Global diagnostics company develops and integrates principal-based compliance program

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Client background 

An established, global diagnostic company that is experiencing rapid growth, both organic and inorganic. 

The business challenge 

The life sciences company acquired another diagnostic company but chose not to merge the two businesses. After operating independently for a few years, the client made the strategic decision to merge the two entities. As part of this process, the client also appointed a new chief compliance officer (CCO) to establish a comprehensive compliance program from scratch that the newly merged companies could adopt.  

The task of creating a new compliance program posed a significant challenge for the client. However, an additional layer of complexity arose from the need to successfully and efficiently integrate the distinct cultures of the two businesses that had been operating independently from one another for several years. 

Baker Tilly’s solution-driven approach 

To help soften the integration and adoption of a new compliance program, Baker Tilly assisted the CCO with developing a principal-based program by establishing a framework of guiding principles that employees and stakeholders should follow to ensure ethical behavior and compliance with laws and regulations. 

With these new guidelines in place, there was some resistance to change by the employees. To help team members with this resistance and understand the compliance program better, Baker Tilly implemented various change management strategies, including: 

1. Gradual dissemination of materials: Baker Tilly developed informative materials that were gradually shared with both the existing business and the newly integrated entity. This approach ensured a steady flow of information and allowed employees to absorb the content at their own pace. 
2. Soft approach to change: Instead of overwhelming employees with a massive policy document, Baker Tilly adopted multiple touch points, daily reminders, collaborative initiatives and a campaign-like approach. This gentle method helped employees gain a deeper understanding and adaptation to the program. 
3. Stakeholder involvement: For the employees to adopt the program, it was important that there was also stakeholder adoption as well. By actively involving key stakeholders and soliciting their support for the program, the client aimed to foster a sense of ownership and commitment to the compliance program throughout the organization. 
4. Psychological approach to change: Because there was a lot of change at once, Baker Tilly employed a psychological approach to reshape how employees perceived compliance. By addressing mindset and beliefs, they aimed to positively influence behaviors and attitudes towards compliance within the organization. 
5. Establishing a culture of compliance: Recognizing the absence of a compliance-oriented culture before their involvement, Baker Tilly made efforts to instill a strong culture of compliance. This involved promoting and prioritizing ethical conduct, integrity and adherence to the established principles. 

The accomplished results  

With the help of Baker Tilly developing a principal-based compliance program and implementing change management strategies, the new program was accepted and embraced in a short period of time. This resulted in an organization that now sees compliance as an integral part of their business, rather than an annoyance, and a resource that can be used to make sure they are making the right decisions when faced with a difficult situation.  

In addition, the success of the program has prompted the client's headquarters to take on the same principal-based compliance approach to a global level and implement it throughout different offices around the world.