This is not to say that without explicit documentation of procedures that one cannot run a successful business. The problem is that the documentation may only exist with the particular person responsible for the job function
With documented procedures, others can step in as temporary replacements in times of crisis because they have the the institutional memory of the company to follow as a guide.
Part of a Business Process Review is to create objective documentation of the current procedures. As companies grow, without documented procedures and periodic review, changes can occur that were never intended or approved by Senior Management.
For example, let’s look at how payments to customer accounts are received and applied in a company that receives paper checks in the mail: One person opens the mail and makes a list of each check received with the check number, customer name, and amount. A second person applies the payment to the appropriate customer account. A third person might write up the checks for the Bank deposit. This type of Financial Control virtually guarantees that unless the three individuals are intentionally colluding to defraud the company, the separation of function acts as a check and balance to help keep the Staff honest.
Without proper documentation as a reference point, there is no way to determine if deviations from approved procedures have occurred. That can put the company at greater risk or reduce productivity and therefore impact the bottom line.
Remember, “No job is finished until the documentation is done.”