Compliance: A dirty word, you’ll learn to love.
When we mention the word compliance to most business owners, you can see a slight cringe in their facial expressions. So why does the concept of compliance have such a negative impact on business owners?
The answer is simple. Regulators have had a tendency to drive compliance, usually as a result of some legislative instrument. So, what is the understood definition of compliance in business?
The verb comply means to conform to a rule, which explains much of the concept of the word. The meaning of the word compliance is related to the conduct of a company and its legal and regulatory obligations. There lays the problem.
Not all compliance relates to obligations under law. If your business has policies and procedures, then you expect your staff to comply with them. Some of your procedures and policies may have nothing to do with regulatory compliance, but instead focus on the way in which you expect your employees and executives to behave towards each other or your clients. For example, policies regarding refunds may have some basis under consumer law, however, you may choose to consider your reputational standing and be more generous to your clients.
ISO 9001 is a quality management compliance system that relates to the way in which you run your business or certain aspects of your business. It also relates to customer engagement. Businesses see a compliance system as rigid and a resource drain on both time and people. By the way, you do not need to be formally accredited to have a business that operates at a high level.
Let’s throw a twist to this concept; many businesses want a positive culture within their organisation and as such want their management and all employees to have a positive behavioural approach to their work and workplace. We see culture as a state of mind and some nebulous thing that cannot be described in any detail but will provide a better and more productive workplace.
Let’s be direct; if you wish to change or enforce a culture within a workplace you must entrench your policies and procedures, it is that simple. Once your employees understand what is expected and there is no dilution in that expectation, they will behave in that manner. They will think and sprout the words, “that is the way we do it here”. Think about it, everyone moving in one direction, new employees can be inducted quicker and more effectively, issues are identified quickly and resolved as everyone understands how to deal with matters that may arise. Of course, your policies and procedures must be well written, up to date, applied within your business (not just sitting on a shelf gathering dust), and more importantly, must be understood and adhered to by all of your employees and supported by management. Induction of new employees is the perfect time to enforce your policies, procedures and communicate your expectations.
There is no legislation or regulation that require you to legally have an efficient business; the law only requires you to have a legally complaint business. Good culture requires you to have policies and procedures entrenched in your business that reflect the outcomes and tolerances you desire. If you have policies in your organisation, then you must have some form of compliance system.
‘Compliance’ is not a dirty word, It is a misunderstood word. When you look at your workplace, could things be done better and can your staff be more productive? Then think about changing the culture. Maybe re-align and review your policies and procedures. The upshot? You could be more effectively legally compliant as well.
Talk to us at CIP about how you can better engage with your staff and clients and have a more productive business.