Compass Adjustment
Compass adjustment is made by a taking a series of known headings and then adjusting the compensation bars at the base of the compass.
Remember, compasses indicate the direction of MAGNETIC NORTH.
The adjustment process is described in Chapman's, Piloting, Seamanship and Small Boat Handling. If you don't own this book, buy it and READ it. It may save your life.
When you GPS fails, it will be at the worst moment and you will not be within sight of land, it will be dark and you will need to find your way home. You will need your compass and should have the ability to do some dead reckoning navigation.