and strong internal control
mechanism; and
6. A continuous and effective
educational and training
program for the officers,
committee members, pook-
tulungan leaders, employees,
and the general membership,
responsive to the growing
needs of the cooperative and
the community.

21. Exercise #1

Vision
Missions
Values
Goals

22. Exercise # 2
Business Processes Analysis
Internal
External
Strength
Weaknesses
Opportunities
Threats

23. Savings
Mobilization
Lending
Marketing
Savings
Mobilization
Lending
Trading
Marketing
Objectives
Evangelista MPC Banerle Credit
Timpuyog ti
Barangay MPC
Lending
Financial
Services

24. vision is formulated
business processes are
analyzed
policy and procedure
systems
written
approved
articulated
implemented

25. Policy Making and Policy Implementation
Agenda
Setting
Policy
Formulation
Policy
Adoption
Policy
Implementatio
n
Policy
Evaluation
The Policy Making Process
revision
revision
revision

26. Cooperatives with clearly
communicated, widely
understood, and collectively
shared mission and vision have
been shown to perform better
than those without them
 they are related to
effectiveness only when
strategy and goals and
objectives are aligned with
Vision & Mission as well

27. Mission,
Objectives
and
Procedures.
how it
relates
Cooperative
Policies

28. Develop good policies that
enhance rather than
hinder the chances of
achieving the
cooperative’s objective

29. Procedure
describes how it
should be done
a policy lays out
what the BOD
wants
management to do

30.  Policies differ from procedures in the
sense that procedures provide standard
methods by which work is performed and
provide a check against deviations. They
are subordinate to policies.
 Whereas policy will contain the
“what” and the “why”, procedures or
protocols contain the “what”, the “how”,
the “where”, and the “when”.
Policy vs. Procedure

31. A policy is typically described as a principle
or rule to guide decisions and achieve
rational outcome(s).
A policy can be considered as a “Statement
of Intent” or a “Commitment”. For that
reason at least, the decision-makers can be
held accountable for their “Policy”.
Policies are decision guides.
Policies are line fences for decision-making.
Policy vs. Procedure

32.  Policies differ from
rules/regulations. Rules are more
specific than policies and they usually
entail penalties for violation. Policy
establishes a guiding framework for
rules. Policies are broader than rules
and they are usually stated in general
statement.
they provide no room for
managerial discretion
Policy vs. Rules and Regulation
"No smoking in
the work area"
'Wash your
hands before
leaving the
restroom"

33.  provides emphasis
 sets direction
 signs by the board
 detailing who is responsible
for each policy and
what obligation that places
on individuals employed by
the organisation.”
Policies
Policies

34.  steps by steps instructions
to perform desired actions
provide direction regarding
organizational practices and
help implement standardized
and repeatable processes
 provide support for
standard
 compliance is mandatory
Procedure

35. Policy & Procedure Purpose
Together, policies and procedures
ensure that a point of view held by the
governing body of an organization is
translated into steps that result in an
outcome compatible with that view.
Together they keep you out of trouble!
Together they insure consistency under
the law!

36. •Use as a planning document
or framework
•Use as a selection tool
quality improvement the
organization
The Functions of a Policy
• policies help secure consistency
within the limits and equity in
organizational decisions (i.e contracts
will be awarded to the lowest qualified
bidder)

37. •Use as a means of protection
• Simplify decision-making thus
it promote efficiency in the
utilization of managerial time
•
The Functions of a Policy

38. The Functions of a Policy
http://www.referenceforbusiness.com/encyclopedia/Per-Pro/Policies-
and-Policy-Making.html
Management are comfortable
delegating decisions to subordinates
because they will have set guidelines
within which to make choices
Ensures compliance with legal and
other requirements of the organization

39. Organizational
Policy
Business
/Operational
Policy

40. A. Organizational Policies
SMCBUP
Membership
Education &
Training
Internal
Control
Ethics
Human
Resource
Board A
Board B
Board C
Board D
Board D
Board E

41. B. Business/
Operational Policies
Lending
Trading
Marketing
Board F