What we focus on
We focus on preventing human corruption and non-compliant behavior. Because corruption or non-compliant behavior is not innate. It’s learned. It’s a decision-making problem. Just as many other severe problems mankind has to deal with.
As of today prevention is still understood as top down communication of rules which have to be applied. Threat of punishment shall help to deterre transgression. Whistleblowing shall help to detect crime. But, a resounding success to prevent and manage compliance risk has not yet been achieved.
Without adequate effectiveness control of their CMS the industry invests year after year in cost-intensive e-learning and face-to-face programs that according to around half of the CCOs are doubtful or poor in results. This assumption is underlined by the fact that white-collar crime has not changed significantly since 2014.
PWC concludes in its study on white-collar crime 2018: "The qualitative enterprise surveys show that the implementation still has significant weaknesses. You can see that the pure training and its repetition is not really effective." The Department of Justice (USA) recognized 2018 that firms might be spending a lot and creating all the components of compliance programs but actually producing hollow facades.
Why is that?
Every crime is preceded by a human decision. A system needs rules without question but its effectiveness will only unfold if the people who make decisions within this system also adhere to it. Since rulebook doesn't guarantee application, e-learnings and face-to-face trainings are not sufficient.
It’s a moral problem. And as moral compasses are to a high degree a cultural thing and best practice in their respective environments, Ludaciti subscribes to the view that: „There is nothing more impractical than commanding free people to do things that strike them as absurd and that run counter to their most basic motivations.“
This is the main reason why the current classical education (e-Learning, face-to face) approach of right or wrong is not sufficient. „False beliefs, once they’ve become culturally entrenched, once the’ve become tribal badges of honor are very difficult to change and changing them is no longer simply a matter of educating people.“ Thus, awareness training without knowing and internalizing the individual backround is almost meaningless.
Our approach is to analyze and understand how individual decision-making takes place. That is why Ludaciti developed a unique technology to disclose and change individual decision-making modes sustainably.