NEWS

The problem with Taylor’s theory is that products and services become geared to what the business wants and can produce rather than what the customer wants. This approach impedes employees from giving their best to the operations of the business.

Hence compliance on its own will not deliver the in the modern business context a quality service – because if nothing else compliance applied on its own will compromise the delivery of a quality service by restricting input from employees.

David Bishop, head of risk services at PricewaterhouseCoopers in an article in the Sunday Times (September 2, 2005) observes that,

“Traditionally, in dealing with risk management, businesses often focus on hazards, such as fire, on insurance and on compliance. … With the drift of regulations across the business world, many companies too often consider risk management as just compliance”.

Risk management is therefore more then just compliance and firms need to understand what the key requirements of good risk management are.

Often employees will make the issues before them fit the “tick box” requirement without understanding the wider context and parameters of the risk being addressed by the compliance.

Good risk management for a modern business therefore questions the earlier Taylor theory and is reliant on the employee participating in the delivery of the product and service at every level of operation of the business.

Risk management demands that consideration is given at every level of operation of a business to:

• Understanding the reason for “ticking the box”
• Identifying variances to the compliance requirement.
• Considering the relevance of the variance to the assessment of the risk.
• Looking at and considering the cause and effect of an action – assessing the risk.
• Ensuring that the internal risk factors are taken account of and minimized.
• Linking the business procedures together to maintain continuity of delivery of product and service both internal and external to the business.
• Delivering the product and service that the customer wants.

In conclusion therefore compliance in isolation is not going to be sufficient to wholly satisfy the more risk aware and quality focus needs of a modern law firm across every operation of its business activities.

Key issues to consider:

• Think beyond ticking the box – ask why I need to tick the box.
• Ask questions and learn before the mistakes occur.
• Appreciate your part in producing a good quality product and service.
• Identify mistakes that have occurred before and after your involvement with the work and offer constructive and positive advice.

Thinking in a more risk focused way will:

• Enable the business to obtain a lower professional indemnity premium.
• Reduce stress for all employees.
• Improve the quality of delivery of product and service to both the internal and external customers and suppliers.
• Reduce waste – materials, time and money etc.
• Enable full compliance with regulatory and legal requirements.
• Reduce complaints.
• Improve the quality and value of the work attracted to the business.

Written by: Paul F. Wood MA, Practice Management & Lexcel Consultant.

Tel: 07785 527 955. Email: paulwood680@btinternet.com