We’ve got a saying here in the midwest: if you don’t like the weather, wait five minutes and it’ll change. A gorgeous morning ☀️ will give way to some crazy storms later in the day ⛈️. Don’t believe me? Just take a look at this … It’s a bit old, but it’s totally true (I was there that day):
The recent wild weather got me thinking about how compliance teams are weathering some crazy storms themselves right now.
I actually took to LinkedIn to express just that:
Are the Feds really going to slow down on key regulatory enforcement areas? Or is it just bluster? Who knows?
But what I DO know is this—compliance cannot just hunker down and ride it out. Expanding on that post, here are four traits that will solidify your place as a strong leader when the winds of regulatory change are sweeping down on you and your org.
Vigilance
Just because enforcement actions decrease, the underlying risks don't vanish. Stay vigilant!
The law is the law … until it’s not. But those kinds of changes take a very long time to happen. Rounds of committee meetings, drafts of bills, tons of hearings, and—lest we forget—a series of court challenges can keep us on our toes, sometimes for decades. 🧑⚖️🏛️
Despite all this, the underlying risks are still the same. Money laundering is bad. Reporting conflicts of interest is good. Sharing trade secrets is bad. How all these might be regulated could change, but at their cores, what’s bad stays bad; what’s good stays good.
That, to me, is the essence of an ethical culture. Just because whether you can do something—or, more precisely, the extent to which you can do something—changes, it doesn’t mean you should abandon what’s right.
So, be vigilant. Keep your finger on the pulse of what’s going on; at the same time, don’t lose sight of what’s right. Be that voice of calm in the storm that encourages your peers to stay true to your company’s (and hopefully everyone’s individual) values and ethics.
Connection
Connection is always in season. Even if you can’t answer with certainty, be prepared to sort out whatever comes to pass.
Being a true partner in your business is key to building a successful E&C program. We’ve said it before: If you’re viewed as a partner, leadership will be more likely to meet your recommendations with deference rather than skepticism.
Once you’ve built that strong connection, your leadership and the teams you guide will be more receptive to you telling them “I don’t know” during difficult times. Because an “I don’t know” that comes from a trusted leader inherently means “I don’t know, but I will find out soon, and have a recommendation that’s reasonable.”
I don’t know, but at least we’re in good company. | Source: Montage via Giphy.com
So, when the path is cloudy, and your responses seem to be littered with “I don’t knows,” your connection with your business’s leadership and their teams will give them the confidence to proceed with whatever path you determine is best. 🌄
And in the limbo between “I don’t know” and providing the solution, guide your teams to lean on the systems and protocols you’ve already set up and used successfully in the past to mitigate risk. They will serve you well again in the future. Topics change; solid risk mitigation strategy doesn’t.
Commitment
Stay steadfast—no matter the headwinds. Regulatory shifts don’t alter your primary goal: fostering culture and integrity.
When things get stormy, it’s time to double down on your commitment to your Code, especially because some people might view the turmoil as an opportunity for personal gains.
We see a storm, he sees an opportunity. | Source: Twisters by Universal Pictures via Giphy.com
Maybe some of your employees want to fudge some sales numbers or accept some high-value, red-flag gifts.
You can’t let them. 🛑
This is where your Code comes in. Hopefully, you’ve already done the work to shore it up as a functional, active, and foundational document. If so, use it to your advantage by getting it on everyone’s radar and reminding them that it’s THE source to guide them to decisions consistent with your company’s values.
If your Code doesn’t currently work like that, that’s OK. Now might just be the best time to engage in an update exercise across your org! Enlist the more high-risk areas in helping you make updates. That way, you’re putting ethical behavior at the forefront of their minds, grounding them in ethics while the rest of the regulatory world is spitting out tornadoes.
Awareness
Be wary of the slippery slopes. If you slow down, you’re sending the wrong message and setting a very bad precedent.
Ever heard of “black ice”? It’s when the ground freezes and makes the surface super slick, but you can’t see it. So, you need to proceed with an awareness of, “hey, this is a thing that could cause a problem.” You’re still moving forward at a relatively normal pace, but you’re also on slip-alert … and maybe hanging onto a railing.
Safety first! | Source: Reconnecting Roots on PBS via Giphy.com
When times are challenging or uncertain, it is tempting and easy to change your pace. Maybe you’re more inclined to make quick, reactive decisions, or you’re on the other end of that spectrum and take double the amount of time you normally would to provide advice.
Instead, keep moving forward with a sense of awareness of how you operate:
- Are you more inclined to make a reactive decision? 🫨 Type out that frantic email, but don’t hit send! Take a breath and revisit in a few hours. See if anything’s changed.
- Are you an overthinker? 🤔 Try to commit to addressing a problem by a certain time so you don’t end up agonizing over it and second-guessing yourself. You got this!
I want to make one thing clear: Addressing it doesn’t necessarily mean resolving it. Sometimes, the best thing you can do is provide a status update and next steps. And remember, if you’ve built that connection, an “I don’t know, but I will find out” can be the most valuable response.
After the Storm
You and your E&C team are fundamental parts of doing business responsibly. This is your time to stay the course, prioritize ethics, and foster a culture that can weather any regulatory climate—calm or stormy.
How are you doing in this season of change? I’d love to hear from you! 📧