Creative Auditing More than just an oxymoron

JUST WHO THE HECK DO YOU THINK YOU ARE ARE, ANYWAY?

The Most Boring Slide You Are Going to See

The Internal Auditor The typical Th t i l auditor dit is i a man or woman pastt middle iddl age, Spare, wrinkled, intelligent, cold, passive, non-committal, with eyes like a codfish, Polite in contact, but at the same time unresponsive, cold, calm, and composed as a concrete post or plaster-of-paris cast; A human petrification with a heart of feldspar and without charm of the friendly germ, minus bowels, passion, or a sense of humor humor. Happily they never reproduce and all of them finally go to Hell. From International Harvester Magazine - 1963

How Far We ve We’ve Come

OR HAVE WE???

Marketing: The Anti-Auditors Why?

Whyy Creative Auditing? g Why did the Auditor cross the road? Because he looked in the workpapers and that that’ss what they did last year. year

INSANITY Doing the same thing over and over again and expecting a different result Einstein

Tweak your way to success If it ain’t broke – break it!

WHY WE ARE THE WAY WE ARE (OR – WE ARE IN CONTROL OF YOUR SET) (OR – RECOGNIZING YOU HAVE A PROBLEM IS THE FIRST STEP)

• Those who test the controls will not let themselves be out of control • We can can’tt make big mistakes • We hire ourselves

AND THINGS JUST GET WORSE !!!! I don’t mean the economy

Sarbox The Full Employment Act For Auditors (Or – How to take a perfectly good profession and side-track it)

So what’s wrong with full employment?

• What happened while we were Sarboxing • What do yyou do when yyou find out there is more to life than financial auditing? (Need for Creativity #1 – How do we break out of the Sox box)

• Focus F on O Operational ti l Auditing A diti (Need for Creativity #2 – How to Deliver Operational Audits)

• What will we do tomorrow? (Need for Creativity #3 – Now that we’re out of our SOX)

YOU CAN SWING WITH THE PENDULUM OR YOU CAN FIND A BETTER WAY

THERE ARE A LOT OF PEOPLE WHO CLAIM TO BE PUSHINGTHE TRAIN DOUBLE CHECK DOUBLE-CHECK THEY ARE PROBABLY BEING DRUG ALONG BY IT

Michael Hammer Warned Us in the ’90s Paving the Cow Path

A d ffrom T And Tom P Peters t Codification of Yesterday Yesterday’ss Maps

WE JUST DIDN’T KNOW THEY WERE TALKING ABOUT US What have you done with electronic p p workpapers?

FUNDAMENTAL IDEAL

HALLELUJAH I BELIEVE!! Now what

BLOW IT UP AND START OVER Okay – maybe not – but then again, what was it you did with your workpapers

“If I had a Clean Slate….” Then ask yourself… WHY NOT?

Creating Ideas Divergent Thinking C Convergent Thi Thinking ki

Creating Ideas

DIVERGENT THINKING

C ti Auditing Creative A diti It’s About People • Getting the Right People • Keeping the Right People • Making M ki the h Ri Right h People P l • (Making me the Right People)

Where’s the HR Department When You Need Them The big difference Defining “Right Right People” People

THREE THINGS EVERY AUDITOR NEEDS BY MIKE JACKA

• Synthesization • Inquisitiveness • Creativity

AUDITING AND A BUCKET OF BALLS

GETTING THE RIGHT PEOPLE HIRING • What are you looking for? • Where do you recruit? • What do you ask?

Background • • • • • • •

Accounting – Why? Finance – Why? Business – Why? J Journalism li – Why? Wh ? Communication – Why? Liberal Arts – Why not? Animation – Why not?

Where Do You Recruit? • • • • •

Internally Job Fairs On the job F From the h IIA On the shuttle bus

And how do you get their attention? (More on this later)

Interviewing • The setting • The questions

Setting • If your office is creative – have it in the office. If not, keep away. • One-on-one One on one • The inquisition (panel interviews)

QUESTIONS What is Wh i one off your weaknesses? k ? Why is that a weakness?

QUESTIONS Wh cartoon character What h would ld you be b and why?

QUESTIONS Wh is What i the h most recent book b k you’ve ’ read? How would you apply it to Auditing?

KEEPING THE RIGHT PEOPLE vs. vs MAKING THE RIGHT PEOPLE

DEVELOPMENT DEVELOPMENT DEVELOPMENT DEVELOPMENT

DEVELOPMENT PLANS THAT FOCUS ON THE NEEDS OF THE INDIVIDUAL

FIRST DOES EVEYONE HAVE ONE?

WHAT NOT TO DO People •Develop/Implement new Recruiting/Hiring Plan – more global so that it fits need of Farmers and GA now and future state; so we are seen as I b Incubator off T Talent l Strategy S for f recruiting i i – level l l 1 andd 2 from f other h functions – Reengineering opportunities. •Training – all new staff attend training courses •On-site #___ of visits to off-site zones. •Use Anticipatory staff as needed. •Present at 1 AC Meeting in HO •#__ employees achieve Certifications •#__ employees on developmental cross-function/secondee opportunities (10%) •#__ employees developed for positions outside audit •Communication Communication strategy with staff – keep current with issues •Develop 1 staff for CoE opportunity •All high impact – management positions filled w/in 3 months.

WHAT NOT TO DO Planning •Deliver greater than 90% of the rolling quarterly audit plan. •Reduce R d level l l off risks i k as evidenced id d by b “heat “h t maps”” •Review every audit to see if ICF testing necessary; if so, work with ICF Team to perform necessary reviews. •Integrated audits – work with IT Team throughout audit process to deliver product. ( Positive surveys - Goal for Surveys% on INT audits). •Monitor execution of audit plan through weekly Milestone Audit report updates and Open Issues – (measure – 90% no red – past due date). •Audit schedule – risk assessment is updated by end of 1st month of the quarter for the next quarter plan. Actively participate in risk assessment and schedule plan. Include monthly dates for audits due. (measure-date schedule update and sent to all managers).

WHAT NOT TO DO Process •Validate that corrective action for issues identified in QARs are i l implemented t d andd effective. ff ti (measure ( – on-site it visit i it or evaluate l t through th h reports, etc other measure and provide feedback to AVP) •Increase staff utilization in operating territory from 70% to 75%. (measure- calculation) •At least 2 testimonials from Farmers Management that your Audit Team added value. (measure – provide examples) •Work effectively with FAMs, IT (integrated audits) and system development audits. (measure – feedback FAM, IT Management –360) 360) •Increase continuous auditing and use of CAATs in audits, based on new products from ATS. Partnerships •Complete 90% of relationship management meetings.(Measure – completion of map) •Continue Continue to develop matrix relationship with FAM for all audits.( measure – surveys)

BUILD SOME CREATIVITY IN • Create a log of accomplishments • Build mentorship directly in the plan • Take a class from the Disney Institute Does it show your passion

Here’s something I got away with Goal - Improve execution and communication skills by bringing ideas into action Action Identify a significant change project that will help use and strengthen skill sets identified above (e.g. visioning, creativity, customer service ) service.) Develop a plan Bring plan to successful completion

More On That Passion Thing One of the things that may get in the way of ppeople p being g lifelong g learners is that they’re y not in touch with their passion. If you’re ppassionate about what it is yyou do,, then you’re going to be looking for everything you can to get y g better at it.

IMAGINE WHAT YOU’LL O ’ KNOW O TOMORROW!

IF I’M NOT STUPID, I HAVE NO BUSINESS BEING IGNORANT

MAKING IT CREATIVE

FIRST HOW TO KNOW YOU’RE IN THE WRONG PLACE

CREATIVE = WEIRD • Make it Weird • Support Weirdness • Celebrate Weirdness

SUPPORT WEIRDNESS • Brainstorming Sessions – “How can we be Disney?”

• Kitchen Table Discussion – “Can I take this lunch?” – “How How many spaces after a period?” period?

• Half-day presentations • Abolish the rules – Report writing

• 1,000 Blank White Card

CELEBRATE WEIRDNESS • Department Decorating – Poetry Slam

• Open House • Postcards and Bob’s Ke Keyss – (Did I mention Marketing?)

• Figure out why it will work

ANYTHING WEIRDER • Zen and the Art of Auditing What is the question within that audit?

• Auditing Haikus/Limericks/Sonnets • Book Cl Clubb • Build Analogies – LITERALLY Jenga=COSO

WHEN DO YOU GET YOUR BEST IDEAS? When I’m working real hard!

First Meetings • The Department – What is our manifesto? (“We believe…”)

• The Staff – What is keeping us from doing the best work we can possibly do?

• The Clients – What Wh can this hi new department d do d for f you?? ((And not jjust the department p – how ‘bout for y you,, too))

THE SERMON WITH THE SOUP

WE FOUGHT THE OUTSOURCING AND WE WON The battle, not the war

Why we won (so far) • The scandals keep making room for all of us ((but not forever)) • We knew the company (and they’re not missing it now)

SELL

PSF Professional Service Firm

AND CREATIVITY SHALL SET THEM FREE

SIX THINGS TO DO 1. 2. 3. 4. 5. 6.

Go to Disneyland Read a book on creative writing Visit a web site you’ve never seen before Go Bowling or Play Laser Tag or… Write a love note to an invisible object Don’t do one or two of these and do something else 7. Make sure the total number of things you do adds up to… to some number

References Books Re imagine! Business Excellence in a Re-imagine! Disruptive Age – Tom Peters Fear and Loathing in Las Vegas – Hunter S. S Thompson Th Electric The El t i Kool-Aid K l Aid A Acid id T Testt – Tom T Wolfe “Surely You’re Joking Mr. Feynman!” – Richard P. Feynman READ SOMETHING!!!!!!

References Books And the most important reference book you can get g Anything by Mike Jacka

THE PAST IS GONE AND SOMETHING MIGHT BE FOUND TO TAKE ITS PLACE