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To most of you, the name Tom Hudson needs no introduction. He is the founding name partner of the Hudson Cook law firm and a true giant in the consumer financial services legal community. He's been a great source of knowledge to me for nearly 30 years and I'm lucky to have a personal relationship with him.
Tom retired a few years ago and now spends much of his time gardening, which is a passion of his. Every so often he sends out an email blast letting his network know what he's been up to in the garden. In a recent post, he discussed watering and said:
I sorta envy those gardeners with drip systems, sometimes even computerized, to handle the watering chore, but I like the regimen of visiting every plant every other day. Those frequent inspections can alert me to critters, diseases, needs and problems I otherwise wouldn't see.
Does the Same hold True for Compliance?
When I read this, it immediately occurred to me that Tom might as well still be discussing compliance instead of watering his plants. While various tools and systems can help make a dealership's compliance efforts more consistent, they don't replace a hands-on approach.
Far too many of my clients take a reactive approach to compliance; consequently, I rarely hear from them until they have an urgent need for assistance. By then, the horse is already out of the barn, as Texans like to say. Hoping for damage control isn't an effective compliance strategy. It can be expensive and fatal.
What's Happening "In the Dirt"?
I prefer to work with proactive clients that allow me the opportunity to truly work with and become familiar with their team, systems and overall business goals. Like Tom mentioned, this allows me the opportunity to find those "critters, diseases and needs". Does the dealer's advertising match what I'm seeing in the actual sales documentation? Are personnel telling me things that suggest they aren't following company policies? Is the company taking unknown risk by being inconsistent in its practices? Much like watering each plant by hand, those personal interactions provide true insight into what is happening in the business and allow me to nip risk in the bud, so to speak.
Most Worthwhile Things Are Not Easy!
There are products being promoted as compliance solutions that give dealers the impression that compliance is easy. These tools may make life seem easier, but in my humble opinion, impactful compliance that truly protects your business takes work, there's nothing easy about it. You've got to put forth the effort, proactively examine and challenge practices, and be vigilant in identifying and mitigating risk. Much like watering may keep plants alive but inspecting plants allows them to thrive, taking an in-depth approach to compliance will allow your business to flourish.
Thanks to Tom Hudson for the inspiration!
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