The complexity of compliance in facility management
1. The complexity of compliance:
Where to start and how the right
facility management partner will help you meet
compliance goals and effectively manage risk
2. 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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3. 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
4. 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
5. 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
6. 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
7. 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
8. The proliferation of standards
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To download JLL’s International Standards
Summary Table, please click here.
9. 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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10. 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
11. 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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12. “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.