The complexity of compliance: Where to start and how the right

facility management partner will help you meet

compliance goals and effectively manage risk

Today’s businesses seek strategic partners.

As a result, corporate real estate (CRE) teams increasingly rely on their facilities management (FM) service providers to offer expertise and solutions to achieve compliance goals.

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How can CRE teams and FM partners navigate the world of

compliance and meet ever-increasing expectations?

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• What are the key

compliance

dimensions?

• What does non-

compliance look like?

• What are key

challenges to achieving

compliance?

• What are the different

types of standards?

• How do I choose which

standard(s) are best for

my business?

• What are the benefits

of adopting standards?

• What makes an

effective compliance

program?

• How do I assess

compliance to

continually improve

performance?

Educate Demystifying the

Compliance Conundrum

Implement Adopting Standards:

Means to Achieve

Compliance Goals

Assess and

Improve Aligning Compliance

Vision and Values

Demystifying the Compliance Conundrum

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From a high-level perspective, compliance activities can be divided into four key dimensions:

Procurement

Vendor Management

Financial reporting

Accounting

Information security

Data governance

Safety

General operations

Human resources

Master service agreement

Labor contracts

Third-party contracts

Pricing agreements

International Regional

National Local

Industry-specific

Ethics

Employees

Clients

Marketplace

Shareholders

Communities

Examples of non-compliance

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Statutory and Regulatory

Violating a

fire safety law

Operational and Financial

Failing to install a firewall as

mandated by the

organization’s policy

Contractual

Failing to perform equipment

maintenance as described in

the master service agreement

Ethics

Accepting inappropriate

gifts from a vendor

Challenges to achieving compliance

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Statutory and Regulatory

• Complex and rapidly-shifting regulatory

environment

• Navigating highly-regulated industries

– Healthcare

– Banking and financial services

Operational and Financial

• Processes and procedures must be

thoughtfully and strategically designed

• Requires strong governance structure

• Implementation requires regular

communication and robust educational

framework

Contractual

• Communication between contract

owners and employees carrying out

terms

• Legal language and contract length

• Ensuring compliance when sourcing

goods and services

Ethics

• Spreading awareness of ethics

expectations – especially across

cultures and geographies

• Enforcing policies

• Fostering an ethical environment

What tools are available to help achieve

compliance objectives?

Standards provide a supportive framework that standardizes operations and allows for straightforward performance measurement and verification. Standards can be applied across diverse disciplines, including (but not limited to):

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Sustainability

Safety

Benchmarking

Data governance

Finance

The proliferation of standards

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To download JLL’s International Standards

Summary Table, please click here.

Types of standards

• Regulatory standards are developed by regulatory bodies to enforce provisions of legislation

- Regulations may include Acts, Laws, Executive Orders and Statutes

• Voluntary consensus standards are created by accredited domestic and international bodies and are highly-recommended, but not required by law

- “What needs to be done?”

• Guidance and technical standards provide a framework or best practices to ensure quality of services or products

- “How should it be done?”

• Management system standards describe a set of procedures an organization needs to follow to meet its objectives

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Benefits of adopting standards

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Compliance-related benefits:

• Provide supportive governance framework

• Standardize operations

• Create straightforward approach to performance

measurement and verification

Additional benefits:

• Mid- and long-run cost savings

• Simplifying and clarifying how business should be

done – especially across a global portfolio

Fundamentals of an effective compliance program

Is the scope of compliance requirements well understood and reviewed periodically?

Are knowledgeable personnel in place, at both the corporate and operations level, that maintain expertise collectively across the four key compliance areas?

How are compliance training requirements being met? Additionally, how should they be designed to meet client needs?

Has the FM service provider established a functional compliance planning and reporting system?

Does the FM compliance organization offer performance measurement and reporting to drive continual improvement?

Does the FM partner have a process for monitoring and auditing compliance, and follow-up support to ensure compliance and corrective actions are followed?

How does the FM partner consistently enforce its policies and other requirements across the organization and how does it respond to acts of non-compliance?

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“The need for qualified compliance professionals and programs is undeniable in today’s business environment. Staffing your organization with compliance subject matter experts is a critical step in developing a successful compliance program and building an ethical business culture. The road to compliance starts with education.”

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- Roy Snell, CEO, Society of Corporate Compliance and Ethics

To read the full paper, please click here.