How New Government Administrations Affect Corporate Policy (and What to Do About It)
Charles Darwin argued that adaptability is the key to survival – it outdoes both strength and intellectual abilities. Technically, this applies to businesses as well – think about all the things that can impact your business? Everything from mergers and acquisitions to changes in laws and regulations. To remain competitive is to ensure adaptability within a volatile economic, regulatory and political climate.
Change in ANY government results in changes in regulation
It takes months of preparation to staff any new administration, understand the work of the agencies, lay out policy priorities and implement important initiatives. However, the current US administration has begun to implement certain campaign promises already (such as the withdrawal from the Trans-Pacific Partnership). Additionally, a series of presidential memoranda dealing with trade, reducing the regulatory burdens for domestic manufacturing, federal employment and other issues have also been signed.
No matter where you are in the world, one thing is certain – every new administration brings changes in regulations and laws. So, what happens when the regulatory frameworks change? Businesses adapt, and the quicker they adapt the more competitive they remain.
While it’s too early to predict any long-term changes to existing regulations, a large part of President Trump’s campaign was run on the promise of repealing existing regulations and executive orders. In January 2017, the Federal Register contained 89,535 regulations published since 1994, many of have been criticised for being outdated and duplicative.
Less regulations does not mean no governance
Policy changes and implementation could begin as early as within six months of inauguration, and possibly sooner. Regardless of the timeframe, businesses will most likely need to revise their existing contracts and procedures to ensure they reflect the changes in regulations implemented by the new administration. So, how do you do this efficiently?
While the idea of less regulation is appealing to businesses, the process of remaining compliant remains the same. Regardless of how the new administration goes about repealing existing regulatory requirements (or introducing new ones), businesses will be obligated to reflect these changes in their corporate policies.
Adapt your process, or fail…
Whilst you may no longer be legally obliged to report on everything, for governance purposes you still need to follow your own internal processes. As regulations change it is essential that you act quickly to remain competitive. Those organizations that fail to adapt will retain old, slow processes that cost more to staff and take longer to administer. You should act quickly to update those processes to remove any redundant stages or your competition will quickly out manoeuvre you.
For this reason, processes, contracts, operating procedures and other types of documentation need to be searched and analyzed as quickly and accurately as possible. With significant effort required to perform these reviews and make changes, starting early and understanding your current situation is essential. Automated tools, such as Infinote, are designed to help simplify this process. Its intelligent content analytics approach quickly identifies candidate operating procedures or other documentation that may need to be updated, enabling a quick manual review to be performed once updated process details are ready. Rather than manually updating every document, Infinote allows businesses to apply changes across a selection of content with just a couple of clicks. It also retains detailed audit information so that changes can be quickly identified should future needs demand.
So, the question is, are you in a position to quickly reduce the red-tape and cut the regulatory burdens within your business? Or, is yours the company that will retain the inefficient processes and unnecessary risks associated with retired regulations?