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This post may be hard to swallow. We all like to be “the nice guy” — there aren’t many internal audit leaders who think of themselves as ruthless. CEOs and CFOs, yes, when necessary. But CAEs and other audit leaders?
Here goes.
A Turning Point for Businesses (and Internal Audit)
The rapid and dramatic changes in technology such as ChatGPT are heralding major changes in many if not most business processes, the management of risks and the design of internal controls.
We need an internal audit function that is capable of providing the forward-looking and proactive assurance, advice and insight leaders of our organizations need — when and how they need it. And they will need it more than ever amid this time of disruptive change.
We need the ability to be there, at the table, as decisions are being made about the adoption and use of these technologies.
Changes are on the horizon for many if not most parts of the business — and we need to be there and make a difference. Don’t wait for the change to audit it. If we can’t get ahead of it, we need to be alongside management as they drive it.
But we may need to be ruthless to make sure we have the ability to do that.
Set aside your biases. Set aside your likes and dislikes about the members of your team. Set aside your bias against change. Set aside your bias of continuing what has worked for you in the past. Set aside your bias of doing things the way others do them.
Turn to a fresh new page.
The Work Ahead for Internal Audit
Imagine you are starting from scratch. The only person on your team is you.
Now think about what needs to be done. What assurance and consulting/advisory work is needed now and what will be needed in the next year or so? Lots of change will need lots of advisory work.
- What human resources do you need now and will in the next months (recognizing the lead time to hire or train)?
- How many people, with what experience and capabilities? For example, how many technology specialists and how many with other specialty knowledge (of the business especially) will be essential?
- How many “compliance-minded” auditors do you need who will just do what they are told?
- How many business thinkers do you need who will ask “why this” and “why that,” offering insights, experiences and ideas?
- How many with the confidence to challenge, and have and express ideas even if they are not the best, but will at least start a discussion?
That’s what you need, but it’s rarely what you have. As they say on the London Underground, “Mind the gap!”
Start by examining yourself. Are you the leader you will need to be? Do you need to change? Can you? Will you?
You need to want to change.
You may need help to know what needs to change and then to change it. Who can provide you with honest and constructive feedback? Who can help you?
Don’t wait. If change is needed, it is needed now, not in a month or so. Now.
You can’t expect your team to change if you don’t.
Turn to your team. Which of them would you hire if you were starting from scratch? Who are average performers with little hope of becoming the rock stars you need? Why settle for average?
Who do you need to single out and promote? Who do you need to help find another position? Who needs to be repositioned or repurposed? Who just needs a little help to excel?
Talk to human resources. It’s their job to help you.
At some point you need to share your vision with leadership. At some point you need to lay it out for your team. Be honest.
You need strategies and a plan. But it’s not what I would call a strategic plan because it has to happen now, not next year.
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The business won’t wait to change. You can’t afford to wait to change yourself, your team, your methods, processes and teams whenever it is necessary.
Yes. You may need to change more than people. You may need to change methods, processes and minds if you are to deliver the forward-looking and proactive assurance, advice and insight leaders of our organizations need — when and how they need it.
Your thoughts?
