October 1-3, 2014 // Atlanta // www.theECOA.org // #AECC2014

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Empowering Middle Management to Elevate Your E&C Message

Thursday, October 2, 2014

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E i MiddlEmpowering Middle Management

Julie Moriarty, The NetworkJimmy Lin The NetworkJimmy Lin, The Network

Lots of Challenges Facing the Middle

• Inexperience

• Increased span of control

• Multigenerational teams

• Disengagement

• Global expansion

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Global expansion

“Middle Managers: Their Challenge, Value and Helping Them Perform Better” ‐ Bersin by Deloitte 

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Challenging Perception of Business

Only 43%

Of millennial workers in Developed Markets believe businesses behave in an ethical manner

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“The Deloitte Millennial Survey – Deloitte”

Finding Meaning and Purpose

81% Want to work for a socially responsible or ethical company

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“Millennials in the Workplace” ‐ Bentley University 

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73%

Organizational Justice is employees’ degree of agreement that:

Key Drive in Culture of Integrity

73%Organizational

Justice

27%

All Oth I t it

■ Clarity of Expectations

Comfort Speaking Up

■ Direct Manager Leadership

■ Their company responds quickly and consistently to verified or proven unethical behavior and

■ Unethical behavior is not tolerated in their department.

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n = 65 companies.Source: CEB analysis.

All Other IntegrityComponents

■ Comfort Speaking Up

■ Trust in Colleagues■ Openness

of Communication

■ Tone at the Top

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“Predictive Monitoring – CEB”

Career Moments are Risky

Personal environment changes – “Me” factor• Personally impacting

• Stressful changes

Personal environment changes – “Me” factor• Personally impacting

• Stressful changes

Business environment changes – higher level risks

• Changes in Tone from Top

• “No Plan” impressions

• Significant increase in

Business environment changes – higher level risks

• Changes in Tone from Top

• “No Plan” impressions

• Significant increase in

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• Significant increase in unknowns

• Significant increase in unknowns

Moments with higher levels of reporting misconduct

“Why Career Moments Matter...” by Corporate Executive Board 2012

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Ten Steps to Help the Middle

1. Train managers in handling employee reports and non‐retaliation

2. Make the program theirs – ownership drives engagement

3. Assess current status of attitudes and knowledge in the middle

4. Help managers lead (in compliance)

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4. Help managers lead (in compliance)

5. Solicit input for compliance risk assessments

Ten Steps to Help the Middle

6. Give them tools to help make compliance decisions

7. Involve managers in message delivery: context, why important; message delivery; provide feedback post‐delivery

8. Acknowledge the reality

9 Communicate and demonstrate values

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9. Communicate and demonstrate values

10. Make ethical leadership matter

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Managerial Development

Help middle managers: more than 65% of incidents are reported to managers

1managers

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Train managers on how to have the conversations and process for capturing incident information

CEB Survey Analysis; The Network Benchmarking Reports

Make the Program Theirs

Li t t h ll d

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• Listen to challenges and concerns

– Acknowledge difficulty 

• Obtain input, but

– Make sure input parameters are clear

Don’t get stuck in “committee

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– Don t get stuck in  committee stagnation”

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Assess Status of Attitudes

Use employee surveys to gauge how well compliance risks and policies are understood

3policies are understood

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Understand how compliance messages are received & 

perceived by frontline employees

Help Them Lead as a Group

• Inspire collaboration among middle

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Inspire collaboration among middle management – Define common needs– Peer pressure can have positive outcomes

• Give them tools to help them walk the talk– Vignettes

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Vignettes– Scenarios– Role playing– Discussion starters– Q&As

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Process Involvement

Involve middle managers in risk assessments; participation in 

idi i t t i k i

5providing input to risk scenarios

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Ground‐level feedback can highlight process gaps, 

workarounds and other risks

Help Them Make Good Decisions

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• Develop & refine judgment‐based thinking– Rules won’t get you there

• Be available to provide– Guidance, when asked

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– Recognition, when appropriate– Coaching, when needed

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Message Delivery

Prepare managers to deliver compliance messages and to embody values through actions

7embody values through actions

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Buy‐in by middle managers helps lead aspiration‐based Gen‐Y workers and 

provides just‐in‐time messages 

Acknowledge Reality

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• Middle management may have more influence on employees than you– Middle management has:

• more daily visibility

• more impact on their careers

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more impact on their careers

– Employees may not identify with you and other leaders

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Organizational Values

Help middle managers communicate clear values and principles to drive business conduct

9principles to drive business conduct  

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Recognize demonstration of company values; support the middle through 

training & communications

Make Ethical Leadership Matter

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• Include E&C goals in performance reviews

• Define goals and track against them– What’s measured, matters

• Give middle management initiatives

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Give middle management initiatives visibility to company leadership

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ROI and Program Effectiveness

Ethical Culture Metrics

• Survey/assessment resultsy

• Entry/Exit interview data

• Performance evaluations

• Examples of ethical leadership, behavior that are rewarded

• Helpline

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• Helpline (inquiries as opposed to complaints)

• Employee communications (nature and number)

ROI and Program Effectiveness

The Negatives

• Lawsuits

• Administrative actions

• Complaints

• Fraud incidents

• Investigation costs

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g

• Fines

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Organizational Metrics

• Sick days

• Worker’s comp claimsWorker s comp claims

• Accidents

• Theft

• Employee complaints

• Customer complaints 

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• Retention rates

• Recruiting costs

ROI and Program Effectiveness

Engagement Metrics

M t ti i ti d• Management participation and sponsorship of Code and overall E&C program

• Reminders needed to complete initiatives or obtain information

• Employee:

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– Feedback/suggestions– Participation in company initiatives– Interest shown in improving organization

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Maintaining Program Support

Demonstrate link between E&C initiatives and benefits to business

• Better oversight & policies =Better oversight & policies = better business practices

• Better E&C compliance = better compliance in all areas (safety, financial integrity, asset protection, etc.)

• Middle management & employee engagement = better engagement in all areas

• Ethical culture =

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Ethical culture   better teamwork and productivity

• Stronger E&C program = better public image, better recruiting & retention

Maintaining Program Support

• Evaluate all available data to identify potential problems 

• Centralized visibility– Track everything – Totality of circumstances– Aggregate view

• Conduct regular audits of

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• Conduct regular audits of controls and processes

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Maintaining Program Support

• Maintain leadership/Board visibility to your program status and initiatives

• Continually assess risk and employee attitudes using multiple vehicles

• Adjust program as necessary to improve effectiveness 

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• Don’t forget about informal avenues for obtaining program support and feedback

Ensuring Program Success

Don’t do it alone

• Engage others to:

– Help manage workload– Provide input– Support and drive program

• Work of others helps establish ownership outside of E&C office

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Ensuring Program Success

Have a plan

• Identify short term wins that can be• Identify short‐term wins that can be quickly implemented

• Develop a multi‐year plan with goals for each element

• Write it down and track against plan

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Keep up the Momentum

• Prioritize phased activities by risk (geographic, relationship types, dollars, etc.)• Conduct regular status meetings• Keep moving forward, even in small steps

P id l d t di t t t l d hi• Provide regular updates regarding program status to leadership• Share process with Risk Management and Internal Audit to identify synergies that can 

be leveraged

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Julie K MoriartyGeneral Manager, Training and 

Q&A

Jimmy Lin, GRCPVP of Product Management and Corporate Strategy 

Communications StrategyThe NetworkJulieMoriarty@tnwinc.com

The NetworkJimmyLin@tnwinc.com