Rules. Every business has them. And every business is subject to rules imposed by society and government. Rules are necessary in a civil society. But rules also impose costs. I've been thinking about those costs, and about how to minimize them.
What are some of the costs of rules?
Dave Opton writes about the resignation of Jim Clark, Shutterfly's Board Chairman, because the burden of rules (e.g., Sarbannes-Oxley) had exceeded the benefits of board membership. Dave says, "...the law written to manage the few had made Board participation so painful, unrewarding, and frustrating that it just wasn't worth it any more."
Writing about rules for personal use of the internet at work, Mike Schaffner makes the point that "...we should treat people like adults and trust them until we have evidence to the contrary." Trust is hard to build and easy to lose. And it's hard for me, as a leader, to gain your trust if I don't show trust to you. Rules show a lack of trust. Rules imply that we have hired teenagers, rather than adults.
Rules also limit innovation. And they limit speed. And rules can limit the ability of front-line employees to respond to customer needs.
Before imposing a new rule, why not explore the alternatives? Be sure people know what is expected, and have the training and tools to meet those expectations. Don't make a rule to cover over poor understanding of expectations. Take a look at your training, and be sure it is sufficient for folks to do what you want them to do without the need for rules. Try to understand what is driving folks to behave differently than you would like. Change the underlying cause and you may not need to impose a new rule.
Also try to avoid creating rules that try to solve one person's malfeasance by burdening everyone with new rules. Deal with that person rather than creating a new rule for all.
Even with all of that, you will probably still need a few rules. Here are my "Rules for Good Rules," eight keys to promulgating rules that will work.
- Be sure that a rule is the only alternative (see above).
- Set a time limit - sunset clause - on the rule. What works today may be standing in the way of progress tomorrow.
- Limit the scope of the rule as much as possible.
- Write the rule in plain language, with as little lawyer-ese as possible.
- Be specific about what is allowed and not allowed.
- Give folks a place to go with questions about the rule.
- Be realistic. Impose a rule that will make sense. And explain the logic behind the rule.
- Focus the rule on outcomes, not process.
What about you? How do you approach rule-making?
Photo: Dean Varndell
