How You Can Influence Internal Audit's Value Proposition to … · 2015-10-13 · How You Can...

1 © Dr. Rainer Lenz, Tracie Marquardt October 2015

How You Can Influence Internal Audit's Value Proposition to Create a Unique

and Sustainable Identity

Dr. Rainer Lenz, CIA, CIIA Tracie Marquardt, CPA

DIIR – Kongress 2015

Overview

Self-images of internal auditors: resolving the dilemma Global communication competence and the international auditor Call to Action: Impact, Influence and Inspiration

Overview

A dilemma: self-perception vs external perception

Corporate Audit at Villeroy &Boch

Guiding principles 1. Performance-oriented:

Timely delivery of meaningful reports Resulting in improvements in business practices and control environment

2. Collaborators not decision makers: Modest Open-minded Inquiring Respectful Source of inspiration and guidance

What a difference a year makes!

The Villeroy & Boch Corporate Audit team today

Business' prime focus is about creating value

How we actually work

Source C. Otto Scharmer (2009), Theory U

Goodwill helps make improvements

“Dear Rainer, Attached my personal feedback . And would like to thank you and your team for the open and constructive cooperation, really a pleasant way of working and sharing mindset. If any question left, just let me know. With kind regards, R…”

“If you were asked to write down a tag line summing-up your role as internal auditor in your organization, what would it be?”

I am responsible for strengthening Corporate Governance, the system by which the company is directed and controlled.

Self-images of auditors: you have a choice

Police Change agent

Doctor

Consultant

Servant

Negative image: Everyone else has bad intentions; negative starting point; attack modus; too much focus on status; making people afraid of you. Basis for non-acceptance, distance: „An auditor is a watch dog and not a blood hound“; „We tell the executives what is right/wrong operationally“; „Spies for Board and Management“.

Police

Lack of identity, downgrading, too modest: Profiling yourself as an assistant, serving someone else. Basis for marginalization: „I am the one you want me to be“; „I am your friend …“; „On your side …“; „… to assist management …“.

Servant

Self-evident, empty words: „Consulting talk“, high level words, strong focus on independence and objectivity which is hard (impossible) to achieve. Basis for non-acceptance, distance: „Increase stakeholder value“; „Support the company in achieving its goals and objectives“; „Think things through“; „My purpose is to increase our company‘s value …“; „Independent internal consultant“.

Consultant

Over-ambitious, arrogant, not respectful: Pretending to be the expert in a lot of things, things that you can never realize on your own, assuming that you take the decisions yourself. Basis for disappointment: „We are doctors“; „I am the guardian of the company profits“; „A modern day hero, helping save companies, governments and economies“.

Doctor

Making a difference, creating a unique and sustainable identity: Focus on strengthening things (which assumes that there may also be good things), asking questions instead of pretending to be the expert upfront, modesty, inspire people to change. Basis for IA effectiveness: „Fresh perspective“; „Inspire decision-making“; „Focus on root cause“; „Treating the business with respect“.

Change agent

Resolving the dilemma

What would the C-level say about you and your team? What role does your Internal Audit team play now? What role will you choose in the future?

Overview

Global Communication Competence

Today's auditors are international auditors.

Core principles for effective internal audit*

Demonstrates: Integrity Competence Due professional care Quality Continuous improvement

Communicates effectively

Is: Objective Independent Insightful Proactive

Promotes organizational improvement

* Source: Norman Marks blog, July 24, 2015 normanmarks.wordpress.com https://na.theiia.org/standards-guidance/mandatory-guidance/Pages/Core-Principles-for-the-Professional-Practice-of-Internal-Auditing.aspx

More challenges than ever before

Audit missions outside Germany; Operating in a second or third language; Interviews, meetings and audit reports in English; Lack of international experience and opportunties; Ability to influence and persuade in a foreign language.

Building your Global Communication Competence

Cultural competence

Corporate culture Personality

Behaviour

Language Questioning

skills

Listeningskills

Empathy

Relationship buidling

Negotiation skills Trust

Language: The power of words

Perception Accuracy Cooperation Action Influence

Cultural competence: How big is your footprint?

National culture Organizational culture Functional culture

What results can you expect?

Audit process Engagement letter Interviews Opening/closing meetings Audit report Follow up

Results Increase know, like, trust factor; Strong relationships; Stakeholder engagement; Easier agreement on findings and recommendations; Faster audit reporting cycle; Increased productivity; Enhanced perception of Internal Audit function and team.

How to achieve those results

Hire auditors with technical skills + language skills + aptitude + attitude; Add training to fill gaps in English, communication skills, culture and conflict resolution; Increase opportunities to work abroad; Feedback loop to identify further gaps, repeat.

Who benefits

Individual IA Team Head of IA Global Organization

Individual

“Most valuable to me was learning how to write clear and precise audit findings, value-added recommendations, and concise sentences using connectors to link my arguments.”

“Practicing interviews in English gives me confidence to do it on an audit assignment.”

“Now, my team consistently achieves our internal <audit report> KPI.”

“My team is writing at a consistently higher level.”

“Results include reinforcement of audit methodology and standardized usage of English across our global audit teams.”

IA Team

Head of IA

“The time it takes me to review a draft report has been cut significantly, by over 50%. That means I can focus on more important issues every day.”

“It helped that the messages, about behavior, language and personal style come from someone who knows about this.”

Global organization

“Our findings, risk and recommendations have become more focused and more value added to the business.”

“Our more reader-friendly, value-added audit reports have been noted at executive level.”

Overview

A unique position to make an impact

Professionalism and credibility Relationships and rapport Audit findings: Criteria, Condition, Cause, Risk Value-added recommendations: Action-oriented Implementation and follow up

“When you explain the IMPACT of doing (or not doing) something, your audit client can make a better, more informed decision.”

Inspiring others to action

modest inspiration

active cheerleading

“Be inspired and be inspiring.”

Influencing to create positive change

Know your 'why', yourself, your audience, your organization. Choose your behaviour, language, and attitude.

It‘s your choice.

Call to action

You can choose: the role you want your team to play within your organization so you can create maximum value; to increase your global communication skills so you can work more effectively with your audit clients around the world; to make an impact by inspiring and influencing to create positive change in your organizations.

Contact Rainer: Contact Tracie:

01726214878

Tracie@QACommunication.com

www.facebook.com/ QualityAssuranceCommunication

http://qacommunication.com/

https://www.linkedin.com/in/ traciemarquardt

https://www.xing.com/profile/ Tracie_Marquardt

015116266522

lenz.rainer@villeroy-boch.com

http://www.drrainerlenz.de/

https://de.linkedin.com/in/ rainerlenz

https://www.xing.com/profile/ Rainer_Lenz

https://www.researchgate.net /profile/Rainer_Lenz2/stats

How You Can Influence Internal Audit's Value Proposition to … · 2015-10-13 · How You Can...

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