In this special five-part podcast series, hosted by Gan Integrity, we consider the evolution of compliance, from disconnected to connected. Over the next five episodes we will explore why compliance is disconnected and what can be done to connect it, how to build a connected compliance program and technology can help in this endeavor and finally what is the human side of compliance in the context of connected compliance. The series is a fascinating exploration of where compliance is in 2019 and where it is headed down the road. In this third episode, I visit Peter Chang, the Head of Customer Success at GAN Integrity to consider how to construct a connected compliance program.
Chang noted that while many organizations have a good idea of whether their compliance processes are connected or not; an independent third party such as GAN can provide some different perspectives. The first is insight into what other customers in the compliance space are doing and what GAN sees out in the larger compliance arena. This means that while most compliance practitioners understand that some portion of their system is automated or even connected, GAN can elevate their current situation by showing some of the best practices that others are doing or identify issues the customer may not be observing. This can provide what Chang characterized as “some low hanging fruit” for quick and easy compliance wins. Finally, Chang and his team can provide advice in terms of what an organization can do to make sure that their systems are connected and that they understand the immediate benefits derived from doing so.
Chang said that an analysis usually begins with the size of the organization. As with everything around a best practices compliance program, there is no one size fits all. This means for every company, type and size, there are varying degrees of connected systems. Unfortunately, the larger the company, the more complex the situation usually is going into the process. Chang stated, “For a company of under 10,000 employees, there’s usually not a ton of different systems in place. This means making the connection between the systems is not going to be a huge undertaking.” However that situation quickly changes if the company is moving up towards 100,000+ employees. In those situations, “there’s typically multiple systems and companies may have different iterations of systems obtained through acquisitions. This means there maybe multiple HR systems, multiple ERP systems and can make connecting them for the compliance program a lot more complex. So depending on the size and type of customer that we interact with, we would probably parlay a different type of solution for them.”
It is incumbent on organizations to think through what they are trying to achieve. A basic question to connected compliance is what are the metrics your organization would like to measure? Chang provided the following example: “does the company want to track the lifecycle of a particular vendor or employee? Would it be throughout the lifecycle management of this vendor or person? Would it be through the different programs they had with the company? Finally, what are the things that are detrimental to the reporting aspect that you are looking for?”
This really unearths the true goal, which is to demonstrate that properly focused compliance can increase business efficiency and enhance overall profitability. This is not simply a compliance focused solution, but rather an efficiency focused solution by bringing greater conducted analysis and then developing a set of bespoke metrics tailored to the company. This allows more than simply the Chief Compliance Officer (CCO) to determine what is working and what is not so that you have a roadmap to improve going forward.
This brings up another problem for both compliance functions and other corporate disciplines, because there can be so many disparate systems, that there is no “single source of truth” or facts within an organization. A company can have multiple master data inputs, vendor and ERP systems. Chang said in such a situation, “we really rethink our approach about why the customer has these systems. From there can you identify, where the single source of truth can be found. From there you have to move to a focus on consolidating those systems. This is the first step of having a well-connected compliance process.”
Chang concluded by noting this process is something which resonates greatly with GAN’s customer base. Yet, at the end of the day, the system itself is only going to be as good as the data input and the people using it and reporting on it. This requires a strong level of consideration about what it really means to be connected. As Chang said, your organization must “think about what is most important to them. This is the first step to being able to configure a company to a manner that makes sense for the company.” The key is that the vision must be aligned.
Join us tomorrow when explore connected technology works.
For more information on how connected compliance, visit our sponsor Gan Integrity Solutions, Inc. at www.ganintegrity.com.