In the excitement of getting started, I sometimes hop ahead without fully explaining the flight path. It’s been brought to my attention during this refresh, so I’m backing up (as only a hummingbird can). Let’s slow down and zoom in.
Do Your Policies Pass the Three Es?
This introduces a core part of the HouseRules methodology: The Three Es: Effective, Enforceable, and Ethical. It’s the process of getting your goals MET and your ethical business humming with HouseRules.
While you’re considering working with CAS Ltd, or if you’ve already seen these terms dotted throughout the website, here’s the deeper dive to help you make informed decisions.
Where Did Your Policies Come From?
Let’s not stand on ceremony.
Be honest. Were your current policies built with you, or were they put together for the masses and handed to you?
Whether you bought a policy bundle, inherited documents from a previous employer, or pinched them from various sources, likely, they weren’t crafted to reflect your business, your team or your values. This is how a construction company will end up with the same stock policies as a catering business or a design studio.
How can your business be truly distinct if it’s operating on a bland, copy-and-paste blueprint? Before rushing to take action by attempting to update or enforce what you’ve got, first determine whether those policies deserve a place in your business.
Let's Test Them Against the Three Es
1. Are They Effective?
Effectiveness means your policies do what they’re supposed to do—clearly guide behaviour, reduce risk, and create consistency across your business.
If you don’t know what rules you have, how will it be possible to measure the successfulness?
Take Costco. Love them or loathe them, their policies are effective. Why?
- They align with operational goals.
- They’re clearly communicated and routinely enforced.
- They build trust with their customers.
Their procedures support those policies too, clear expectations, consistent training and routine reinforcement.
Now, bringing it back to your business. Are your policies effective, or:
- Do you know what’s in them?
- Were they written in your language and voice?
- Do your team know they exist, let alone follow them?
Where it’s a case of copy, cut and paste from a legal template, chances are they’re more performative than functional.
Want to Set Standards You Can Stand Behind?
If this article struck a chord, you’re not alone. Many SME founders realise (often a little too late) that their internal rules don’t reflect their actual business.
Don’t let that be you.
Join the mailing list to get a downloadable copy of the Three Es Checklist and start taking back control of your internal standards. This isn’t about perfection, it’s about care, integrity and clarity.
Ethical standards aren't only for show. They should echo through every corner of your business, from hiring to client care. This is how you build trust.
2. Are They Enforceable?
Policies are supposed to protect your business and your people. They only work if they’re enforceable.
If you don’t understand your own rules, how do you expect anyone else to?
Policies become unenforceable when:
- They’re too vague to apply in practice.
- You’re not trained or confident enough to stand by them.
- They rely on legal jargon that confuses more than clarifies.
- They conflict with the law or regulatory guidance.
Tunnel vision around “protecting the business at all costs” can tempt founders to overstep, making changes in HR or legal areas without the right support. That’s not brave, it’s risky. Enforceable doesn’t mean aggressive. It means clear, consistent and within your remit.
When there’s uncertainty about whether a policy is enforceable, it’s time to pause, not push through.
Example: An Online small business
A UK online business selling hats has a refund policy that states any customer unhappy with the product to complete a form and return it within seven days of the item being dispatched by a trackable postal service. All refunds are minus the cost of shipping.
Firstly, for an online sale, the shopper has double the time to return. The time starts from when they receive the goods. The shopper doesn’t need to apply to return goods and they only need to obtain proof of posting.
If the shopper decides to make a complaint to trading standards, that’s an unnecessary headache and time away from the business trying to mend avoidable damage to a growing business.
3. Are They Ethical?
Here’s where the bar needs raising.
Being “legally compliant” is the bare minimum. The law has to cover a lot of ground—it’s generic by design. Ethical means you’ve thought through what’s fair, honest and values-aligned for your business specifically.
If you don’t share openly, can you see how a good deed may be taken as underhanded?
Example: The Restaurant Owner
They declare they care about the community and their team. But then:
- A sneaky 15% service charge is added on top of a pricey meal.
- They say it’s for the staff, but the staff don’t get it directly.
- They collect for a local charity without first asking the customers.
That’s charity by proxy or “ethics” by marketing, not by behaviour.
Ethical policies show up in everyday decisions. They build trust quietly. They say: We’ve thought this through, and we’re inviting you to share in our standards, no surprises.
Why This Matters
Your beliefs and values are valid. But if they’re not written down and shared, how can others decide whether they want to stand alongside you?
Effective, Enforceable and Ethical policies aren’t about being perfect. They’re about being intentional. That’s what builds a strong internal community—where everyone understands the rules, respects them, and feels protected by them. This is not a pick ‘n’ mix; if you’re not achieving flying colours, it’s time for action.
Did you wonder where procedures fit into all of this? Procedures are the guidance, the how to carry out those rules. You can see how much is missed if the only focus is on the standard operating procedures (SOPs). Without taking the time to ensure your team is best prepared, your policies are not really enforceable; that would be wishful thinking.
HouseRules Reality Check for SME Business Founders
Time to take that pause here and ask yourself honestly…
Will Your Policies Pass the Three Es?
Here’s a simple checklist you can run through:
- Do I know what my current policies actually say?
- Were they created with my business and team in mind?
- Can I clearly explain them to someone else?
- Do they help me lead better, not just tick legal boxes?
- Would I be proud to share them with new team members or clients?
- Do they reflect my values, not just what’s “safe”?
Is it Time to Rewrite Your Rules?
If you hesitated on any of these, it’s a signal, it’s time to Hover. You’re not expected to have it all figured out. But you are expected to lead with integrity.
Think of the three Es like the wings, body and compass of your business ecosystem:
- Effective policies move your business forward
- Enforceable policies hold the structure together
- Ethical policies guide your direction
The lure of short-term financial gain should never outweigh doing what’s right. That’s not leadership, it’s self-preservation disguised as strategy.
It’s time to get your business humming with HouseRules. Stop the firefighting and start leading with clarity.
Book a Sip & Chat if you’re uncertain of the best place to start; otherwise, let’s get to work.