{"id":4448,"date":"2016-01-04T11:11:08","date_gmt":"2016-01-04T16:11:08","guid":{"rendered":"https:\/\/compliance-risk.com\/?p=4448"},"modified":"2018-05-29T11:25:49","modified_gmt":"2018-05-29T11:25:49","slug":"building-a-compliance-professional-services-organization","status":"publish","type":"post","link":"https:\/\/compliance-risk.com\/building-a-compliance-professional-services-organization\/","title":{"rendered":"Three Years Later - The Song Remains the Same..."},"content":{"rendered":"

Building a Compliance Professional Services Organization<\/strong><\/h4>\n

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Are we Hipster Chic?<\/em><\/strong><\/span><\/h2>\n

This past weekend I frequented a hipster coffee shop in Greenwich Village.\u00a0\u00a0 As I drank my \u201cchichi\u201d cup of coffee, I couldn\u2019t help but overhear the conversation at the table next to me. \u00a0It was two young gentlemen discussing how the nuances and imperfections of vinyl improve the overall music \u201clistening experience\u201d.\u00a0 I silently chuckled to myself and began to feel very nostalgic.\u00a0 Long before the Internet, Pay-for-Music Services, MTV, etc. the only way we could connect with bands we loved was through their albums, album art, band photos and the lyric sheets that were on the album jacket.\u00a0 The resurgence of vinyl in stores such as Urban Outfitters and the pending relaunch of Columbia House (for Vinyl Albums)-\u00a0 illustrates a very important point \u2013 people will always want the ability to connect to something they believe in.\u00a0 <\/strong><\/p>\n

Get the Led Out!<\/em><\/strong><\/span><\/h2>\n

When I arrived home, I decided to go through my old albums.\u00a0 This is a collection that I assembled since I began listening to music in earnest in the early 1980\u2019s.\u00a0\u00a0 I decided to listen to Houses of the Holy by Led Zeppelin.\u00a0 One of my favorite tracks on this album is \u201cThe Song Remains the Same\u201d.\u00a0<\/em> I have listened to this album and song hundreds if not thousands of times since I first purchased it in 1984.\u00a0 However, this time around \u2013 it resonated as it never had before. \u00a0As I contemplated the rationale behind this, the answer became very clear.<\/p>\n

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This past weekend marked the three year anniversary of Compliance Risk Concepts (\u201cCRC\u201d). \u00a0As CRC\u2019s founder and managing partner, achieving this milestone conjures up great pride and a strong sense of satisfaction. \u00a0It also causes me to pause and reflect on the strategic vision I initially had for CRC \u2013 and question if \u201cThe Song Remains the Same<\/em>\u201d?<\/strong><\/p>\n

Recipe for Success?<\/em><\/strong><\/span><\/h2>\n

By way of background, I am a career Financial Services Compliance Officer.\u00a0\u00a0 I spent 20 years working for Investment Banks, Broker-Dealers and Asset Managers and other Integrated Financial Services Organizations.\u00a0\u00a0 Twelve of those years was as a Chief Compliance Officer (\u201cCCO\u201d).<\/p>\n

Prior to launching CRC, I developed a business model aimed at changing the manner in which Compliance Professional Services were delivered within the financial services industry. \u00a0In essence, I sought to \u201creverse engineer\u201d the system.<\/p>\n

You may ask what this actually means.\u00a0\u00a0 Well, as a buyer of Compliance Professional Services for a good portion of my career, I had been \u201cBig 4\u2019d\u201d<\/em><\/strong> to the point where I felt truly disenchanted.\u00a0 \u00a0I had a significant amount of first hand experience with failed engagements with Big 4 firm that either yielded no results \u2013 or lofty and unrealistic recommendations that were not practical \u2013 thus, never implemented.\u00a0\u00a0\u00a0 All that was achieved was wasted time, efforts and resources.<\/p>\n

Firms can no longer tolerate nor afford a model where they pay a senior partner $700 per hour for an engagement that is executed by individuals with little or no relevant experience at $200-$300 per hour.\u00a0 It\u2019s a strategy aimed at racking up billable hours \u2013 where the Consultant wins \u2013 and the Client loses.\u00a0\u00a0\u00a0\u00a0 The goal for CRC was to chip away at this model through one operating premise: Develop long term strategic relationships based on short term incremental and cost effective wins.\u00a0\u00a0 Bottom line: Deliver practical and achievable outcomes for our clients.<\/strong><\/p>\n

The \u201cGeorge Constanza\u201d Method.<\/em><\/strong><\/span><\/h2>\n

So \u2013 how was CRC going to compete and succeed in a highly commoditized vertical?\u00a0\u00a0 This is where the strategic vision came into play.\u00a0\u00a0 The approach was going to be honest, straight-forward, with one clear objective: EXECUTION. <\/strong><\/p>\n

Since I had been to this dance before, I knew exactly what I didn\u2019t want to do.\u00a0\u00a0 I didn\u2019t want to speak in catch-phrases and jargon \u2013 and in the end rack up a ton of billable hours and ultimately deliver nothing of substance or value. \u00a0\u00a0Seinfeld fans will understand this next reference.\u00a0 \u00a0I call this the \u201cGeorge Costanza\u201d method.\u00a0\u00a0 -\u00a0 Do the opposite of what one normally does \u2013 and you will succeed!<\/p>\n

I wish it were that simple.\u00a0\u00a0 Having said that, the operating premise holds true.\u00a0\u00a0 Isn\u2019t the definition of insanity doing the same thing over and over expecting different results? \u00a0So, at the end of the day \u2013 for CRC to be successful, we would have to become recognized as an industry leader that distinguished itself by offering a service level that was predicated on a value proposition that actually delivered beneficial and measurable results to our clients.<\/p>\n