ט'/אייר/תשע"ה. Observation 1: Compliance programs today are expected to deliver fundamentally different outcomes than in the past

Transcription

1 Strengthening Your Program with Tone from the Middle Rachel Batykefer Kirsten Liston 1 Observation 1: Compliance programs today are expected to deliver fundamentally different outcomes than in the past 2 Percentage 3 1

2 To have an effective compliance and ethics program [ ] organizations shall [ ] promote an organizational culture that encourages ethical conduct and a commitment to compliance. Federal Sentencing Guidelines Manual 8B2.1(a)(2) 4 4 Observation 2: Changing the culture requires a different approach and toolset than Tone from the Top + training. 5 Culture eats strategy for breakfast Mark Fields, President Ford North & South American Auto Operations Wall Street Journal, 23 January

3 40% 50% 5% 10% 65% 7 Change is hard

4 Observation 3: If you re not setting Tone from the Middle, someone else is. 10 What Does the Middle Mean? The Middle The Top CEO and Senior Operating Execs Managers w/ 1 direct report OR Project Team managers despite reporting chain The Base Individual Contributors Why Does the Middle Matter? Most corporate leaders favor formal, rational moves and neglect the informal, more emotional side of the organization. They adjust reporting lines, decision rights, processes, and IT systems but overlook informal mechanisms such as networking, communities of interest, ad hoc conversations, and peer interactions. -- Cultural Change that Sticks July/August

5 Formal Reporting structures Decision rights Business processes and policies Training, leadership, and organizational development programs Performance management Compensation and rewards Internal communication Councils and committees Company events Informal Behavior modeling by senior leaders Meaningful manager/employee connections Internal, cross organizational networks Ad hoc gatherings Peer to peer interactions and storytelling Communities of interest Engagement of motivational leaders Changes to physical space What s the Middle saying today? managers are responsible for a worrisome share of workplace misconduct, and senior leaders are more likely than lower-level managers to break rules. In sum, the very people that are supposed to act as role models or enforce discipline are often guilty of bad behavior a troubling insight that ethics and compliance programs should account for National Business Ethics Survey (Ethics Resource Center) What s the impact?

6 Observation 4: Compliance programs must reach a certain level of maturity before they re ready for Tone from the Middle activities 16 What is needed to design, implement and manage an effective program? Strong Tone at the Top Supporting Tone at the Middle Proper Planning and Strategy Include completion goals on top executive scorecards Engage in ongoing conversations with leaders about the program Ensure consistent communications from leadership to all employees Discussion-based program that can be included in pre-standing meetings Managers can have the power to select scenarios applicable to their employees Equip managers with all necessary materials Understand and address cultural roadblocks Needs assessment Enterprise risk assessments Audit, investigation, and compliance hotline findings 17 What is needed to design, implement and manage an effective program? Training All Aspects of Your Program Centralized Reporting Global Network of Support Code of Conduct Anti-corruption, including third parties Interactions with government officials, members of the healthcare community and commercial customers Dashboards by region/area of responsibility Program completion monitoring HR, Legal, and Compliance champions Business stakeholders 18 6

7 How mature is your program? Do you.? Collect continuous feedback and implement program improvements? Polling/pulse employee surveys Focus groups Ensure total population receives relevant training through audience identification? Online employees Offline employees Develop supporting materials/programs for all? Living FAQs Quick reference guides Compliance help desk Launch employee engagement efforts? Contests Mobile App Marketing materials/articles Roadshows/live trainings Communication campaigns 19 Observation 5: Just start. Really..just start. (You can build as you go.) 20 Goals and Elements to Keep in Mind The Goal: Empower managers to have ethics and compliance based discussions with their employees. The program must be: Convenient. It should not be a burden to managers and should not be a lecture to employees. Engaging. Topics must be engaging so employees participate. Simple. The more complex the program the more difficult to gain buy in. Ongoing. Discussions should be ongoing, not a one time event. Brief. Sessions should be able to be completed in 10 minutes but be dynamic enough to allow for longer discussions. 21 7

8 Material Development Focus on the gray areas of compliance. This is where employees have the most questions. To minimize costs, develop in house and ensure they are discussion based. Materials we developed include: Employee Presentation Case Study Discussion Starters Lessons Learned Where to Report Concerns Detailed Facilitators Guide FAQs Translate into core languages. Delivery options can include intranet, secure internet site, unsecured internet site or company LMS. Post a demonstration video for managers new to the process. Create new materials on a regular basis. 22 Program Rollout Pilot Launch with pilot Post Pilot Conduct feedback survey Launch Launch in phases Ask businesses to select target audience. Ensure program is appropriate for all levels of management to use. Focus initial rollout on a subset of management. Ask managers to include the program as a ten minute agenda item during a planned meeting with their team each quarter. (It should not be a special 'compliance meeting.') Branding Global Compliance our values, our strength 23 Observation 6: There are some common obstacles to setting Tone from the Middle and some practical solutions. 24 8

9 Middle managers are great at hearing what you mean.not what you say. 25 The further you want a message to go, the simpler you need to make it 26 The key to success is to make it as easy as possible. (Remember what you re competing with.) 27 9

10 Observation 7: A strong middle can extend the reach of your compliance program. 28 Organizations seeking to minimize risks should expect and train managers to have a heightened degree of ethical awareness, so that they can be sentinels in spotting C&E risks. --Jeffrey Kaplan Corporate Compliance Insights, January Observations: 1.Compliance programs today are expected to deliver fundamentally different outcomes than in the past 2.Changing the culture requires a different approach and toolset than Tone from the Top + training. 3.If you re not setting Tone from the Middle, someone else is. 4.Compliance programs must reach a certain level of maturity before they re ready for Tone from the Middle activities 5.Just start. Really.just start. 6.There are some common obstacles to setting Tone from the Middle and some practical solutions. 7.A strong middle can extend the reach of your compliance program

11 A better ethical leader is a better leader. (A strong middle makes a stronger organization.) 31 11