The plan to build a compliance culture across the value chain focuses on ensuring all associates and partners adhere to key legal and ethical standards. Compliance training completion rate, for instance, ensures that employees receive necessary information to act ethically, with a target range of 85%-95%. Using automated training reminders can enhance completion rates, leading to a more informed workforce and reducing the risk of non-compliance.
Supplier audit pass rates are another essential metric, ensuring that supply chain partners meet compliance standards. By conducting pre-audit workshops, companies can help suppliers align with expectations, aiming for an 80%-90% pass rate. Additionally, incident response time plays a critical role in swiftly managing any compliance issues that arise. Implementing monitoring systems can streamline this process, ideally keeping response times within a 48-72 hour window.
Top 5 metrics for Compliance Across the Value Chain
1. Compliance Training Completion Rate
The percentage of employees within the supply chain who have completed mandatory compliance training.
What good looks like for this metric: 85% - 95%
How to improve this metric:- Automate training reminders
- Offer flexible training schedules
- Incorporate engaging training methods
- Provide training in multiple languages
- Set training completion as a performance goal
2. Supplier Audit Pass Rate
The percentage of suppliers who pass compliance audits within the value chain.
What good looks like for this metric: 80% - 90%
How to improve this metric:- Develop clear audit criteria
- Conduct pre-audit supplier workshops
- Provide suppliers with feedback reports
- Create incentives for high compliance rates
- Simplify the audit process
3. Incident Response Time
The average time taken to respond to and address compliance-related incidents within the value chain.
What good looks like for this metric: 48 - 72 hours
How to improve this metric:- Implement incident monitoring systems
- Establish clear incident response protocols
- Train a dedicated incident response team
- Regularly review and update response plans
- Utilise data analytics for quicker incident detection
4. Policy Violation Rate
The frequency of policy violations detected across the value chain.
What good looks like for this metric: 5% - 10%
How to improve this metric:- Communicate policies clearly and regularly
- Ensure policies are easily accessible
- Implement immediate consequences for violations
- Involve employees in policy-making
- Conduct regular policy reviews and updates
5. Stakeholder Feedback Score
The average score reflecting the satisfaction of stakeholders with the organisation's compliance efforts across the value chain.
What good looks like for this metric: 8 out of 10
How to improve this metric:- Conduct regular stakeholder surveys
- Act on feedback promptly
- Maintain open communication channels
- Involve stakeholders in compliance discussions
- Celebrate compliance achievements with stakeholders
How to track Compliance Across the Value Chain metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
