Longitudinal Insights from the NAVEX Global Benchmark Reports€¦ · 4 © 2016 NAVEX Global, Inc....
Transcript of Longitudinal Insights from the NAVEX Global Benchmark Reports€¦ · 4 © 2016 NAVEX Global, Inc....
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© 2016 NAVEX Global, Inc. All Rights Reserved.
Longitudinal Insights from the NAVEX
Global Benchmark Reports
Longitudinal Insights from the NAVEX
Global Benchmark ReportsSeptember 27, 2016
© 2016 NAVEX Global, Inc. All Rights Reserved.
Today’s AgendaToday’s AgendaBrief Overview of NAVEX Global
Benchmark Reports 2015/2016
Common Themes
� Culture and Cynicism
� Organizational Structure
� Resources/Budgets
� Adaptability to Change
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NAVEX Global Annual Benchmark ReportsNAVEX Global Annual Benchmark Reports
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Culture & CynicismCulture & Cynicism
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Culture Trumps EverythingCulture Trumps Everything
Creating and reinforcing a culture of
ethics and compliance is a core element
of a robust E&C program.
However, across the reports,
we see a lot of evidence that
organizations are still struggling
with making sure programs are
impacting culture to the degree needed
to ensure success.
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Top Training Program Objective: Culture ChangeTop Training Program Objective: Culture Change
Source: NAVEX Global's 2016 Ethics & Compliance Training Benchmark Report
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Cynicism Is:Cynicism Is:
“An expression of the uncertainty that comes from working in an environment
where ethics are lax, employees don’t feel valued, and information is withheld.
When it thrives in an organization, it signals a lack of employee trust—a problem
that’s gotten significantly worse over the last generation.”
Rich Karlgaard,
Publisher of Forbes (http://www.wphealthcarenews.com/is-employee-cynicism-killing-your-culture/)
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Cynicism About Culture Change Efforts
Top Training Program Concern
Cynicism About Culture Change Efforts
Top Training Program Concern
Source: NAVEX Global's 2015 Ethics & Compliance Training Benchmark Report
© 2016 NAVEX Global, Inc. All Rights Reserved.
The Trust StoryThe Trust Story
• In general, trust in businesses (over other institutions) is on the rise.
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Trust varies by country – U.S. Around the Average Trust varies by country – U.S. Around the Average
Source: Edelman Trust Barometer 2016
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CEO Trust Increasing and Peers Most ImportantCEO Trust Increasing and Peers Most Important
Source: Edelman Trust Barometer 2016
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K E Y F I N D I N G S
Delayed Case Closure Time Can Lead to
Cynicism
Delayed Case Closure Time Can Lead to
Cynicism
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Another Significant Case Closure Time IncreaseAnother Significant Case Closure Time Increase
Source: NAVEX Global's 2016 Ethics and Compliance Hotline Benchmark Report
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Case Closure Time Increases in Three of the Five
Allegation Categories
Case Closure Time Increases in Three of the Five
Allegation Categories
Median Case Closure Days in 2014 = 39 days
Median Case Closure Days in 2015 = 46 days
Source: NAVEX Global's 2016 Ethics and Compliance Hotline Benchmark Report
© 2016 NAVEX Global, Inc. All Rights Reserved.
K E Y F I N D I N G S
Reports of RetaliationReports of Retaliation
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Organizations Still Not Getting the Chance to
Address Retaliation Allegations Internally
Organizations Still Not Getting the Chance to
Address Retaliation Allegations Internally
Source: NAVEX Global's 2016 Ethics and Compliance Hotline Benchmark Report
© 2016 NAVEX Global, Inc. All Rights Reserved.
Retaliation Substantiation Rates Remain ElevatedRetaliation Substantiation Rates Remain Elevated
Source: NAVEX Global's 2016 Ethics and Compliance Hotline Benchmark Report
© 2016 NAVEX Global, Inc. All Rights Reserved.
Management & Culture
• Do you know what the trust issues are in
your organization?
• Who are the most trusted people in
your organization?
• Do leaders keep their promises and live
the values?
• Do you have a transparent culture?
• Do organizational messages match behaviors
(do as we say)?
• Are managers and employees able to identify
and control behaviors that bread cynicism?
Employee Beliefs/Actions
• Can employees speak up without censure?
• Are employees allowed to help lead,
advocate, and influence?
• Are employees treated – and do they treat
each other – with respect?
• Do your training programs feel like a check-
the-box experience?
Combatting Cynicism In Your OrganizationCombatting Cynicism In Your Organization
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Insights from Benchmark Reports on
Boosting Culture
Insights from Benchmark Reports on
Boosting CultureIf you provide suboptimal information and guidance, employees
get the implicit message that this stuff doesn’t really matter.
• Address fear of retaliation head-on through training and
awareness campaigns
• Employees typically want to report issues internally first: make sure your reporting systems
(and middle managers) encourage reporting
• Increase quality of training and policies; ensure employees understand how these are
fundamental to the success of your organization
• Get properly funded: a “bare minimum” approach breeds employee cynicism about
culture and values
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Organizational StructureOrganizational Structure
Fragmentation, Silos and Lack of Process Champions
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Coordination between HR and E&C is
often strained by:
� Duplication of efforts
� Inefficiencies
� Fear that confidential employee
information will not remain
confidential
� Turf battles
Everyone Wins When HR & Compliance Work
Well Together
Everyone Wins When HR & Compliance Work
Well Together
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7 Major Stakeholders (Silos) in Policy Management7 Major Stakeholders (Silos) in Policy Management
Source: NAVEX Global's 2016 Ethics and Compliance Policy Management Benchmark Report
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Silos Hamper Change in Policy ManagementSilos Hamper Change in Policy Management
Source: NAVEX Global's 2016 Ethics and Compliance Policy Management Benchmark Report
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Resources & BudgetsResources & Budgets
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28% of Respondents Have No Dedicated Training Budget28% of Respondents Have No Dedicated Training Budget
Source: NAVEX Global's 2016 Ethics & Compliance Training Benchmark Report
© 2016 NAVEX Global, Inc. All Rights Reserved.
HR/ER, E&C and Legal Are Top Three Budget Contributors for Training and
on Average of 2.3 Departments Contribute to Training Budgets
HR/ER, E&C and Legal Are Top Three Budget Contributors for Training and
on Average of 2.3 Departments Contribute to Training Budgets
Source: NAVEX Global's 2016 Ethics & Compliance Training Benchmark Report
© 2016 NAVEX Global, Inc. All Rights Reserved.
Automation and Technology Increase Satisfaction in
Third Party and Policy Management
Automation and Technology Increase Satisfaction in
Third Party and Policy Management
0%
20%
40%
Centralized and standardized policy management software No standardized policy management software
Poor
Fair
Good
Very Good
Source: NAVEX Global's 2015 Ethics and Compliance Third Party Risk Management Benchmark Report
Please rate your organization's execution on the following aspects of policy management.*
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Repeat Anonymous Reporters &
Retaliation Substantiation Rates Rising
Repeat Anonymous Reporters &
Retaliation Substantiation Rates Rising
Source: NAVEX Global's 2015 Ethics and Compliance Hotline Benchmark Report
© 2016 NAVEX Global, Inc. All Rights Reserved.
Adaptability to ChangeAdaptability to Change
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Workplaces are Changing Dramatically, but E&C
Programs May Not Be Keeping Up
Workplaces are Changing Dramatically, but E&C
Programs May Not Be Keeping Up
Data from the benchmark reports suggest
that E&C programs may not be evolving
fast enough to meet the needs of a
rapidly changing workplace
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Board Training Not Adapting to Emerging RisksBoard Training Not Adapting to Emerging Risks
Source: NAVEX Global's 2016 Ethics & Compliance Training Benchmark Report
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Training Programs Slow to Innovate in Delivery FormatsTraining Programs Slow to Innovate in Delivery Formats
Source: NAVEX Global's 2016 Ethics & Compliance Training Benchmark Report
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25% of Respondents Still Managing Training Tracking & Processes
Manually
25% of Respondents Still Managing Training Tracking & Processes
Manually
Source: NAVEX Global's 2015 Ethics & Compliance Training Benchmark Report
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Organizations that documented reports from all channels in their
incident management systems captured 72% more reports.
Don’t Miss Critical E&C Data CaptureDon’t Miss Critical E&C Data Capture
INTAKE METHODS
Incident Management System Centralized Report Documentation,
Workflow & Analytics
MEDIAN NUMBER
OF REPORTS
CAPTURED = 1.9
Nearly 2x Visibility
Into Organizational
Culture and Trends
INTAKE METHODS
MEDIAN NUMBER
OF REPORTS
CAPTURED = 1.1
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Insights from Benchmark Reports on Keeping Up With the Pace of ChangeInsights from Benchmark Reports on Keeping Up With the Pace of Change
• Stale content and manual approaches create risk
• Refresh training and policy content and automate processes wherever you can
• Complete risk assessments to ensure you’re keeping up with emerging risks—and create
a multiyear training plan to match new risks with appropriate training and policies
• Mix up your delivery formats—look for opportunities to gamify or create social
learning experiences.
• Track results and make a case for incorporating more of these elements in your
program going forward
• Embed policies with tools, videos, relevant examples and decision trees
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Expanding the Scope of E&C: Is This the Year for
Pushing Boundaries and Increasing Authority?
Expanding the Scope of E&C: Is This the Year for
Pushing Boundaries and Increasing Authority?
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Is the scope of our E&C programs too
narrowly focused?
High-profile areas with clear E&C
components are often over-looked as
not “part of the job”
� Cyber security, sustainability, marketing,
advertising, philanthropy, human rights,
community engagement
Long term goal, but look for short
term opportunities
Thinking Outside the E&C BoxThinking Outside the E&C Box
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1. Ask questions about who owns key risk areas. Confirm that E&C issues related to each risk area are being addressed
2. Find common ground. Corporate social responsibility, human rights, sustainability: it’s in everyone’s interest to make sure E&C issues related to these areas are identified and addressed
3. Pay attention to advertising, marketing and your values. Watch for disconnects between your core values and your marketing campaigns
Key Steps For Organizations To TakeKey Steps For Organizations To Take
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