5 No Cost Diligence Resolutions For The New Year!

Its Time For Resolutions

New Year’s resolutions are intentions to do something different next year. It could be an action or a thought. The idea is that by doing something different you are increasing your chance at success or reaching a goal.

Organizations don’t make resolutions. Instead they set financial goals, make sales projections, craft budgets, calculate hiring needs and make strategic plans. But the idea behind all of these actions is the same as making a resolution – set a goal – make a plan – take actions to get you to the goal.

So adding a few diligence resolutions that don’t cost anything, don’t require much planning and are simple goals and have the potential to provide a boast to all those other business goals is just good sense. You may already have some diligence related goals for next year, they may be hiding under the words compliance, regulatory adherence, security upgrades. But to help out here are a few that you may want to consider adding to your own plans for the new year.

Diligence Resolutions for the New Year

Words have power; words provide direction.

When you use the word diligence you communicate that diligence is relevant and it is a value that you recognize.  So, I am suggesting that you use the word “diligence” in your conversations and communications. For example,

Where you able to find any diligence information on that company that wants to do business with us

I have a meeting with a potential contractor, let’s do some diligence and find out where they worked last

How would we perform diligence on that idea so we can take it to the next step

Think about how to incorporate the word into your conversations, reviews and meetings. Once you start to do this, other’s will follow your lead, first when they answer your requests and questions and then in their own communication.

The idea is to get people used to diligence as an every day reoccurring action. Most people are familiar with the “big” acts of legal or industry mandated due diligence that arise when buying a company, entering a new market, even hiring a major vendor. They are not used to thinking about diligence as the simple act of finding information that they evaluate, analyze and apply to their circumstances so that they have the clarity to make better decisions in all aspects of work.

What if you don’t lead a team, you are part of a team or work solo? The answer is – use the word diligence in your thoughts. Think about your tasks and projects and ask yourself, is there a role for diligence and am I doing what I should so that the diligence is great?

There is specialized diligence that is performed by diligence professional such as lawyers, accountants and analysts but most of the day to day diligence that happens in an organization is done by people in the normal course of their jobs.

To teach people how to integrate diligence into their every day work invite wider participation in diligence projects. People are invested when they participate. If you are a team leader and you are assigning work, think about how you can involve people in a project. For example,

• If there is a complex transaction which involves multiple points of diligence consider assigning the work to a larger than usual group
• Encourage collaboration by having people work together on points of diligence
• Require sharing by setting up the framework for that sharing, for example a spreadsheet of sources, a team meeting to discuss diligence findings, short presentations where people share a diligence process or strategy
• If diligence professionals are involved rotate assignments so a broad spectrum of people can see the way the work is being done

Just as important, share the wins. A diligence win is any circumstance in which diligence provides clarity. That clarity may mean that the organization goes forward with a transaction but it may also mean that the organization does not go forward. Both of these results are diligence wins. Share them and appreciate that successful diligence is judged by the clarity achieved.

There is no diligence without the work of diligent people. The definition that I use for diligent behavior is PICKIE.

• P – Persistant
• I – Interested
• C – Critical
• K – Knowledgeable
• I – Innovative
• E – Energetic

These are characteristics and behaviors that diligent people demonstrate. You may have additional or different ideas. The important part is that these expectations be communicated and if needed be taught.

In addition as a leader or as an individual performing diligent work you need to be firm about:

• Ethics – work needs to be performed in an ethical and truthful manner
• Completion & Follow up – people need to complete their work and perform follow up tasks or close open items
• Error Behavior – people make mistakes, but they need to recognize mistakes and fix them and learn from them. If people are trying to hide or disguise mistakes it needs to be addressed. If there ongoing errors or patterns of errors that needs to be addressed

You have heard it before – you must walk the talk. Communication is key but it is worthless if you don’t follow up by modeling the behavior. What does this mean:

– Communicate your expectations clearly and often.

– Invite participation and make it easy for people to participate.

– Be PICKIE yourself and let it show.

– Help when help is needed, this can mean stepping in and assisting, explaining, providing training.

– Tell the stories of diligence and encourage others to do so as well. People learn from each other.

– Lead. Not just when it is easy (usually when things are going well and money is flowing) but more importantly, when things are hard. When your budget is constrained be innovative. When the team is dispirited be a cheerleader. When there is a problem be the first to admit it and fix it.

Diligence is performed by people. Technology is a tool to assist but it is still people that are providing the effort, understanding and judgement that result in great diligence. Encourage, praise and if you can reward these people.

Some ideas –

• Think broadly and include as many people as possible in your diligence consideration. For example, the people that process the output of technology are doing diligence work. Those that collect, organize and store information are doing diligence work. The assistant that searches online to find a new vendor is doing diligence work.
• Complement, thank and praise people publicly. Secret praise doesn’t serve a teaching function. Everyone needs to understand that diligent work is a cultural expectation.
• Widen your usual sphere of recognition. Everyone does diligence work so you should be able to find a wide range of roles that qualify for recognition of diligent behavior.

Finally, if you don’t have the budget to specifically reward diligence work. Incorporate diligence values into existing rewards, for example, a line in a performance review, part of existing bonus criteria, a component of an “employee” of the month award. These are ways to incorporate diligence standards and reward them without having extra funds.

Of course, if you can find a way to reward diligence with extra perks or extra funds nothing says appreciation, at least in a business or organization, like a monetary award.

Wishing You A Happy New Year!

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