Predictive analytics – you know it’s important. You know you should be doing it. Yet many executives are grappling with how to use data in such a way that fits their organization’s unique needs both internally with their compliance teams and externally company-wide.
CECOs are slowly being invited to the strategy table to provide guidance up front, especially if they provide actionable insight in situations that may otherwise go unnoticed. Not involving CECOs in the decision-making process can expose a company to risks that could drastically harm the company in a variety of ways, from a damaged reputation to bottom-line impacts.
To strengthen a CECOs argument, compliance officers can present company data and determine how to ethically use it. While companies strive to do this on their own, they may be too close to the situation to see it from all angles. Especially, when it comes to trying to become predictive across the organization. That is why it is important for organizations to routinely measure their compliance program effectiveness to ensure compliance initiatives are met.
How Can Companies Collect Compliance Data to Reinforce Policy Decisions? [Summary]
- Identify which compliance datapoints are important to collect
- Determine methods to collect compliance data based on important metrics
- Compile data and create a metrics filled board report for easy consumption
- Identify compliance KPIs and set goals
- Schedule consistent and regular follow-ups and adjust policies as needed
How can CECOs effectively collect data to support company-wide decision?
The starting point of compliance reporting is identifying what metrics are important. From there, companies can determine the best way to actually collect that data.
In Convercent’s Compliance Metrics Handbook, we dive deep into recommended metrics. Some metrics are quite obvious, like the number of code of conduct violations or compliance training program completion rates. But others are less obvious, like leadership reputation or department-specific reporting rates.
Once you understand what data is important to collect, the next step is to actually gather that data. The Compliance Metrics Handbook provides ideas on where to draw datapoints. A few common internal reporting systems include employee surveys, “whistleblower” hotlines, and exit interviews.
Ethically using data across the organization is a top trend and must for businesses looking to improve strategy and use data to drive decisions.
For example, say you work in at a big retail corporation. The marketing team sends out a customer survey to a segmented list of customers to determine shopping patterns in the top 100 highest-active accounts over a five-year period. The data comes back with information on individual purchase history.
The marketing team then sees that a handful of these accounts show a purchasing trend of larger sized clothing over the last few quarters. The marketing team then wants to slice that data in such a way to target those individual customers with weight-loss messaging or the new fitness line as a “hint.” Their strategy here is that if you are more confident in your body, you will want to spend more money on more clothes, which means better business.
Since there is a compliance voice at that table, you can put the brakes on that “strategy” fast, thankfully, stating that it is not the company’s business to tell your customers to lose weight or assume this based-off interpretation of data in this way.
It’s examples like this that companies struggle with. They have dynamic data and they want to use it in all sorts of new and interesting ways, but the ethical implications of doing so remain elusive and contextual.
I know I should, but I don’t know how to use all this data…
Every CECO knows that data is important, but too often companies get caught up in collecting data and fail to analyze and execute based on that data. There are a lot of different data inputs you can draw on from your hotline to culture surveys and risk assessments, but you may not know how to actually use that data and then what to do with it.
How do you pull it all together so you can answer the “So what?” question so you can advise your board and executive teams within your company on the true state of the culture of the company?
This resource guide will help you define that and truly understand what to do with all the data and how to use it to measure effectiveness.
In our new guide, the Compliance Metrics Handbook, you will learn what data to collect, why compliance insights matter, and how those swaths of data can be analyzed and used to strengthen and measure effectiveness of your compliance program.
Chock-full of helpful tips and templates, this new guide helps you collate, clean and present your data in a commonsense format to allow you to really measure your compliance program’s effectiveness. In some instances, you may find you have to collect new data through a variety of avenues depending on what gaps may exist and what resources you have available to you.
This handbook includes:
- A complete list of recommended metrics that you need to gather to start measuring your program
- Dialogue around why compliance insights matter
- Tactics and strategies on how to measure effectiveness
- What to measure and why
- How to build a metrics-driven board report
- How to set compliance key performance indicators (KPIs)
- Templates, charts and much more
With insight from Convercent Advisory Board Members, this handbook will help you set a foundation for your compliance program using expert insight and best practices from experienced practitioners spanning industries.
Don’t get overwhelmed. Take it one step at a time. The handbook has been specifically designed to be skimmed and the best method to get started in the process is dive into the data that exists today. Let’s get started!