Compliance metrics, and how to measure compliance effectiveness, are a nearly universal pain point for CECOs and their teams.
E&C teams are increasingly expected to report to the C-suite and Board of Directors with data and analytics—but often don’t have the same reporting solutions and robust tech stack as their colleagues in marketing and sales.
So how do you measure the effectiveness of your compliance program, prove the value and impact of your role, and use data to make more informed decisions? We’ve gathered a whole library of resources on the topic. Keep reading for the top takeaways and links to more information.
How do I measure compliance metrics?
First things first: How do you gather the data that you need to analyze the effectiveness of your compliance program? There are many potential sources of helpful data—your helpline, culture surveys, risk assessments, and disclosures to name a few. In our Insights tool, it’s possible to view much of that data in centralized dashboards—but no matter what process or solution you’re using, it’s important to track the numbers at regular intervals, and keep records over an extended period. Having a grasp on trends, and comparing where you are now versus where you started, is far more valuable than knowing where a number stands at a single point in time.
Which compliance metrics should I measure?
Tracking the number of reports coming through your helpline or the completion rate of a training program is just the beginning. We’ve published a list of the most valuable metrics to track in our Compliance Metrics Handbook, where you’ll also find recommendations on how to set key performance indicators and how you should present metrics to your board.
The experts from Microsoft and TreeHive Strategy shared which compliance metrics they track and how compliance metrics fit into their overall business strategy in our webinar on reporting and insights.
How can I tell if my compliance program is effective?
Gauging the effectiveness of your compliance program starts by tracking trends and progress over time, as we mentioned above. Diving a little deeper into some key metrics can give you more insight; we explain those key metrics in The Data Age ebook.
Another helpful way to make sense of your metrics is to compare them to industry standards and benchmarks. There are a few resources where you can find that information, as we learned in a CONVERGE presentation by Cheryl Forino Wahl, SVP / Chief E&C Officer of MetroHealth Systems.
Once I have the data, what do I do with it?
Ideally, when you have a handle on the data, you’ll use it to make your program more effective. Companies like Microsoft are using data science to reduce corruption risk and manage their entire compliance programs. Two of their legal experts explain how in the webinar Using Data Science to Create an Early Warning System for Compliance Risk.
How can I report out my compliance metrics in a compelling way?
When it comes time to share your progress with the board, you’ll lose them fast if you simply present the numbers. Use our sample board reporting template and prep for the questions your board will likely ask with the board reporting ebook we published with Ethisphere.
We also discussed the most critical data to share with your board and how to present it in this webinar with StoneTurn, The Board’s Perspective: What Can’t Be Measured, Can’t Be Managed.
How can I collect data from multiple sources and analyze it in one place?
Our friends in marketing and sales have the benefit of endless software options that collect, clean up, and analyze data, then present it in easy-to-use dashboards. The ethics and compliance space is now catching up—check out our Insights tool to see what a centralized E&C dashboard can look like.