The Secret Sauce for Thriving in Increasingly Regulated Industries
At the time, I was working at a startup, and we were involved in a long application process for a special export license. This was big for us. It would qualify us for a major international contract. As is typical of life at most startups, I held several seemingly unrelated responsibilities—including overseeing export samples and documentation, a task that the company was really not prioritizing in a meaningful way.
An inspection team came to our office on very short notice, and I still remember the sweaty palms, the heart palpitations and the silent prayers during the inspection. It felt like the fate of the entire business was balancing on my documentation, which was a single, not especially detailed spreadsheet. By some miraculous chance, we passed.
Compliance means more than documentation
We had a great product, and we assumed that we were organized enough for the company’s needs by saving and logging files in excel sheets on secure drives. But when the moment of truth arrived in the form of a short- notice -government audit, we were hardly prepared and unable to quickly generate clear reports for the auditors.
We got lucky. Had it gone the other way, we would have been found non-compliant with industry standards, and the company would have been issued hefty penalties that would have put us out of business. That was when I learned that documentation was a business’ bedrock, one of its most important assets, and must be treated as such for the business to thrive.
40% of companies classify their compliance processes as basic or reactive (Lorman, 2021)
Everyone thrives in a compliant organization
Being in compliance is essential for a business to thrive, yet many still do not adhere to it, and they suffer the consequences. In a recent case, Bank of America was fined $225 million over ‘botching’ disbursement of unemployment benefits at the height of the pandemic. In a different case, Uber was found to have failed to properly train its drivers in California on the state’s passenger safety laws, resulting in a $7.5 million fine.
These examples go to show that the most important aspect of being compliant isn’t about the business, It’s about the end customer! Are they going to receive the best service and care possible because your frontlines are up-to-date on regulations and ready to meet their every need?
The average yearly cost of non-compliance concerns in businesses is around $14.82 million (Lorman, 2021)
Compliance management, be it for internal or external policies, can be a very complex and tedious process for an organization. From making sure staff training is completed in an efficient and effective manner, to proper record keeping and reporting protocols.
This is especially true for large and highly regulated industries where people’s lives and security are at stake, such as in government or healthcare organizations. In these industries staying compliant is even more challenging with regulatory bodies constantly updating their guidelines and regulations. However, managing these procedures manually is unsustainable and has become a thing of the past for many organizations with the emergence of cloud-based fully-automated Learning Management Systems (LMS).
LMS: Be efficient, trained, and always ready
Learning management technologies have progressed by leaps and bounds in recent years. An LMS can optimize staff training with blended and digestible learning options, automate documentation tracking and reporting, and support endless system integrations—making each element simple, efficient, and intuitive for all users.
A robust LMS also eliminates procedural inefficacies and human errors, saving the organization time and money by making sure everyone is up-to-speed on the latest information and compliance requirements. This is done with automatic reminders, one-click-to-learning features and real-time reporting at all levels of the organization.
An LMS can make all the difference for an organization aspiring to always be in compliance, shifting it from surviving to thriving. Maintaining operational readiness and encouraging learning can drive growth in every part of an organization. And as for audits, bring ‘em on!
To learn more about choosing the right LMS for your organization, download the 7 tips you need to know before making your selection