HTML clipboardDuring tough economic times when margins are slim or non-existent, companies take a hard look at costs and, in doing so, often take aggressive cost-cutting measures. Unfortunately those areas of the organization that are not generating revenue and are perceived as non-critical are the ones that are significantly scaled back or eliminated altogether.
You know that trade compliance is not only essential, it is a strategic advantage for the organization. Does your executive team understand that? It is time to sell the executive team on compliance.
When I say sell them compliance, I do not mean constantly reminding them about the possibilities of fines, penalties and jail time. Although this can be an effective method for grabbing the attention of a CEO, after awhile it sounds more like Chicken Little crying, "the sky is falling," than an effective argument for supporting the efforts of the compliance organization. That is especially true when the executive team may be more focused on the here and now instead of the long-range implications of their cost-cutting initiatives.
Selling compliance means thinking offensively. It means emphasizing the positive as well as the strategic benefits compliance brings to organization instead of just focusing defensively on penalty mitigation efforts. It is taking assertive actions to show the executive team what is being done to lower costs and improve efficiencies that add to the overall profitability of the organization as a whole.
Several years ago I wrote an article, Metrics in Trade Compliance, that outlined some of the ways to measure the efficiency and effectiveness of compliance-related activities. If you measure the things important to an organization's bottom line�costs, revenue and time�and present them in an easily read format, metrics can help demonstrate the true value of the compliance organization.
When was the last time you sold compliance to your boss or your boss's boss? Although compliance will never be considered a profit center, by thinking offensively and acting strategically it may be recognized just as integral and indispensable to your organization's bottom-line success as the revenue-generating departments.
