10/21/2010. Overview. The Purpose of Compliance Training. Your Stay Out of Jail Free Card : Best Practices in Business Ethics and Compliance Programs

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1 Your Stay Out of Jail Free Card : Best Practices in Business Ethics and Compliance Programs JOEL KATZ VICE PRESIDENT, ASSOCIATE GENERAL COUNSEL & CHIEF ETHICS OFFICER CA TECHNOLOGIES Overview The compliance officer s perspective on communications and training Training and communication skills that every compliance staffer needs New e learning techniques Communication tools that shape a more ethical environment Is training on ethics different than training on compliance obligations? Budget sensitive training techniques Influencing the elusive tone at the top The Purpose of Compliance Training Primary goal teach employees to apply rules to real life situations. Identify issues in real life situations, in order to: Resolveproblems themselves, or Contact appropriate resource to assist. 3 1

2 Tips for making this work 1. Have a plan 2. Know thyself 3. Make training specific to your audience 4. Market your training 5. Create a training brand 6. Know thyself II how is compliance perceived? 7. Consider best practices in training design 8. Localize it 9. Spread the word Plan Your Work, Work Your Plan Have a plan Ask yourself: What are we trying to accomplish? Are you trying to raise awareness or create in depth knowledge (for most employees probably awareness, for lawyers, probably expertise)? 5 Know Thyself Know what you know and know what you don t know Don t live in an ivory tower when constructing training get down in the trenches to understand what is really going on Honestly evaluate your business and prioritize risks and training needs evaluation should be ongoing as things can change quickly Be realistic in what you can accomplish Rome was not built in a day 6 2

3 Make Training Audience Specific Understand your audience One size rarely fits all when training Where you don t know something, ask for help from someone who will know Be prepared to tailor training to different audiences 7 Marketing Your Training Engage with the business and your employees Helps you understand their issues and concerns Helps you understand where they just don t get it Training will be of limited effectiveness without business buy in Be prepared to sell the value of what you are doing make sure you have good salespersons Hold face to face meetings, town halls, focus groups, send out surveys etc. Find $ in your budget to travel face to face meetings are always more effective; when travelling, get as much done as you possibly can to make good use of your travel dollars 8 Creating a Training Brand Branding the ability to stand out in a crowd The ability to make a mark on a customer Your brand = your promise to your customer Identify the following Compliance Brands Our Commitment to Integrity Mutual Trust and Mutual Responsibility Performance with Purpose 9 3

4 Know Thyself II Look in the mirror How is compliance perceived in your organization? Areyou referred to simply as Compliance? Ethics and Compliance? Business Practices? Are you less effective because of your image? Do you have the right level of trust? Do you need to increase transparency? 10 Methods of Training The Code of Conduct Itself as Training Tool On Line Training In Person Training Lecture Discussion/Case Based Written/Printed Materials 11 Revising a Code of Conduct Rare opportunity to engage employees in conversations about the type of work environment that is important to them Help each other to live the organization s values A very real teaching moment 12 4

5 Effective Contemporary Codes Relevant to the employee s day to day experience in the organization Clear expectations for conduct Employees should not need to divine what corporate wants Not a list of prohibitions 13 Code Best Practices Reflect your company s culture and values Interactive, web based Code 3.0 Accessible Active voice, clearly written Workbook form Importance of Mission Statement from CEO 14 The Need for Sr. Mgmt to be Engaged and to Set the Tone Senior executives must assume personal responsibility to ensure effective implementation of high standards. Imperative that senior managers regularly communicate the importance to the company that high standards of ethical conduct be followed. Role model in business conduct and personal decisions. The Google test: Don t do anything to embarrass the company. Query: should a different standard of conduct apply for Senior Managers? Compliance? Legal? HR? 15 5

6 Training Best Practices Make training interesting, relevant and useful Often easier said than done Choose examples that will be relevant to your target audience (training salespeople and software developers with the same material is a recipe for disaster) Keep training as short as reasonably necessary to get the message across strive for courses that are ½ hour or less Useful are you really giving your employees something they can use or just telling them what to be afraid of? Use stories whenever possible real life examples are best adults retain most learning through storytelling. 16 All Politics and Most Training is Local! Avoid being too U.S. centric: Try to train in local language, reference to local law and local customs U.S. companies have a bad habit of doing this If you are global, l make sure your training i reflects the global lnature of your business and conduct in the local language, whenever possible Find people around the world who will review training materials and give feedback BEFORE you roll the training out Where it is not apparent, make sure you are explaining why the training is important to both the individual and the company 17 Substance of the Training Practical direction on common Issues to the extent possible. More than Call Your Attorney or Do Good and Avoid Evil. Ensure that managers undergo extensive training because they approve/deny activities. iii Not a check the box exercise. Create a culture of substantive compliance within the company. Must provide employees with the answers to the question: What is expected of me? 18 6

7 Train the Trainer Methodology Issue Coverage across a large entity while achieving penetration Credible presenters Expertise inthe area trained thoroughly Support from Sr. Management, SMEs and managers Presented in local language, focusing on local issues 19 Spread the Word! Get others involved the more evangelists you have, the easier it is to spread the gospel Legal and HR are obvious candidates to help spread the message Prepare toolkits for managers that make it easy Be open minded about what training means there are formal presentations as well as short, informal sound bites Consider tying training requirements to both carrot and stick rewards for the best evangelists, punishment for those who fail to evangelize at all 20 Adult Training Theory Experience based Interactive Participatory Self directed 21 7

8 Need for Balance Need for participatory, interactive and experience based learning Dissemination of mandatory content Avoid lecture based programs BUT understand that you must provide certain information 22 OECD GUIDELINES The Organization for Economic Cooperation and Development s (OECD) recently released guidelines to serve as a framework for complying with the U.S. Foreign Corrupt Practices Act. Among the points that the OECD guidance recommends: A strong explicit, and visible 23 support and commitment from senior management to the enterprise s compliance program for preventing and spotting bribery A clearly articulated and visible corporate policy that bans foreign bribery Robust program oversight, including one or more senior executives empowered to report issues directly to the board s audit committee 23 Themes and Takeaways I Be creative, start early and keep the pedal to the metal Find ways to make this stuff fun It s OK to poke fun at ourselves People always enjoy humor and it is an effective training tool There e are lots of ways to communicate ca and train blogs, videos, newsletters, in person, web meetings, etc. Make sure to incorporate into new hire training, manager training etc. Formal, informal, short, long it does not matter just keep getting the message out 24 8

9 Themes and Takeaways II Constant and consistent communication Keep compliance top of mind One size does not fit all: design a training and awareness program that will fit your company 25 Questions, Comments, Suggestions Contact Information JOEL KATZ VICE PRESIDENT, ASSOCIATEGENERAL COUNSEL & CHIEFETHICSOFFICER CA TECHNOLOGIES joel.katz@ca.com 9