Promote a culture of employee involvement and get real bottom-line results
Having a good compliance system in place means operational management becomes a daily function. Your staff will monitor business efficiencies and react as a matter of course to opportunities and threats, and keep executive management continually aware.
Previous posts in this series have covered the first four key criteria of director compliance performance:
- Save costs & eliminate sources of waste
- Anticipate and take advantage of new opportunities
- Proactive risk management to avoid traps
- Improved accountability and visibility
Today we'll look at two more, both related to management. At the end of the day, the board relies on management for the effectiveness of compliance. Therefore, the board must look at the effectiveness of management as part of their compliance system. Policies and HR departments only provide a framework, which will live or die at the hands of operational management.
5. Promoting a culture of employee involvement
The links between employee satisfaction and productivity are so well documented that we don't need to go into details here. (If you really want the details, see this 2003 study by the Corporate Executive Board.) It's worth pointing out that most people rate job satisfaction far higher than remuneration. And when it comes to job dissatisfaction, the biggest factor by far is lack of communication and involvement. These days, electronic communication is a low-cost initiative and can bear a tenfold ROI. In this age of Facebook and Gen-Y, it is also a critical business issue. At the very least, start a Facebook staff page and encourage staff input with management responding in realtime. Fast Track can assist with:
- Connectivity and linking to your company portal from GRC activities (this engenders an understanding of why, not just what)
- Automatic notification and feedback to minimize “mushroom syndrome”
- Allowing you to create links to “interested parties” and keep them aware
- A lessons-learned function that elicits employee contributions and standing amongst their peers
6. Achieve strategic advantage and real bottom-line results
Most operational management spend most of their time “fire-fighting” which is neither productive nor income producing. Assuming you have followed our previous posts and now have a good compliance system in place, it is now time to start re-focusing both executive and operational management on the true goal: business growth.
The first step is to eliminate pointless administration overhead. You do it by automating task management. Secondly, involve operational management in the final review of strategic plans. This buys input and shared commitment. You can then focus everyone, through their KPIs, in a joint focused target.
Having a good compliance system in place means operational management becomes a daily function. Your staff will monitor business efficiencies and react as a matter of course to opportunities and threats, and keep executive management continually aware. Fast Track lifts the yoke from management’s back by:
- Automating workflows, collaboration and notification. That frees senior management to build the business, not just administer.
- Linking strategic plans to objectives, then monitoring initiatives and measuring outcomes to KPIs. This turns ideas into real results.
- Eliminating duplication of activities. This saves money and time, which goes straight to the bottom line.
- Putting visibilities and accountability at senior management’s fingertips. This reduces/eliminates time-consuming “update” meetings and periodic management report writing.
- Using dashboards and traffic lighting to give real-time performance feedback to staff as well as management.
Good compliance systems can do one more thing for your organisation: build shareholder value. You'll find out how in the next post in this series.Related items