Steal Your Company's Modus Operandi

Problem: Many internal auditors don’t understand how internal audit organizations operate. Think about it. You’re operating within a larger organization and trying to be successful within that structure. Don’t you think it would be useful if you new how the structure within which you are operating actually worked?

Solution: Here’s the bottom line: everywhere you work, learn how your organization operates.

Why do you need to know how your organization operates?

Two reasons:

1. You can function at a higher level if you know your organization’s systems and processes.

2. But most importantly, it helps you understand the critical systems and activities you’ll need when you start your own firm.

Let’s dig into both of these points.

1. You can function at a higher level when you understand how your organization operates.

The internal audit company for which you work has structure. That structure is made up of sets of systems. It has hierarchy. It has processes and procedures. It has formal and informal sub-systems. And so on.

As an internal auditor working for that company, you are part of that structure. You’re working within those structures and systems. In addition, you’re trying to succeed within that infrastructure.

Doesn’t it make sense to know as much as possible about that structure, systems, and processes? Don’t you think it might improve your chances of success?

Of course, you say.

Well, if that’s the case, why do so many internal auditors seemingly not give a rat’s a$$ about the details of how their internal audit organization operates?

2. It helps you understand the critical systems and activities you’ll need when you start your own firm.

I get that some of you aren’t interested in starting your own firm. But I would encourage you to prepare for it, nonetheless. Circumstances change.

And it’s not just starting your own firm. Someday you might be asked to help your company set up a satellite office in another state or country. Or you might be asked to help a foreign government set up an internal audit department. Or you might get a consulting gig where they need someone to help their start up or younger company set up an internal audit department. Or you might be asked to do some training or onboarding which includes helping others understand who your organization is and how it operates.

What do you need to do?

But I’m encouraging you to do more than simply understand the basics of how your organization operates. I’m suggesting that you learn so much about it, that if you had to set up a similar organization from scratch, you’d know exactly what you needed to do.

Start by learning as much as possible about your current organization’s business model.

Learn all about their missions and strategies. Learn about their departments and organizational structure. Learn about all of the operating procedures, processes and systems. Learn all about their funding, finances, and budget. Learn about the hardware and software they use. Learn about their risks and mitigations. Learn about how they evolved over the years. Learn about the skillsets they bring on to help meet the goals of each function and department.

If they are a private company that works for clients, learn everything you can about how they get clients and how they retain clients, and what clients like and don’t like about them.

For every company you work for, look at it as an opportunity for you to get to know their business model and to borrow their best ideas and best systems and best processes. Know what they do right, what they do wrong, and what they could be doing better.

Start thinking about what the things are that your company does not do, but for which if you had your own firm, clients would pay you to do.

Imagine not just how much more effective you could be as an internal auditor navigating your day-to-day, but how much more effective you’ll be as you move up the ladder into management and executive positions. You’ll be able to hit the ground running much more quickly than your competition. In fact, during your interviews for promotions, imagine their mouths drop open when they hear you provide more insights into how the firm operates than they know.

So, how do you do it? How do you get that information?

There are many ways. Use that big internal auditor brain of yours. Use your imagination. Here are a few ideas to get you started.

1. Company manuals. I think you’ll find, in most organizations, most of their procedures, processes and systems are detailed in their manuals. In addition to the voluminous Internal Auditing Manual, you’ll find manuals for Human Resources, Accounting, and Information Technology. And within these manuals you’ll have sorts of sub-sections dealing with everything from hiring, to contracts, to cash flow, to software applications, to security, and much more.

2. Paying attention. You can learn an awful lot simply by paying attention. Pay attention to how they hire people, on-board people, train people; pay attention to how they create their annual audit plan, how they measure internal audit success, how they provide oversight and how they structure the organization; pay attention to how they process invoices, expense reports, payroll, etc. Pay attention to who does what and why.

3. Asking. You can also simply ask various employees and internal audit managers how and why they do things a certain way. Most will be happy to help. Most front-line administrative employees will be glad to help. They’ll be flattered that you asked and gave them some attention.

But it can also pay dividends when you casually ask your audit executive how they arrived at the specific metrics they use to measure success, what reports they receive and how often they receive them. They’ll be thinking they need to keep an eye on you. You’re either their next internal audit manager or big trouble.

By becoming an expert at how your internal audit organization operates, you’ll be at a next-level of knowledge. You’ll be setting yourself up for career success and leaving your competition in the dust. Try it. You’ll see…

Check out our Newsletter “Secrets of Millionaire Internal Auditors — Mastering the Game of Internal Auditing & Getting Rich While Doing It” for street-smarts, in-the-trenches internal auditing hacks, techniques and strategies that you won’t get anywhere else.