Elementary, my dear Watson! In the first episode of this Sherlock Holmes themed 5-part series, Tom reviews how a CCO or compliance practitioner can develop a digital strategy to help increase the value proposition for a corporate compliance program.
- The content of today’s podcast is based upon the MIT Sloan Management Review article entitled “How to Develop a Great Digital Strategy” by Jeanne W. Ross, Ina M. Sebastian, and Cynthia M. Beath.
- Tom starts off with a little tribute to Sherlock Holmes and explains its value when considered through a compliance lens.
- In the MIT Sloan article, there are 2 main approaches that together can be valuable to compliance practitioners: the Customer Engagement Strategy and the Digitized Solutions Strategy.
- Customer Engagement Strategy: In the compliance realm, your employee is much like your customer. This approach is all about connecting your compliance function to your employees’ experience. There are 3 main ways to do so:
- First, offer digital mechanisms to bolster your employees’ interaction with compliance. Second, use data analytics to identify the most effective tools for employees to engage in doing business ethically and in compliance. And third, use social media to develop employee communities to support compliance initiatives.
- One example of the social media approach used by Louis Sapirman, former CCO at Dun & Bradstreet (D&B), who regularly engaged in internal company tweet-ups to publicize, engage and communicate about compliance.
- Digitized Solutions Strategy: This strategy is centered on putting the above tools and mechanism in the hands of employees to more fully operationalize compliance
- Knowing which strategy – or even what combination of strategies – works for your organization is of paramount importance when integrating compliance with other departments like sales and marketing. And remember, regardless of what strategy you choose.
- In our digital economy, “companies must offer a unique value proposition that is difficult for both established competitors and startups to replicate.” Developing this value proposition must include either digitized offerings or a digitally mediated relationship that cannot be matched elsewhere.
- Your organization can innovate until the cows come home but if you can’t deliver solutions that have a solid compliance basis – such as policies, procedures, and internal controls – your offerings will be far less valuable.
Profit & Loss-of-One by Vince Walden
How to Develop a Great Digital Strategy by Jeanne W. Ross, Ina M. Sebastian, and Cynthia M. Beath
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