There is regulatory/legal compliance, compliance with organizational codes and policies, and compliance with organizational culture and un-written rules. Depending on the industry, jurisdiction, customer requirements and other external factors, there may be external compliance requirements of various stringency and importance that the organization needs to fulfill.
The influence of Compliance on performance will vary depending on the strength of regulation and the related performance issues identified.
It is important to foster a culture of compliance within the Organizational workforce, as it will influence the ability to succeed and excel or stumble and fail due to Compliance issues.
Think of failures such as Enron and Arthur Anderson failing to comply with regulatory statures, or Toyota’s religious compliance with quality standards as examples.
In cases where Compliance is negatively influencing performance, adjusting organizational policies, values or culture may be necessary. We will include the necessary steps in the Performance Improvement roadmap.