ICQ Log - Denis Hevey

The Psychology of Compliance: Constructing Commitment to a Confident Compliance Culture

 

Last Updated:  08 June 2022 

For resolutions to become reality there needs to exist the rigorous resolve to do the right thing when it matters most. It matters most when no one is looking, or you feel least like doing what is needed.

In the compliance commitment adherence arena, rigorous resolve is rigorously reinforced by regulation, but does this tool alone create the full buy-in needed to have a positive committed compliance culture that all stakeholders can have full confidence in? To address this question, let’s first look at a construct matrix model of behavioural compliance, represented in figure 1, which maps and compares technical compliance competencies i.e., compliance aptitudes with tangible compliance competencies i.e., compliance attitudes. An aptitude/attitude mix.

This matrix maps both individual and organisational psychological approaches to constructing a commitment to a competent compliance culture; after all organisational culture is merely the sum of contributions of individual cultures. It is recognised that some individuals have more impact and are more influential than others in creating the overall trajectory of the communal culture.

These approaches map different dominant cultural situations and outline the appropriate interventions to consider for success in constructing a committed compliance culture that confidence can be placed in by all stakeholders. The situations are polarised for analysis purposes, as such, polarities are blended and diluted in real-life situations, yet it serves as a useful guide as to how a multi-dimensional approach needs to be taken to gain and sustain a progressive rather than a political compliance culture.

It is useful to define what is meant by technical competencies and tangible competencies at this stage and noting the respective scientifically established contributions of each in securing cultural transformation. Cultural transformation is never easy but the clear understanding of the ingredients and how to blend the mix will make it easier.

  • Technical Competencies: This is evidenced by the level of proficiencies in a chosen profession/trade attained by various combinations of professional/ trade qualifications and hands-on experiences. Likely also to be members of a professional/trade body that requires ongoing CPD to keep ‘shelflife’ of such competencies up to date.
  • Tangible Competencies: This is evidenced by the level of proficiencies in effectively operating in and purposefully contributing to a workplace culture that gets the best from oneself and colleagues.

Extensive organisational psychology research has empirically concluded that technical competencies contribute about 33% to productivity effectiveness in the workplace and its culture. Whilst tangible competencies contribute to approximately 67% of productivity effectiveness in the workplace and dictate the nature of the culture that will be tonic or toxic. Technical competencies are most evidenced in CVs, yet the irony is that most recruitment interviews are devoted to technical competencies analysis rather than tangible competencies. Although the latter will make the greater contributions in creating a functional healthy workplace.

Technical proficiencies are already fully outlined in CVs. Technical competencies should be established pre-interview with a major part of enriched selection interviews dedicated to tangible competencies as these are proven to make the most important contributions to an effective and energetic healthy workplace. The aptitude over attitude interviews prevails simply because they are easier to conduct but ignores the longstanding fact that it’s easier to do an ‘aptitude adjustment’ than an ‘attitude adjustment’. This outdated approach is the major contributor as to why poor, if not toxic, cultures prevail in highly technical organisations. Compliance regimes normally exist in such technical environments thus making its healthy adoption complex and challenging. In constructing a committed compliance culture, this matrix model matches aptitude and attitude into four main behavioural categories, termed as JDE Syndromes 1-4. Depending on which JDE Syndrome persists an implementation intervention is suggested to define the adjustments necessary to construct commitment to a competent compliance culture.

  1. JDE 1 Syndrome: This situation is defined by low competencies in both technical and tangible abilities i.e., a poor aptitude combined with a poor attitude to compliance, an apathy zone. Basically ‘they are not on message’ and the JDE here is evidenced by it meaning ‘Just Doing Excuses’ like; the excessive cost of compliance, bad for doing business, too much red tape, competitive disadvantage, old ways are best, many paying the price for the few, etc. This normally occurs at early stages of transformational change, which is marked by high resistance and inertia. The intervention needed here to get progressive change is enforcement carrot and stick style strategies of enlightenment and encouragement with the compelling conviction of Hernán Cortés so retreating to old ways is not an option. This requires rigorous regulation and regulators with resolve to get a new reality.

  2. JDE 2 Syndrome: This situation is defined by high tangible competencies i.e., a positive attitude towards being compliant but with low technical competencies i.e., – very willing to do the right thing but lacking in skills and resources. It’s a conform zone where the task is underestimated. This is often where the greatest number of errors, big and small are made, as good intentions are not necessarily good interventions. JDE in this context stands for ‘Just Do Everything’ when the technical capacity is not in place to effectively execute what is required. The intervention required here to make progress is education so aptitude adjustments can be made to have the technical capacity in place to do the right thing. In these interventions, the Compliance Institute have played and continues to play a pivotal role in this upgrading function. Their qualifications are recognised as the Badge of Honour of demonstrating technical proficiency in compliance adherence. Further membership ensures that the ‘shelf-life’ of these competencies remain fresh and fit for purpose. This is underpinned through a first-class CPD programme that runs in concern with like-minded vested stakeholders to include valued contributions from the Financial Regulator.

  3. JDE 3 Syndrome: This is the most interesting group because it is the most challenging and slowest to change. It is also the most liable to make the greatest errors and is often under resourced in the necessary behavioural mindset cultural transformational change required. Easier to do ‘Aptitude Adjustments than Attitude Adjustments’. This is a situation that is defined by high technical competencies i.e., very aware what is required to be done but with a low appetite for embedding tangible competencies to continually execute it i.e., comply in sufferance because they feel they ‘have to’ rather than they ‘choose to’. It is a high anxiety zone. This sector is evidenced by ‘Compliance Complacency Creep’, where shortcuts have the greatest potential of occurrence, especially where the business opportunities for financial rewards and the immediacy of quarterly return pressures distract from the sustainability focus necessary for strict compliance adherence. The interventions needed here are long-term evolutionary rather than quick-fix revolutionary in nature. The necessary embedding and encoding of an autotelic behaviour of ‘doing the right thing over being right’ is multiplex to metabolise into core DNA rather than just adopting an RNA type publicly presented poster.

  4. JDE 4 Syndrome: This is the ideal situation defined by a high-level technical competencies and high level of tangible competencies i.e., organisations know what is required and are very willing to adhere automatically. Basically, there exists both the right ‘Aptitude and Attitude’ for an autotelic commitment to consistent, competent compliance conduct. In this situation, JDE stands for ‘Just Do Excellence’. To achieve this Holy Grail for compliance there needs to be a sincere and synergetic approach to a sustainable commitment to its construct. External rigorous regulation alone has an inherent danger of distracting from the real and present need for internal ownership to self-regulate so compliance excellence is a reality not just a resolution.

    With robust external regimes in place, it is now time, as noted in many of the annual conferences of the Compliance Institute, for organisations to foster internal regimes so extrinsic compliance regulation is in concert with a robust intrinsic compliance culture. Culture change is not easy but can be made easier if organisations take responsibility and are inherently and intrinsically responsible. This is best achieved by adopting a psychological mindset of taking full ownership of obligations so the obstacles to an effective compliance culture become the opportunities for its encoding and embedding.

    The methodology of understanding and creating this substantive intrinsic ownership mindset of obligations to support a robust and established extrinsic compliance regime will be the subject of a further article, for now, the case is made that both working in harmony is necessary for embedding and encoding a state of compliance excellence in everyday execution. Simple examples of success in embedding and encoding such autotelic intrinsic behaviour would be adherence to drink driving and smoking regulations. Other examples where more work is to be done is with road traffic speeding regulations and workplace Health and Safety Regulations, which is still more in a state of supervision for compliance than a state of autotelic adherence.
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AUTHOR: Denis Hevey

Performance Psychologist and Specialist in Culture Transformation and Business Integration, founding Director of Compliance Institute and Honorary Member.

ICQ Special Anniversary Edition 2022

This article was taken from Compliance Institute's ICQ Special Anniversary Edition 2022