Every ethics and compliance program contains large quantities of data for which interpretation and context can be difficult to determine. Reports to your ethics hotline/helpline are actually telling you much more than the specifics of the report itself. But how do you obtain tangible analysis and recommendations from all of this data? And, how can you effectively convey this information to your executive leadership team, Board of Directors, and Audit Committee?

Integrity DiagnosticsSM is an advanced diagnostic tool designed to assist in the comprehension of deviations from your program’s historical report patterns as well as provide benchmarking of your organization’s data within your industry peer group and across industries. Ethical Leadership Group, a Global Compliance Company, provides expert data analysis to offer insightful feedback regarding underlying issues and overall organizational culture.

Key Metrics
Patterns can be monitored over time by studying the following standard key metrics:
• How many reports are you receiving?
• How often do employees "test" your helpline?
• How quickly are you resolving reports?
• Are reporters identifying themselves?
• Are anonymous reporters following up on their initial reports?
• What types of allegations are being reported?
• What is the severity of the allegations being reported?
• How many allegations are being substantiated?
• What intake methods are reporters using to submit allegations?
• How are your reporters learning about your hotline/helpline?

During analysis of report data drawn from all of your report intake methods, results are compared to the aggregate data in Global Compliance’s extensive database of more than two million reports. Ethical  Leadership Group’s experienced consultants identify “normal” ranges and deviations for your specific industry and all industries, thus providing context for your numbers and types of reports.

Unlike many industry analyses, Integrity Diagnostics utilizes the median, or middle point of the data, rather than the average. The median best represents the heart of the data for a particular metric and avoids skewing that can occur when using an average.

Ranges are shown in addition to the median because the results being examined are not inherently good or bad. We define the range of the metrics shown as the span containing 80% of results, with 10% of companies falling above the maximum of the range and 10% below the minimum of the range.

Diagnostic Reports
Integrity Diagnostics delivers not just metrics, but tangible recommendations. You are empowered with actionable program suggestions that can be shared with executive leadership and the Board of Directors to improve your organization’s ethics and compliance program’s effectiveness. You receive:
• Quarterly diagnostic reports with the year-end report including both the quarterly and 12-month data and assessment (reporting periods align with your organization’s fiscal year). Report delivery is provided in PDF format via e-mail to up to three recipients and can be forwarded and distributed to other relevant parties in your organization. The reports include:
• Benchmarking results of your organization’s specific hotline/helpline data against the data in Global Compliance’s database
• “Management-ready” graphical charts that clearly communicate critical information

Acme Case Study: Diagnostic Reports – Q1 2008
The following case study provides examples of diagnostic reports which would be included in your quarterly presentation. Reporting data is graphically represented and supported by observations and recommendations for each metric.

Founded in 1983, Acme, Inc. is the leading supplier of widgets to the manufacturing industry. Headquartered in Raleigh, North Carolina, USA, Acme operates manufacturing facilities in 10 countries, employing 12,500 employees, to support customers in 80 countries. Integrity Diagnostics assists in the understanding of where Acme is experiencing deviations from the usual call report patterns of other companies within the widget industry, and to track key metrics over time.

 

Acme Summary Report Data

Observations: Acme’s report count is well above industry and overall benchmark norms. This may be due to:
• A higher level of misconduct than other organizations. (As there are no “right” or “wrong” numbers in analysis of report data since each organization and industry is unique, our experience suggests that this is rarely the major contributing factor, but should not be discounted.)
• Employee perception that other reporting channels are not effective or cannot be trusted.
• A broader employee perception of reportable ethics issues at Acme than at other companies.
• Extremely high employee awareness of this reporting channel, perhaps due to recent training or awareness programs.

Recommendations: Acme should consider two courses of action based on the high volume of reports:
• If training or a reporting awareness campaign has recently been conducted, the level of reports should be monitored for the next three quarters.
• If there has not been any recent training or awareness programs, Acme should conduct employee surveys or targeted focus groups to determine the root cause of this significant increase.

 

Acme Awareness Source Report

Observations: It appears that Acme’s training efforts are paying off. In Q1 2008, employees using the Ethics Line primarily learned about it through a training program. Most other call sources were within range.

Recommendations: Acme may consider the following:
• Look at a communications strategy incorporating high quality posters and other communication vehicles, as these are in the low end of the range.
• Reviewing its Code of Conduct to see whether reporting channels are adequately presented in this important vehicle. As its Code of Conduct was well below range as a source of awareness, Acme should develop a training or awareness program to reinforce its Code, with a certification process to validate receipt and intent to comply with its Code policies.

 

Acme Historical Trends for the Most Recent 5 Quarters
It’s important to monitor changes in report metrics over multiple quarters in order to identify trends and act upon early indicators.

Severity A Cases
Observations: Severity A reports have been rising steadily.

Recommendations: Given this trend, Acme should review the Priority A cases received this quarter along with the most recent two or three quarters to evaluate whether the reports are coming from one or more specific locations or involve a specific issue. Based on findings, deeper audits may be required to determine if a larger issue is “in play” in a particular location or area of the business. Additional training or communications on the specific subject may be required if it is found that most reports relate to a specific issue.

 

 

 

Integrity Diagnostics delivers more than just numbers. Through Ethical Leadership Group’s insight, you are empowered with meaningful analysis and actionable recommendations in a format that can be shared with your executive leadership team, Board of Directors, and Audit Committee. These recommendations can be implemented to proactively address issues and improve program effectiveness.

Let us help you understand what secrets your hotline/helpline data holds and how to effectively utilize the knowledge in your numbers.