Tuesday, January 5, 2021

Did working from home alter corporate culture?

With so many people working from home/ remotely during the pandemic for an extended time, it is logical that we question if this environment has influenced the corporate culture. In this post, I will try to shed light on how home culture may have interfered with corporate culture.


What is corporate culture?


There are many definitions of corporate culture, but it is basically the combination of beliefs, values, ethics, behaviors, and actions of management and employees in running the business. Because this post is mainly written for internal auditors, it is useful to remind them of  the definition used by the IIA in its practice guide” Auditing Culture”:


Culture represents the invisible belief systems, values, norms, and preferences of the individuals that form an organization. Conduct represents the tangible manifestation of culture through the actions, behaviors, and decisions of these individuals”.


Components of the corporate culture


Let’s first agree that every organization regardless of its size or structure has a culture. A quote from Pyxis blog post  explains this in simple words:


Large or small, start-up or mature, commercial or government, every organization has a culture. Corporate culture is either designed from the beginning or left to develop by default. Either way, you will have a corporate culture.”


To understand how corporate culture may be influenced, we need to identify its components. The most important component is people, without people there is no culture! A second component is vision/mission/values,  a third important component is the environment and place of work. Scholars add more components such as leadership, communication, teamwork, and others.


Did working from home alter corporate culture?


In trying to answer this question, we at AdapGility Consulting have posted a poll in our LinkedIn Group. The poll question was:


How did working remotely affect the culture at your organization?”


We have provided three possible answers and received the following results:

- It is about the same     29%

- Improved                       36%

- Deteriorated                  35%


While this poll is far from scientific, it provided me with a starting point to further explore the effect of remote working on corporate culture. The results somehow surprised me! While I was predicting that the vast majority of the answers will be in the stayed the same/deteriorated categories, I was not expecting that 36% of respondents felt that the corporate culture at their organizations has improved.

A study by Quartz and Qualtrics shows that 37% of workers feel that company culture has improved since the begging of the COVID -19 pandemic. The results of the study are almost identical to our Linkedin poll results! I am not sure if this reflects the reality or it is just a coincidence!


 Effects of remote working on culture


Looking back at the basic components of corporate culture, we may assume that the COVID-19 pandemic has changed, to an extent, how people feel and think.  It may have also changed our perspective on life, relationships, and values. The change could be positive or negative and it could be temporary or permanents! The change in the work environment/ place of work may also have an effect on mindsets and relationships.


The negative effects of working remotely are widely known such as the feeling of isolation, lack of focus, stress, and zoom fatigue, so I will not repeat them in this post. I will focus on discussing why almost one-third of the respondents to the survey and poll question felt that the corporate culture in their organizations has improved.

Supporters of remote working will tell you that working from home/remotely has provided them with a better work/life balance, reduction in costs (transportation, wardrobe), flexibility in time and place of work, ease of communication, less stress, and tax benefits in some countries.


We have asked the respondents to our poll question who said that the culture at their organizations has improved to share their experience and thoughts. We have received a detailed response from Theocharis Tzionis, a group member, who shared the below thoughts. While I understand the logic behind each point  he raised, which seems to be influenced by the combination of the  pandemic mindset/empathy and the remote working environment, the first point makes me wonder if  the culture is being divided into sub-cultures that are acting in silos and not integrated throughout the organization:

-  First point to make here is that organisational culture for people could mean the culture in their teams, as this is the immediate effects on their own work life. For example, if your department has a more flexible approach to working hours than the rest of the organisation then you may perceive that aspect of culture to be a good one irrespective of the organisation as a whole.

- Managers became more compassionate and understanding.

- Less demanding which in trun makes people happier and thus more productive.

- You get to "see" leadership team more often. Through videos for the organisation's news and approach, as well as the actions for the pandemic.

- Provided far more information and subscriptions to apps for mental health (this should have been in place in my opinion irrespective of the pandemic).

- Managers and leadership team are more flexible.

- People get to spend more time with people that actually matters to them i.e. family and friends and don't have to spend time with office chat with people that may or may not like in the office. This will increase the overall perspective of organisational structure.

- Bad news are conveyed in a more professional and compassionate way because of the situation and the remote working.

- Businesses are changing, therefore leadership teams are forced to change and therefore are more acceptable to new way of doing things.”


- Managers became more compassionate and understanding.

- Less demanding which in trun makes people happier and thus more productive.

- You get to "see" leadership team more often. Through videos for the organisation's news and approach, as well as the actions for the pandemic.

- Provided far more information and subscriptions to apps for mental health (this should have been in place in my opinion irrespective of the pandemic).

- Managers and leadership team are more flexible.

- People get to spend more time with people that actually matters to them i.e. family and friends and don't have to spend time with office chat with people that may or may not like in the office. This will increase the overall perspective of organisational structure.

- Bad news are conveyed in a more professional and compassionate way because of the situation and the remote working.

- Businesses are changing, therefore leadership teams are forced to change and therefore are more acceptable to new way of doing things.”

What do you think? Does the above reflect what is happening at your organization?

Please share your thoughts.

Friday, December 11, 2020

It is time for an honest self-assessment!

As this unprecedented year is winding down, it is time for internal audit to take a moment and perform an honest self-assessment that goes beyond the requirements of standard 1311 of the International Standards of the Professional Practice of Internal Auditing.

If you have not already performed the assessment, here is a list of some suggested questions internal auditors need to ask themselves:

  • Did we really try our best to help our company to survive and succeed in any way we could?
  • Did we act fast enough or did we panic and hesitated?
  • Did we adapt to the new normal in a reasonable time?
  • Were we prepared for a crisis like this in terms of training, communication skills, and mindset? 
  • Did we lead or did we wait to be told what to do?
  • Did we realize that the pandemic also presented a unique opportunity for internal audit to rise and shine? Did we take advantage of this opportunity?
  • What did we learn about ourselves at the professional and personal levels? Is an internal audit career still in our future?
  • Did we accurately identify our weaknesses and shortcomings and developed a plan to deal with them?
  • Are we now more relevant or less relevant to the company? Did our stakeholders change their perception about internal audit? 
  • Do we have a clear vision of our role and responsibilities post-pandemic? Do we understand how we can contribute to business resilience and the continuation of operations?
  • If we have failed, do we have the courage to admit it and seek help to transform and pave the way back to success?
Some of the above questions are difficult to digest and answer. But, unless we do so, we can not move forward and achieve our goals. 

It takes honesty, courage, and determination to address the above questions and take appropriate actions.

These are my thoughts, please share yours!



Picture source:https://efisoul63.wordpress.com

Tuesday, September 8, 2020

If you can’t be an internal auditor anymore, what other career options would you consider?

 The recent survey results published by The Insitute of Internal Auditors (COVID-19: THE INITIAL IMPACT ON INTERNAL AUDIT WORLDWIDE) suggests that about 20% of internal auditors have lost their jobs permanently and temporarily worldwide. While the staffing decrease in internal audit was described as more likely to be temporary (14%) than permanent (5%), it is a sad fact that some internal auditors may not be able to find a job in internal audit in the near future.

If you face this situation, what would you do:

  • Never give up: keep networking until you land an internal audit position. In the meantime, you continue to keep yourself up to date with the profession and develop new skills.
  • Consider a career change. You may consider accounting, finance, management, or other operational positions for which you feel you have sufficient minimum experience to enable you to start working without hurdles.
  • Start over from scratch: go back to school and obtain a degree in another field of study.
  • Become a freelance consultant
  • Call it a quit and retire (depending on your age and financial health)!
  • None of the above. You will come up with another innovative option!

Assuming you decide that career change is in your future, what would be your preference?

Please share your thoughts.



A Getty Picture 

Tuesday, August 25, 2020

What does innovation mean to Internal Audit?

 

The pressure is mounting on Internal Audit to become innovative and this is understandable and expected. The call for innovation is not new but has certainly intensified during the COVID 19 pandemic as organizations are going through changes and transformation to adapt to the new normals. Innovation may mean different things to different people, in this post I will discuss what innovation means to internal audit.

What is innovation?

In traditional dictionaries, innovation is defined as developing a new idea, method, service, or product. In reality, it is more than that. It also refers to updating current processes to improve the quality of services and products. It does not mean that you always start from scratch!

What is innovation in internal audit?

There may not be a unified definition of what innovation in internal audit means. For some it could mean reinventing internal audit, for others, it means one or more of the following:
  • transformation to agile internal auditing
  • better leveraging of technology and greater use of data analytics, RPA, and AI
  • exploring and accepting new ideas and alternative processes to improve audits
  • empowering the creativity of internal auditors and encouraging brainstorming
  • better utilization of available resources
  • understanding how the organization is changing its business model and operations and adjusting audit plans and procedures accordingly
  • more access to specialized skills internally and externally
  • enhanced reporting and real-time communication
  • more investment in relevant training
  • risk anticipation and enhanced risk assessment
  • change of internal audit mindset and culture
  • striking the right balance between consulting and assurance services
What else do you consider as an innovation in internal audit?
Please share what innovation means to you. I would love to update the above-mentioned list with your definition and understanding of innovation in internal audit.

How to become innovative?

The first step is to clearly define innovation and ensure that your stakeholders agree with it. Then develop your objectives and start working on your mindset and the mindset of your team. Don't be afraid to think loudly even if what you are thinking about sounds crazy and illusional! Put some of these crazy ideas to test and see what happens!  I like the advice offered by a  themuse article on how successful people become more innovative. It lists the following characteristics.
  • they don't discount their crazy ideas
  • they get comfortable with fear
  • they learn about anything and everything
  • they never think they know it all
  • they surround themselves with heroes

Please share what innovation means to you and what have you done in practice to become innovative.

These are my thoughts, please share yours.





Getty Images

Tuesday, August 11, 2020

Has your Internal Audit function tested positive for the irrelevance virus?

 By now, most of you have realized that the world as we knew it has changed forever! The change has affected almost everything in our lives at the personal and professional levels. Some of the changes could be opportunities in disguise, while others could bring devastating consequences to some businesses and certain functions within an organization.

Has your Internal Audit function tested positive for irrelevance?

While many Internal Audit functions have shined and demonstrated that they are indispensable during the crises, others were not so lucky! If your Internal Audit has failed to provide help, add real  value, and start the evolution process during the pandemic, it could be because it has been infected with the "irrelevance" virus! In this case, your Internal Audit is dying or most probably has been dead for a while!

On a more serious note, can the COVID 19 pandemic weaken internal audit in some organizations? The answer depends on many factors such as:

  • The performance of Internal Audit: if you have not proved your value to the organization during this crisis, it is unlikely that your Internal Audit function will emerge from it unscathed.
  • The performance of the organization: financial difficulties may lead to cuts in the Internal Audit budget, lay off of auditors, and/or other measures.
  • Some fear that management may attempt to use the crisis as an excuse to weaken Internal Audit to serve its agenda or in retaliation for previous actions by Internal Audit! I would like to believe that this scenario will not happen.

Get Vaccinated!

Yes. there is a vaccine against irrelevance and if you have not taken it yet, do that now. It is not too late. Here are some basic vaccine dose recommendations:
  • Leave your comfort zone immediately and be agile. At AdapGility Consulting we developed the motto " Be agile, be alive" because these days if your IA function is not agile it means it is paralyzed or dead!
  • Work on your mindset (that could be the hardest part). Become flexible and adaptable, it is essential to enable you to transform into agile internal auditing.
  • Understand the true meaning and intention of the internal audit independence concept. Don't hide behind it!
  • Do not wait for a seat at the table to be offered to you. Invite yourself to the party.
  • Keep your eyes, ears, and more importantly your mouth fully open! Real-time communication of what matters is the key to relevance.
  • Maintain up to date understanding of the company's objectives and business. This is a cornerstone for auditing what matters and adding value. Keep the conversation going with your stakeholders in these uncertain and unprecedented times.
  •  Understand what is the stakeholders' perspective of what adding value by IA means to them.
  • Take a tablespoon of the "courage syrup" three times a day!
  • Put serious efforts in developing your soft and technical skills. Invest in yourself.
  • Utilize available technology to its fullest potential.
The above is not rocket science and has been repeated time and time again by the IIA, the consulting firms, thought leaders, and others. Almost all internal auditors are familiar with it. However, there is still a gap between what internal auditors know and what they can successfully implement. Bridge the gap!

Can the world live without Internal Audit?

 How would the world look like If Internal Audit fails and is marginalized or eliminated?
In researching materials for this topic I came across an undated article questioning  "What if Internal Audit disappeared?". The conclusion was basically that it will not be the end of the world, and that    "key stakeholders would still demand some degree of checks and balances and that the other functions—second-line compliance and risk management, external audit, regulators—would naturally fill much of the void". The interesting thing is that the author's conclusion was based on discussions with his friends in Internal Audit who he described as pragmatic!

What do you think will happen if Internal Audit ceases to exist?

These are my thoughts, please share yours!







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Monday, July 13, 2020

Internal Audit and Mental Health!

During the current difficult and uncertain times, people may not always be able to maintain proper mental wellness. This should not come as a surprise during these unprecedented times. People are worried about their health, their families, their jobs, and their financial situation.  In this post, I will briefly discuss how internal auditors can maintain their own mental wellness and what role they can play to help their organizations deal with mental health and safety plans in the workplace.

What is mental health?

The World Health Organization (WHO) defines mental health as: 

"a state of well-being in which every individual realizes his or her own potential can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to her or his community."

With the current level of disruption, uncertainty, social distancing, remote working, fear, and stress it is of most importance to ensure that there are proper plans to deal with mental health issues as businesses start to prepare for workplace re-entry.

Although mental health awareness has gained ground in the last few years, there is still a long way for promoting it across businesses and communities worldwide.

How to maintain your mental health?

For the same reason a person takes care of his/her physical health, he/she should also pay attention to his/her mental health. According to experts, mental wellness can be achieved and improved through different ways and techniques such as:
  • Get enough sleep and eat healthily.
  • Exercise for a minimum of 30 minutes a day. 
  • Develop a new hobby and/or skill.
  • Stay in touch with people.
  • Train your brain: play games, read, write.
  • Minimize the time you spend following the media.
  • Practice your choice of spirituality/ meditation/yoga.
  • Laugh. They say laughter is the best medicine.
  • Build a support network and be supportive of others.
  • Think more about today and less about tomorrow. Forget the past!

How can Internal Audit help?

Internal Audit can play a vital role in helping the organization promote and improve mental wellness  and provide assurance and insight by for example:
  • Assessing the mental health "culture" and the related" tone at the top". A candid discussion with management and the audit committee regarding their views on mental health and their plans to promote it within the organization is the starting point towards recognizing that mental health is an issue that should be considered and taken seriously. Not everyone is aware of how mental health in the workplace affects performance, productivity, collaboration, the ability to take the right decision, and even the reputation of the organization as a whole. Internal audit may have to take the initiative to provide education on the effects of mental health when needed.
  • Review the existing mental health policies and procedures and ensure that they cover issues such as identification of mental illness, confidentiality, privacy, equality, and access to available internal and external support and treatment.
  • Internal Audit needs also to ensure that there are appropriate policies and procedures covering anti-retaliation, anti-discrimination, anti-harassment, violence, and the flexibility to take time off or work from home for those affected by mental illness.
  • If no policies and procedures are in existence, Internal Audit can work with Human Resources and Legal Departments to provide insight and guidance on how to prepare them.
The above is only a general suggestion on how Internal Audit can help. If you have practical experience with mental health at your workplace please share as much as you can.

What do I do?

Because I, usually, practice what I preach, I am sharing with you what I do to maintain my mental wellness:

  • I read a lot!
  • I play brain games!
  • I have learned a new skill: cooking
  • I walk every day in the parks and trails.
  • I am rediscovering nature and wildlife.
  • I have developed a new hoppy: photography. Below are samples of my work.
Today's hoppy could be tomorrow's profession!

Please share your thoughts and your methods of maintaining your mental wellness.









Tuesday, May 12, 2020

Are you the same person you were before the COVID-19 crisis?

Now that you have stayed at home and working remotely for some weeks, it may be time to ask how this life-changing experience has affected you at the personal and professional levels?
Are you the same person you were before the crisis?
What has changed in your perspective of life, family, and your profession?
When you return to your office, hopefully in the near future, what would you be doing differently? Will you be doing audit planning, risk assessment the same way you used to do? How will your relationships with the stakeholders be reshaped? And more importantly, how your understanding of your role as an internal auditor has changed or evolved?
If you believe this experience has not changed you, can you share why you feel this way and what contributed to your status quo?
Please share your thoughts!




picture credit:https://liveboldandbloom.com

Did working from home alter corporate culture?

With so many people working from home/ remotely during the pandemic for an extended time, it is logical that we question if this environmen...