Leveraging Trust to Foster Organizational Success

Richard F. Chambers, CIA, QIAL, CGAP, CCSA, CRMA

President and CEO
The Institute of Internal Auditors
“No one Agenda
stumbles into
greatness. • Internal auditors as “Trusted Advisors”
Indeed, part of • The essence of trust
becoming a • Attributes of outstanding internal auditors
trusted advisor – Personal
is having the
right stuff.” – Relational
– Professional
• Parting thoughts
“The word trust is
underused by The Essence of Trust
internal auditors.
We worry about • We often limit our perspective on trust – “we
whether we can need to trust them”
trust others, but • Yet, our stakeholders must have a firm belief
rarely about in the reliability, truth, ability, and
whether they strength of internal audit
should trust us.” • The very best internal auditors share
attributes that win and sustain trust
• The very best are trusted, whether providing
advice or assurance
 Attributes of the Trusted Advisor:
Evolution of the Model

Source: Lessons Learned on the Audit Trail

“Look at Harry Ethical Resilience
Markopolos,
• More than half of respondents identified
who tried to ethical commitment among top 3 attributes
break open the
• Ethical behaviors
Madoff scandal.
He just kept – Integrity
going back to – Courage
the SEC over – Honesty
and over to – Accountability
make his point. – Trustworthiness
. . . It took a lot • Willingness to “throw the flag”
of courage. In • Wired for integrity?
my view, he’s a • Shatterproof house
hero.” • More than half of internal auditors have
- Bethmara Kessler been pressured to change audit findings
SVP, Integrated Global Services
Campbell Soup Co.
 Results-focused
• 88 percent of CAEs rated a laser focus on
“I see much more results as critical to success
often people with
• Results-focused internal auditors obsess over:
all the
– What happens after the report is delivered?
certifications, all
– Did the audit have impact?
the prestigious
– Did it create productive/beneficial change?
degrees, but who
– Did it drive improvement?
just don’t want to
do what it takes to • Mastering foundational sub-traits
– Work ethic
succeed in the
–
job.” Productivity
– Timeliness
- Mark Rosa
VP of Internal Audit – Determination
Houghton, Mifflin, Harcourt
“One of the CAEs
who responded to Intellectually Curious
the AEC survey
characterizes the • It’s not enough to know what happened
quest to get to the
root cause of an • Obsess over why – the root cause!
issue as ‘provocative • Follow the risks
inquiry,’ defined as
‘the knack for asking • A dose of healthy skepticism
smart and unsettling • Leverage intuition
questions.’ ”
• CQ (Curiosity Quotient) = “hungry mind”
“With the increasing
expectations that
internal audit must Open-mindedness
respond to, it is not
okay to remain Hindsight Insight Foresight
status quo anymore.
If you raise the bar Open-mindedness
one year, you are
expected to continue • Open-mindedness, flexibility, and reasonableness
raising it, and the yield credibility
only way to do that is • Habits that will impede trust:
to be creative in how – Don’t dwell on the past
– Don’t shrink from getting to the bottom of issues
you perform and – Don’t take a myopic view on recommendations
report on your work.” – Don’t forget to get input from those you are auditing
- Aileen Madden – Don’t view the world in black and white
Head of Corporate Audit & Advisory
Air Canada
• A hiatus can foster an open mind
 Dynamic Communicators

• 95% rate communication skills as essential;

“Don’t
communicate to
45% say more training is needed – Pulse 2017
be understood. • “Soft side” vs. “technical side” of communication
Rather, is seen as most critical
communicate so • 5 words or phrases to avoid
as not to be
misunderstood.” – “Failed” – “We found”
- Dr. John Lund – “Inadequate” – “It appears”
– “Ineffective”
Retired professor of communications

• Right tone is essential to winning and sustaining trust

• “I agree with the recommendations, but not the
findings”
“. . . Auditors
used to be Insightful Relationships
regarded like
the police and • Sustained trust is rooted in relationships
were generally • Not just a popularity contest
unwelcome. So, • Relationship building starts within the
one way to internal audit team
change this • Relationship acumen is critical to insightful
paradigm is to relationships
be friendly and – Positive intent
put ourselves in – Diplomacy
others’ shoes.” – Prescience
- Davis Moraes
• As a new internal auditor, rotational
Head of Internal Audit
Iochpe-Maxion S/A Group
assignments yielded strong relationships
Nick Saban “inspires his Inspirational Leaders
team to ‘do their job,’
• Inspirational leaders articulate a vision that
focusing on one play at
motivates others to act
a time, as the most
important area of focus • Inspirational leaders think in ways that inspire
at that moment – not
others
becoming distracted by • Converting thoughts to actions
the score, or what – Share the experience/let others lead
victory will feel like, or – Coach others to greatness
what statistics they are – Build teams/promote teamwork
racking up.” – Employ purposeful emotion
– Lead through culture
– Face challenges
– Earn and extend trust
• Bryant, Saban, Lombardi
“Critical thinking Critical Thinkers
dramatically
increases the • Critical thinking: “using reasoning and logic,
not emotion, to evaluate information and
value internal audit consider alternatives.”
provides to its • Intellectual curiosity and critical thinking are
stakeholders. interconnected
Auditors skilled in • Critical thinkers take the information
critical thinking generated by their curiosity, and make sense
don’t get stuck in of it
blindly following an • Being skeptical is integral to critical thinking
audit program or – Healthy
– Credible
checklist . . .”
• Obstacles to critical thinking: bias, speed,
- Shawn Tebben
VP of Internal Audit
ambivalence
Vail Resorts
Business acumen,
industry expertise,
and technology
Technical Expertise
insight are what
“internal auditors • Becoming a Renaissance auditor
must master if they • “Knowing your beans”
are to become • 3 keys:
trusted advisors - – Know your business
our profession’s – Know your industry
Renaissance – Know technology
people.”
• You are never too important to learn
Parting Thoughts
 Remaining the Stakeholders’ Confidant

• Internal audit must evolve, or it will perish: Today’s heroes are tomorrow’s
has-beens if they rest on their laurels
• The future is awe-inspiring: It offers opportunities and risks for our profession
• Trusted advisors must continually challenge and reinvent themselves to
“remain at the table”
Thank You!
The Institute of Internal
Auditors
Richard F. Chambers, CIA, QIAL, CGAP, CCSA, CRMA
President & CEO, The Institute of Internal Auditors
Richard.Chambers@theiia.org

@RFChambers