Organisational performance management is vitally important and can provide early indication of successes and warning of potential failure. Yet when it comes to measuring our own performance as internal audit functions, we often struggle to capture the true value and impact we bring to our organisations.
The Global Internal Audit Standards have set a new obligation for us. Standard 12.2, Performance Measurement states that "The chief audit executive must develop objectives to evaluate the internal audit function's performance. The chief audit executive must consider the input and expectations of the board and senior management when developing the performance objectives. The chief audit executive must develop a performance measurement methodology to assess progress toward achieving the function's objectives and to promote the continuous improvement of the internal audit function".
But what should we be considering when we think about our own performance as internal audit teams? What measures, metrics or key performance indicators (KPIs) should we consider? What could an internal audit Balanced Scorecard look like? And how do we move beyond traditional input-based measures to truly capture the influence and impact of our work?
Internal audit should be outcome-driven, advising on emerging risk, promoting behavioural change and informing strategic decisions. Yet it's commonplace for our performance measures to be input-based or focus, to excess, on our own internal processes and tasks. Many audit functions continue to measure activities (number of audits completed, percentage of plan delivered) rather than outcomes (risk exposure reduced, control improvements implemented, strategic value delivered).
This masterclass addresses these critical challenges head-on. It will help you assess your own team's performance measures and offer you a range of practical ideas to rethink and redesign your approach in this critical area, enabling you to better demonstrate your value and meet stakeholder expectations.
This highly interactive masterclass combines facilitator input with extensive practical exercises and group discussions. You will work through real-world examples and have the opportunity to consider and critique your own performance measures throughout the course.
Course delivery will include facilitator input, small group discussions and practical exercises designed to help you develop and refine performance measures for your own team. You will leave with practical ideas and insights that you can immediately apply in your organisation.
This masterclass covers the following IIA Global CPE competency areas:
UNDERSTAND the fundamental principles of effective performance measurement and how they apply to internal audit
LEARN how to develop outcome-focused measures that demonstrate real value creation
ASSESS the strengths and limitations of traditional internal audit KPIs
EXPLORE the Balanced Scorecard approach adapted specifically for internal audit functions
DISCOVER practical techniques for measuring influence, impact and stakeholder satisfaction
GAIN insights into how leading audit functions measure and communicate their performance
John Chesshire, CFIIA, QIAL, CIA, CISA, has nearly 25 years' experience working in the internal audit, risk management, business improvement and governance fields. John is a Fellow of the Chartered Institute in the UK, is an Independent Internal Audit Committee Chair and has recently been Chief Assurance Officer for the States of Guernsey for ten years.
John designs and delivers insightful, cost-effective internal audit, fraud, risk management and governance training. He also undertakes challenging internal audit engagements, external quality assessments (EQAs) of internal audit functions and mentoring of internal auditors and heads of audit.
He has delivered many well-received courses to several European Institutes of Internal Auditors and his other recent clients include FTSE listed companies, multinationals, central and local government, law enforcement, international charities, professional services companies, and international organisation such as NATO, the OECD and UN Agencies.
John is a regular speaker at internal audit conferences in the UK, Ireland and further across Europe. He is a principal examiner for the Institute of Risk Management and has been a visiting lecturer in the Governance and Assurance Hub at Birmingham City University. He loves internal audit and particularly enjoys working in new and emerging areas of assurance interest.
