longitudinal insights from the navex global benchmark reports€¦ · 4 © 2016 navex global, inc....

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© 2016 NAVEX Global, Inc. All Rights Reserved.

Longitudinal Insights from the NAVEX

Global Benchmark Reports

Longitudinal Insights from the NAVEX

Global Benchmark ReportsSeptember 27, 2016


Today’s AgendaToday’s AgendaBrief Overview of NAVEX Global

Benchmark Reports 2015/2016

Common Themes

� Culture and Cynicism

� Organizational Structure

� Resources/Budgets

� Adaptability to Change


NAVEX Global Annual Benchmark ReportsNAVEX Global Annual Benchmark Reports

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Culture & CynicismCulture & Cynicism


Culture Trumps EverythingCulture Trumps Everything

Creating and reinforcing a culture of

ethics and compliance is a core element

of a robust E&C program.

However, across the reports,

we see a lot of evidence that

organizations are still struggling

with making sure programs are

impacting culture to the degree needed

to ensure success.


Top Training Program Objective: Culture ChangeTop Training Program Objective: Culture Change

Source: NAVEX Global's 2016 Ethics & Compliance Training Benchmark Report

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Cynicism Is:Cynicism Is:

“An expression of the uncertainty that comes from working in an environment

where ethics are lax, employees don’t feel valued, and information is withheld.

When it thrives in an organization, it signals a lack of employee trust—a problem

that’s gotten significantly worse over the last generation.”

Rich Karlgaard,

Publisher of Forbes (http://www.wphealthcarenews.com/is-employee-cynicism-killing-your-culture/)


Cynicism About Culture Change Efforts

Top Training Program Concern

Cynicism About Culture Change Efforts

Top Training Program Concern



The Trust StoryThe Trust Story

• In general, trust in businesses (over other institutions) is on the rise.

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Trust varies by country – U.S. Around the Average Trust varies by country – U.S. Around the Average

Source: Edelman Trust Barometer 2016


CEO Trust Increasing and Peers Most ImportantCEO Trust Increasing and Peers Most Important

Source: Edelman Trust Barometer 2016


K E Y F I N D I N G S

Delayed Case Closure Time Can Lead to

Cynicism

Delayed Case Closure Time Can Lead to

Cynicism

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Another Significant Case Closure Time IncreaseAnother Significant Case Closure Time Increase

Source: NAVEX Global's 2016 Ethics and Compliance Hotline Benchmark Report


Case Closure Time Increases in Three of the Five

Allegation Categories

Case Closure Time Increases in Three of the Five

Allegation Categories

Median Case Closure Days in 2014 = 39 days

Median Case Closure Days in 2015 = 46 days



K E Y F I N D I N G S

Reports of RetaliationReports of Retaliation

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Organizations Still Not Getting the Chance to

Address Retaliation Allegations Internally

Organizations Still Not Getting the Chance to

Address Retaliation Allegations Internally



Retaliation Substantiation Rates Remain ElevatedRetaliation Substantiation Rates Remain Elevated



Management & Culture

• Do you know what the trust issues are in

your organization?

• Who are the most trusted people in

your organization?

• Do leaders keep their promises and live

the values?

• Do you have a transparent culture?

• Do organizational messages match behaviors

(do as we say)?

• Are managers and employees able to identify

and control behaviors that bread cynicism?

Employee Beliefs/Actions

• Can employees speak up without censure?

• Are employees allowed to help lead,

advocate, and influence?

• Are employees treated – and do they treat

each other – with respect?

• Do your training programs feel like a check-

the-box experience?

Combatting Cynicism In Your OrganizationCombatting Cynicism In Your Organization

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Insights from Benchmark Reports on

Boosting Culture

Insights from Benchmark Reports on

Boosting CultureIf you provide suboptimal information and guidance, employees

get the implicit message that this stuff doesn’t really matter.

• Address fear of retaliation head-on through training and

awareness campaigns

• Employees typically want to report issues internally first: make sure your reporting systems

(and middle managers) encourage reporting

• Increase quality of training and policies; ensure employees understand how these are

fundamental to the success of your organization

• Get properly funded: a “bare minimum” approach breeds employee cynicism about

culture and values


Organizational StructureOrganizational Structure

Fragmentation, Silos and Lack of Process Champions


Coordination between HR and E&C is

often strained by:

� Duplication of efforts

� Inefficiencies

� Fear that confidential employee

information will not remain

confidential

� Turf battles

Everyone Wins When HR & Compliance Work

Well Together

Everyone Wins When HR & Compliance Work

Well Together

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7 Major Stakeholders (Silos) in Policy Management7 Major Stakeholders (Silos) in Policy Management

Source: NAVEX Global's 2016 Ethics and Compliance Policy Management Benchmark Report


Silos Hamper Change in Policy ManagementSilos Hamper Change in Policy Management

Source: NAVEX Global's 2016 Ethics and Compliance Policy Management Benchmark Report


Resources & BudgetsResources & Budgets

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28% of Respondents Have No Dedicated Training Budget28% of Respondents Have No Dedicated Training Budget



HR/ER, E&C and Legal Are Top Three Budget Contributors for Training and

on Average of 2.3 Departments Contribute to Training Budgets

HR/ER, E&C and Legal Are Top Three Budget Contributors for Training and

on Average of 2.3 Departments Contribute to Training Budgets



Automation and Technology Increase Satisfaction in

Third Party and Policy Management

Automation and Technology Increase Satisfaction in

Third Party and Policy Management

0%

20%

40%

Centralized and standardized policy management software No standardized policy management software

Poor

Fair

Good

Very Good

Source: NAVEX Global's 2015 Ethics and Compliance Third Party Risk Management Benchmark Report

Please rate your organization's execution on the following aspects of policy management.*

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Repeat Anonymous Reporters &

Retaliation Substantiation Rates Rising

Repeat Anonymous Reporters &

Retaliation Substantiation Rates Rising



Adaptability to ChangeAdaptability to Change


Workplaces are Changing Dramatically, but E&C

Programs May Not Be Keeping Up

Workplaces are Changing Dramatically, but E&C

Programs May Not Be Keeping Up

Data from the benchmark reports suggest

that E&C programs may not be evolving

fast enough to meet the needs of a

rapidly changing workplace

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Board Training Not Adapting to Emerging RisksBoard Training Not Adapting to Emerging Risks



Training Programs Slow to Innovate in Delivery FormatsTraining Programs Slow to Innovate in Delivery Formats



25% of Respondents Still Managing Training Tracking & Processes

Manually

25% of Respondents Still Managing Training Tracking & Processes

Manually


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Organizations that documented reports from all channels in their

incident management systems captured 72% more reports.

Don’t Miss Critical E&C Data CaptureDon’t Miss Critical E&C Data Capture

INTAKE METHODS

Incident Management System Centralized Report Documentation,

Workflow & Analytics

MEDIAN NUMBER

OF REPORTS

CAPTURED = 1.9

Nearly 2x Visibility

Into Organizational

Culture and Trends

INTAKE METHODS

MEDIAN NUMBER

OF REPORTS

CAPTURED = 1.1


Insights from Benchmark Reports on Keeping Up With the Pace of ChangeInsights from Benchmark Reports on Keeping Up With the Pace of Change

• Stale content and manual approaches create risk

• Refresh training and policy content and automate processes wherever you can

• Complete risk assessments to ensure you’re keeping up with emerging risks—and create

a multiyear training plan to match new risks with appropriate training and policies

• Mix up your delivery formats—look for opportunities to gamify or create social

learning experiences.

• Track results and make a case for incorporating more of these elements in your

program going forward

• Embed policies with tools, videos, relevant examples and decision trees


Expanding the Scope of E&C: Is This the Year for

Pushing Boundaries and Increasing Authority?

Expanding the Scope of E&C: Is This the Year for

Pushing Boundaries and Increasing Authority?

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Is the scope of our E&C programs too

narrowly focused?

High-profile areas with clear E&C

components are often over-looked as

not “part of the job”

� Cyber security, sustainability, marketing,

advertising, philanthropy, human rights,

community engagement

Long term goal, but look for short

term opportunities

Thinking Outside the E&C BoxThinking Outside the E&C Box


1. Ask questions about who owns key risk areas. Confirm that E&C issues related to each risk area are being addressed

2. Find common ground. Corporate social responsibility, human rights, sustainability: it’s in everyone’s interest to make sure E&C issues related to these areas are identified and addressed

3. Pay attention to advertising, marketing and your values. Watch for disconnects between your core values and your marketing campaigns

Key Steps For Organizations To TakeKey Steps For Organizations To Take


longitudinal insights from the navex global benchmark reports€¦ · 4 © 2016 navex global, inc....

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