I like the idea.

An alternative compass lanyard, one that has worked for me, is to make the cord long enough that he compass will ride in my pants or jacket pocket. It makes using the traditional two-hands form easier and, when stuffed into my pocket, eliminates any slap or rub when you are moving fast.

You might maintain the chest location of the compass and simply wrap the extra cord for pocket carry around the compass.

I'm a fan of lanyards. Anything that is used a lot and is likely to get dropped or lost can benefit from what the military derisively calls a 'dummy cord'. Never underestimate how easy it is, even when well rested and in good conditions, for a dropped or carelessly laid down item to vanish. Your are using something, lay it down for a minute while absorbed in a task and ... then it is gone. Knives, multi-tool, compass, flashlights are common items I put on a lanyard.

My regular first-aid kit has both a flashlight and EMT shears on a cord clipped to the bag. Need be I can unhook it from the bag and clip it onto my belt. Cords that get wrapped around the the item before they get put away.