Keep it fresh

If a business keeps selling the exact same product or service for 10 years (think Blockbuster), chances are that a competitor with a fresh offering will displace it.

Support functions in a business (like HR, finance, and ethics & compliance) don’t have the same competition. So many of them to the exact same thing, over and over again. Same onboarding, same reports, same training – while the world is changing.

Eventually this creates a drag on the business, giving an edge to competitors with better support functions. If we don’t recognize where that edge comes from, we will simply ask the sales force to “sell harder”. That pressure is likely to lead to wrongdoing (remember the fraud triangle?), which must be addressed by – you guessed it: stale support functions. Talk about a vicious cycle.

Never lose sight that changes in the marketplace impact more than your products and services; they also impact vital support functions like ethics & compliance.

Keep it fresh.


HT to Seth Godin

Is an unethical situation at work keeping you hostage?

The rabbi who helped his congregants escape the hostage standoff in Texas a few days ago credited the security training he received for keeping everyone alive.

When we practice something in advance, we can think more clearly when facing the real situation. We can also act more quickly. This is why military personnel, firefighters, and other first responders use most of their spare time to practice over and over again.

In corporate ethics, we can do the same thing. We can practice, in advance, how to respond to ethical dilemmas. Perhaps the best training in this area comes from Mary Gentile with her book Giving Voice to Values. Gentile starts with the assumption that most of us know the difference between right and wrong. What we need, she says, is to practice, in advance, how we would respond if we were asked to lie, cheat or steal – or if we observed someone else doing these things. If properly trained, we are more likely to respond in a way that will keep us and the company safe when the real thing happens.

Don’t wait to be “held hostage” by an unethical situation at work before you learn how to escape it.

Starting fresh

When you get a new phone, you can set it up by copying everything from the old one. Or, you can set it up manually and “start fresh”. The first option is very convenient. The other forces you to consider whether you really need all these apps.

When you do your annual budget, you can tweak last year’s. Or, you can do a zero-base budget and “start fresh”. The first option is less painful. The other forces you to consider every upcoming expense.

When you create your 2022 E&C communication and training plan, you can use this year’s plan and (kinda) change the topics. Or, you can create one based on your latest risks and violations and “start fresh”. The first option offers less friction. The other sends the message to your employees that you (and them) are not engaging in a check-the-box exercise.

Who is your training designed for?

Imagine an old-fashioned weight scale.

Now imagine using it to measure who your compliance training is for.

On one side, you would place weights on behalf of your employees, measuring your desire to help them do their job compliantly.

On the other side, you would place weights measuring your desire to meet the enforcement authorities’ requirements, to track completions, to automate reminders, to please your board, etc.

Which way would the scale tip?

One-on-one

Just before the pandemic, a German flutist experimented with the idea of “one-to-one concerts.”

One artist. One audience member.

When the pandemic hit, it became immediately clear that these concerts could go on. Not only were the performances immune to COVID-19, they also fed that hunger for connection we all felt. There have now been concerts across Europe, Asia, Australia and the US.

An art reporter attended one of these performances in Brooklyn earlier this year. Sitting atop a building, he listened to a solo viola playing Bach and described it as “almost overwhelming, emotionally and musically.” He later said “It may have been only 10 minutes, but I’ll be thinking about my One-to-One Concert […] for a long time to come.” (I recommend you listen to the 3-minute audio report.)

This concept reminded me of my choice to introduce my company’s ethics & compliance program to each new employee during one-on-one meetings, rather than join other functions who batch new-employee training once every quarter. Let me rush into saying that I do not claim to be a virtuoso at what I do, or that new employees have an emotionally overwhelming experience listening me describe our corporate values! But I do believe that employees are more likely to reach out to me when they have ethical concerns later on if we have met one-on-one soon after they’ve joined. And I have been told, by several employees, sometime years after we first met, how impressed they were to have been invited to this one-on-one alone-time.

Most artists can’t survive on one-to-one concerts. Their need to perform in front of larger audiences is real.

The same need is not necessarily present in ethical leadership.

No decision ≠ No risk

Some employees do not have to make any decisions on the job.

Until they do.

The employee that simply needs to stock the shelves at the grocery store might one day notice that the receiving supervisor is taking small bribes from suppliers who want priority in getting their trucks unloaded. That employee with a “no-decision job” now has a decision to make.

Do you have such employees working for you? Do you share your company values with them? Do you provide ethical decision-making training to them? Do you tell them about your reporting channels?

Low-level, no-decision employees are often front-line employees. Which means they are close to the customers, to the suppliers, even to the competitors. These interactions can be risky.

Removing decision-making from employees can reduce some risks, but it can also create others.

What is compliance training for?

90% of your employees completed your online training.

80% of them thought the concepts were clear.

70% thought its length was just right.

60% understood the link to your corporate values.

50% said they learned something new.

40% agreed that it was related to their job.

30% would recommend it to a colleague.

20% thought it would help them be more compliant in the future.


Of the above, what metric do you track?

Of those, which ones do you share with your board?


If 90% of our employees do the training but only 20% think it is helpful, are we doing our job?

On ethics training

Providing training is like giving advice.

If it’s for a specific person, it’s likely to land. If it’s for a group, it’s likely to miss the mark for a few people.

That doesn’t mean we shouldn’t create training materials for large groups. When we do, we simply need to create a space for discussion between the trainer and the trainees.

What of online training? Well, it can be a two-step process. First, the employees complete the training, then they discuss as a group.

The first step shows you have provided the training. The second shows that you cared about the learning.

Effective training

You compliance training doesn’t have to be fun. It doesn’t have to be entertaining. Or popular.

It can be, but it doesn’t have to.

If you assume that your employees want to do the right thing, then what your training must do is help them do their job compliantly.

An animated video about the elements of antitrust violations can be entertaining, but the learnings will have faded 6 months later when your sales rep is about to attend a trade show. What she’ll really need at that moment is a boring job aid like a simple checklist of what she must do before, during and after the trade show (e.g. submit the agenda and the minutes to Legal, make a “noisy exit”, etc.).

Just-in-time training. Task-based training. That’s what most front-line employees need.

Think about the approach of safety professionals. Next to every doorway leading onto the shop floor, there is a sign asking employees to wear safety goggles and a bin containing such goggles. No one is simply relying on the safety video that was shown to the employees on their first day on the job.

So why don’t we do the same for legal risks? Why do we continue to rely on once-a-year videos and certifications?

It’s a big task, of course. But we can start small:

  1. Identify your biggest risk
  2. Identify where this risk poses the greatest threat (by geography or product line)
  3. Identify the group of employees closest to the risk (sales, finance, etc.)
  4. Identify the riskiest task performed by these employees
  5. Create a job aid or some other type of task-based training just for them

Then move back up the list and address the other tasks. Then the other groups. Then the other locations. Then select another risk and go back down the list.

It’ll take time but you will be making real progress.