DIIR – Kongress 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
© Dr. Rainer Lenz, Tracie Marquardt
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© Dr. Rainer Lenz, Tracie Marquardt
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© Dr. Rainer Lenz, Tracie Marquardt
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Overview Self-images of internal auditors: resolving the dilemma Global communication competence and the international auditor Call to Action: Impact, Influence and Inspiration
© Dr. Rainer Lenz, Tracie Marquardt
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Overview Self-images of internal auditors: resolving the dilemma Global communication competence and the international auditor Call to Action: Impact, Influence and Inspiration
© Dr. Rainer Lenz, Tracie Marquardt
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A dilemma: self-perception vs external perception
© Dr. Rainer Lenz, Tracie Marquardt
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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 © Dr. Rainer Lenz, Tracie Marquardt
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What a difference a year makes!
© Dr. Rainer Lenz, Tracie Marquardt
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The Villeroy & Boch Corporate Audit team today
© Dr. Rainer Lenz, Tracie Marquardt
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Business' prime focus is about creating value
© Dr. Rainer Lenz, Tracie Marquardt
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How we actually work
Source C. Otto Scharmer (2009), Theory U
© Dr. Rainer Lenz, Tracie Marquardt
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Goodwill helps make improvements
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“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…” © Dr. Rainer Lenz, Tracie Marquardt
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“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.
© Dr. Rainer Lenz, Tracie Marquardt
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Self-images of auditors: you have a choice
Change agent
Police
Doctor Servant Consultant © Dr. Rainer Lenz, Tracie Marquardt
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Negative image: Everyone else has bad intentions; negative starting point; attack modus; too much focus on status; making people afraid of you. Police
© Dr. Rainer Lenz, Tracie Marquardt
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“.
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Lack of identity, downgrading, too modest: Profiling yourself as an assistant, serving someone else.
Basis for marginalization: Servant
© Dr. Rainer Lenz, Tracie Marquardt
„I am the one you want me to be“; „I am your friend …“; „On your side …“; „… to assist management …“.
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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: Consultant
© Dr. Rainer Lenz, Tracie Marquardt
„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“.
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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: Doctor
© Dr. Rainer Lenz, Tracie Marquardt
„We are doctors“; „I am the guardian of the company profits“; „A modern day hero, helping save companies, governments and economies“.
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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: Change agent
© Dr. Rainer Lenz, Tracie Marquardt
„Fresh perspective“; „Inspire decision-making“; „Focus on root cause“; „Treating the business with respect“.
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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?
© Dr. Rainer Lenz, Tracie Marquardt
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Overview Self-images of internal auditors: resolving the dilemma Global communication competence and the international auditor Call to Action: Impact, Influence and Inspiration
© Dr. Rainer Lenz, Tracie Marquardt
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Global Communication Competence
? Today's auditors are international auditors. © Dr. Rainer Lenz, Tracie Marquardt
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Core principles for effective internal audit* Demonstrates:
Is:
Integrity Competence Due professional care Quality Continuous improvement
Communicates effectively
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 © Dr. Rainer Lenz, Tracie Marquardt
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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.
© Dr. Rainer Lenz, Tracie Marquardt
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Building your Global Communication Competence
Corporate Listeningskills culture Questioning skills
Personality
Language
Cultural competence
Behaviour Negotiation skills
© Dr. Rainer Lenz, Tracie Marquardt
Empathy
Relationship buidling
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Trust
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Language: The power of words Perception Accuracy Cooperation Action Influence
© Dr. Rainer Lenz, Tracie Marquardt
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Cultural competence: How big is your footprint? National culture Organizational culture Functional culture
© Dr. Rainer Lenz, Tracie Marquardt
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What results can you expect? Audit process Engagement letter Interviews Opening/closing meetings Audit report Follow up
© Dr. Rainer Lenz, Tracie Marquardt
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.
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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.
© Dr. Rainer Lenz, Tracie Marquardt
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Who benefits
Individual
© Dr. Rainer Lenz, Tracie Marquardt
IA Team
Head of IA
October 2015
Global Organization
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Individual “Most valuable to me was learning how to write clear and precise audit findings, valueadded recommendations, and concise sentences using connectors to link my arguments.” “Practicing interviews in English gives me confidence to do it on an audit assignment.”
© Dr. Rainer Lenz, Tracie Marquardt
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IA Team “Now, my team consistently achieves our internal 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.”
© Dr. Rainer Lenz, Tracie Marquardt
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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.”
© Dr. Rainer Lenz, Tracie Marquardt
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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.”
© Dr. Rainer Lenz, Tracie Marquardt
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Overview Self-images of internal auditors: resolving the dilemma Global communication competence and the international auditor Call to Action: Impact, Influence and Inspiration
© Dr. Rainer Lenz, Tracie Marquardt
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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.”
© Dr. Rainer Lenz, Tracie Marquardt
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Inspiring others to action
modest inspiration
active cheerleading
“Be inspired and be inspiring.”
© Dr. Rainer Lenz, Tracie Marquardt
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Influencing to create positive change Know your 'why', yourself, your audience, your organization. Choose your behaviour, language, and attitude.
It‘s your choice.
© Dr. Rainer Lenz, Tracie Marquardt
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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.
© Dr. Rainer Lenz, Tracie Marquardt
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Contact Rainer:
@
Contact Tracie:
015116266522
01726214878
[email protected]
[email protected]
@
http://qacommunication.com/
http://www.drrainerlenz.de/ https://www.xing.com/profile/ Rainer_Lenz
https://www.xing.com/profile/ Tracie_Marquardt
https://de.linkedin.com/in/ rainerlenz
https://www.linkedin.com/in/ traciemarquardt
https://www.researchgate.net /profile/Rainer_Lenz2/stats © Dr. Rainer Lenz, Tracie Marquardt
www.facebook.com/ QualityAssuranceCommunication October 2015
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