By Bob Conlin …
Does your organization invest in compliance, or just pay for it? This is not a rhetorical question. There’s a big difference between merely covering the expense of a program and investing in it. Investment decisions are strategic. They are based on a business case and cost/benefit analysis. Expense decisions are more tactical, and are often associated with things an organization must do to keep running – like meet a regulatory requirement so they can check the box.
TOO OFTEN, AN ORGANIZATION’S LEADERSHIP WILL TALK ABOUT COMPLIANCE AS IF IT WERE STRATEGIC, BUT TREAT IT LIKE A TACTICAL “MUST DO” WHEN IT COMES TO BUDGET AND IMPLEMENTATION.
If this sounds like your organization, read on for some suggestions on how to frame compliance as the strategic program it is.
Start with the knowledge that when you ask for a strategic investment, your CEO and board want to see the business case; what’s the return on the resources committed? Return can be measured in several ways, but all boil down to one of the following three areas:
- Reduce risk and protect reputation
- Improve efficiency and effectiveness
- Increase revenue
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