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Managing Your Organization by the Evidence An organization is much more likely to improve its current performance and underlying health by using a combination of practices rather than any one of them alone, new McKinsey research finds.

The McKinsey Quarterly, McKinsey & Co.
September 21, 2006

Timely Findings on Organizational Design

Too little consideration has been given to how the analysis underpinning Sarbanes Oxley compliance implementations can contribute to evaluating organizational design.

When a company takes advantage of their transactional and entity-level control activities in their SOX implementation to really understand the workings of their company, they are poised for measuring and monitoring subtle changes in any number of management actions. SOX shouldn't be an extra body of work- it should be the summation and review of evidence produced from good practices already occurring within the business, reflecting expert work product, scrutiny and measurement of results, comparison to objectives, and ethically conscious business actions.

If companies want to reduce their compliance costs going forward, give shareholders and auditors good reason to support this through clear direction, apparent accountabilities for actions, and a culture driven by ethical values.

Posted by Toby Lucich | Oct 2, 2006 11:04 AM ET

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