A Better Due Diligence Process, Part 6

[Charles Bacon]

Implementation and Monitoring

The specific components in developing and implementing a due diligence system will vary greatly depending on the status of existing systems and the corporate culture. (Corporate culture is a huge factor, and one worthy of study and attention.) Once the foundations have been established, a list can be produced targeting specific projects, resources, responsibilities, and deadlines. Some of the projects that might be incorporated include:

• Due Diligence Audits of each Department, with Bi-Annual Performance Review Audits
• Developing Diligent Decision-Making Specifications, Policies and Procedures
• Identification of Under-Performing Corporate Decisions
• Review Diligent Decision Specifications in each Area of the Organization, such as Acquisitions, Financings, Research and Development, Geographic Expansion, and Hiring Practices
• Define the Due Diligence Processes Required for Corporate Events
• Set Overall Corporate Due Diligence Objectives
• Financial Ratios and Benchmark/Other Metrics Monitoring
• Monitor Due Diligence Objectives Progress
• Inform Vendors of the Company’s Commitment to High Quality Services
• Require Vendors to have Good Due Diligence Practices
• Build in Information on the Due Diligence System in the Organization’s Publications, Including Product Literature, Newsletters, Advertising, and the Annual Report
• Create a Risk Minimization System
• Involve State and National Regulatory Agencies in a Proactive Fashion to Promote Goodwill and Head Off Difficult Securities Problems
• Educate the Company’s Personnel on the Needs and Benefits of Diligent Processes
• Reward and Recognition Systems Tied to Due Diligence Efforts

Next: A Better Due Diligence Process: Conclusions, including: Can A Better Due Diligence System Actually be Implemented in Today’s Business Environment?