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The following outline should help you build a persuasive business case for improving compliance to protect and ensure total value for your organization. Remember to adapt it to your specific context and provide data-driven evidence to support your claims. I. Executive Summary Briefly state the problem of inadequate compliance. Highlight the importance of total value (safety, security, sustainability, legal, quality, profit, trust). Briefly summarize the proposed solution and its expected benefits. II. Current State Assessment Identify specific compliance areas with weaknesses. Quantify the current cost of non-compliance (e.g., fines, reputational damage, lost productivity, inadequate safety, security, sustainability, quality, trust). Describe the current compliance processes and limitations. III. Opportunity: Total Value through Improved Compliance Define "total value" for your organization (safety, security, etc.). Explain how improved compliance will contribute to each aspect of total value. Use data or examples to illustrate the positive impact. IV. Proposed Solution: Improving Compliance Framework Describe the proposed solution (e.g., improved management programs, compliance software, standard adoption, accountability frameworks, data monitoring, digital twin, golden pipeline, golden thread, etc.). Explain how the solution addresses weaknesses identified in Section II. Outline the implementation timeline and resource requirements. V. Financial Analysis: Investment vs. Return Estimate the initial cost of implementing the solution. Project the long-term cost savings and revenue gains from improved compliance. Utilize a cost-benefit analysis or ROI (Return on Investment) calculation to quantify the return. VI. Risk Assessment and Mitigation Identify potential risks associated with implementing the solution. Develop mitigation strategies for each identified risk. VII. Conclusion and Recommendations Summarize the key points of the business case. Reiterate the value proposition of improved compliance for total value creation. Recommend approval of the proposed solution and next steps. VIII. Appendix Include detailed data, reports, or calculations supporting your claims. Additional Considerations: Tailor the outline to your specific industry, regulations, and compliance needs. Highlight success stories of companies that improved compliance and total value. Address potential concerns of stakeholders who may resist change. Quantify the impact whenever possible to present a compelling case. Tool Considerations: DSM (Dependency Structure Matrix) Business / Systems Mapping Bow-tie Analysis Total Value Chain Analysis (includes compliance chain) Monte Carlo Analysis Obligations / Promise Register Five Principles of Compliance Program Success A Simplified Example The details and tools used in this example will vary depending on your organization and the complexity of the compliance program. However, it demonstrates how to structure a business case that utilizes data analysis, uncertainty estimation, and a focus on total value creation to present a compelling argument for improved compliance. Business Case: Improving Data Security Compliance for Total Value Creation Executive Summary: Our current data security practices expose us to potential data breaches, regulatory fines, and reputational damage. This business case proposes implementing a comprehensive data security compliance program. This program will enhance data security, reduce compliance risks, and contribute to achieving total value for our organization, encompassing aspects like security, trust, legal compliance, and potential cost savings. Current State Assessment: Recent internal audits identified vulnerabilities in data access controls and employee training on data security protocols. We have experienced two minor data breaches in the past year, resulting in customer notification costs and reputational damage. Upcoming industry regulations will impose stricter data security requirements. The estimated cost of non-compliance includes: Potential regulatory fines: $1 million (based on industry benchmarks) Data breach notification and remediation costs: $500,000 per incident (historical average) Reputational damage: Difficult to quantify, but can lead to customer churn and lost revenue. Opportunity: Total Value through Improved Compliance Total value in this context includes: Security: Improved data security posture reduces the risk of breaches and protects sensitive customer data. Trust: Strong data security practices build trust with customers, partners, and investors. Legal Compliance: Meeting industry regulations avoids hefty fines and potential legal repercussions. Cost Savings: Reduced risk of data breaches minimizes notification and remediation costs. Proposed Solution: Data Security Compliance Program The program includes: Data Security Policy and Procedures: Develop a comprehensive policy outlining data handling protocols, access controls, and incident response procedures. Employee Training: Implement mandatory data security training programs to educate employees on best practices. Includes training for leadership and management on governance and risk processes. Technology Investments: Upgrade data security software and infrastructure to strengthen data encryption and access controls. Compliance Management Software: Utilize software to automate compliance tasks, track progress, and identify potential vulnerabilities. Financial Analysis: Investment vs. Return Initial Investment: Development and implementation of data security policy and procedures: $200,000 Employee training: $100,000 Technology upgrades: $500,000 Compliance management software: $100,000 Total Initial Investment: $900,000 Projected Returns: Avoided regulatory fines: $500,000 (annualized) Reduced data breach costs: $750,000 per year (based on risk mitigation estimates) Estimated value in increased stakeholder trust: $1 million (annualized) Return on Investment (ROI): Using a simple ROI calculation, the projected payback period is less than one year. However, a more comprehensive analysis using Monte Carlo simulation will be conducted to account for uncertainties in cost-saving estimates. Risk Assessment and Mitigation: Risk: Difficulty in changing employee behavior regarding data security practices. Mitigation: Develop a communication and change management plan to emphasize the importance of data security and the benefits of the program. Risk: Unexpected costs associated with technology upgrades. Mitigation: Conduct thorough vendor research and obtain multiple quotes before finalizing technology purchases. Conclusion and Recommendations: Investing in a comprehensive data security compliance program offers a significant return on investment. It enhances data security, strengthens customer trust, ensures compliance with regulations, and potentially reduces costs associated with data breaches. Based on the positive financial outlook and risk mitigation strategies, we strongly recommend approval of this program. Appendix: Detailed cost breakdown for program implementation. Historical data on data breach incidents and associated costs. Detailed benefits analysis including gains to total value. Monte Carlo simulation results for ROI analysis with uncertainty ranges.

Compliance is often seen as a necessary evil – a set of rules and regulations that stifle innovation and bog down operations. But what if, instead, it was a necessary good – a program to ensure and protect value creation – Compliance with Benefits. Uncover the Benefits By elevating compliance, you're not just following the law; you're establishing effective measures to deliver on all your obligations and commitments made. Effective Safety and Security: Compliance with safety regulations and stakeholder commitments protects your employees and reduces the risk of accidents and injuries. Strong data security practices, embedded in the value chain safeguard sensitive information and ensure privacy rights are protected. Sustainability at the Core: Environmental regulations guide responsible resource management and waste reduction. Embracing these practices not only demonstrates environmental commitment but also fosters cost savings and brand reputation. Unwavering Quality: Commitment to deliver customer satisfaction ensures consistent product and service quality. This builds customer trust and loyalty, leading to a competitive edge. Integrity Above All: Following ethical business practices, as mandated by compliance regulations and expected by all your stakeholders fosters a culture of honesty and transparency. This builds stakeholder trust, which is critical for long-term mission success. The 5 Pillars of a Benefits-Driven Compliance Program To fully reap the benefits of compliance, these five core principles are essential: Ownership: Take full responsibility for understanding and meeting all your obligations. Empower your organization to be accountable for compliance within their roles. Promises Made, Commitments Delivered: When designing compliance programs, keep the outcomes in mind. Ensure you have the capabilities you need to deliver on all your promises associated with both external and internal obligations. Real-Time Monitoring: Proactive monitoring and risk measures help identify and contend with potential issues before they escalate. Regularly review processes, evaluate control effectiveness, and assess your overall capacity to meet obligations. Continuous Compliance: Continuous delivery of value requires continuous compliance to protect and ensure value is created. Actively seek ways to improve your practices, stay updated on changing regulations, and adapt effectively to deliver better outcomes. Learning and Proactive Culture: Foster open communication and encourage your organization to learn from compliance challenges. Invest in training and empower open dialog and partnerships with all your stakeholders. Building Compliance as Competitive Advantage By embracing these principles, you cultivate a proactive, learning environment around compliance. This translates to a safer, more secure, and sustainable organization. It fosters trust with stakeholders, enhances your reputation, and ultimately propels your business towards long-term success. Remember, compliance isn't a roadblock; it's a program that helps deliver benefits – the outcomes from always being in compliance and ahead of risk.

A critique is going around that process management needs to be more holistic. I couldn’t agree more. Unfortunately, for many this means adopting a process-centric view of the organization. The rationale is since organizations are made up of processes the key to success is to identify, catalogue, manage, and improve all our processes. This approach takes everything that is essential and reduces it to a process – a part of the whole but not the whole itself. To accomplish this many things need to be conflated in order to fit into a process-centric view of the world. Ironically, this ends up being more reductive and far from the holistic approach that many are looking for. This obsession with processes creates a problem that many struggle to overcome which is a lack of effectiveness. Many organizations have all the processes they believe they need yet still fail to deliver the goods. They have plenty of trees but not enough forest. How this impacts compliance The process-centric approach pervades compliance, particularly management systems. Even with using a robust framework designed with strong architectural principles you can still fail to achieve the purpose for having compliance in the first place. In fact, all too often when I review an organization’s compliance what I find is scaffolding, and partial framing that are insufficient to create something that is operational. They have many of the parts, many of the processes, but lack the essential capabilities needed to achieve compliance operability – compliance that is fit for purpose, able to achieve compliance, and capable of realizing the intended benefits. To make matters worse, if asked when they might start delivering benefits the answer is always: we don't reach effectiveness until step 5 of our maturity process, but don’t worry we will get there in the end. Unfortunately, many never do, and those that do arrive too late. Need for something that works Many organizations would be better off with compliance that is working – that is operational –even if the capability was that of a scooter, rather than having a garage full of car parts that maybe – one day – will finally become a car that works. Without an operational perspective you can never fully know how to improve a process or even what processes you actually need until you understand its purpose and how it fits into the overall system. For compliance, establishing processes and building frames may help you pass an audit. However, it will only be when they work together to form an operational system that you will finally start to realize benefits. Instead of being busy building frames and processes, compliance needs to be busy experiencing the benefits that come from being in compliance. This is necessary for all organizations that intend to deliver total value.

Elevating Compliance to Higher Standards We are Operational Compliance Experts , and we help you deliver Total Value. ​ Compliance matters because value needs to be protected and ensured. There are several approaches you can take ranging from: Procedural Compliance – driven by audits and inspections; reinforced by reactive behaviours and reductive practices, and Operational Compliance – driven by outcomes and targets; reinforced by proactive behaviours and integrative practices. We are the only ones who specialize in Operational Compliance. ​ We elevate compliance everywhere to ensure Total Value is created and protected. ​ Let us show you how we do that. LEAN COMPLIANCE How We Help Deliver Total Value Why Lean Compliance A Case for Lean Compliance Our Approach to Compliance Lean TCM™ Professional Development Total Value Advantage Champion The Value of Compliance The Total Value Advantage™ How We Transform Compliance The Proactive Certainty Program™ Our Community of Practice The Elevate Compliance Community HOW ARE WE DIFFERENT? We work with forward-looking, ethical organizations who take their obligations seriously, and strive to continually raise their standards. ​ Our mission is helping them protect and ensure Total Value (not just profit alone). ​ We help organizations realize compliance benefits that accrue and compound over time. ​ We specialize in Operational Compliance; compliance that works and delivers value. ​ Our focus is on the compliance chain; the golden thread of assurance that runs through the organization and every program (safety, security, sustainability, quality, ethics, regulatory, etc.) ​ We engage at the program level; the bridge between outcomes and outputs where effectiveness begins and where it needs to succeed. ​ We introduce proactive and integrative strategies to elevate compliance above reactive-cycles that hold them back from reaching higher standards. ​ We help reduce waste introduced by not meeting all your obligations or keeping your promises. ​ We help compliance be more than the sum of its parts. ARE YOU READY TO TRANSFORM YOUR COMPLIANCE? Take the First Step to Total Value OTHER SERVICES PROGRAM EVALUATION Evaluation services and expert advice to help you know where, what, and how to improve your compliance. PROGRAM DESIGN Services to design and develop operational and effective compliance programs tailored to your obligations and risk profile. PROGRAM SUPPORT Support and training services to help you implement, update, and operate your compliance program. PROGRAM KAIZENS Rapid improvement engagements to increase your probability of compliance success. COMMUNITY OF PRACTICE Mondays @ Noon on Zoom (weekly) Elevate Compliance Huddle / Free Online Se ssion Register Thu, May 30 Elevate Compliance Using ISO 37301 / Free Online Webinar Register May 30, 2024, 12:00 p.m. – 1:30 p.m. EDT Free Online Webinar In this webinar, we help you understand what ISO 37301 is all about, how it works, and how to use it to elevate your compliance. Thu, Jun 27 Elevate Compliance by Operationalizing Obligations / Free Online Webinar Register Jun 27, 2024, 12:00 p.m. – 1:30 p.m. EDT Free Online Webinar A Guide to using Hoshin Kanri to Operationalize Performance and Outcome-based Obligations across and throughout your organization. RECENT BLOG POSTS View All Blogs Compliance with Benefits Compliance is often seen as a necessary evil – a set of rules and regulations that stifle innovation and bog down operations. But what... 9 Our Obsession with Processes – Too busy building, not enough living. A critique is going around that process management needs to be more holistic. I couldn’t agree more. Unfortunately, for many this means... 17 Complianceland - Compliance Without Sufficient Dimensions Compliance 1 life in a Compliance 2 world Edwin A. Abbott published a book in 1883 called, “Flatland" where he explores a two-... 34 OPERATIONAL COMPLIANCE - THE BOOK Learn more about our upcoming book coming soon. Operational Compliance Book

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