Interviewing Techniques for Auditors

July 20, 2010

Philip E. Flora, CIA, CISA, CFE, CCSA

Special thanks to Mark Salamasick for sharing slides to be used in this presentation

Session Objectives

Discuss why interviews are important to the audit process Identify barriers to a successful interview Provide examples of how understanding communication and relationship building skills are critical for success

Review how to plan for an interview

Session Objectives (Continued)

Provide the steps of an interview Determine how to gather valuable interview information Provide interview tips/lessons learned to improve the opportunity for a successful interview

Share reference materials/references for future use

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Introductions

Getting to Know You

Name

you wish to be called?

position, what

Organization,

you do?

What

is it about yourself you would like others to know?

key expectation you have for this course?

5

Four Types of People

Those who make things happen.

Those to whom things happen. Those who watch things happen. Those who dont even know things are happening.
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Communication/Interviews Why Important?

Is This an Effective Way to Communicate?

Art of Communication

Send

Receive

Barriers to a Successful Interview

Uncertainty
Relationship Schedule/work load Environment

Attitude

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Barriers (continued)
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
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Barriers (continued)
Preparation/planning Knowledge Confidence/nervousness

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AUDITORS
ARE THE ONES THAT GO IN AFTER THE BATTLE HAS BEEN FOUGHT AND BAYONET THE WOUNDED!

Share Examples Exercise #1

Please

form into groups of 3-5 and discuss awkward, bad or hostile interview(s) you or someone on your audit team has experienced a group member to list the top 1-3 tough/non-successful interviews to share with the group

Select

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How Do Communication & Relationships Impact Interviews

Comfortable meeting
Trust

Respect
Efficient

Effective

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How to Build Relationships or Learn How to Better Communicate?

_____________________________

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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How to Build Relationships or Learn How to Better Communicate? (Continued)

Be

on time active listening that you have prepared more talk less

Perform Listen

Demonstrate Keep

the meeting time to a minimize & mention the need to follow-up by telephone, email or 2nd interview
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Planning for an Interview

Learn above the area Review the organizational chart

Review their area info (e.g. vision, mission, performance measures, other, etc.)
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Planning Interview Exercise #2

Please

form into groups of 3-5 and discuss steps you take to plan for an audit interview

Select

a group member to list the top 2-5 planning tips to share with the group

19

Planning Interview Exercise #2

_____________________________

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Planning Interviews
Review

the areas web site if available key staff through the organizational chart prior audit reports

Identify Review Acquire

reports

and read available status

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Interview Steps

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Chapter 10
Audit Evidence and Working Papers
Copyright: Internal Auditing: Assurance and Consulting Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida 32701-4201 U.S.A.
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Chapter 10 Learning Objectives

Understand what it means to gather and appropriately evaluate sufficient appropriate audit evidence. Know the manual procedures used by internal auditors to gather audit evidence. Be familiar with selected computerassisted audit techniques, including generalized audit software. Understand the importance of wellprepared audit working papers.
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25

Exhibit 10-1

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Exhibit 10-2

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Exhibit 10-3

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Exhibit 10-4
Analytical Reviews

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Audit Workpapers

Document as you do the work Write complete and coherent workpapers Use the format that is used by the audit group you are working with Make sure you include audit evidence so someone can re-perform your steps Automated workpaper systems versus word/excel workpapers
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Quote - Risk
Behold the turtle. He makes progress only when he sticks his neck out.
----- James Bryant Conant
Educator, diplomat & chemist (1893 1978)

Key Interview Components

Interviewing

Objectives _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Key Interview Components (Continued)

Prepare

for the Interview _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

33

Key Interview Components (Continued)

Conduct

the Interview _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Key Interview Components (Continued)

Document

the Interview Outcomes _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Key Interview Components (Continued)

Interviewer

Common Characteristics _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Key Interview Components (Continued)

Barriers

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Key Interview Components (Continued)

Critical

Success Factors _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Practice Interviewing Exercise #3

Form

a group of three people 1) Interviewer 2) Interviewee 3) Note Taker

Each

person in the group conducts a 5 minute interview

each person conducts an interview review/list the strengths, opportunities for improvement and lesson learned

After

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Practice Interviewing Exercise #3

Results _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
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Something to Think About

The Value of Meetings?

Open-Ended & Closed-Ended Questions Exercise

Workbook Page B-2

_____________________________

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Active Listening Exercise Workbook Page D-2 & D-3

Please Select

read pages D-2 & D-3

a partner to work with on this exercise

One

person serves as the interviewer & the other the interviewee (select a business related area for the subject)
the 1st interview
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Conduct

Active Listening Exercise Workbook Page D-2 & D-3

After

the interview is complete make notes for future review roles & conduct the interview

Switch

After

the 2nd interview is complete make notes for future review the notes of each person & list 2-5 things you learned from the exercise
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Review

Active Listening Exercise Workbook Page D-2 & D-3

_____________________________

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Problem Solving

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The Audit Interview Model

Step

1 Background Information _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

Copyright Graduate School
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The Audit Interview Model

Step

2 Interview Objectives _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

Copyright Graduate School
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The Audit Interview Model

Step

3 Arranging the Interview _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

Copyright Graduate School
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The Audit Interview Model

Step

4 Getting Started _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

Copyright Graduate School
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The Audit Interview Model

Step

5 Introduction & Statement of Purpose _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
Copyright Graduate School
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The Audit Interview Model

Step

6 Question & Answer Process _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
Copyright Graduate School
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The Audit Interview Model

Step

7 Summary & Close _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

Copyright Graduate School
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The Audit Interview Model

Step

8 Post Interview Activities _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

Copyright Graduate School
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Paraphrasing Exercise Workbook Page E-2

_____________________________

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Voice Tone & Body Language Nonverbal Behaviors

Workbook Page F-2

_____________________________

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Audit Evidence - Quote

Trust, but verify. ---- Ronald Reagan (1911 2004)
40th President of the United States of America

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Listening Exercise Workbook Page G-2

_____________________________

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Gathering Valuable Information/Evidence

Receive Background info to better understand the area being audited

Meet key staff to build rapport

Identify strengths & opportunities for improvement
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Gathering Information
_____________________________

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Gathering Information
Receive

sufficient evidence to support conclusions that the evidence is appropriate that the process is working as identified in the preliminary risk assessment/planning process
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Determine Validate

Share Examples Exercise #4

Please

form into groups of 3-5 and discuss great/effective interview(s) you or someone on your team has experienced a group member to list the top 1-3 interviews tips identified that you want to share with the group

Select

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Flowchart For Problem Resolution

YES NO

Is It Working?

Dont Mess With It!

YES

Did You Mess With It?

YOU IDIOT!
NO

Anyone Else Knows?

YES

Youre in Trouble!

YES

Will it Blow Up In Your Hands?

NO

NO

Hide It

Can You Blame Someone Else?

NO

Look The Other Way

Yes

NO PROBLEM!

Tips/Lessons Learned

Be Prepared Smile (unless the situation dictates a more serious expression) Ask easy questions first Demonstrate active listening
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Tips/Lessons Learned
_____________________________

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Tips/Lessons Learned (Continued)

_____________________________

_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

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Tips/Lessons Learned (Continued)

Speak Bring

the business partners language a note taker for most important interviews up significant items for follow-

Identify List

information provided
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Tips/Lessons Learned (Continued)

Use Ask

open-ended questions

the most difficult and/or controversial questions at the end of the interview some of the questions in the agenda to build trust

Include

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Tips/Lessons Learned (Continued)

Complete Use

the write-up ASAP

a consistent interview write-up format

Conclude
Keep

on the significant aspects of the interview the interviews to an hour maximum (30 minutes best)
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Tips/Lessons Learned (Continued)

Use Be

a conversational interview style

conscious of body posture (your & the person being interviewed)

List

items for follow-up

Send

surveys for less significant potential interviewees

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Tips/Lessons Learned (Continued)

Use

the interview to build a relationship & learn about the business

Be Be

on time
flexible

Ask

follow-up questions

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Tips/Lessons Learned (Continued)

Receive

interpersonal skill training Myers-Briggs Personality Type Indicator ___________________________ ___________________________ ___________________________ ___________________________ ___________________________
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Short Course in Human Relations

The six most important words: 1) I admit I make a mistake 2) You did a good job 3) What is your opinion? 4) If you please 5) Thank you! 6) WE The least most important word: I
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Reference Materials/Resources

Internal Auditing: Assurance & Consulting Services Second Edition IIA Research Foundation Reding, PhD, CIA, CPA, CMA, Sobel, CIA, CPA, Anderson, PhD, CIA, CCSA, CGAP, CCEP, Head, CIA, CPA, CMA, CBA, CISA, Ramamoorti, PhD, CIA, CPA, CFE, CFSA, CGAP, Salamasick, CIA, CISA, CSP, Riddle, MA

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Reference Materials (Continued)

International Professional Practices Framework (IPPF) http://www.theiia.org/guidance/standards -and-guidance/ Government Auditing Standards (GAGAS) - http://gao.gov/govaud/ybk01.htm Sawyers Words of Wisdom IIA Research Foundation - Lawrence B. Sawyer, JD, CIA, PA

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Reference Materials (Continued)

Sawyers Internal Auditing 5th Edition IIA Research Foundation - Sawyer, JD, CIA, PA, Dittenhofer, Ph.D., CIA, Scheiner, Ph.D., Makosz, CA Audit Planning: A Risk-Based Approach K.H. Spencer Pickett Internal Auditing: A Guide for the New Auditor, 2nd Edition - IIA Research Foundation David Galloway, CPA

77

Reference Materials (Continued)

Tools and Techniques for Audit Interviewing Mid-America Intergovernmental Audit Forum http://www.auditforum.org/speaker%20presen tations/mamiaf/mamiaf%2005%202006/riggs. pdf

Situational Interviewing Samuel D. Land, III, MBA, CIA IIA Chattanooga, TN Chapter http://www.google.com/search?sourceid=navcli ent&aq=0&oq=situational+interviewing&ie=UT F8&rlz=1T4DKUS_enUS315US316&q=situational +interviewing
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Reference Materials (Continued)

Easing Into Interviews: Effective Interview Techniques Can help Set a Cooperative Tone for Audit Engagements Internal Auditor Magazine - October 2005 Paula Whatley http://findarticles.com/p/articles/mi_m41 53/is_5_62/ai_n15756368/pg_3/?tag=co ntent;col1 The Internal Auditing Pocket Guide: Preparing, Performing, Reporting & Follow-up Second Edition J. P. Russell
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Reference Materials (Continued)

Productivity Productivity Power 250 Great Ideas for Being More Productive SkillPath Publications, Inc. Jim Temme

Quick Read Series Up Your Productivity Kurt Hanks

Maximizing Performance DK Essential Managers John Seymour & Martin Shervington
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Reference Materials (Continued)

More Balls Than Hands Juggling Your Way to Success By Learning to Love Your Mistakes Michael J. Gelb Personal Productivity Tips and Tools for Daily Success Development Dimensions International, Inc. The Personal Efficiency Program Third Edition How to Get Organized to Do More Work in Less Time Kerry Glesson

81

Reference Materials (Continued)

Organizing from the Inside Out - The Foolproof System for Organizing Your Home, Your Office, and Your Life Julie Morgenstern 201 Ways to Manage Your Time Better - A Quick Tip Survival Guide - Alan Axelrod & Jim Holtje Fast Track - How to Gain and Keep Momentum Roger Fritz

82

Reference Materials (Continued)

Time Management for Dummies Jeffrey J. Mayer Leverage Your Time Balance Your Life John Ingram Walker, M.D.

Fastread Time Management Get Organized and Accomplish More in Less Time Lesley Bolton
Attitude: The Choice Is Yours Michele Matt Yanna
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Reference Materials (Continued)

Management for Productivity Third Edition John R. Schermerhorn, Jr. The Seven Habits of Highly Effective People Powerful Lessons in Personal Change Stephen R. Covey 21 Personal Success Strategies for An Ever-Changing Business World Karl Schoemer

84

Reference Materials (Continued)

Getting Things Done The Art of StressFree Productivity David Allen Sticking to It The Art of Adherence Lee J. Colan

Forget for Success Walking Away from Outdated, Counterproductive Beliefs and People Practices Eric Harvey and Steve Ventura

85

Reference Materials (Continued)

Passionate People Produce - Rekindle Your Passion and Creativity Charles Kovess Aligned Thinking - Make Every Moment Count Jim Steffen

The Lean Six Sigma Pocket Toolbook A Quick Reference Guide to Nearly 100 Tools for Improving Process Quality, Speed, and Complexity - Michael L. George, David Rowlands, Mark Price, John Maxey
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Reference Materials (Continued)

Communication

10 Minute Guide to Business Communications Raymond M. Olderman How to Be a More Effective Communicator Finding Your Role and Boosting Your Confidence in Group Situations Deborah Shouse Communication Miracles at Work Effective Tools and Tips for Getting the Most From Your Work Relationship Matthew Gilbert
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Reference Materials (Continued)

How to Be a Great Communicator - In Person, on Paper, and on the Podium The Complete System for Communicating Effectively in Business and in Life - Nido R. Qubein How to Get Your Point Across in 30 Seconds - or Less - Milo O. Frank

Assert Yourself - Lisa Contini

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Reference Materials (Continued)

Communicating in Groups and Teams Sharing Leadership Third Edition - Gay Lumsden & Donald Lumsden 50 One-Minute Tips to Better Communication A Wealth of Business Communication Ideas A Practical Guide to Better Meetings, Memos and Business Presentations Phillip E. Bozek, Ph.D.

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Reference Materials (Continued)

Communicating Effectively - Write, Speak, and Present with Authority - Garry Keanz Instant Rapport - Instant Charisma, Instant Chemistry, Instant Intimacy....... Michael Brooks Powerful Communication Skills - How to Communicate with Confidence - Colleen McKenna

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Reference Materials (Continued)

The Definitive Book of Body Language The Hidden Meaning Behind People's Gestures & Expressions - Allan & Barbara Pease Body Language at Work - Read the Signs and Make the Right Moves - Peter Clayton Strictly Business Body Language - Using Nonverbal Communication for Power and Success - Jan Latiolais-Hargrave
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Reference Materials (Continued)

The Hard Truth About Soft Skills Workplace Lessons Smart People Wish They'd Learned Sooner - Peggy Klaus People Skills - How to Assert Yourself, Listen to Others & Resolve Conflicts Robert Bolton, PH. D. Click - Ten Truths for Building Extraordinary Relationships - George C. Fraser
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Reference Materials (Continued)

Performance Measures/Goals Setting/Priorities

Measuring Performance Using New Metrics to Deploy Strategy and Improve Performance Dr. Bob Frost Ready Set Goal! Choose Your Goals, Stay Motivated, Attract Success Wendy Buckingham Goal Setting Susan B. Wilson
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Reference Materials (Continued)

Performance Measurement Getting Results by Harry Hatry Performance Auditing: A Measurement Approach by Ronell B. Raaum, CGAP, CGFM, & Stephen L. Morgan, CIA, CFE, CGAP, CGFM A Balanced Scorecard Framework for Internal Auditing Departments IIA Mark L. Frigo
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Reference Materials (Continued)

Creative Thinking

Unleashing Business Creativity...to empower your clients Bill Peter The Creative Gap Managing Ideas for Profit Simon Majaro Six Thinking Hats Edward De Bono Creativity in Business A Practical Guide for Creative Thinking Carol Kinsey Goman, Ph.D.
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Reference Materials (Continued)

Other

Dont Sweat The Small Stuff at Work Simple Ways to Minimize Stress and Conflict While Bringing Out the Best in Yourself and Others Richard Carlson, Ph.D. Reducing Stress DK Essential Managers Tim Hindle

Risk Taking Learning to Manage Risk More Effectively Herbert S. Kindler, Ph.D.
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Reference Materials (Continued)

Mindmapping

Mind Maps at Work - How To Be the Best at Your Job and Still Have Time to Play Tony Buzan MindManager for Dummies Hugh Cameron & Roger Voight, PhD Mindmapping - Your Personal Guide to Exploring Creativity

97

Reference Materials (Continued)

The Mind Map Book - How to Use Radiant Thinking to Maximize Your Brain's Untapped Potential Tony Buzan with Barry Buzan Rapid Problem Solving with Post-it Notes David Straker Strategic Thinking - A Step-By-Step Approach to Strategy - Simon Wootton & Terry Horne

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Wrap-up & Questions

Phil Flora efafvain@io.com - Home

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Three Closing Thoughts

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Closing Thought - #1
"I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life and that is why I succeed.
- Michael Jordan

What we think or what we know or what we believe is, in the end, of little consequence. The only consequence is What we do.
---- John

Ruskin

In Closing Something to Consider

Always go to other people's funerals, otherwise they won't come to yours.

---- Yogi Berra

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