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The complexity of compliance in facility management


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Where to start and how the right facility management partner will help you meet compliance goals and effectively manage risk.

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The complexity of compliance in facility management

  1. 1. The complexity of compliance: Where to start and how the right facility management partner will help you meet compliance goals and effectively manage risk
  2. 2. Today’s businesses seek strategic partners. As a result, corporate real estate (CRE) teams increasingly rely on their facilities management (FM) service providers to offer expertise and solutions to achieve compliance goals. 2
  3. 3. How can CRE teams and FM partners navigate the world of compliance and meet ever-increasing expectations? 3 • What are the key compliance dimensions? • What does non- compliance look like? • What are key challenges to achieving compliance? • What are the different types of standards? • How do I choose which standard(s) are best for my business? • What are the benefits of adopting standards? • What makes an effective compliance program? • How do I assess compliance to continually improve performance? Educate Demystifying the Compliance Conundrum Implement Adopting Standards: Means to Achieve Compliance Goals Assess and Improve Aligning Compliance Vision and Values
  4. 4. Demystifying the Compliance Conundrum 4 From a high-level perspective, compliance activities can be divided into four key dimensions: Procurement Vendor Management Financial reporting Accounting Information security Data governance Safety General operations Human resources Master service agreement Labor contracts Third-party contracts Pricing agreements International Regional National Local Industry-specific Ethics Employees Clients Marketplace Shareholders Communities
  5. 5. Examples of non-compliance 5 Statutory and Regulatory Violating a fire safety law Operational and Financial Failing to install a firewall as mandated by the organization’s policy Contractual Failing to perform equipment maintenance as described in the master service agreement Ethics Accepting inappropriate gifts from a vendor
  6. 6. Challenges to achieving compliance 6 Statutory and Regulatory • Complex and rapidly-shifting regulatory environment • Navigating highly-regulated industries – Healthcare – Banking and financial services Operational and Financial • Processes and procedures must be thoughtfully and strategically designed • Requires strong governance structure • Implementation requires regular communication and robust educational framework Contractual • Communication between contract owners and employees carrying out terms • Legal language and contract length • Ensuring compliance when sourcing goods and services Ethics • Spreading awareness of ethics expectations – especially across cultures and geographies • Enforcing policies • Fostering an ethical environment
  7. 7. What tools are available to help achieve compliance objectives? Standards provide a supportive framework that standardizes operations and allows for straightforward performance measurement and verification. Standards can be applied across diverse disciplines, including (but not limited to): 7 Sustainability Safety Benchmarking Data governance Finance
  8. 8. The proliferation of standards 8 To download JLL’s International Standards Summary Table, please click here.
  9. 9. Types of standards • Regulatory standards are developed by regulatory bodies to enforce provisions of legislation - Regulations may include Acts, Laws, Executive Orders and Statutes • Voluntary consensus standards are created by accredited domestic and international bodies and are highly-recommended, but not required by law - “What needs to be done?” • Guidance and technical standards provide a framework or best practices to ensure quality of services or products - “How should it be done?” • Management system standards describe a set of procedures an organization needs to follow to meet its objectives 9
  10. 10. Benefits of adopting standards 10 Compliance-related benefits: • Provide supportive governance framework • Standardize operations • Create straightforward approach to performance measurement and verification Additional benefits: • Mid- and long-run cost savings • Simplifying and clarifying how business should be done – especially across a global portfolio
  11. 11. Fundamentals of an effective compliance program Is the scope of compliance requirements well understood and reviewed periodically? Are knowledgeable personnel in place, at both the corporate and operations level, that maintain expertise collectively across the four key compliance areas? How are compliance training requirements being met? Additionally, how should they be designed to meet client needs? Has the FM service provider established a functional compliance planning and reporting system? Does the FM compliance organization offer performance measurement and reporting to drive continual improvement? Does the FM partner have a process for monitoring and auditing compliance, and follow-up support to ensure compliance and corrective actions are followed? How does the FM partner consistently enforce its policies and other requirements across the organization and how does it respond to acts of non-compliance? 11
  12. 12. “The need for qualified compliance professionals and programs is undeniable in today’s business environment. Staffing your organization with compliance subject matter experts is a critical step in developing a successful compliance program and building an ethical business culture. The road to compliance starts with education.” 12 - Roy Snell, CEO, Society of Corporate Compliance and Ethics To read the full paper, please click here.