Day Three - IIA IC 2017 Highlights

As we leave IIA IC 2017 I want to thank all delegates for attending. I'm grateful to IIA Global, IIA Australia and of course my amazing NSW volunteer councillors. Safe travels and I hope to see all of the delegates next year in Dubai!

Awards

Day three opened with Life Member Awards for both Michael Parkinson and Bob Mcdonald OAM for their amazing contribution to the profession.

Panel: Selling Internal Audit: Is It Really That Hard to Show Our Value?

dee madigan gave us some hints and tips to build our personal and Internal Audit brand:

1. Ask, don't tell - what's our IA brand in our own organisation? Keep in mind the different needs of your own staff - those needs are recognised as different for different demographics. Don't be afraid to collect criticism either.
2. Trust is key to a brand, and that means keeping your promises.
3. When you decide the brand, the look and feel has to be consistent across all media

Panel Discussion

Clare Brady had a wonderful medical metaphor for IA. We scan the organisation to detect and help to fix the problems - so we are the doctors of the corporate body. We are in the house and care for the 'patient'.

We also explored the need to look for opportunities to do things better. IA understands the culture and behaviours of the organisation. IA gets a bad rap in some cases.

My questions are that if IA protects and strengthens the health of that corporate body through diagnosing the signs and symptoms, then does IA need a form of Hippocratic oath? If so, what would that look like?

Kathryn McLay explained the need to establish rapport and trust quickly. IA needs to go for a broad view and deep understanding. We also need to learn the language of our business and highlight the value we can bring. Strong relationships are key. Have people that love the work in your team and keep them smiling.

Naohiro Mouri, CPA, CIA highlighted the gap between perception and reality. IA needs to broaden from narrower financial protection with minimal value add. We need to use the organisational strategy to show we are aligned. We protect the firm as a trusted advisor to the individual, management and the board.

To build trust we need to listen carefully and actively to what the business wants and needs. We are not just friends - we are professionals too.

Independence

Although we are independent, IA need not overplay this. Independence is a state of mind. Management wants insights and IA understands the DNA of the organisation. We 'get it'. So IA needs to be sensitive and use our position wisely.

Use language to emphasise 'we' not 'you'.  The old adversarial model is dead and gone - the gotcha moments must stop. It's about the carrot and the stick. Misguided suggestions from IA need to stop too.

Reporting

Weed out loose words and cut down to 25% - the pithy parts. Don't just talk non-compliance and the following of procedure. Make reports actionable and talk to the purpose of why this is important. Tailor message to the audience.

IA documents were traditionally long and highly technical. Try going counter cultural! Brainstorm: Talk it out without words - give a rating, then unpack that in conversation. Capture the ideas and then build our narrative:

• What we shouldn't say
• What is better? 
• How do we appear?

Use our reports to talk to the imagination. Capture hearts and heads - use emoticons, redesign the report with short points so people can scan for headlines.

How IA wants to be perceived:

As an absolute necessity. Organisations need to want to have IA, on our own merit (i.e. without requiring regulatory mandates) The value proposition is gripping reports that talk to management. Managers need to feel like a kid in a candy store provided with many varied benefits that the IA team can provide. They should be saying "I want it all". In June 2017 UK CIIA published Raising the Profile of IA

The Chief Audit Executive role aspires to be truly C-Suite. IA wants to be recognised for protecting against risks and identifying the opportunities

Next steps on the IA brand:

Do an audit of your internal IA marketing. Purpose, values and brand promise. Use a style guide. Don't leave your brand - use it. Get brand champions outside the department. Work out what IA's internal brand promise is...

Get Out & Stay Out: Stepping Outside of Your Comfort Zone in Times of Change

Holly Ransom told us to use three steps:

• Impetus 
• Inch out
• Ignite

Fear of change, and need to prepare are what creates motivation for change. However, we struggle to ignite action in the 'busyness' of day-to-day pressures. The speed of transaction and interaction and expectations of rapidity all contribute to this. Also, growth in data is exponential.  The scientific studies of efficiency at work have now moved to an Information Age that requires employee effectiveness and engagement. The top 1% of employee-engaged companies have 5x the productivity of others.

Ask yourself - am I a thermometer or thermostat?

Try the TED talk by Simon Sinek: How great leaders inspire action

How quickly do we need to get there?  Facebook and Instagram suggest that humans have a 3 seconds attention span per thumb scroll!

So Why change?  

• Think about the consequences of not changing.  Get people listening to stories that are directly linked to customers and competitor analysis.
• Give transparency around data points showing that there are areas for improvement.
• Send scouts out who can come back and tell us what is happening in the world - e.g. internships, guest auditors, etc.
• Make it visual.  How we look at data.  What are we failing to understand and how can we convince our viewers.  
• What is the cost of inaction? We are twice as sensitive to loss as we are to gains.  
• Try the premortem hypothesis as a scenario: if X happened then what would happen in 5 years.  This makes the discussion less emotional and challenging as it is hypothetical.

How to Move the Line of Resistance

There is a Comfort zone and a Courage zone - with a line of resistance between them. What we need to focus on is the resistance barrier.  Why I don't do something? ...and why it's important for me to actually do it. Actions:

• Tackle honest conversations about things you're scared of.  After you tackle them, these things land in the comfort zone.  Get comfortable being uncomfortable!
• Find your own support crew and mentors; the right intervention at the right time with the right words is incredibly powerful.
• Build a network of advocates.  People believe more in what others say about you than what you say about yourself.
• Start now.  Ready is a mirage - we delay and say we're not ready.  We need to challenge ourselves to take the first step and start now!
• Start small - a few resources and a little bit of time.  Breakdown your time so you can find time to finish your goal.
• Build the habit loop.  Humans respond to cue, routine and reward.  Whether going to the gym, having coffee with diverse people or spending 30mins on new ideas once a week.

Four ideas:

1. Build Curiosity,
2. Hustle - to give high energy,
3. Take Risk - to break resistance,
4. Be Persistent

Call to action - 24/7/1

Within 24 h make an immediate bite size change in your life.  Do some research, or schedule a mentoring meeting 

Within 7 days make a bigger step.  Draft that one-pager, hold that coffee catch-up

Within 1 month sit with colleagues and discuss your idea, or expand your network to have a coffee catch-up with one of your mentor's introductions.