Getting compliance a seat in the boardroom

Getting compliance a seat in the boardroom On Second Thought …
Beth Peterson
President,
BPE
beth@bpeglobal.com

      I've been involved in some aspect of global trade since 1985 ' yep, that's 25 years.
      I have really enjoyed what I do. And I believe that I've been successful because I've never just accepted 'getting the job done' as a way of operating. I've always looked at global trade as critical to my company's success and felt that I played a huge role in making that success happen.
      I believe successful companies understand that global trade plays a huge role in the strategy of the company. That means the company's executives and board of directors get global trade. But let's face it; I don't know many executives who understand even the basics of global trade.
      So, how do executives learn and understand global trade? It is through their global trade managers and directors communicating effectively and strategically. Here are some tools and skills to communicate the value of what you do every day to the executives running your company.
      One of the most important things to understand in order to get compliance a seat in the company's boardroom is to think like an executive, talk like an executive and walk like an executive. If you don't act like an executive, you may never get invited to the boardroom. If you do get the invitation, executives aren't going to hear you unless you speak their language.
      Now ' to get you in the right frame of mind ' you may be the highest ranking person in your company who understands global trade. Seriously, if you are a director or vice president, there probably isn't a single person above you that knows the first thing about managing the company's trade activities. If you are an analyst or administrator, you are probably just one or two clicks from the boardroom when it comes to global trade expertise.
      You understand the complexities of global trade, and I believe it is your obligation to spread the word about this complex world that we live in. And don't just say how complex it is, or focus on the scare tactics of potential fines and penalties. Your job is to explain in business terms how important global trade is so that these complexities are addressed at a strategic level.
      Since you are the highest ranking global trade expert in your company (or close to it), the first thing that any executive does is spout market analysis. You should know numbers like 'complex, cross-border global transactions accounted for more than $10 trillion in 2007 and, according to a McKinsey report, are expected to grow to more than $70 trillion by 2025.' You should have projections on what your company's growth plans are in relation to this type of analysis. If you don't have it, sit down with your accounting department to help you figure it out. It is likely that you are managing most or all of the global trade compliance activities for your company. I look at companies today and they're divided into regions or business units. There is a general manager who runs Asia-Pacific and another who runs Europe and the Middle East. But the global trade professional in the company is responsible for the whole world and rarely has a large staff.
      The scope of what you are doing is really unfathomable in any other part of your business. Highlight this global reach and responsibility as an opportunity to shed light on global activity, rather than a burden. By showing the executive team that you have visibility into the company globally, you can become a go-to person for unique insights.
      So what should you communicate when you get to that boardroom?
      ' The chief executive officer wants to know how global trade compliance ensures business viability and increases shareholder value.
      ' The chief financial officer cares about accountability and transparency.
      ' The chief information officer cares about meeting the business requirements in a timely and cost effective manner.
      ' The chief counsel wants to meet an array of regulatory challenges.
      ' The vice president of logistics and supply chain cares about agile international operations.
      Your focus should be on raising awareness about why trade compliance is important, in a concise, well thought-out manner. Your communications should always be supported by numbers that legitimize what you're talking about. You should have your global trade Key Performance Indicators handy and share them often. You should make sure that your departmental objectives are aligned with your company's objectives. It is critical that you tie each of your compliance activities to a financial metric. And you should show how you are creative and are using internal (direct and indirect) and external resources to get the job done.
      Now, with all this in mind, start building your five-slide, 10-minute executive presentation for that opportunity to get compliance into the boardroom. Obtain the right supporting data, but don't build a presentation around it. Just roll it up to support your executive's goals. Keep it global; keep it simple. Be able to go deep. Translate your trade compliance efforts into how your team delivers value and mitigates risk for your company contributing to cost reduction, customer retention, higher margin and increased revenue.