Emotional Intelligence for Internal Auditors

Transcription

1 Emotional Intelligence for Internal Auditors Jannies S. Burlingame, CPA

2 Note from Speaker Dear Fellow SD IIA Members, It was a pleasure to speak at the luncheon, and thank you for the opportunity. If you have any questions, I am happy to address them. I welcome you to share what you have learned today with your colleagues. Sincerely Yours, -Jannies

3 Soft Skills The greatest ability in business is to get along with others and influence their actions.

4 Traditionally, internal auditors have not been widely recognized as possessing these soft skills, but they are essential to effectively navigating the often rough waters internal auditors must confront. After all, the news they must deliver is not always good, and they need to be well prepared. ~Richard Chambers The Relationship Advantage: Maximizing CAE Success

5 Presentation Objectives I Overview of Soft Skills & EI II Emotional Intelligence III Value to Auditors VI Cultural Intelligence

6 What is EI? skills and facilitators that determine how effectively we understand and express ourselves, understand others and relate with them, and cope with daily demands. EI ~ Daniel Goleman 1995 ESI ~ Reuven Bar-On 2005 Darwin 1869

7 What is EI? IQ = Intelligence Quotient EQ = Emotional Quotient CQ = Cultural Quotient Soft skills : Hard skills :: EQ : IQ

8 EQ vs IQ as Predictors

9 Evaluation of EI Bar-On model 133 questions 40 minutes Measures our responses on 5 scales: Intrapersonal Interpersonal Stress Management Adaptability General Mood

10 Sample Questions Questions are rated on a 5 point scale from Strongly Agree to Strongly Disagree I stay relaxed and composed under pressure. I freely admit to making mistakes. I am sensitive to other people's emotions and moods. I can receive feedback or criticism without becoming defensive. I communicate my needs and feelings honestly. I am aware of how my behavior impacts others. I pay attention & listen without jumping to conclusions.

11 What is EI? Technical Definition: 4 Domains, 19 competencies 1. Self Awareness 2. Self Management 3. Social Awareness 4. Social Management (Relationship Management)

12 1. Self Awareness knowing one's internal states, preferences, resources, and intuitions. 1. Emotional Awareness 2. Accurate Self-Assessment 3. Self-Confidence Exercise: Practice self-awareness with a neighbor

13 2. Self-Management Managing ones' internal states, impulses, and resources 1. Emotional Self-Control 2. Transparency 3. Adaptability 4. Achievement 5. Initiative 6. Optimism

14 3. Social Awareness How people handle relationships and awareness of others feelings, needs, and concerns. 1. Empathy 2. Organizational Awareness 3. Service Orientation

15 4. Social Management Skill or adeptness at inducing desirable responses in others. 1. Developing Others 2. Inspirational Leadership 3. Change Catalyst 4. Influence 5. Conflict Management 6. Teamwork & Collaboration

16 Case Study Watch the following video and determine which domains and competencies are being practiced: v= Can you provide examples of where you have encountered co-workers/bosses where competencies were in need of development?

17 Case Study Reference Self-Awareness 1. Emotional Awareness 2. Accurate Self-Assessment 3. Self-Confidence Self Management 1. Emotional Self-Control 2. Transparency 3. Adaptability 4. Achievement 5. Initiative 6. Optimism Social Awareness 1. Empathy 2. Organizational Awareness 3. Service Orientation Social Management 1. Developing Others 2. Inspirational Leadership 3. Change Catalyst 4. Influence 5. Conflict Management 6. Teamwork & Collaboration

18 Value to Internal Auditors The quality and the skills of the individuals who comprise the internal audit function will drive its quality and performance more than any other factor. ~ Proviti 2011 Internal Audit Capabilities and Needs Survey

19 Value to Internal Auditors IQ vs. EQ as a predictor of success IIA Code of Ethics Integrity Objectivity Confidentiality Competence

20 Value to Internal Auditors Integrity The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.

21 Value to Internal Auditors Objectivity Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments.

22 Value to Internal Auditors Confidentiality Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.

23 Humility "You shouldn't gloat about anything you've done; you ought to keep going and find something better to do.

24 Adaptibility Adaptability is not imitation, it means power of resistance and assimilation.

25 Queen of Soft Skills

26 How can we develop our EI? Take an EI test Traditional Problem Solving Process: Define the problem Identify Cause(s) Identify solution(s) Choose and implement best solution Continuous Improvement

27 Continuous Improvement Practice humility Put yourself in the place of others Reduce stress Manage emotions Communicate emotions honestly Look at yourself honestly Use humor to deal with challenges Resolve conflicts positively Continue to develop self awareness

28 Signs of High vs. Low EI High Expresses his feelings clearly and directly with with "I feel... Is not afraid to express her feelings. Is not dominated by negative emotions such as Fear, Worry, Guilt, Shame, Embarrassment, Obligation, Disappointment, Hopelessness, Powerlessness, Dependency, Victimization, Discouragement Is able to read non-verbal communication. Lets his feelings lead him to healthy choices and happiness.

29 Signs of High vs. Low EI High Balances feelings with reason, logic, and reality. Acts out of desire, not because of duty, guilt, force or obligation. Is independent, self-reliant and morally autonomous. Is intrinsically motivated, but not by power, wealth, status, fame, or approval. Is emotionally resilient. Tends to feel optimistic, but is also realistic, and can feel pessimistic at times. Does not internalize failure Is interested in other people's feelings and comfortable talking about feelings.

30 Signs of High vs. Low EI Low Doesn't take responsibilities for his feelings; but blames you or others for them. Can't put together three word sentences starting with "I feel... Attacks, blames, commands, criticizes, interrupts, invalidates, lectures, advises and judges you and others. Often begins sentences with "I think you... "Sends "you messages" disguised as "I feel messages" For example, "I feel like you... Lays guilt trips on you. Is a poor listener. Interrupts. Invalidates. Misses the emotions being communicated. Focuses on "facts" rather than feelings.

31 References for EI The Emotional Competence Framework emotionalintelligencecompetencies.pdf Emotional Intelligence: What it is and why it matters emotionalintelligenceexplanation.pdf The Business Case for EI in the Workplace emotionalintelligencebusinesscase.pdf The EQ Institue:

32 Cultural Intelligence In a world where crossing boundaries is routine, CQ becomes a vitally important aptitude and skill." Harvard Business Review People with higher CQ's are regarded as better able to successfully blend in to any environment, using more effective business practices, than those with a lower CQ.

33 Cultural Intelligence "EQ is a strong predictor of your success when you're working with people who come from the same culture as you, but your CQ is a much better predictor of how you'll do working with people from different cultural backgrounds - the inevitable reality for all of us over the next decade. (Livermore, The CI Difference )

34 Cultural Intelligence (CI) Trivia Questions What is the most widely spoken language in the world? What is the mother tongue of the largest no. of people? What is the world s largest religion?

35 Definition: Cultural Intelligence Theory within management and organizational psychology The ability to engage in a set of behaviors that uses skills (i.e. language or interpersonal skills) and qualities (e.g., tolerance for ambiguity, flexibility) that are tuned appropriately to the culture-based values and attitudes of the people with whom one interacts. Current trend is to use cultural intelligence in preemployment assessments

36 Assessing Your CQ 12 page feedback report on your CQ capabilities

37 Assessing Your CQ Cultural Capability Model A. CQ Drive (Motivation) B. CQ Knowledge (Cognition) C. CQ Strategy (Meta-cognition) D. CQ Action (Behavior)

38 Improving your CQ A. CQ Drive 1. Intrinsic 2. Extrinsic 3. Self-Efficacy

39 Improving your CQ B. CQ Knowledge 1. Business/Cultural Systems 2. Interpersonal/Cultural Values 3. Socio-Linguistics 4. Leadership

40 Improving your CQ C. CQ Strategy 1. Awareness 2. Planning 3. Checking

41 Improving your CQ D. CQ Action 1. Nonverbal 2. Verbal 3. Speech Arts

42 Working with People from Different Cultures Acknowledge your ethnocentricity Keep open mind & suspend judgment Seek to listen and understand first Increase awareness of similarities Decrease importance of dissimilarities Have a discussion on cultural differences

43 CQ Case Study You are about to perform an audit of an international division, known to be hostile to corporate auditors. What are the ways that you can utilize various CQ actions and strategies to ensure an efficient audit?

44 References for CQ Kiss Bow or Shake Hands Articles and Cultural Quizzes The Cultural Intelligence Center The Cultural Intelligence Difference David Livermore

45 THANK YOU Jannies Sun Burlingame, CPA IntelSource Consulting Corp