Saying "No" Effectively

Although we may want to shout, “No, nope, nada, absolutely not, don’t even think about it!  Are you kidding me?!” when we receive an unreasonable or unethical request from the business, it is probably not the most effective way to say no.

Tips to make “no” less painful

There is an art and a skill to saying no effectively.  Even when we have to turn someone down, if it is done with grace and empathy, there is the possibility of winning friends and creating allies through the experience.  During the process of writing my book How to Be a Wildly Effective Compliance Officer, I thought about my experiences as a Chief Compliance Officer and reached out to other compliance professionals to find out how they were able to say no effectively, while still keeping the relationship with the business as good as it could be.  What should we do when we have to say no?

Respond immediately to the request

Nothing irritates the business more than sending an email to the Compliance department, then waiting an eternity for a response.  I met one compliance officer whose default position was not to answer emails.  She felt that if the request was urgent enough, the business would follow up, and she could therefore prioritize only the most important initiatives.  This approach did not win her friends!

As soon as the business makes a request, acknowledge that you have received it.  If you can’t answer right away, tell them that you are working on a response and give a timeframe for when the final answer will be given.  If you can’t respond by the date you said you would, let the business know right away and tell them when they can expect an answer.  In this way, even if you have to say no, the business will know that you’re paying attention to their need and that you’re doing your best to work with them to find a resolution.

Explain your decision

Sometimes people in the Compliance profession say no without giving a reason.  Perhaps we’re too busy to give a full explanation, or we don’t feel the business would understand or care if we did.  Explaining the law or policy that blocks the approval will go a long way toward the business respecting your decision.  Failing to give an explanation can make the business feel disrespected or that your decisions are arbitrary or capricious. 
When you have to say no, use it as a learning opportunity to teach the business why you made your decision.  If the request was against your policy, point out the place in the policy that you relied on.  In this way, the business is better educated about the policies and how you make decisions, so they will be more likely to follow the policies in the future. 

Do it quickly

If you have to say no, deliver the message as soon as the decision is made.  Sometimes people think that it is better to wait until they are asked for a follow-up to deliver bad news.  Don’t wait.  Bad news travels quickly, so it is better to deliver it yourself as soon as possible.

Try to find alternatives that you can approve

When you have to say no, rather than waiting for the business to suggest an alternative, try to come up with one yourself.  The business needs to know that you understand the value of their initiatives.  By trying to find a solution with them, you are participating and making yourself a valuable member of their team.  If you work with them to find a solution to their problem, you make it more likely that they will work with you instead of working around you.

Be empathetic

If you have to say no, do so in an empathetic way.  Saying that you’re sorry you’re unable to approve the decision, or that you know how much the project means to the business will help you to be perceived as a team player. Very few people enjoy saying no to a request.  Explain that you wish you could say yes, or trying saying, “I understand how much you wanted to undertake this initiative, but unfortunately, it just isn’t possible.”  People are much less likely to hold resentments against you personally if they feel that you are working with the business and that you understand them, even though you had to say no.
 
Conclusion

By employing these tips and techniques, we can make ourselves much more effective when we have to say no to the business. 

Three MORE Wildly Effective Ways to Ask for Resources

Last month I wrote about three ways to be wildly effective when requesting resources from the Board or C-suite.  After reviewing the comments and emails I received in response, it’s clear that there are many great techniques that you can employ to obtain resources from the Board or C-suite. Here are three more wildly effective ways to ask for resources.

Utilize a “Choice of Yes” Pattern

When you are presenting your options, assume that the answer will be yes.  Author Alan Weiss describes this pattern as a “choice of yesses.”  Instead of presenting a yes/no possibility, you should state that the Board or C-suite can “choose which of these options works best for the company.”  This language assumes that one of the options will be chosen, which instinctively tells the people evaluating the decision that their job is to pick one of the options.  It is much less likely that the Board or C-suite will say “no” when they are presented with a “choice of yesses.”

When you present to the decision-makers, lead with the request for the resources that you want most, but be prepared with a higher cost option and a lower cost option.  If the Board or C-suite questions whether the resource is really necessary, be prepared to show a cheaper and a more expensive option.  Being prepared with a choice of options will show the Board two things.  First, you’ll show you’ve done your research and thought about what you need.  But more importantly, the Board or C-suite will feel that they have a choice which will make them feel empowered.  

Use Fear, but Follow Up With Specific Actions

Using stories that evoke fear in the Board or C-suite can be very effective in helping them to understand your need for greater resources.  Be sure to explain what can happen if the resources aren’t granted.  Once you’ve set the scene with the potentially catastrophic outcomes, give the Board or C-suite your solution so they can agree to it.  The commonly used platitude “don’t shoot the messenger” may apply to you if you tell the Board or C-Suite that they are in a precarious situation.  They may turn their anger or worry on you.  However, if you provide a plan that will resolve the worrisome situation, the Board is likely to approve plan and therefore the request for more resources which will allow you solve the problem.

Use Visuals

Studies have shown that some people learn in an auditory way and others learn visually.  If possible, bring visual aids to your presentation.  When people are using more than one of their senses, they are much more likely to become engaged.  If you are presenting in both a visual and audio way, you are more likely to get the attention of your audience.
 
For example, I was consulting with a client who was implementing SDN screening software.  He wanted to purchase the vendor’s add-on service which would evaluate and eliminate the vast majority of false positive hits before the client’s compliance team had to deal with them.  This solution cost several thousand dollars a year, but my client knew that his team’s time was better spent on other work. 
 
To demonstrate the value of the false positive clearing service, my client included three slides in his presentation to show the false positives in a simplistic format.  My client said to the Board, “OK, let’s say you’re receiving the report.  It says that our customer Jorge Garcia Sanchez may be a match to someone on the sanctions list.  Look at the match, can you see why our customer isn’t the same person?”  The Board members immediately saw on the slide that their customer Jorge Garcia Sanchez lives in Spain, while the Jorge Garcia Sanchez on the sanctions list lives in Mexico. After going through three examples of this exercise with the Board, my client said, “We can eliminate this waste of time by having my team review only potential true matches.”  My client received approval for the service. 
 
Because the Board had engaged in a simplified version of the activity, they could tell that the solution was necessary and made business sense.  The engagement with the visual made all the difference in their understanding of the problem and the necessity of the solution.
 
Putting it Together
 
Using all of the previous techniques together can make it more likely than not that your request for greater resources will be approved.  Helping the Board or C-suite to understand the problem via storytelling and offering solutions in a way that is likely to obtain a positive response will go a long way to making you highly effective in your job and to having the resources you need to deal with the challenges of an ever-changing regulatory environment. 

Compliance and Ethics Professional Magazine Cover Story Q&A

How fun is this!?!  I'm honoured to be on the cover of this month's Compliance and Ethics Professional Magazine!!  It's a Q&A with the Godfather of Compliance, Joe Murphy.  Here's a copy of the article:

Q:  Why did you decide to write the book? 

A: I saw that many of my peers were brilliant technical compliance practitioners, but that they had tremendous trouble obtaining buy-in from the Board or their managers.  After mentoring several people and teaching them to use sales skills to sell compliance to their internal audience, I decided to write my book.  How to Be a Wildly Effective Compliance Officer was written to reach compliance officers throughout the world to teach them how to be effective through the use of influence and persuasion.

Q:  How did you get into the compliance and ethics field?

A: Unexpectedly I began my career with a film degree from UCLA.  I worked in Hollywood for a few years then went to law school.  After I graduated I worked at Gibson Dunn in Los Angeles in their FCPA practice working on corporate monitorships and creating and testing compliance programs.  Gibson Dunn moved me to London to work on the LIBOR banking scandal in 2011.  While there I married a lovely British man and decided to go in-house.  I became the Director of Compliance for Carlson Wagonlit Travel for Europe, the Middle East and Africa, then moved on to be the first Chief Compliance Officer at United International Pictures, the joint distribution company for Paramount Pictures and Universal Pictures in 65+ countries.  My whole legal practice was focused around compliance-related areas, so the move in-house was an obvious choice.  

Q: What would you say to someone thinking about getting into the field? 
 
A: Compliance and ethics is exciting!  People who aren’t in the field tend to think that compliance is boring, but we get to do all the sexy stuff.  We do internal investigations, travel to do training throughout the business and the world, and get to protect people from retaliation.  It’s an amazing job.  I think the compliance profession is still in its infancy.  I’d encourage anyone with an interest in compliance to join the industry!  I recently started consulting multi-nationals in the creation and optimizing of compliance programs through my company, Spark Compliance Consulting.  There is tremendous opportunity in the compliance profession.  

Q: From what you have seen of compliance and ethics people, what are the things most in need of change for them to become “wildly effective?”

A: I think the biggest thing is for people to think about what’s in it for the business or the person they need to influence.  Many people believe that if someone in the compliance department told someone to do something that they should do it.  In an ideal world this is true, but as we don’t live in an ideal world, we need to become skilled at influencing people and persuading them that it is in their best interest to work with us, be compliant, and act ethically.  Learning to influence someone by working with their motivation is the first big step to becoming wildly effective.

Q: One of your key elements is the ability to listen.  Don’t most people already listen?  What do they need to do differently? 

A: There is a big difference between passive listening and active listening.  Active listening engages the talker so that they keep talking because they are really feeling heard.  Most of the time people are only half-listening or planning what they are going to say next instead of listening with the intention of comprehending what is being said.  Active listening creates investment in the other person so that they want to hear what you have to say. 

Q: How important do you think public speaking is for this profession?  Don’t employees already know they need to listen to the compliance officer?

A: The capacity to speak well in public is a hallmark of a wildly effective compliance officer.  Whether it is performing in-person training or presenting to the Board, the capacity to confidently and clearly talk about the program and risk is a critical skill.  People who aren’t confident pubic speakers tend to think that people who are good at it are just somehow naturally gifted.  While there may be some people who like to speak in public more than others, good public speaking skills can be learned and practiced.  The investment in yourself is well worth it.  At higher levels of business, competency at public speaking is required for progression and effectiveness.

Q: You are at an SCCE conference talking with a CECO who is worried about the report she has to give to her company’s audit committee tomorrow.  What specific advice would you give her for that presentation? 

A:  I would tell her to focus on the outcome she’s desiring.  She should visualize the outcome she wants and create her presentation in a way obvious leads to the outcome she desires.  If she has to present a problem, she should present the problem in the same frame as a potential solution.  If she’s had a major compliance failure, she should have some ideas about remediation that she can present so they continue to have faith in her.  When you know the outcome you desire you are much more likely to achieve it.

Q: Here’s a different CECO.  This one is at a company that’s in trouble.  When he returns home he has to participate in a presentation to government enforcement people to convince them his company has a strong program.  How would you coach this person?
 
A: I’ve been in this position when I was in private practice.  This could go one of two ways.  If the CECO has a good program, I’d tell him to focus on what has gone well within the program and to prepare the documentation to prove it.  The government doesn’t expect perfection.  It expects good faith effort and a well-thought-out and executed program.  If the CECO doesn’t have a good program, I would tell him to think about the resources he needs to build one and to make a list of his requests to bring to the business.  Don’t let a good crisis go to waste.  He should use the opportunity to build a better and more robust program because the business will need him to do so quickly.

Q: Can compliance and ethics people really take your book and make themselves effective?  Is it that easy? 

A: The book teaches specific ways to approach the profession which can make anyone more effective.  One of the most common reviews I get is, “The techniques taught in this book would work for anyone in business.”  I had one reviewer buy a copy for her son who was in sales because she thought the lessons on persuasion, motivation and influence would help him.  Simply reading the book can make you more effective, but to become wildly effective requires time, repeated effort and practice. 

Q: Do you see any examples of well-known people who practice what you talk about in the book?  Any highly visible examples?

A: Lisa Beth Lentini, the Vice President of Global Compliance at Carlson Wagonlit Travel, was my first boss and she taught me brilliantly.  She’s been nominated and won awards in the compliance and governance field and I admire her tremendously.  She’s both a great practitioner and a great manager. 

Q: Where is the first place for someone to start in using the ideas in the book?

A: The first thing people can do is to use some of the ideas on humanizing yourself with the business.  Too many compliance officers are busy being responsible when they need to make time to make friends and be colleagues with the senior managers, C-suite and Board members.  Take time to hang out with people at the water-cooler.  Go out to happy hours and dinners with your co-workers when you’re asked.  You will make yourself much more popular and approachable if you talk about your kids, pets, hobbies, the weather or sports.  Pick something relatable and people will become used to talking to you.  That will help them to trust you when something bad happens.

Q: Are there some ideas that if one is not careful they could backfire?  Are there particular ideas where a compliance professional needs to be careful?
 
A: Well I suppose if you spend too much time talking at the water-cooler and going to the bar that could negatively affect your reputation!  It’s a matter of balance.  You need to be both a friend to people in the business but separate enough to be respected and to not show favoritism.  You have to find that balance.

Q: Your book covers quite a bit of territory.  Have you actually applied all these things in your own career?

A: Every day I try to practice what I preach.  Becoming a wildly effective compliance officer is always a work in progress.  No matter what, when I get up in the morning I think, “Right, how can I do it better today?”  Every day I’m happy to be in this profession, and that passion makes it much easier to be wildly effective.