Boundaries in Business: Why Policies and Procedures are Important in the Workplace

Last Updated on February 1, 2026 by Dave Schoenbeck

All too often, small business owners only create policies and procedures after a problem has been identified. As a result, leaders sometimes struggle to understand why workplace policies and procedures matter until they run into trouble. It’s always better to be proactive about boundaries in business rather than reactive, and here’s why.

What Is the Purpose of Policies and Procedures at Work?

Policies and procedures establish a framework that keeps every employee on an even footing. They outline expectations and leave no doubt about behavioral and performance evaluations. Therefore, having these written out is essential so employees can reference them and everyone is on the same page. 

Employers might think that too many policies can cause employees to feel stifled or overly restricted, but the opposite is usually true. Employees feel secure when they know what is expected of them, and managers can lead more effectively when they can cite specific, well-written workplace policies to address team or individual performance issues. 

Boundaries in business are suitable for your employees; rather than creating a sense of confinement, knowing exactly where the boundaries are encourages employees to explore the full scope of their potential. When rules are unclear, people tend to err on the side of caution and refrain from creativity and innovation. 

How to Implement Policies and Procedures

If you haven’t been stringent about developing policies and procedures for your workplace in the past, don’t panic. As long as you’re transparent with your team about the reasoning behind your policies and what they are, they can quickly get on board.

There are a few steps to implementing a new policy. The first step is to identify a gap where an approach would be beneficial. You must then write the policy carefully, ensuring you’re clear and direct in your expectations. Finally, you must notify your employees of the procedure and provide it in writing for their reference. 

Communicating with your employees about why a policy exists is a good idea. Many employees will feel called out if they’ve previously violated the new approach without realizing it. Let employees know the slate is clean and that new expectations are in place. You should also explain why the new policy will be helpful.

When developing a new policy, you might consider opening the floor to feedback before it is finalized. Although you have the final say in whether a policy is implemented, your employees might be able to provide a new perspective or help you word it in such a way as to eliminate room for error in interpretation. 

Once you know why workplace policies and procedures are essential, you can implement them accordingly. However, this is just one aspect of the leadership experience. If you want more information on managing teams and setting boundaries in business, sign up for my email newsletter to have leadership articles delivered straight to your inbox. 

Coach Dave

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Dave Schoenbeck

CEO at Dave Schoenbeck - Business & Executive Coach

Dave Schoenbeck is a professional business and executive coach who translates complex business methods, processes, and strategies into actionable plans to dramatically improve financial results. Read more about Dave here.

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