Innovation in Compliance with Tom Fox

This week’s guest on the Innovation In Compliance show is Krista Hardwick, General Counsel at Deputy. Deputy brings an innovative solution to managing compliance and legal risk around scheduling. Krista chats with Tom Fox about how her company’s software helps business owners stay compliant with fair wage and hour laws, as well as increase profitability.Analyzing Shift WorkDeputy recently released a free ebook entitled The United States of Shift Work, based on their study of 1million shift hours over the course of a year. They were able to conclude that there are many similarities among the different generations of shift workers with regard to the hours they worked vs hours they were scheduled. On average, workers were rostered to work just a few hours more than they actually worked. Krista says that this shows that managers and business owners are complying with the fair work week laws which state that workers should not be required to work more than they are scheduled. It also implies that business leaders do not want workers to work overtime, which would trigger overtime compliance regulations. Tom comments that this relates directly to the key issues of fairness in the workplace and sustainability. How Deputy Helps Businesses Be CompliantKrista advises business owners to love their employees. Keeping your employees happy will help your business be more successful in the long run. She discusses the fair work week laws that are being implemented across the country, which require businesses to post schedule weeks in advance and not change them once posted. Deputy’s tool, she says, help owners stay compliant with these laws, so they can focus on growing their business. Business owners should also be focusing on creating an optimal schedule that minimizes payroll costs for the company, Krista points out. Deputy partners with Widget Brain to do customized labor forecasting for their clients: they help you create an optimal schedule based on your forecasted profits for each hour of the day. This shows that effective compliance can create greater business efficiency, leading to greater profitability, Tom comments. Krista adds that it also minimizes the chance of a wage and hour audit. Corporations Need To Respond To PeopleThe number of shift workers is increasing and will continue to increase, Krista says. Due to the amendment to the Department of Labor rules, many workers who are now considered salaried employees will be converted to shift workers and paid an hourly rate come January 2020. Krista says that another issue companies should consider is that Gen-Z’ers are working fewer hours than previous generations. Their work preferences are different, added to which, they have choices about where they want to work and the kind of work they want to do. These issues are important when doing scheduling and workforce management. Tom says that this speaks to how corporations need to respond to people, instead of people responding to corporations.ResourcesDeputy.comThe United States of Shift WorkDeputy on Facebook | LinkedIn | Twitter | Instagram

Fizza Khan, this week’s guest on the Innovation In Compliance show, has been in regulatory consulting for over 10 years. She is the CEO and founder of Silver Regulatory Associates, an innovative company that specializes in helping companies meet their regulatory obligations. She and Tom Fox discuss the idea of outsourced compliance as well as the interesting and often complicated world of cryptocurrency.The Cutting Edge of Outsourced ComplianceTom comments that the regulatory compliance space has different guidelines, regulations and laws than his world of ABC compliance. He asks Fizza to describe some of the cutting edge things her company is doing, in particular the idea of ‘outsourced compliance’. She replies that financial services companies must have a strong regulatory compliance program that’s not only good on paper, but practically functioning. Her company, as an outsourced compliance option, can help firms meet their obligations either by integrating into their compliance program or by working alongside an existing compliance program to ensure that it aligns with the client's interests.Services OfferedSilver Regulatory Associates offers various services depending on your needs. These include: Registration and foundation services Maintenance service Assessment service Exam support service Crypto: Security or Exchange Instrument?There are many questions surrounding cryptocurrency. Whether it is a security or an exchange instrument is one of the questions facing the industry. Fizza explains that the Howey Test is used to determine whether a particular instrument will be deemed a security and needs to come under the SEC’s regulations. The test makes its determination based on three criteria: Is the investment in the form of money? Is the investment of money in a common enterprise? Is there an expectation of profits from the enterprise? Is that expectation of profit derived from the efforts of others? Tom asks Fizza to discuss what a company must do if it's determined to be a security vs an exchange instrument, and how her company can help them fulfill their regulatory obligations. She explains the implications of each scenario. Her company helps clients determine the next steps and take appropriate action to become compliant, she says. Continuous analysis and monitoring of cryptocurrency guidelines is paramount. If a company changes the way it uses, manages or distributes its cryptocurrency, this could trigger additional regulatory requirements.Preparing for the SEC ExamTom mentions an article Fizza wrote, entitled, Uptick In SEC Exams: Four Ways To Ensure A Smooth Process. He asks her to explain how she helps companies prepare for such an exam. She replies that the article targets investment managers and broker dealers who are already regulated and registered with the SEC. The routine exam is when SEC staff examiners come to organizations to ensure that their compliance program is meeting all regulatory obligations. They also want to see that the program is being actively implemented in the business. Silver helps you prepare for a smooth exam: they analyze your existing program, help you prepare the required documents, and they even prepare you to answer questions the SEC might pose. Fizza gives several tips to help you highlight your strengths in the Day One presentation.ResourcesSilverRegulatoryAssociates.comfkhan@silverreg.com Article: Uptick In SEC Exams: Four Ways To Ensure A Smooth Process Article: Insight: Key Crypto Compliance Considerations In Light of Facebook's ICO

Brandon Daniels, President of Global Technology Markets at Exiger, joins Tom Fox for this week’s episode of Innovation In Compliance, to chat about how technology is leading the compliance discussion. Exiger develops technology solutions in the compliance space.Third Party Risk ManagementTom notes that the market has recognized the need for more robust management of third party risk. Brandon agrees that more people are recognizing that third party risk can define their organizations. Revised federal guidelines underscore the importance of embedding third party risk management into organizations. This isn’t a peripheral risk, Brandon points out. It’s the kind of risk that can destroy shareholder value, cause significant fines, and consume your brand. Tom adds that third party risk has always been the highest risk for a government intervention in terms of a violation. Education Is A Key First StepThe e-discovery industry is an example of how technology can become central to a company’s function. Twenty years ago e-discovery didn’t exist, but now it’s a central component of any litigation. E-discovery suppliers spent years educating the judiciary about the context, benefits and importance of electronic discovery. Brandon says that vendors in the compliance technology space should use the same model of educating their corporate clients about how their solutions can help to assess and manage third party risk. He says there are several solutions on the market, Exiger’s included, that can routinize and scale the diligence and transaction analysis processes. Vendors first need to help compliance professionals appreciate that technology solutions are defensible, auditable and transparent. Then they must help government understand that it’s very hard to implement good compliance procedures if they are not routinized or supported by technology. Making an investment in compliance automation technology is really an investment in sustainable third party risk management. Brandon posits that this is a time for education and collaboration across the triumvirate of companies, suppliers and government.Technology As A Value CenterTom says that business executives know that risk can be a public good if managed properly. He believes that if you use the technology tools Brandon described, risk can also be a competitive advantage. Brandon agrees wholeheartedly. He comments that they advise their clients to treat reputational risk as a metric that can help them make smart investment decisions. By analyzing the risk metric of an industry you can determine whether you or the companies you're looking to acquire, have appropriate mitigating controls. You can also improve your own controls so that you can make investments in emerging markets with high growth potential but also high risk potential. Technology thus changes the compliance function from a cost center into a potential value center.ResourcesBrandon Daniels on LinkedIn

Jonathan Sampson has worked in the compliance industry for the past decade, including as COO of Click for Compliance, a pioneer in the compliance training space. He and co-founder Karen Kiesel started Peak Compliance Training because they recognized a need for a customer-centric training provider. He says that compliance professionals are passionate about driving company culture through their training initiatives but they need customization, often in multiple languages. He joins Tom Fox on this week’s show to share how Peak is answering the market need with their training solution.A Suite of Training ResourcesPeak’s initial suite of training resources was in the area of sexual harassment prevention, in response to recent legislation mandates. They are building out a compliance training library that will be available in coming months, which will cover topics such as ethics, business code of conduct, FCPA anti-corruption and anit-trust, and import-export controls. The market favors training that is interactive, scenario-based and topical. People also want compliance programs to have shorter, more frequent communication. You can have all of this with Peak: their technology allows you to pull out case studies and scenarios and send them as short, one-off communications. What Makes Peak DifferentTom asks Jonathan what differentiates Peak from other compliance training providers. He responds that the three things that make them different are: They’re customer-centric: they answer learners’ need for customized courses at a reasonable price. Personalized courses resonate better with employees rather than out-of-the-box solutions. Their top-notch technology: their state-of-the-art course building tool enables them to make faster, cheaper customizations in multiple languages, as well as create short training snippets. Their instructional design: they create relevant, appealing content to honor their learners’ time and intelligence. Realistic scenarios and interactive questions are designed to entertain and challenge. Targeted, Effective TrainingTom asks if Peak’s training speaks to the Department of Justice mandates of effective and targeted training. Jonathon responds that it does. With our training, Jonathan says, you can actually decide on your training path. Training paths can be role-based, where different content would be delivered to different learners, depending on their position in the company. This is more beneficial, since employees are being trained in areas that are relevant to them. Peak’s courses are also available on mobile devices. Compliance training has evolved, Jonathan says; they are now more engaging, more interactive, more continuous, and less time consuming. CCOs welcome this evolution as they are passionate about their personal brand and how they're reflected by how their compliance program is implemented.ResourcesPeakComplianceTraining.comEmail: jsampson@peakcompliancetraining.com720-648-0206

Compliance is widely seen as black and white, but this week’s guest argues that there is a lot of thinking, decision making and ways to innovate inside the compliance space. Jeff Nally is an executive coach who has spent the last fourteen years using neuroscience to help business leaders think differently, make better decisions, and spark ideas, innovation and insight in others.Jeff’s Approach to CoachingTom comments that using a brain-based approach seems antithetical to what lawyers generally do. He asks Jeff to describe his coaching method. Jeff replies that he’s not coaching around expertise; rather, he’s helping spark new ideas and innovations in their brains. A compliance issue could have multiple approaches. He’s teaching professionals to be better leaders, as well as how to ask thoughtful, reflective questions.How to Know If Coaching is Right For YouJeff says you should consider retaining a coach after you’ve maximized all the other training, development and leadership resources available to you, and you have stretch goals that you still need to achieve. A coach can help you make the changes you need to reach your goals. In addition, when you want to move to a higher level, the actions that brought you success in the past may not be the same things you'll need to do to move ahead. Coaching can accelerate your growth to meet those new challenges. Jeff describes the coaching packages his company offers.Breaking Down Silos and Convincing ManagementTom asks, Can an executive coach help a compliance practitioner think through having to break down silos within an organization? Yes, Jeff responds, and in addition to breaking down the silos, it’s all about the compliance professional’s relationship with those different stakeholders. You should think of the silos as stakeholder groups, he advises. Think about how to communicate well with them and be open to listening. Convince your management that you need an executive coach by pointing out the difference between a coach and a consultant. A coach knows how to ask questions and spark your thinking, which is what you need to help you perform better as a compliance professional. Also, show them the positive impact coaching will have on you and the organization. Tom comments that the service Jeff provides makes the compliance practitioner or the executive more innovative.  ResourcesNallyGroup.comEmail: jeff@nallygroup.com

Paul Brodie is the CEO of Brodie Consulting. He is a consultant and keynote speaker, and most interestingly, he helps would-be authors get their books published. He joins host Tom Fox today to discuss his professional background, and his work and most importantly, how to get your book published.How Brodie Consulting BeganHis company, Brodie Consulting, was born out of a personal health crisis. Paul relates that his doctor told him that if he didn’t change his life, he would be dead within five years. This motivated him to take charge of his health and lose over 60 pounds. He wanted to write a book about his journey, but had no idea how to do so. With lots of research about Kindle publishing and some trial and error, he created a 6-step book publishing system. His first three books became bestsellers because of his system. He also discovered that he could help other would-be authors and began to offer coaching, done-for-you book publishing as well as podcast production and executive ghostwriting services.The Six Step ProcessTom finds Paul’s six step process incredibly useful for a wide variety of projects. He asks him to describe how this process helps companies and individuals get their books published. Paul responds that some of the steps include: An initial strategy session to find out how his company can help; A second strategy session to determine the best type of service for the client; Getting the book written and published; Marketing the book. Keynotes, Seminars and PodcastOne of Paul’s main leadership keynotes is called Motivation 101, in which he speaks about personal, team and organizational motivation. He finds that staying motivated is a major challenge for business leaders. He also regularly offers seminars at universities to help students get clear on where they want to go in life, not only for themselves, he says, but for the future. Tom asks him about his Positive Mental Attitude (PMA) seminar. His response is about the impact a favorite author had on him and how it changed his mindset and his life. Paul also hosts the Get Published podcast. He says that it has helped him to build connections and relationships. His guests offer great advice to his listeners about writing, publishing and marketing books, in a short format. It’s also a lot of fun, he says.ResourcesGetPublishedSystem.com GetPublishedPodcast.com  

Christian Perez Font is the founder of Thinkeen Legal, a law firm that uniquely incorporates data analytics, compliance and law. He began his career as a corporate attorney and in 2008 joined Baxter International, a multinational healthcare company, as in-house counsel. When he joined Baxter, his work was 10% compliance-related and 90% business-related, but by the time he left 5 years later, he was doing 65% compliance work. The key to becoming a better compliance professional, he proposes, is to become a better business person. He and host Tom Fox discuss the importance of data in compliance and in business.Data as FuelWhen people think about Data Analytics they imagine some form of AI that's going to automatically pinpoint problems. Christian says that the truth is that Data Analytics has to be at the core of compliance: data is the fuel that powers the compliance engine. It’s the data that will tell you how you should be communicating compliance policies and doing training so that you can achieve your business goals. Most of the data that is used for compliance purposes is already there from the business side; you just need to understand how to aggregate it, how to look for it and how to plug it in. You have to understand your industry and your company goals before you start collecting that data.How Thinkeen Uses Data Tom asks how Thinkeen Legal uses its data proficiency in mergers and acquisitions, transactional work and compliance. Christian shares how his company used its data expertise to advise clients in cross border transactions. Because we know where the touch points are, he says, we’re able to incorporate them into the due diligence process and ask the right questions and get the right information. They can identify areas of risk which helps their clients decide whether to proceed with an acquisition. Christian finds that general counsels are becoming more savvy about compliance and they appreciate that his firm gives them advice and support.The Future of Data and ComplianceThe intersection of law, data and compliance will continue to evolve, Christian predicts. He is happy that the importance of Data Analytics is being acknowledged. If you don’t have the right data, you won’t get the right information, without which you can’t make the best business decisions. In addition, a big part of what we do with data is benchmarking, Christian says. The more information that we can share among the industry, the better.ResourcesThinkeenLegal.comThinkeen Legal on Twitter | InstagramChristian Perez Font on LinkedIn 

Andrea Falcione and Tricia Cornell of Rethink Compliance, one of the most innovative companies in the compliance space, join Tom Fox in this week’s show. They discuss their compliance journeys, and how content is reshaping the world of compliance.Their Compliance JourneysAndrea is a lawyer by profession. In 2004 she transitioned into compliance; she joined Rethink Compliance about a year ago. Tricia comes from the marketing and advertising world. The founder of Rethink, Kirsten Liston, asked her to join the company two years ago to bring her expertise in creating pieces of content to persuade people to think differently about commercial products, into the compliance space.Content is KingTom asks the guests to explain what ‘Content is king’ means, and why it’s so important and innovative in compliance. Tricia explains that it means that people are curious: they want to read, listen, and view videos, so compliance experts have to make their content consumable and desirable, and through that get their brand message out there. Andrea says that legal and compliance professionals find this idea difficult because they are essentially risk averse. When they send a message, it’s more about mitigating risk than engaging their audience. However, many organizations are getting negative feedback from their content consumers, so there is a need to create content that is relevant and engaging. This is becoming more and more critical, as regulators are looking at the effectiveness of companies’ efforts. Building Trust with ContentAndrea and Tricia share a piece of content created by ReThink Compliance in response to the Me Too Movement, is helping to change perceptions. Compliance officers should think about using content in different ways to get people to trust the process and the people involved in it, Andrea says. A Holistic Approach to ContentTricia advises that a holistic approach to content starts with reaching your audience where they are. What are their attitudes? What are they looking for from their work? If you start with where they are and understand what they need from you, you’ll reach them more effectively with your message. Always think about how you can make your message relevant to your people. This can help build trust too, Andrea adds. If you think about what your audience needs to hear from you, they will begin to trust you more. Revamping the Code of ConductTom asks, how or why can a code of conduct revamp be a powerful tool for a compliance practitioner. Andrea responds that the code of conduct is the cornerstone of every compliance program. As such, it needs to be a document that employees actually use, one that is meaningful and resonates with them. It all comes back to thinking about what your audience needs, Tricia emphasizes. If you want the code of conduct to be a resource, then you must think about where and when your people will need it. What questions might they have? How can you answer those questions in a way that’s easy for them to find the information they’re looking for? She points out that you need to make sure that information is easy to find, and written in language that’s easy to understand, so that they can make the right decision in the moment.ResourcesRethinkComplianceCo.comLinkedIn: Andrea Falcione | Tricia Cornell | Kirsten Liston 

Alyson Van Hooser is a self-described ‘old school millennial’. From being on her own from age 13, to putting herself through college, to leadership positions in the retail and finance industries, Alyson has worked hard to achieve her goals. She now works with Van Hooser Associates, where she has to opportunity to dedicate herself to her passion for leadership development.Leadership is TwofoldAlyson says that leadership is twofold: you lead yourself and you can lead others. The first step in leadership is personal development, she says. She learned early on in life that if she wanted to be successful, she had to first lead herself. As she got older, the leaders in her life helped her develop into a successful person. It was because they chose to serve her, she says, that she listened and learned and followed them where they wanted her to go. Great leaders are able to connect and relate to their people. When you have influence over your people, you can get the results you want from them.Listening is EssentialTom admires Alyson’s ability to really listen to others. He asks her how she developed this great skill. She describes how, from her childhood, she paid attention to her role models. You’re not going to learn if you’re not willing to listen, she emphasizes. She focuses on the little things that people say that give insight into who they are, what they want, and what motivates them. As a leader, that's the information you have to know if you're going to get better results out of your team, she says.Leadership Is InfluenceYou need to have influence if you want people to follow you. In fact, leadership is influence. The only way to get that influence is to serve others. Leadership, Alyson says, is about taking the superior position, which is not about you being on top, but rather putting everyone else before yourself.Training MillennialsLeaders need to serve their Millennial and Gen Z employees by giving them educational opportunities to help them become valuable members of the team. Despite how unfavorably mass media has portrayed Millennials, they bring many skills to the table, and can provide value that older generations may not be able to. If you want the best from them however, you have to give them the opportunity to share their ideas without fear of repercussions. Honor their desire to make a difference, to add value to the team, Alyson says. When she trains Millennials, she teaches them that their responsibility is to be a leader for themselves, to be professional and hold themselves to a high standard. This is necessary to get buy-in from the people above and below you, she says. Stay true to who you are, but adapt in order to relate to people and gain influence with people all across the organization.ResourcesVanHooser.comAlyson Van Hooser on LinkedIn | Facebook | Instagram 

Tom Fox celebrates this special 100th episode of Innovation in Compliance with Megan Dougherty. Megan is the co-founder of One Stone Creative, the company that produces this podcast. The show takes a different spin: first Megan interviews Tom, then he interviews her. They talk about how the show started, favorite episodes, and how you and your business can benefit from podcasting.Favorite EpisodesMegan wants to know what Tom’s favorite episode has been so far. He responds that he loves all the episodes equally, but he has the most fun doing series. It’s easy for him to create so much content because he’s continuously thinking up new ideas, he says.Origin of Innovation in Compliance Tom’s friend Howard Sklar, now a Managing Director at Morgan Stanley, introduced him to the world of podcasting. After Howard moved to the corporate world, Tom took over their podcast and went on to start several of his own. He feels that podcasting is like having a virtual cup of coffee with his guests: he sets out a short outline for each episode but allows the conversation to flow naturally. Whatever they’re passionate about in the world of innovation or compliance, guests are welcome to share. Megan remarks that she enjoys listening to the show because it’s accessible even to laypeople, despite being firmly niched.  Benefits of Having a PodcastMegan asks Tom how he has benefited from hosting a podcast in his personal life, his network and his business. He encourages listeners to absolutely start a podcast if they want to. Among the many benefits, he says, are: There’s a low cost to enter;Your network grows, within your company and industry;You can tap into new markets. About One Stone CreativeTom asks Megan how her company began. She answers that she and her co-founder, Audra Casino, started the company two years ago. They used to work together, but hadn’t been in contact for over a year when Audra called her up and asked if she wanted to go into business together. Their original idea was to be in video production, but it didn’t take off. Podcasting did, though. They quickly got their first podcast client and have been getting more and more referrals since then. Today, they produce podcasts for many interesting people.How to Produce a Winning PodcastMegan walks us through how she and her team produce a podcast, from concept to launch to weekly production. They create an AV identity for each show, which includes cover art, intros, and even marketing materials. What’s Next for Innovation in Compliance?Innovation in Compliance is set to continue for another 100 episodes - and beyond! The world of compliance practitioners, innovators, entrepreneurs, and commentators is full of people with interesting things to say, and Tom Fox is ready to talk to them. ResourcesOne Stone Creative Email Megan: megan@onestonecreative.net