Process or Policy- What is more important for the Success of Business?

Process or Policy- What is more important for the Success of Business?

Every business is an organization which comprises of departments. Policies and processes are the integral part of organization. Policy is the basic framework, guideline or set of rules and regulations which imparts a basic outlook or structure to an organization. Process on the other side, is the well defined path or function which is to be followed by the employees for completion of a particular task or the actual realization of the policy objectives. Now, the important point is which one of these two is more important?


-Policy is like the backbone of an organization. It gives basic structure to the organization and streamlines the organizational efforts in a particular direction to achieve the overall purpose.

-With the help of policies, we can avoid the common repeatable mistakes especially by the newcomers, because policies are evolved through experienced and well tested guidelines over the time.

-Policy eliminates the scope of conflict between different departments of an organization. Instead it promotes coordination among departments by clearly stating boundaries and functions between them.

-Policies are necessary for crisis management. A clear cut policy defines the steps or actions that need to be taken in event of a crisis.


-Processes implement policies. Policy defines a broad framework whereas process defines in detail that how a particular task has to be done.

-Processes define responsibilities of each employee of an organization and their designated role in the system which get the system running.

-Processes cross the departmental boundaries with a clear cut demarcation of control points where the process crosses the departmental boundaries.

-Process is designed to produce a particular product or to perform a particular activity unlike policy which is much more generalized.


Without policy we cannot have a structuralized business organization but that doesn’t undermine the importance of process. Since a business organization consists of various departments, so for its success every department needs to play its designated role. This departmental role can be played successfully only if processes are there. Policies and processes complement each other. So, we cannot prioritize one over other for the success of business.
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  • RE: Process or Policy- What is more important for the Success of Business? -vijay kumar (10/09/14)
  • Yes, Policies and Process are inescapable of Business. Both are strongly dependant on each other. Policies define how the organizational goals are achieved but without a process it is difficult to meet the organizational goals.

    Policy is like the larger subsystem where each and every subsystem is divided into smaller subsystems called processes.

    Both are inter-dependant, without one will not be achieve the success.
  • RE: Process or Policy- What is more important for the Success of Business? -Deepa Kaushik (10/07/14)
  • Rightly said, policy is the framework and process is the defined path for the functioning. We can call policy as the drafted imprint for building a structure and process as the task of building the structure on those imprints. Here, the policy can show its true colour only if the process is accomplished well. On the other hand, the process cannot stand on its own without a sound policy. Both are inter-dependent for the efficient functioning of the organization.

    Still, to give a side to this discussion, policy holds a major stance over the process. Any organization need to have the basic policies as the framework and guidance for the employees. These policies are the once which lure the employees and hold them with the organization. The deficiency in the quality of the policy could lose an efficient employee which means losing a good production output. Even if the process is not very accurately followed, the policy at the background can provide an assurance of achieving the correct structure some day with the appropriate application of the policies.

    If count on the process alone, the building cannot stand by randomly placed bricks here and there without a firm imprint for the same. Similarly, no organization can run the process without the policy in the background to guide them for the proceedings. The process without policy cannot stand even the threshold limit to sustain in the market. Business requires motto and principles to attain great heights. These are nothing but what the organization lays down as policies. Thus, for a successful business, it is definitely the policy which is required to keep up high spirits. Process is the supporting pillar to the policy to keep the business moving on the track.
  • RE: Process or Policy- What is more important for the Success of Business? -K B (10/07/14)
  • I think policies are more important for succcess , as no matter how efficiently you make your run, if the path chosen is wrong, its all a waste.