STRATEGY POLICY INVENTORY DATA
SYSTEM PROCESS
CONTROL SUSTAIN
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ROAD TO LEASE COMPLIANCE
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SUSTAIN
SUSTAIN
Operationalizing compliance is only half the battle,
sustaining it over the long term is equally important
The value in ensuring ongoing compliance to the new lease accounting
standards is obvious. What is less so, and yet potentially more valuable, are the
opportunities to improve strategic decision-making over the long haul. Whether
benefits manifest through a more strategic approach to making new lease
decisions, a higher EBITDA through improved lease classification, or leveraging
the fact that once disparate data spread across different types of leases and
numerous physical locations has now been transformed to improve corporate
strategy, none of it matters if it cannot be sustained.
Here we can lean on lessons from the wider business world: Business Process
and Change Management. Business processes coordinate the actions of people,
systems, information, and things to produce outcomes in support of a business
strategy. But fully realizing the value of the business process transformation that
is lease compliance requires several steps to make sure it is sustainable.
According to industry experts, like those at BPM Leader, "Executive leadership
must make it a priority to engage the entire organization in the change, and
select the right cross-functional leaders to embrace the change and lead the new
cross-functional organization. Selecting leaders with the right level of influence
and personality is critical to ensuring that the value of investments made are
fully realized."
Business process owners as champions of sustaining
compliance
Organizations need to carefully select individuals with cross-functional decision-
making authority to be accountable for sustaining high performing business
processes. These Business Process Owners (BPO) enable organizations to
institutionalize these processes across the entire enterprise. They monitor and
report process performance against key performance indicators and have the
