SUCCESSFUL SOFT SKILLS FOR INTERNAL AUDITORS
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1 SUCCESSFUL SOFT SKILLS FOR INTERNAL AUDITORS CHARTERED INSTITUTE OF INTERNAL AUDITORS December 2014
2 PROPOSED AGENDA/ CONTENT Key soft skills required by an auditor to successfully carry out their duties oral communication/presentations interview skills active listening How to develop your soft skills to improve your effectiveness as an auditor Tips for managing multiple stakeholder relationships as an internal auditor Influencing & negotiating techniques for auditors Conflict resolution/facilitation skills/tips How soft skills can aid internal audit to gain increased credibility, influence and respect with senior groups within the organisation The Changing Role of Internal Audit Understanding Yourself and Others the DISC Model Developing soft skills for Internal Audit 2
3 3
4 01 THE CHANGING ROLE OF INTERNAL AUDIT 4
5 EVOLUTION OF INTERNAL AUDIT Check Account Records Assess Compliance Examine Procedure Evaluate Controls Assure Risk/Control 2002 Facilitate Risk Management 2001 Assess Risk Management 2000 Report on Systems of Internal Control 1990 Add Value????? /05 The Internal Auditor at Work A practical guide to everyday challenges The Institute of Internal Auditors,
6 AUDITORS TODAY Integrity Continuous Learning Relationship Building Diversity Effective Internal Auditors Partnering Teamwork Communications Seven Attributes of Highly Effective Internal Auditors (Chambers & McDonald, 2013) Technical Expertise 6
7 THE CHANGING ROLE OF INTERNAL AUDIT Internal audit traditionally seen as a scientific boxticking exercise Technical skills are no longer enough Look outside the box - not all the answers to the audit questions are contained within documents and files Valuable insights can be gained through interactions with people at multiple levels and roles within the organisation Building relationships with the Auditee is critical to a smooth audit process 7
8 BENEFITS OF ROUNDED AUDITORS Greater co-operation throughout the audit process More open and honest communication Trust and respect of the auditee Less conflict and resistance Less likely to face audit barriers and restrictions Seen as impartial & objective, rather than the judge and jury Audit will be seen as value adding - an opportunity for organisational learning where risks are identified and workable solutions can be found Builds credibility Makes good business sense 8
9 02 UNDERSTANDING YOURSELF AND OTHERS THE DISC MODEL 9
10 460BC Hippocrates Blood Red / Assertive Yellow Bile / Outgoing Green Phlegm / Detailed Black Bile/ Accommodating Carl Jung Feeling / Thinking Intuition / Sensation Conscious / Unconscious 1920 William M Marston Dominance Inducement Submission Compliance Thomas Hendrickson Dominance Influence Steadiness Compliance 1950
11 USING THE DISC APPROACH Helps people to understand and accept differences Improves interpersonal relationships Reduces stress and conflict Facilitates better teamwork Knowing which button to push 11
12 THE DISC MODEL THE BLUE + cautious + analytical + formal THE RED + competitive + purposeful + strong-minded THE GREEN + amiable + reliable + caring THE YELLOW + expressive + sociable + informal 12
13 THE DISC MODEL THE RED Natural Behaviours: Outgoing Challenging the Status Quo Keen to get things done Resists authority Takes the lead Action to bring around change Natural Needs: Results Recognition Challenges Natural Fears: Being taken advantage of Challenges to authority Others not performing 13
14 THE DISC MODEL THE YELLOW Natural Behaviours: Leads by enthusing Prefers a global approach Steers away from detail Acts on impulse Keen to promote change Natural Needs: Change New trends Acknowledgement Natural Fears: Social rejections Stagnation Detailed Work 14
15 THE DISC MODEL THE GREEN Natural Behaviours: Reserved Team Player Accommodates others Maintain the status quo Prefers steady not sudden change Recovers slowly from hurt Natural Needs: Security Acceptance Teamwork Natural Fears: Loss of Security Standing out (better / worse) Unplanned changes 15
16 THE DISC MODEL THE BLUE Natural Behaviours: Reserved Approaches work systematically Pays attention to detail Focuses on immediate tasks at hand Likes to plan for change Prefers established guidelines Natural Needs: High Standards Appreciation Quality Work Natural Fears: Criticism of their work Imperfection Things not properly described 16
17 THE DISC MODEL PROBLEM SOLVING & IMPLEMENTATION Focused Planner Strategist Incremental Radical Analyst Visionary Flexible 17
18 THE DISC MODEL COMMUNICATION & INTER-PERSONAL STYLE Individualist Independent Challenger Introversion Extraversion Supporter Encourager Collectivist 18
19 THE DISC MODEL WORK WITH Data & Tasks Data Tasks People & Data Tasks & Ideas People Ideas Ideas & People 19
20 TYPICAL SECTORS THE BLUE Technical Law Compliance Finance IT Engineering THE RED Entrepreneurs Stock broking Business Investment banking Commodities Defence THE GREEN Customer service Education Health Social Service Services Green Sector THE YELLOW Media Arts and Performance Creative Clothes industry Marketing / PR Recruitment 20
21 WHERE ENERGIES ARE FOCUSED Challenge Accuracy Results Stability Action Support Enthusiasm 21 Collaboration
22 SO WHAT DOES IT MEAN? Communication Skills Influencing Skills Negotiation Skills Conflict Management Skills 22
23 LINKING DISC TO INFLUENCING SKILLS PUSH Directive Persuasive Reasoning Influencing Style PULL Collaborative Visionary Source: Ashridge Business School 23
24 PUSH STYLE Directive An I -driven style in which you assert your own perspective and expect others to follow. This style is most appropriate when: You are an expert. You require speedy action. You are working with new or inexperienced stakeholders. It is a high risk or time sensitive issue. Risk: If you use this style ineffectively or too often, you maybe regarded as autocratic and aggressive. Persuasive reasoning This is an issue-driven style you use when you want others to buy into your ideas by presenting them in a logical, rational and objective way. This style is most appropriate when: Your credibility with others is high and you are knowledgeable about the issue. You need to get buy-in and support for a difficult or unpopular issue. You know there is a specific solution to a problem, and you have information to demonstrate this. Risk: Used ineffectively, you maybe regarded as aggressive. 24
25 PUSH STYLE Collaborative This is a team-oriented style where you involve others who will offer views and ideas about the issue. This style is most appropriate when: You require commitment from others. You want innovative ideas from others. The issue has no clear solution. Risk: Used ineffectively, you may be regarded as indecisive. Visionary This is a style where you have to tap into others emotions, engage their imagination and help them visualise what could be. This style is most effective when: Strategic change is required. You wish to gain people s attention and whet their appetite for future debate. Innovative thinking is required. Risk: Used ineffectively or overused and you may be seen as egocentric or idealistic. 25
26 03 DEVELOPING SOFT SKILLS 26
27 SELF ASSESSMENT Self Check 1-10 Where s the evidence? Listening Communication (verbal/written) Probing/ Questioning Reading body-language Preparation & Planning Confidence Patience Flexibility Building Trust Credibility Openness Consistency Self Awareness Energy 27
28 KEY WORDS: PERSONAL DEVELOPMENT Self Awareness Supportive Future oriented Challenging Development Action oriented Personal Responsibility Growth Goal setting 28
29 WHAT IS COACHING? A powerful emerging profession Value is being increasingly recognised Coaching is a professional relationship Facilitates performance, learning and development of people Improves effectiveness and the achievement of results. Focuses on measurable steps of success 29
30 A DIFFERENT APPROACH Be clear on the goal Question Listen Take responsibility for action Next steps 30
31 31 A PERSONAL JOURNEY
32 Mazars is present in 5 continents. CONTACT Keith McCarthy Director, HR and Organisation Development Consulting Mazars Harcourt Centre Block 3, Harcourt Road Dublin 2, Ireland Tel: +353 (01) mazars@mazars.ie Mazars Place, Salthill Galway, Ireland Tel: +353 (091) mt@mazars.ie mazars.ie
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