Compliance Confusion or Organized Chaos

While reading the recent blog post “Compliance Confusion” on SOX First, I couldn’t help but think about a frequently used phrase in this industry: Compliance can be a double-edged sword. On one hand, organizations need to create awareness and educate the business on the compliance topic at hand. On the other hand, a little education without clear focus and direction can be dangerous.

At a past workplace, our corporate compliance office was delivering awareness training to the business to help move the enterprise privacy program along – precipitated by HIPAA. There was a very organized cross-enterprise team that had developed an execution plan that included legal assistance, a technology evaluation, selection processes and an enterprise view to address the requirements. As the training and awareness efforts progressed, it created a certain element of fear throughout the organization.

By no fault of their own, dangerously informed individuals across the business began to act apart from the team and the process, largely because they didn’t know any better. They did what they believed was important in the name of HIPAA, very little of which was appropriate or helpful. This all began happening so fast that it just led to unnecessary expenditures, misconceptions, distractions and chaos. Rapidly, the compliance team had to refocus its awareness training on the bigger vision, the organization and the plan to reign in the harmful actions outside the plan.

This very real issue brings up several points:
1) Know your business and your stakeholders.
2) Make your education and awareness focus broad; everyone wants to jump on the opportunity, so stay alert.
3) Don’t underestimate the marketing and communications needs.

Your catalyst may have been HIPAA, SOX or some other large regulatory obstacle, but the issue is clear. It is not so much about working harder or spending more money, it is actually about organization, vision, planning, execution, communication, communication and communication. Your thoughts and lessons are always welcomed.