Hulk Smash Compliance Program!!

incredible hulk

Hollywood has done it. Now it’s your turn.

Reboot your compliance program.

There is the “reboot” you hear from IT support when your computer is malfunctioning. It seems to always be the first response from the help desk. But once you start back up, its exactly the same computer with exactly the same programs.

Hollywood took “reboot” a step further when it started rebooting old shows, movies and franchises. They originally used the term re-image, where they did not closely follow the original. But now they have gotten much more aggressive and thrown much of the original out the window to go from ‘re-image’ to a “reboot.”

Unless you were living in a cave this summer, you know that they rebooted the Star Trek franchise. Its still the same character names and they are still on Enterprise. They shook off forty years of legacy storylines for a fresh new start.

Ronald D. Moore and David Eick rebooted Battlestar Galactica in 2003 and it finished airing last spring. The original Battlestar Galactica aired in 1978. (We won’t talk about the dreadful Galactica 1980.)  They changed many things in the new version, but kept the character names. Other than the names, they paid little respect to the original characters and even changed the genders of Starbuck and Boomer.

Like Star Trek they kept some clues to the past by keeping an actor from the original. Leonard Nimoy came back as Spock for Star Trek. Richard Hatch, Apollo in the original Battlestar Galactica, was recast as the political leader Tom Zarek in the reboot.

The reboot that inspired this post was the Incredible Hulk. The 2005 movie was a reboot of the terrible 2003 Incredible Hulk. They just ignored the 2003 version and started over. They switched out the director and switched all of the actors. Of course the movies were a reboot of the Lou Ferrigno Incredible Hulk TV Series, which in turn was a reboot from the original comic book. All these Hulk reboots seem to embody Hulk’s catchphrase: “Hulk Smash!!”

Do something new, pretend the old never happened.

Your aim is to end up with something better by shaking off the legacy storylines. You get a fresh creative start.

You still have the same goals and the same basic framework for compliance. Just like Star Trek was still about Kirk and Spock on the Star Ship Enterprise.

It’s not that your original compliance programs didn’t work. Star Trek, Battlestar Galactica and the Incredible Hulk were successful prior to the reboot.

But it could be better, fresher and more appealing.

Smash it and start over.

Thanks to Jeffrey Brandt for inspiring this post, with his post: “Reboot” Your Knowledge Management Program. (Okay. I flat out stole his post, changed a few words and replaced Thunderbirds with Star Trek.)

FTC Guidelines Are In Effect

Today is a the day. The FTC’s recent updates to its Guides Concerning the Use of Endorsements and Testimonials in Advertising are now in affect.

To comply with the Guides, individuals (bloggers, users of social media) must disclose every “material connection” or relationship they have with an advertiser.

How to comply with the changes?

  • Disclose whenever you have a relationship with an advertiser, product or company.
  • Disclose when you are discussing a product or anything of value that you received for free or at a special discount. You can be a fan but as soon as you’ve received something of value, you need to disclose what you’ve received when writing about it.
  • Disclose where you work when you mention your employer, its competitors, or its industry in a blog post, tweet or comment online.

How do you make a disclosure? It’s very simple.

  • “I work for Company A.”
  • If Company B sends you Item B hoping that you review, disclose in the review that you got Item B for free.
  • If Company C pays the way for to participate in a customer event you might write: “I’m a Company C customer and they paid for my travel to attend this event.”

It’s no big deal. It’s the honest and ethical thing to do.

It may even work in your favor. Others will realize that you’re cheap advertising and send you more free stuff.

By the way, I don’t receive any advertising dollars or endorsements in connection with ComplianceBuilding.com. I generate a few dollars of affiliate income from links to products on Amazon. Much of that goes to the PTO affiliate account for my kid’s elementary school.

I occasionally get some free stuff to review. When I do, I’ll let you know when I write about it. [See this morning’s review of Enterprise 2.0.]

Feel free to send that new BMW for me to review. I will happily post an honest review.

Enterprise 2.0 – The Book

Enterprise 2.0 by Andrew mcafee

At the Enterprise 2.0 Conference in San Francisco, Andrew McAfee handed out a few copies of this new book: Enterprise 2.0. I was one of the recipients of a shiny new copy with his autograph on the cover page.

If you have heard of Enterprise 2.0, they you have heard of McAfee. He coined the term in his 2006 paper in the MIT Sloan Management Review: Enterprise 2.0: The Dawn of Emergent Collaboration.

You will enjoy the book. It pulls together all of the bits and pieces that he has said about Enterprise 2.0. Because even if you are familiar with McAfee and Enterprise 2.0, you have not had it all put together nicely in one place. I learned some great new things and was able to see some old things in a new perspective. This is the first book that puts it all into one place.

If you are not familiar with Enterprise 2.0, then you should definitely read this book.

We are at at the tipping point for a new way to communicate. Email was revolutionary when it came out. We could communicate using the internet. It was cheap and easy.

Now we are able to communicate using webpages. This a very different way to communicate than the pure back-and-forth of email and the letters that preceded email. The shift is from channel communications to platform communications, moving from inherently private communication to inherently public communication.

One of the challenges is that the innovation and lessons are coming from the public space into the enterprise. In the past, the innovation in communication technology came from inside the enterprise out to the public space. It used to be hard to establish an email account. You needed big servers and IT support from a company or university. Now you can establish a new email account in seconds from Google using gmail.

With these 2.0 tools we are seeing a reverse in the flow of technology. The internet has gotten much more efficient at finding information than the tools inside our enterprise. Is it easier to find information on the internet using Google or to find information in your corporate intranet?

Those of you who are familiar with McAfee or his blog will find some familiar passages.

  • There is a discussion of his SLATES perspective on the elements of Enterprise 2.0: Search, Links, Authoring, Tags, Extensions, and Signals.
  • The story of Wikipedia
  • The power of weak ties and the expansion of the Dunbar’s number
  • The evolution from the channel communication to platform communication
  • The success of Intellipedia among the intelligence community

McAfee also delves into compliance aspects of enterprise 2.0. In a discussion with the CIO of Dresdner Kleinwort Wasserstein, JP Rangaswami, they discuss how the platform communications of enterprise 2.0 makes compliance easier. Our current mainstream communication tools of email and IM are inherently private. Being private, they are harder to monitor. It’s also harder to spot misinformation, negligent information and bad acts. The more open platform communication of enterprise 2.0 allow more people to be on the lookout for bad patterns, misinformation and compliance issues.

The book takes you through the next big steps of adoption and outlines factors for success, overcoming the knee-jerk reaction to be private, counter fears of abuse, and overcoming the 9X effect for adoption.

The book is worth the purchase price and the time to read it, regardless of whether you are an enterprise 2.0 veteran or a newbie.

In the interest of disclosure, Andy not only gave me a copy of his book, but also autographed it. I’m easily swayed to write about something when it is given to me. He also supplied me with copious amounts of alcohol at parties after the Enterprise 2.0 Conference in San Francisco and the Enterprise 2.0 Conference in Boston. (Another surefire way to get my attention.) I also earn a fee from Amazon if you buy the book through the links in this article. You can judge for yourself if I am easily swayed to say nice things about the book.

References:

How Fraudsters Try to Look Legitimate

Investor.gov

The SEC is putting its new investor-focused website to good use: Investor.gov.

The first item that caught my eye was their article on how fraudsters use fake SEC registrations and bogus seals to make them look legitimate: Fake Seals and Phony Numbers: How Fraudsters Try to Look Legit.

They offer these five pieces of advice:

  • Deal Only With Real Regulators
  • Be Skeptical of Government “Approval”
  • Look Past Fancy Seals and Impressive Letterheads
  • Check Out the Broker and the Firm
  • Be Wary of “Advance Fee” or “Recovery Room” Schemes

“If you want to invest wisely and steer clear of frauds, you must get the facts. Never, ever, make an investment based solely on a promoter’s promises or what you see on the Internet”

The other thing that caught my eye as a blogger, was the SEC’s use of an out of the box WordPress blog deployment to run the Investor.gov website. Just like I use here at Compliance Building.

Happy Thanksgiving

That means an extra long weekend for me.

Truman at the White House thanksgiving

The White House traditionally pardons their turkey. The tradition is credited to President Truman who received a White House turkey for Thanksgiving. But there is no evidence that he spared the life of the turkey. According to an in-depth investigative report by the Washington Post, it was George H.W. Bush (41) who first officially pardoned a Thanksgiving turkey:Turkey Pardons, The Stuffing of Historic Legend.

Enjoy the long weekend if you can. I have some stuff in the oven for when I’m back on Monday.

Thanksgiving_oven

Oven image by Joseph Zollo on Wikimedia Commons:Thanksgiving oven.jpg

Engage with Grace

With the Thanksgiving holiday this weekend, I’m turning the blog over to public service.

Some conversations are easier than others.

Last Thanksgiving weekend, many bloggers participated in the first documented “blog rally” to promote Engage With Grace – a movement aimed at having all of us understand and communicate our end-of-life wishes.

It was a great success last year, with over 100 bloggers participating and spreading the word. Plus, it was timed to coincide with a weekend when most of us are with the very people with whom we should be having these tough conversations – our closest friends and family.

The original mission – to get more and more people talking about their end of life wishes – hasn’t changed.

A bit of levity.

At the heart of Engage With Grace are five questions designed to get the conversation started. I’ve included them at the end of this post.  They’re not easy questions to answer, but they are important.

To help ease us into these tough questions, and in the spirit of the season, I’m going to start with five parallel questions that are easy to answer:

The Easy Questions:

engage with grace 1

Silly? Maybe. But it underscores how having a template like this – just five questions in plain, simple language – can deflate some of the complexity, formality, and even misnomers that have sometimes surrounded the end-of-life discussion.

So with that, I’ve included the five questions from Engage With Grace below. Think about them, document them, share them.

The Hard Questions:

engage with grace 2

Over the past year there’s been a lot of discussion around end of life.

One man shared how surprised he was to learn that his wife’s preferences were not what he expected. Befitting this holiday, The One Slide now stands sentry on their fridge.

Wishing you and yours a holiday that’s fulfilling in all the right ways.

Updated links to others in the blog rally:

Real Estate and OFAC Compliance

650 fifth avene

The tale of 650 Fifth Avenue is one that should be closely watched by compliance professionals dealing with real estate. Last year, the Department of Justice filed a forfeiture proceeding against a 40% interest in the property held by the Assa Corporation. They recently filed a forfeiture proceeding against the other 60% held by the Alavi Foundation.

The Amended Complaint alleges that the Alavi Foundation has been providing numerous services to the Iranian Government and transferring funds from 650 Fifth Avenue Company to Bank Melli, a bank wholly owned and controlled by the Government of Iran. The Amended Complaint alleges that the properties are forfeitable as the proceeds of violations of the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., together with Executive Orders and United States Department of Treasury regulations, and as property involved in and the proceeds of money laundering offenses.

Now the tenants are in the position of having been making rent payments to the Iranian government. This may not result in any criminal or civil sanctions, but the names of those tenants are being dragged through the muck. The same is true for the property management company.

References:

The Four Areas of Risk and Knowledge

4 box black swan

When thinking about risk, I break things into four quadrants. There are things we know and there are things we don’t know as individuals. I then slice slice that further again with the things we know and the things we don’t know as part of the larger organization or conscious state.

Our sweet spot is the the things we know that we know. (The green area on my chart.) Those are our operations. Those are the things we have in the realm of compliance. We may not be fully compliant and dealing with the risk. But it is known.

At the opposite corner are the things that we don’t know that we don’t know. This is the black swan territory. This is an area of danger for an organization. This is a knowledge void and a compliance void. These are risks that we don’t know about. We don’t know the magnitude of the risk and we don’t know it even exists. Our models miss this factor. Our organizations are not paying attention to these risks.

4 box black swan

The other two areas are also interesting.

The things we know that we don’t know is an area that we know we can improve. (The orange quadrant on my chart) This is the area of known ignorance or accepted unknowns. You can manage these risks, because we know them. They have been identified, although not quantified. They may be on the list of things to address. Or we may just be willing to run naked in this area and are not worried about the risk.

The last area of the things that we don’t know we know is an area of opportunity. (The purple quadrant on my chart) This is risk that they are managing, even if they don’t know that risk exists. Often this will be a risk associated with another risk, either through causation or correlation. If an organization realizes they have this knowledge, they maybe able to create a new opportunity for themselves by discovering it. You do need realize that the causation or correlation may sever at some point, pushing this risk down into the territory of the black swan.

There is also an element of danger in the opportunity area when it comes to records management. These may be the pieces of information getting unearthed during litigation that gets an organization in trouble.

It’s important to realize and accept that there are things we don’t know. The key to bettering the organization is to continually try to reduce the amount of stuff that we don’t know.

I want to credit Liam Fahey, a professor at Babson College and co founder of the Leadership Forum, for the origins of this matrix. He gave a presentation using this analysis to a group of law firm knowledge management leaders in October of 2008.

Positioning yourself for tomorrow’s social media today: Practical approaches for legal professionals

lexisnexis

Join me for a 60-minute Webinar at 11:00 am Eastern time on Wednesday, December 9. It’s free, sponsored by Martindale-Hubbell Connected.

The webinar will give you ‘real world’ examples of social media tools helping legal professionals become more efficient and productive. The panelists will also discuss the future of social media use – will we soon say goodbye to email?

The webinar panel includes a range of legal professionals and social media experts from across the globe:

You can register for the webinar here.

Learn real world examples of how social media tools help legal professionals be more efficient. Explore the future of social media.
Topics:

  • Time management: Finding the time.
  • Personal and professional development: Ways to research, share and learn by collaboration.
  • Future uses by of social media