The philosophy of Operational Compliance is a guiding mindset and approach that shapes how individuals and organizations align their actions with obligations associated with laws, regulations, ethical standards, and internal policies. It goes beyond mere rule-following to embrace a culture of accountability, integrity, and promise-keeping.
This week I would like to share the core tenets of the philosophy of Operational Compliance:
Proactive Rather than Reactive
Operational Compliance philosophy revolves around anticipating, planning, and acting to achieve the outcomes of compliance. This extends to identifying risks and implementing controls before they become a reality. It also makes sure that everything goes right by ensuring the conditions for success are always present.
Risk-Based Approach
Not all risks are equal; operational compliance prioritizes areas with the highest potential impact on stakeholders. Tailoring compliance efforts to the organization's size, industry, and operational complexity ensures efficient resource allocation.
Culture of Integrity
Operational Compliance is seen as part of an organization’s mode of operation, not just a regulatory function. Building a culture of always 'doing the right thing the right way' fosters trust among employees, customers, and regulators.
Alignment with Organizational Goals
Operational Compliance integrates with business objectives rather than being a separate or opposing force. The philosophy recognizes that ethical behaviour and meeting obligations contribute to long-term success and sustainability.
Continuous Compliance
Operational Compliance acknowledges that laws, regulations, voluntary obligations, and risks require continuous compliance. Ongoing monitoring, training, and updates to policies ensure the organization remains on mission and between the lines.
Transparency and Accountability
Embracing open communication about compliance priorities, challenges, and successes strengthens trust. Holding all members of the organization accountable—from leadership to entry-level staff—is central to effective compliance.
Engineered and Ethical
Operational Compliance involves leveraging knowledge and tools to make ethical decisions that are effectively implemented in practice. It embodies the essence of engineering, where obligations are fulfilled through intentional design informed by organizational values rather than relying solely on hard work and hoping for the best.
Focus on Stakeholders
Operational Compliance supports the organization while also benefiting its broader community of stakeholders, including customers, suppliers, and the community. It ensures that the organization’s actions uphold its commitment to honouring all promises made to those invested in its activities.
Balancing Flexibility with Discipline
Operational Compliance allows for innovation and agility within the boundaries of obligations. It avoids rigidity that might stifle growth while maintaining strong controls where necessary.
Keeping Promises by Example
Leaders embody operational compliance by keeping promises and set the tone from the top and throughout all management levels. Visible commitment fosters a strong compliance culture throughout the organization.
The philosophy of Operational Compliance is about embedding a mindset of accountability, integrity, and promise-keeping into the DNA of an organization. It is less about checking boxes and more about fostering a resilient culture that protects value creation to ensure mission success and builds stakeholder trust.
What do you think about Operational Compliance? What is your mode of operation for compliance? What defines your foundational principles and beliefs surrounding compliance?