9.2 Functional Rules/Policies

There are three closely related processes in the operation of a small company:

• management,
• implementation of company strategy and
• functions.

The management process sets the framework within which people 'produce' results. The strategic process lays down short-term and long-term goals. The operational process provides a "road map", tools and resources to achieve the goals. If you create a unified system for everyday activities, the standards you have set can easily be achieved. This leads to company stability. In the initial stages of company development the management is often informal, decisions are taken on a day-to-day basis, processes are not formalised. At a certain stage, however, their standardizing becomes an absolute necessity for its future development.