AUDITING STRATEGY EXECUTION

IN YOUR ORGANISATION
INTERNAL
AUDIT
INCREASING THE
INFLUENCE, RELEVANCE
AND VALUE OF
HOW DO YOU BECOME
MORE RELEVANT AND
IMPORTANT TO YOUR
STAKEHOLDERS?

Kaplan and Norton (developers of the
balanced scorecard) report that 90 per cent of
organisations fail to execute their strategies
successfully
A UK study of 200 organisations in the Times
1000 highlighted that 80 per cent of Directors
thought they had the right strategies, but only
14 per cent thought they were implementing
them well.
STRATEGY EXECUTION
The Economist Intelligence Unit reported that
organisations realise only around 60 per cent
of their strategys potential value because of
failures in planning and execution.

Fortune Magazine famously stated that
organisations fail to successfully implement
strategy, not because of bad strategy, but
because of bad execution
STRATEGY EXECUTION
STRATEGY EXECUTION
Underlining these facts, PwCs March 2012
global State of the Internal Audit
profession study reports that:
Large Program Risk was regarded by
stakeholders in the bottom quartile of well
managed risk
82% of stakeholders in the study regarded
Internal Audits role therein as very
important or important
Corporate Executive Board research
highlights that strategic risks account for
70% of share price decline
Most Internal Audit teams spend 80% of
their time on traditional assurance
activities with as little as 6% of time
allocated to strategic risk assurance.





THE AUDIT PARADOX
The role of Internal
Audit in reviewing
business strategy?





Stakeholder
perception of value
resulted in the
question:

How does Audit
address strategic risk
more effectively?
THE PERCEPTION OF VALUE
STRATEGY EXECUTION REVIEW
METHODOLOGY
Aligned to organisational strategic
priorities and bottom line performance
Arm's length diagnostic Health Check
Snapshot review into project activity
mirrors lifecycle and enables course
correction to promote success/protect
your investment
Delivers Contemporary Assurance


Online Survey &
data gathering via
Internet Portal
Interviews of key
stakeholders
expands and
deepens
information
Project artefact
review confirms
and completes
evidence
ELEMENTS OF THE APPROACH
The approach
delivers a snapshot
of strengths and
weaknesses in flight
enabling course
corrections before its
too late.
ENGAGEMENT LEVELS ARE KEY
The level of
engagement,
alignment and the
extent to which the
intent of the project
is understood is
critical

Project
Team
Steering
Committee
Senior
Stakeholders
Users
Sponsor
Poll for stakeholder
perceptions and confidence
levels

CALIBRATE ON ENGAGEMENT
Triangulate stakeholder
feedback and deep dive on
the disconnects

KEY SUCCESS FACTORS ASSESSED
13
Leadership &
Governance
Senior
Management
Sponsorship
Proactive
Governance
Benefits &
Value
Active Benefits
Management
Rigorous Cost
Management
Business
Transition
Structured
Change
Management
Engagement and
Communication
Impacts
Assessed,
Understood and
Actioned
Project
Execution
Structured
Project and
Schedule
Management
Design Quality
Management
Solution Build
Quality
Sustainability
Transition to
Business as
Usual
Lessons learnt
are tracked and
adopted
DASHBOARD VIEW OF STATUS
i. Effective Project Sponsorship
ii. Effective Project Governance
i. Active Benefits Management
ii. Rigorous Cost Management
i. Structured Change Management
ii. Effective Engagement and Communications
iii. Impacts Assessed, Understood and Actioned
i. Structured Project Management
ii. Design Quality Management
iii. Solution Build Quality
1. GOVERNANCE &
SPONSORSHIP
2. BENEFITS
& VALUE
3. BUSINESS
TRANSITION
4. PROJECT
EXECUTION
i. Transition to Business as Usual
ii. Lessons learnt are tracked and Adopted
5. SUSTAINABILITY
INSIGHT OVER THE JOURNEY

SO, HOW DO YOU BECOME
RELEVANT AND IMPORTANT TO
YOUR STAKEHOLDERS?

Provide traditional assurance
Rebalance your overall Audit program toward strategic
risk - work that your customers think is important
Deliver strategically relevant, succinct communication
Deliver contemporary assurance
Deliver deeper insight, perspective and value




Presentation is available on
my website and at: