Organisations can have their compliance management system certified in accordance with ISO 19600. Whether and when this is appropriate must be carefully assessed.
The standard can be applied in both businesses and other organisations. Small and medium-sized enterprises can also benefit from the standard, as the recommendations are scalable and can be applied to varying degrees depending on the size of the organisation.
The Compliance Management System (CMS) set out in ISO 19600 is based on five pillars, which can also serve as a „roadmap“ for implementing a CMS:
1. Compliance and Risk Audit
The compliance audit serves to determine the company’s current status with regard to its compliance activities. The risk audit serves to identify compliance obligations (risks). The result is a „compliance risk map“ for the company. This analysis forms the basis for all further measures aimed at establishing the CMS.
2. Guided tour
The focus is on the various roles, responsibilities and areas of authority within the organisation, particularly at management level. It is management’s responsibility to take the decision to implement a CMS, to define the objectives and framework of the CMS, and to allocate the necessary resources. A key factor here is the example set by management: if management is committed to ethical, legally compliant behaviour – and thus to preventing and penalising unlawful practices – and actually lives up to this commitment, then an important prerequisite for a CMS to function effectively is in place.
3. Management and control measures
The control measures that a company must put in place include policy documents such as a code of conduct, process descriptions and operational guidelines. These must be drawn up in accordance with the findings of the compliance and risk audit and should be specifically tailored to address identified compliance risks – always closely aligned with business processes. Appropriate monitoring and control measures must be integrated into these processes.
4. Communication and training
Most breaches of the rules stem from a lack of knowledge. Knowledge of the existence of a requirement and of the consequences of one’s own actions is therefore crucial if compliance is to be achieved. The standard requires ongoing training designed to enable employees to understand compliance requirements and act accordingly. Intensive communication and awareness-raising help to create a sustainable corporate culture.
5. Continuous improvement
As with quality management, the continuous improvement of the CMS in place is one of the key tasks. This involves carrying out random and ad hoc checks to ensure compliance with regulatory requirements (e.g. through internal audits). Ongoing monitoring of the legal environment and continuous updating of the risk analysis are necessary in order to constantly adapt the system to new circumstances.
Any identified breaches of compliance must result in a response from the company. This includes investigating the incident and determining the consequences of the identified misconduct (sanction). Corrective and preventative measures are designed to prevent a recurrence.
Certification of a management system is not always appropriate or necessary. Therefore, when setting up a CMS, this aspect should be carefully assessed in advance: what are the benefits of certification? Is it required (by the market or by customers)?
Certification should only be considered if these and similar questions can be answered unequivocally with „yes“. In addition to certification, the company has numerous alternative options available to it for effectively communicating the existence of the CMS.
Eckart Achauer studied law and business administration, followed by postgraduate studies leading to a Master of Business Administration (MBA). He undertook further professional development alongside his work to qualify as a European Quality Manager (DGQ), a mediator specialising in commercial mediation, and a Certified Compliance Manager (TÜV).
He spent around 10 years in the international insurance industry, holding various management positions within a Swiss insurance group (claims department, sales, assistance), before moving into management and business consultancy in 1997.
As a consultant and managing director of various consultancy firms, Mr Achauer has specialised in organisational and process optimisation, as well as in the development and implementation of management systems – quality management, risk management and compliance management.
At Senator Executive Search Partners, Mr Achauer is responsible for the Compliance Management division. As part of compliance audits, he analyses organisations„ “compliance fitness’, raises awareness and provides training for management, executives and staff, and supports companies in developing and implementing bespoke compliance management systems. In doing so, he always takes into account the specific risk profile of each company. Thanks to his many years’ experience as a manager and consultant, he is thoroughly familiar with the practical challenges faced by businesses.
It is not without reason that employer review sites such as kununu or Glassdoor offer dedicated sections where candidates can rate the application process or the interview. If criticism is openly voiced, companies should take it very seriously and respond appropriately – both in their external communications and by applying the feedback to their internal processes.
Drawing on external expertise
But what can companies do? Often, the key to success lies in collaboration between HR managers and line departments. When specialist departments, due to their heavy workload, submit their staffing requirements at far too short notice or provide feedback on proposed candidates only after a long delay, this is understandable, but it is nonetheless a disaster for the recruitment process. Recruitment should not only be recognised by all those involved as one of the decisive factors for the success of the entire company; this realisation must also be put into practice.
This means that specialist departments, too, must recognise their responsibilities within the recruitment process and set appropriate priorities. This requires the support of senior management and a collaborative approach to finding solutions. Involving a neutral third party, such as an HR consultancy, often helps in this regard. External consultants are more likely to be listened to; they can resolve points of contention and, together with all those involved, help to define efficient and manageable processes. This applies to the use of technical systems as well as the mandatory setting of response times and rules for communicating with applicants.
On this common basis, the internal processes are then actually No longer a problem.
After completing his degree in Automotive Engineering and Industrial Engineering, he began his career in the automotive industry in the fields of sales, development and marketing, and also spent a year in Japan working for one of the largest automotive suppliers.
He then moved to a world-renowned premium car manufacturer, where he served as a marketing officer responsible for product marketing in Japan and South America, and as a marketing officer responsible for marketing strategy in North and South America.
In 1994, he decided to set up his own business and founded a recruitment consultancy in Munich, which he has been developing and expanding for over 20 years. As managing director, his main areas of focus are, naturally, the automotive sector and mechanical and plant engineering.
His PhD in the field of aptitude assessment perfectly complements his areas of expertise, particularly with regard to HR and management consultancy. His thesis focuses on identifying and demonstrating typical personality traits among engineers, as well as defining areas for development to ensure a successful career.
These are scientifically derived and presented in the book *Aptitude Testing in Practice*.
At the same time, his focus is on building networks and cooperation models, as well as the ongoing development of systems and processes in HR consultancy.
Over the past 20 years in the field of HR consultancy, he has developed several brands that continue to operate successfully in the market to this day.
The topic of the Best Practice Profile (BPP) has already been covered in depth in a number of previous articles. A BPP serves as a benchmark. It enables conclusions to be drawn about a candidate’s positioning in terms of individual personality traits and helps to identify potential areas for development and untapped potential. It shows what makes the best in an industry tick and which traits are particularly necessary and conducive to success in a specific role. In short, a Best Practice Profile is a comparison with the best.
This article discusses the approach required to create a best-practice profile. Creating a best-practice profile involves five steps: the first step is to identify the most successful employees within a particular occupational group in the company. In order to identify these employees, success criteria must be defined. What criteria should be used to select the most successful employees? Which figures are key to success? Examples of success criteria include turnover generated or return on investment achieved. Next, a best-practice group is formed from the company’s most successful employees, and the characteristics relevant to success and verifiable are compiled. Figure 1.1 shows a table for identifying the most successful employees.
Next, each selected employee completes an online aptitude assessment. This is a self-assessment exercise. It identifies and highlights the participant’s strengths and weaknesses. Some sample questions can be seen in Figure 1.2.
Next comes the analysis of the aptitude assessment. The results of the aptitude assessment reveal the different levels of the individual characteristics among the most successful employees. By combining and analysing all the profiles from the best-practice group, a best-practice profile is created. This profile is also known as the ideal profile. It shows which criteria are consistently considered important or unimportant by the participating employees.
However, the performance reviews for each individual employee are also taken into account and recorded in a personal profile.
In the final step, the values of the individual profile are compared with those of the best-practice profile. A deviation analysis is carried out. This involves checking the extent to which the values of the two profiles correspond for each individual characteristic. The key criteria are also reviewed. Care is taken to check whether the key criteria are the same and to assess the extent of the difference between the individual and ideal profiles. Figure 1.3 shows an example of a partial evaluation of a suitability assessment.
By comparing the best-practice profile against several benchmark profiles, it is easier to highlight significant changes in self-assessment relative to the values of the benchmark group.
In a structured interview, deviations can be discussed on the basis of the BPP. Furthermore, by asking targeted questions, the causes of the observable differences can be clarified.
The next post in this series will focus on the criteria for a good process. What criteria must a good and reputable process meet? What else should be taken into account?
After completing his degree in Automotive Engineering and Industrial Engineering, he began his career in the automotive industry in the fields of sales, development and marketing, and also spent a year in Japan working for one of the largest automotive suppliers.
He then moved to a world-renowned premium car manufacturer, where he served as a marketing officer responsible for product marketing in Japan and South America, and as a marketing officer responsible for marketing strategy in North and South America.
In 1994, he decided to set up his own business and founded a recruitment consultancy in Munich, which he has been developing and expanding for over 20 years. As managing director, his main areas of focus are, naturally, the automotive sector and mechanical and plant engineering.
His PhD in the field of aptitude assessment perfectly complements his areas of expertise, particularly with regard to HR and management consultancy. His thesis focuses on identifying and demonstrating typical personality traits among engineers, as well as defining areas for development to ensure a successful career.
These are scientifically derived and presented in the book *Aptitude Testing in Practice*.
At the same time, his focus is on building networks and cooperation models, as well as the ongoing development of systems and processes in HR consultancy.
Over the past 20 years in the field of HR consultancy, he has developed several brands that continue to operate successfully in the market to this day.
As part of our „mini-series“ on international negotiation, we looked at the following in the last Article We discussed the objectives of the negotiation, as well as effective preparation and argumentation. Today we will be looking at further key aspects of international negotiation using a case study.
Peter H. is holding talks today with representatives of the Australian company Smith Ltd., a competitor in the V-belt sector. Smith Ltd. wishes to improve the quality of its products and is negotiating with Peter H. regarding a licence for technical know-how. As it is not viable for Peter H.’s company to manufacture in Australia itself for various reasons, he is also interested in granting a manufacturing licence.
Smith Ltd. is seeking an exclusive manufacturing licence for Australia. They need to invest heavily to implement the know-how and therefore wish to be protected in Australia. Peter H. is keen to secure a steady income from licence fees. He is concerned about losing money, as if Smith Ltd. is unable to implement the know-how as planned, his licence income – which is linked to Smith Ltd.’s turnover – will remain low. Peter H. intends to grant a non-exclusive licence so that he can, if necessary, sell a licence to another company.
Failure seems inevitable. Both parties are sticking to their positions and the atmosphere of the negotiations is deteriorating. The problem boils down to whether the manufacturing licence should be exclusive or non-exclusive. Even if the parties agree on the other issues, the licence becomes the key issue. A position-based approach to negotiation not only leads to disagreement on the substance of the matter, but also to a blurring of the lines between the issue at hand and the personal dynamics involved.
How can this problem be resolved? Peter H. must try to negotiate objectively and with a focus on mutual interests. Firstly, the unresolved issue of the „licence“ should be recognised as a problem shared by both parties. Furthermore, a framework should be developed to identify where interests lie and where they overlap. Ideally, this would have been drawn up in advance by one of the parties and could look like the diagram below:
A closer analysis of these structures reveals that the interests of both parties converge at a certain point: Peter H. grants Smith Ltd. an exclusive licence on the condition that, following a specified start-up period, a certain minimum annual turnover is achieved. This ensures a minimum licence fee. As long as Smith Ltd. achieves this minimum turnover – which may be staggered over the years – the licence may not be granted to third parties in Australia. Exclusivity is therefore linked to a minimum turnover – the licence is thus effectively exclusive, and Smith Ltd. remains unrivalled in its own country.
As a rule, both parties make concessions to one another during the course of the discussions and move closer together in their positions. It is also important to negotiate the terms of each individual concession. A shrewd negotiator will, where possible, only make a concession if the other party is prepared to make a concession in return. The better you understand your own interests and those of the other side, the greater your scope for making concessions.
Key considerations in international negotiations:
Level of communication
Analyse the other party’s understanding of the language, i.e. how thorough and detailed their knowledge of the language is, and to what extent there is overlap between what you say and what the other party responds with. The more accurate your analysis is, the better you will be able to assess whether the statements made by both parties are consistent.
Active listening and asking questions
Interests must be explored through attentive listening and asking questions. The ability to listen is a key asset in this age of globalisation! Anyone who lets their negotiating partner finish speaking, puts themselves in their shoes, asks targeted questions and refrains from lecturing stands a good chance of gaining as comprehensive a picture as possible of the other side. After all, listening and understanding are far from the same as agreeing with a specific opinion. It also gives you the opportunity to uncover contradictions that are based solely on the other party’s presentation. You can then beat them at their own game – that is, using their own arguments.
Definition of key terms
In many negotiations, it is a good idea to define key terms relating to the deal together in advance. This helps to minimise misunderstandings from the outset and gives the negotiation a clear structure.
Interests rather than positions
Positions are often associated with negative assumptions and reflect personal attitudes. It is difficult to move away from such a standpoint without, at least to some extent, losing face. It is better to explore the interests hidden behind the obvious positions and to discuss them.
Interest-based negotiation helps to de-escalate situations and demonstrates how to identify the underlying views of both parties and find potential common ground.
If you are aware of the other party’s interests, you are better placed to respond appropriately and effectively. Anyone who manages to summarise the other party’s position effectively and then explain their own viewpoint significantly improves their chances of success.
Extension of the scope of the negotiations
Once you have explored both your own interests and those of the other side, new, previously unrecognised possibilities for a solution emerge – thereby broadening the scope of the negotiations.
Contract Coordinator
It is often helpful to appoint a contract coordinator on both sides. If this approach has not previously been common practice with your business partner, you should explain to them the benefits of an effective working relationship. Taking all intercultural considerations into account, emphasise their obligations to cooperate in order to ensure the necessary groundwork is carried out for the contract negotiations. Propose the next steps and work with your partner to draw up the individual implementation steps or milestones: Who? When? With whom? How? Also specify who is responsible for meeting the milestones. This ensures that the enthusiasm following a jointly achieved negotiation outcome does not fizzle out, but that the next steps proceed efficiently, quickly and purposefully with the help of a contract coordinator.
Delayed or non-existent feedback, an overly complicated application process or excessively high requirements set by HR departments – flaws in internal processes often make it difficult to fill vacancies quickly. These problems are well known, but are too rarely addressed proactively.
Given the shortage of skilled workers – which, for some occupational groups, is already reaching considerable proportions in some cases – one would actually expect companies to pull out all the stops to fill positions critical to their success as quickly as possible. Yet in many cases, the word „actually“ is also the key term that describes the failure of these efforts. „Actually, we ought to be coordinating much more closely with the specialist department“, „Actually, the candidate should be receiving our contract offer as soon as possible“, ‘Actually, we ought to be building up a pool of applicants’. Every experienced HR professional knows how important internal processes are for successful recruitment, yet in practice it is precisely these internal procedures that are not managed as effectively as they should be.
A lack of feedback is the main point of criticism
According to a reader survey conducted by the jobs and recruitment portal Karrierebibel.de*, job applicants are particularly frustrated by receiving no response at all, or only a very late one, to their application or interview. Just under 23 per cent of participants said they never heard from the company again after applying. 13.5 per cent of those surveyed received no feedback after their interview.
Other points of criticism include a lack of transparency regarding why the application was unsuccessful (18 per cent) and the fact that the position in question is re-advertised after the rejection (just under 10 per cent). All of this demonstrates a lack of respect for applicants and ultimately damages both the image and the recruitment efforts of the company in question.
Threat to new recruits
A recent study by the recruitment agency Robert Half** also confirms that recruitment processes take too long and that candidates are being lost as a result. The reasons for this lie, on the one hand, in processes that are too cumbersome and, on the other, in the increased expectations of candidates. Over half of the CFOs surveyed in the study (55 per cent) agree that candidates have become more impatient. This is because most candidates have several options available to them through multiple applications and therefore have a choice.
„The consequence: lengthy recruitment processes jeopardise the quality of new hires,“ the study states. Put simply, this means that if companies taking on staff wait too long to make a decision, the best candidates will have moved on in the meantime and, in the worst-case scenario, the search will have to start all over again.
After completing his degree in Automotive Engineering and Industrial Engineering, he began his career in the automotive industry in the fields of sales, development and marketing, and also spent a year in Japan working for one of the largest automotive suppliers.
He then moved to a world-renowned premium car manufacturer, where he served as a marketing officer responsible for product marketing in Japan and South America, and as a marketing officer responsible for marketing strategy in North and South America.
In 1994, he decided to set up his own business and founded a recruitment consultancy in Munich, which he has been developing and expanding for over 20 years. As managing director, his main areas of focus are, naturally, the automotive sector and mechanical and plant engineering.
His PhD in the field of aptitude assessment perfectly complements his areas of expertise, particularly with regard to HR and management consultancy. His thesis focuses on identifying and demonstrating typical personality traits among engineers, as well as defining areas for development to ensure a successful career.
These are scientifically derived and presented in the book *Aptitude Testing in Practice*.
At the same time, his focus is on building networks and cooperation models, as well as the ongoing development of systems and processes in HR consultancy.
Over the past 20 years in the field of HR consultancy, he has developed several brands that continue to operate successfully in the market to this day.
Companies that require support with crisis management or need to fill a vacant management position on an interim basis often turn to so-called interim appointments. One area of application is project work, where the company in question lacks sufficient capacity or project management expertise. Other areas of application include, for example, specialist areas for which a company does not need to have one or more experts on its permanent staff.
But just how willing are specialists and managers to take on such interim roles? The HR experts at HR Consult Group investigated this, amongst other things, in a survey involving over 10,000 candidates. The aim of the study is to gain an even better understanding of candidates’ wishes and needs, so that recruitment consultancies can tailor their services as precisely as possible to these requirements.
Back to the original question: Are candidates even willing to take on temporary leadership roles?
Yes, they do!
When asked about interim roles, a large majority of participants – 60 per cent – indicated a willingness to take on such positions. Of these, just under a fifth of respondents (18 per cent) stated that they are, in principle, willing to take on an interim role. In doing so, they consciously accept the short-term nature and the specific challenges that such roles entail. At 42 per cent, a large proportion of participants would accept project-based interim roles, thereby establishing a clearly defined (thematic) scope of work from the outset. However, 40 per cent of candidates would not wish to take on such a role.
Interim roles often involve rather difficult and, in some cases, unpleasant tasks, such as restructuring or even the closure and liquidation of a company. It is therefore not surprising that many of the candidates surveyed have no interest in such a position. Particularly ambitious jobseekers, on the other hand, may find fulfilment in these often tricky challenges. Once the issue has been resolved, the next challenge – in the form of another interim role – is already waiting for the candidate.
After completing his degree in Automotive Engineering and Industrial Engineering, he began his career in the automotive industry in the fields of sales, development and marketing, and also spent a year in Japan working for one of the largest automotive suppliers.
He then moved to a world-renowned premium car manufacturer, where he served as a marketing officer responsible for product marketing in Japan and South America, and as a marketing officer responsible for marketing strategy in North and South America.
In 1994, he decided to set up his own business and founded a recruitment consultancy in Munich, which he has been developing and expanding for over 20 years. As managing director, his main areas of focus are, naturally, the automotive sector and mechanical and plant engineering.
His PhD in the field of aptitude assessment perfectly complements his areas of expertise, particularly with regard to HR and management consultancy. His thesis focuses on identifying and demonstrating typical personality traits among engineers, as well as defining areas for development to ensure a successful career.
These are scientifically derived and presented in the book *Aptitude Testing in Practice*.
At the same time, his focus is on building networks and cooperation models, as well as the ongoing development of systems and processes in HR consultancy.
Over the past 20 years in the field of HR consultancy, he has developed several brands that continue to operate successfully in the market to this day.
