In this episode, Jay and I return for a wide-ranging discussion on some of the top compliance and ethics related stories, including:

  1. We discuss our highlights from the recently concluded SCCE 2017 Compliance and Ethics Institute. See Tom’s blogs, here, here, here and here. Click here for a report from Matt Kelly.
  2. Mike Volkov explores ISO 37001 in a week-long series? See the full week’s series on his site, Corruption Crime & Compliance. Henry Cutter reports on the standard’s slow acceptance in the WSJ Risk and Compliance Report.
  3. What is the status of your Board’s training for compliance? Ben DiPietro reports in the WSJ Risk and Compliance Report.
  4. Italian prosecutor charges Shell and former execs with overseas bribery. Dick Cassin reports in the FCPA Blog.
  5. Revenue recognition rules change in December. Auditors are under orders to ‘show no mercy’ to companies which have not prepared for the changeover. Tammy Whitehouse reports in Compliance Week.
  6. Continued chaos in the Trump Administration. Matt Kelly is back with addition ethical considerations from HHS Secretary Tom Price in Radical Compliance.
  7. Astros come home down 3-2 to the NY Yankees. Will they overcome?
  8. Join Tom’s monthly podcast series on One Month to a More Effective Compliance Program. In October, I consider compliance with business ventures such as in the M&A context, joint ventures, distributors, channel ops partners, teaming agreements and all other manner of business venture. The third week I continue to take a deep dive into JVs under the FCPA. This month’s sponsor is the Volkov Law Group. It is available on the FCPA Compliance Report, iTunes, Libsyn, YouTube and JDSupra.
  9. The Everything Compliance gang recorded a podcast at the 2017 Compliance and Ethics Institute, with special guest Roy Snell sitting in for Mike Volkov. The podcast will go up Thursday October 26th.
  10. Tom premiers an exciting new service offering the Doing Compliance Master Class.
  11. AMI SVP Eric Feldman is speaking in Houston on November 2, at 1:30. If you are in Houston, please plan to join us. For more information see the GHBER website for details and registration.
  12. Jay previews the Rosen Weekend Report.

For this Friday’s installment of the October compliance Classic Monster Movie fest, I combine two installments in the 1940s reimaging of the 1932 classic; The Mummy’s Tomb and The Mummy’s Ghost. I combine them both as they are essentially sequential follow-ons to the 1940 film The Mummy’s Hand.

The Mummy’s Tomb picks up the story thirty years after the conclusion of the previous film. It begins with Steve Banning reciting the story of Kharis to his family and evening guests one night. He relates the destruction of the creature, at the tombs back in Egypt. However, surviving their supposed demise, Andoheb explains the legend of Kharis, (now played by Lon Chaney, Jr.) to his follower, Mehemet Bey. Andoheb passes on instructions for the use of the tana leaves and assigning the task of terminating the remaining members of the Banning Expedition and their descendants. Bey and Kharis leave Egypt for the journey to the United States to fulfill their destiny, which they largely accomplish, killing nearly everyone involved in the original expedition.  

The Mummy’s Ghost picks up with Andoheb, the aging High Priest, summoning Yousef Bey to the Temple of Arkam to pass on the duties of High Priest. He explains the legend of Kharis to Bey and informs Bey that Kharis still lives and that Yousef’s mission is to retrieve Kharis and the body of Ananka and return them to their rightful resting place in Egypt. Back in Mapleton, Massachusetts, where the last Mummy rampage occurred and where Kharis is located, a student, Tom Hervey, meets up with his girlfriend Amina Mansori, a beautiful woman of Egyptian descent. She will become the immortal love interest of Kharis.

Kharis senses Amina as the carrier of Ananka’s soul and kidnaps her. Tom tries to rescue her but is fought off by Kharis. Unfortunately, Amina ages to become the same vintage as Kharis as he lumbers off with her where they sink into quicksand in a swamp. Tom’s last anguished sight of Amina is that of a 3,000-year-old Egyptian Princess as Kharis and Ananka disappear under the water, united in death.

What is the connection of compliance and these two installments in the Mummy oeuvre? It is professional development (don’t worry – it will be clear by the end). My good friend Corina Manea wrote a great post yesterday over on Spin Sucks, entitled “How to Build Your Professional Development Plan for Habit”, which I have purloined and adapted for the compliance professional. There are only eight working weeks left in the year. What have you achieved against the professional development goals you set in January? It is very easy to stuck in the details of our day job.

Too often your learning goals suffer because you are too busy or too tired to even think about it. Or because you have no time and have other obligations. Yet there is no job, particularly the compliance profession, in which you can function if you do not focus and invest in your professional development now. One of the clear themes of this year’s SCCE 2017 Compliance and Ethics Institute (CEI) was the need for professional development.

Professional Development is a Must for Every Compliance Professional

I want you to look around…really look around you. Artificial intelligence (AI) is gaining ground and will be a part of the compliance practice in a very short time. Can you read a spreadsheet? If not, you probably will not ever be a CCO.

Blockchain has been called the new internet and will certainly be one of the most important tools in compliance down the road. Your work must be measured but you have no idea how to read the data in front of you. Professional development is a must for every compliance professional no matter how much – or how little – experience you have. Things are moving much more quickly and it is hard to keep up with technology, not to mention stay ahead of trends. Which brings me back to investing in your professional development now, as opposed to later.

Treat Professional Development as a Client

The key insight is that as a compliance professional, you must treat your professional development as if it were a client. This means to give it the same attention, dedication, and passion you have for your day-to-day work. In time and with hard work (there is no way around that), it will pay off. Take your career into your own hands and invest in your professional development. It starts with a plan, one that will help you create the habit. Your plan should include, at a minimum:

  • How much time per day you will spend learning;
  • The top five publications, blogs, or online magazines you want to read every day;
  • Online courses you want to take in the next three months; and
  • The top three conferences you want to attend next year.

Do not forget to include digital networking, as well. Once you have your plan in place, it’s time to split each goal into monthly and weekly tasks. Schedule a meeting with yourself at the end of each week – actually put it on your calendar – to review your progress, see what worked and what did not work for your development and adjust for the following week. Apply the same strategy at the end of each month and quarter. Write down your weekly and monthly results and progress. There is no bigger motivator than getting results from your efforts. Do not treat it lightly; write it down; all of it and then commit to it. 

How can you achieve all of this? A good way to start would be to join me next week for my inaugural Doing Compliance Master Class Series. You a trusted partner who delivers relevant content, which can be used to solve a wide variety of issues, even those outside the anti-corruption compliance space. This series delivers timely topical information you can trust, is relevant to the compliance business function, and comes at a reasonable cost.  As the Compliance Evangelist, I bring a unique insight into what many companies have done right and many have done not so well over the years. This professional experience enables me to put together a unique training program for any professional who wants to succeed in compliance. For more information, check out Doing Compliance Master Class Series. 

The lesson from the two Mummy movies that opened this piece are that lifelong learning is something you must engage in as a compliance practitioner. The compliance world will not sit still and neither should you. Manea was right, you must treat your professional development with the same seriousness that you treat your internal customers and clients; i.e. your employees. Set out a plan, follow it, measure your actual progress against the plan and adjust as needed.

 

This publication contains general information only and is based on the experiences and research of the author. The author is not, by means of this publication, rendering business, legal advice, or other professional advice or services. This publication is not a substitute for such legal advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified legal advisor. The author, his affiliates, and related entities shall not be responsible for any loss sustained by any person or entity that relies on this publication. The Author gives his permission to link, post, distribute, or reference this article for any lawful purpose, provided attribution is made to the author. The author can be reached at tfox@tfoxlaw.com.

© Thomas R. Fox, 2017

On the second full day of the SCCE Compliance and Ethics Institute (CEI) Liz Wiseman was one of the keynote speakers. Wiseman is the co-author with Greg McKeown of Multipliers: How the Best Leaders Make Everyone Smarter, which is a book about the various types of leaders. They focus two different types of leaders, Diminishers and Multipliers. Multipliers are leaders who encourage growth and creativity from their workers, while Diminishers are those who hinder and otherwise keep their employees’ productivity at a minimum. The authors give what they consider to be solutions and guidance to the issues they bring up in the book.

Wiseman walks the audience through some of key findings of the book and I found them very interesting points for not only every Chief Compliance Officer (CCO) to use as a business leader but also for every compliance practitioner to utilize in their work to more fully operationalize corporate compliance programs. In short Wiseman’s remarks had something for almost everyone in the audience.

Her basic thesis is that multipliers increase, often exponentially, the intelligence of the people around them. They lead organizations or groups that are able to understand and solve hard problems rapidly, achieve their goals, and adapt and increase their capacity over time. On the other hand, diminishers literally drain the intelligence, energy and capability from the employees or team members around them. They lead groups that operate in silos, find it hard to get things done, seem unable to do what’s needed to reach their goals.

Wiseman breaks multipliers into five disciplines in which they differentiate themselves from diminishers. The first is the Talent Magnet, who attracts and optimizes talent; the second is the Liberator, who creates intensity that requires an employee’s best thinking; next is the Challenger who extends challenges by having others do the hard lifting so that they can stretch themselves; next is the Debate Maker who facilitates a debate between his or her team which leads to a decision improving a process or issue; and finally is the Investor, who instills ownership and accountability with his/her employee base. Interestingly Wiseman believes that multipliers increase efficiency and productivity by two times.

Diminishers also break down into five different prototypes. They are the Empire Builder, who is only interested in collecting very talented people around themselves so that they look good; next is the Tyrant, whose name is almost self-disclosing but ruins all those around them with their insistent criticisms; next is the Know-it-all who give directives simply to showcase how much they know limiting what their teams can achieve to what they themselves know how to do. This means the team must try to deduce, literally in the dark, the soundness of the decision instead of executing it; and finally, there is Micromanager, who generally believes they are only person who can figure something out and approach execution by maintaining ownership, jumping in and out of a project and reclaiming responsibility for problems which they have delegated. Diminishers usually reduce efficiencies by up to 50%.

Wiseman presented several ways that a leader could use multiplier effects and I found many of them would work particularly well for the compliance practitioner who is working to operationalize a best practices compliance program. This is particularly true because it is through persuasion that compliance works best by getting other corporate disciplines to embrace compliance.

Some of the specific techniques Wiseman discussed in her presentation were to identify not only what the skills are for those on your team but also what comes easily and natural to them. By doing so you can more effectively utilize their talents in implementing a compliance regime. Interestingly you can get employees to stretch through a technique Wiseman calls ‘supersizing’ which is the situation where you give someone a task that may be “one size too big” but allows them to grow into it. This is certainly applicable when working to operationalize compliance in business units outside the United States which may only have been dictated to previously but where not involving in doing compliance.

As the CCO or compliance leader working to more fully operationalize your compliance program, you should work to limit your direct comments to a minimum going forward. This will allow the non-compliance team members to not only stretch themselves but also allows for more impactful intervention when necessary but the simple fact is you are intervening less.

Mistakes are going to happen in any implementation. The same is true when you are operationalizing your compliance program. To overcome this Wiseman suggests a couple of leadership strategies. The first is to talk up your mistakes within the team for debriefing and analysis. The second is to actually make room for mistakes (think of a sandbox) where your team can experiment, take some risks and recover from the mistakes.

I found her next point fascinating, which was to lead by asking questions. As a law student I was drilled by the Socratic method so asking questions is something I am quite comfortable with going forward. Basically, every question is answered by another question. Her technique of leading with questions works with all five categories of multipliers. The reason it is so successful is that people are smart, they not only want to get things right but they want to build and eventually they will figure out how to do it. It is not simply a case of getting out of their way. It is about guiding them with your compliance expertise to come up with not only the right answer but a solution which will work.

Now imagine applying this leadership technique as you are trying to more fully operationalize your compliance program. If you take this approach of leading by asking questions, you not only guidance the functional unit but you get greater buy-in to the entire concept and process as it becomes their process. The non-compliance team may design it and have ownership over it.

Wiseman concluded by challenging each of us to multiply our influence to make those with work with and even work for better. You can use these skills to more fully operationalize your compliance program. If you do so, you will not only fulfill the requirements of the Department of Justice, laid out in the Evaluation of Corporate Compliance Programs, you will bake compliance into the DNA of your company by making it a part of the way you conduct your business.

 

This publication contains general information only and is based on the experiences and research of the author. The author is not, by means of this publication, rendering business, legal advice, or other professional advice or services. This publication is not a substitute for such legal advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified legal advisor. The author, his affiliates, and related entities shall not be responsible for any loss sustained by any person or entity that relies on this publication. The Author gives his permission to link, post, distribute, or reference this article for any lawful purpose, provided attribution is made to the author. The author can be reached at tfox@tfoxlaw.com.

© Thomas R. Fox, 2017

In this episode, I visit with Doreen Edelman, a partner at Baker Donelson on the top FCPA enforcement action of 2017, the Telia Company matter. We discuss the background facts of the case; we explore the amount of the fines and penalties, were they too high or were they too low; we consider the involvement of senior management right up to the CEO and the Board’s role; we explore the multiple lessons for the compliance professional, the CCO, senior management and the Board of Directors. We conclude with what the enforcement action means going forward and the increase in international enforcement, cooperation and investigation in anti-corruption.

Doreen Edelman can be reached at dedelman@bakerdonelson.com.

Doreen blogs on export control and trade issue concerns at Export Control Matters.

I am writing this today from the Society of Corporate Compliance and Ethics (SCCE) 2017 Compliance and Ethics Institute (CEI). This is the largest annual gathering of compliance professionals anywhere and it is already off to a great start on the Sunday pre-conference events. I participated in two such events the Speed-Networking and Speed-Monitoring and my participation in both events informs today’s blog post.

In both sessions I met with some compliance professionals who were either new to the field or were one-person compliance shops in their organizations. They were struggling with where to go for resources and support. In speaking with both groups of folks, I tried to drive home a couple of key components of the SCCE 2017 CEI and beyond that which I believe are central to the experience of compliance professionals literally across the world.

The compliance profession is different than any other corporate profession that I have been a part of or have observed. The first is that there are no trade secrets in compliance to protect. The principals of a best practices compliance program are well-known. Whether you follow the Ten Hallmarks of an Effective Compliance Program, the Six Principles of Adequate Procedures, the US Sentencing Guidelines or some other recognized standard; every compliance practitioner has access to them. You can always adapt them to your organization.

The second thing about the compliance profession is that you are never alone. Unlike other corporate functions where lawyers from major energy companies are all in room, which might draw the attention of the Department of Justice (DOJ) Anti-Trust division, the compliance function is well known for its collaborativeness. A compliance professional can pick up the phone and call another compliance professional who has faced the same or similar situation. Even if this first level of contact does not have the experience required, there will be someone in the concentric circles outward who has faced the same dilemma.

For a new compliance professional the most expeditious thing to do is join your local ethics and compliance organization. For Houston, that is the Greater Houston Business and Ethics Roundtable (GHBER). From the national perspective, the largest organization by far is the SCCE. Membership not only gives you access to a wide range of conferences, resources and tutorials but also membership in a diverse group of like-minded professionals.

Jay Rosen and I were joined by Louis Sapirman, Chief Compliance Officer (CCO) at Dun & Bradstreet, Inc. (DNB), to record our first live podcast of This Week in FCPA. The recording can be found on my Facebook feed and I will post the audio portion as a podcast later this week. Both spoke expressively about not only what they saw at the event but also how this conference allowed them both the opportunity to give back to the profession of which they have both been a part for several years. It was eloquent testament to the character of those in the compliance profession.

My thought to the compliance professional out there is that you are not alone. All you have to do is reach out and there will be someone there to answer your question. I met a female compliance professional from the mid-west who was looking for a female compliance mentor in the Chicago area. I later saw one of my good friends who fits that bill to the letter. I asked her if she would be willing to mentor the woman and she immediately responded yes.

Her response speaks directly to what makes the compliance profession so unique. Immediate outreach followed by immediate acceptance. Compliance professionals are always willing to help out other compliance professionals. This is very different from the mental makeup of the corporate legal department which circles the wagons to fulfill its role to protect the corporation.

The evening’s event was a tailgate held in the section of the conference where the vendors are located. People were encouraged to wear shirts from their favorite teams and many of did. Needless to say, my Astros jersey was well received. But more than using sports favorites to break the ice, the event held more importance for the compliance profession. Unlike many other conferences, at SCCE vendors are viewed as part of the solution to compliance. Many vendors now gear their marketing efforts around the CEI and will announce new products or service offering at the conference. This makes it a quite exciting time, with many innovative practices appearing on the compliance scene.

If you are not at this year’s event, I hope you will mark it down on your calendar. It is scheduled to return to Caesar’s Palace next October from the 14th to the 19th. I hope you will plan to join. I guarantee it will be worth your while. If you are at this year’s event I hope you will join myself and Louis Sapirman Monday as we speak on the convergence of many different forms of compliance such as anti-corruption compliance, export control compliance, anti-money laundering compliance, data protection compliance and finally as we all learned last week that sexual harassment is a compliance issue and how Harvey Weinstein may change the face of compliance as we know it going forward.

This publication contains general information only and is based on the experiences and research of the author. The author is not, by means of this publication, rendering business, legal advice, or other professional advice or services. This publication is not a substitute for such legal advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified legal advisor. The author, his affiliates, and related entities shall not be responsible for any loss sustained by any person or entity that relies on this publication. The Author gives his permission to link, post, distribute, or reference this article for any lawful purpose, provided attribution is made to the author. The author can be reached at tfox@tfoxlaw.com.

© Thomas R. Fox, 2017