Mapping Your Career

June 2011

Mapping Your Career

The path to professional fulfillment is paved with careful planning and a measured, disciplined approach.

Paul McDonald
Senior Executive Director
Robert Half Management Resources

There’s little question that the recent economic downturn impacted professionals everywhere. While displaced workers conducted extensive job searches, those who remained in their roles faced a prolonged period of doing more with less. The uncertainty and stress that characterized the environment meant that people focused so heavily on the most pressing tasks at hand that they did not have the time or energy to devote to their career management efforts. For internal auditors who saw a job change as the next step in managing their careers, new positions were admittedly scarce so there were few opportunities to target. Now, as the economy shows signs of improvement, the time is right for internal audit professionals to take a fresh look at their overall career path, evaluate goals, and take the necessary steps to reach them.

Progress requires planning. Whether satisfied in their current organization or considering a job change, auditors need a road map to further their career. But as with any audit process, specific data must be gathered and organized before a useful analysis can begin. Internal auditors need to ensure they’re taking the right measures to move up in their current organization or to make the jump to a different company. Several steps can help auditors carve out a path toward career advancement and enhance their professional growth.

SCOUTING THE LANDSCAPE

Internal auditors should start their information gathering by assessing trends in the market. As many practitioners remember, demand for audit professionals skyrocketed with the introduction of the U.S. Sarbanes-Oxley Act of 2002. Organizations became more intent than ever on maximizing their internal control, risk management, and corporate governance processes. Sarbanes-Oxley and its repercussions not only increased demand for internal auditors but also elevated their status.

This greater appreciation and higher regard for audit professionals continues today. Although many companies have matured in their ability to comply with Sarbanes-Oxley and require a less-intensive commitment to resources in this area, the global financial crisis has triggered a new round of financial regulatory oversight. In the United States, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 represents sweeping changes to financial regulation. As financial institutions attempt to address these and other emerging regulations, many will be seeking experienced internal auditors to ensure processes are in place and risks are minimized throughout the enterprise.

Changing regulations in anti-money laundering (AML) are also driving demand for audit professionals in financial services and other industries. Although activity is difficult to measure, the International Monetary Fund has estimated the volume of money laundering to be between 2 percent and 5 percent of global gross domestic product, equivalent to approximately US $590 billion to $1.5 trillion annually. The internal audit department is often called upon to perform the required independent testing of a firm’s AML program to ensure compliance with legal and regulatory requirements and internal AML-related policies, procedures, and controls.

Health care, along with all of the related industries it touches, also represents an area of growth for internal audit professionals. The transition from paper to electronic records is already influencing the processes and risk profiles of many medical facilities. The overall impact of the U.S. Patient Protection and Affordable Care Act set to take effect over the next three to four years is largely unknown, but at a minimum the regulations will require new compliance efforts that will impact the control environment in affected organizations.

In addition to understanding overall trends, practitioners should research the job market and current compensation levels in their local areas. Sources include the latest government statistics, industry reports, and articles such as those offered by The IIA, local business publications, and groups offering salary survey data.

Staying on Track

Even those who have the best intentions can fall short in their efforts if they don’t proactively set dates and action items to achieve their career goals. Several key practices can help internal auditors keep their career planning on track:

Consider the end goal. An end goal might involve getting promoted in the current organization, earning a higher salary, or relocating to another geographical area to pursue a new opportunity. Regardless, the goal should be as specific as possible. If more than one end goal is selected, each should be prioritized in order of importance and accompanied by a respective completion date.
Break it down. Each end goal will have multiple, smaller objectives that are critical to achieving the final target. An audit professional might want to make a geographical move, for instance, within 18 months. He or she would want to set action items with shorter deadlines for several activities, such as researching the business trends and professional demand within the city, contacting a recruiting firm with operations in the area, becoming more active in professional groups with chapters in the area, and reaching out to network contacts who have made a similar move for their thoughts and advice.
Set deadlines. The time frame of an end goal and supporting objectives may vary, but blocking time on a calendar to devote to this activity is essential. For example, a professional might plan to contact a recruiting firm in one month. Before doing so, he or she would want to research appropriate firms, update resume content, create a revised LinkedIn profile, and plan for a thoughtful discussion with the recruiter. One of these activities could be scheduled for each week, leading up to the objective of contacting the recruiting firm.
Keep it visible. Action items should be marked on a calendar and posted in a place where they can be referred to often. Professionals who celebrate their accomplishments and get back on track quickly after setbacks are likely to experience greater success in reaching their end goals.

Auditors who follow a structured, disciplined approach will increase the chances of a successful outcome and expedite their path toward a rewarding career.

TAKING STOCK

Against this backdrop, auditors should consider their preparedness for internal advancement or marketability to a new firm. To obtain a realistic view of what they bring to the table, practitioners should carefully assess their professional assets. For example, auditors should consider their strengths, as well as qualities or skills they possess that set them apart from other audit professionals. Likewise, they should examine any shortcomings that might hinder professional advancement. For example, an auditor might have a long track record at his or her current firm but lack professional certification. Potential employers may question the absence of credentials and instead consider other candidates who possess them.

Although credentials, technical skills, and experience are necessary to consider, interpersonal skills are equally important. These abilities may be more difficult to quantify but are essential given the need for collaboration on teams and for managing the potentially challenging relationships auditors can develop with others as they uncover deficiencies in departmental processes.

PREPARING FOR MANAGEMENT ROLES

Advancing within the organization frequently involves taking on or increasing people-management responsibilities. Now more than ever, internal audit departments need professionals who can motivate individuals and teams. According to a March 2011 CareerBuilder.com survey, however, one in four managers reported that they weren’t ready to become a leader when they started supervising others. For auditors looking to advance to the manager, director, or even chief audit executive level, there are several ways to develop leadership attributes.

Understand the Overall Business

All auditors need to have in-depth knowledge of a business’ systems and processes to do their jobs effectively. But they are more likely to be selected for roles of greater responsibility if they also gain a larger understanding of the business as a whole — its strategies, its priorities, and its competition. Recommendations for developing this understanding include keeping tabs on news and trends affecting the firm’s industry, especially new or anticipated laws and regulations that could directly impact the company’s operations. Practitioners need to recognize that the company’s — and the department’s — priorities will change over time, and they should learn as much as possible about any transitions so they can change with them. Strategies for staying informed include keeping up to date with company announcements and internal publications, and proactively asking questions of audit supervisors. Moreover, the more internal auditors can familiarize themselves with operational issues, the better.

Once acquired, business knowledge should be applied. Auditors can demonstrate their knowledge at meetings and via status reports by focusing on results — talking less about how they carried out an initiative and more about how it contributed toward achieving the firm’s and department’s goals.

Continue Learning

Even the most successful leaders recognize that there’s always more to learn. When assessing their management potential, auditors should identify the knowledge they most want to acquire and the skills enhancements from which they could benefit most. Could more expertise in the company’s ever-changing IT environment, for example, help them better evaluate and discuss technology risks with management? Would honing communication skills be helpful to auditors who interact directly with members of the audit committee? What about improving time management and organizational skills?

Additionally, practitioners should ensure that a lack of certification does not hinder efforts to advance their career. Auditors should seek to obtain the Certified Internal Auditor, certified information systems auditor, certified information security manager, or other credentials as appropriate. While establishing a self-development plan, auditors should choose reasonable deadlines and link their goals to specific activities rather than vague resolutions.

Preparing for a Performance Review

Performance reviews provide opportunities for employees and managers to discuss accomplishments and assess plans and milestones for future development. Advance planning is essential for both parties to have a productive conversation. For employees, elements of a successful discussion include:

Getting an early start. Although procrastination may be the natural tendency for what can be a time-consuming task, it’s important to prepare for the meeting. Auditors should think about their contributions since the date of their last formal review. As much as possible, they should quantify these accomplishments with specific numbers and include examples of going above and beyond to support the team’s success. The review is an ideal time to ask questions and mention areas where more guidance or support is needed — auditors should prepare a list of those points for the discussion.
Giving and receiving feedback gracefully. Staff members often bristle at the thought of hearing negative comments, but feedback on areas for improvement is essential to professional growth. Auditors should listen to constructive criticism provided, ask for clarification if needed, and plan to discuss ways to address the issues identified. During the discussion they should also offer any suggestions they might have for helping to streamline procedures or make work processes more effective.

Managers likewise must be adequately prepared and approach the meeting thoughtfully to give a meaningful review. Some ideas to consider include:

Getting others’ views. To make a comprehensive assessment, audit managers should augment their own evaluation of employees under review with input gathered from people who work with these individuals or frequently have a chance to observe their performance on teams or in other situations. Outside input can provide a more balanced picture of staff members’ strengths and weaknesses, enabling managers to offer more well-rounded feedback to their employees.
Communicating Tactfully. Managers should focus reviews on job performance, not personality. Telling someone he or she becomes “stressed and less productive when workloads are high” doesn’t explain the problem precisely and may seem like a personal attack. A better approach would be to say, “When workloads are high, I’ve noticed you often overlook critical details such as proofreading documents or filing responses promptly.” Managers should avoid using words such as “always” and “never,” as such absolute language is often inaccurate. Although it’s best to be honest and direct during the review, words need to be chosen carefully.
Listening. It’s just as important for managers to obtain feedback from employees during the meeting as it is to give their own assessment. Supervisors should allow plenty of time for open discussion, as it may uncover details that wouldn’t have surfaced otherwise. For example, an employee who appears rarely to go above and beyond expectations may actually be feeling overwhelmed with his or her current workload and may believe that taking on additional duties will compromise work quality.

Internal auditors and audit managers should devise both short- and long-term methods to review progress on the improvement areas discussed during the performance review. Some companies supplement annual reviews with interim sessions at six months, but the interval can be shorter or longer depending on the situation. Between these sessions, supervisors should remain easily accessible so that employees can share thoughts, concerns, or suggestions on any of the topics covered during the appraisal. Managers should understand the benefits of providing input to staff throughout the year: If feedback is ongoing, nothing in the performance appraisal should come as a surprise to employees.

Observe Others

Internal auditors should observe how great managers at their company conduct themselves. Specifically, how do they handle challenging situations? How do they reward excellence? How do they help their team deal with change? Paying close attention to these behaviors can provide important clues to aspiring managers.

Find a Mentor

Even for auditors who’ve already logged several years in the profession, partnering with a mentor can help propel an audit career to the next level. A mentor can recommend resources, help establish professional objectives, and set realistic time frames for achieving goals. Auditors should not limit their search for a mentor to individuals within the organization; members of a professional network — including a local IIA chapter — may also be excellent potential mentors, or at least may be able to suggest someone for this role.

Listen Well

Effective listening is a critical but often overlooked managerial skill. Audit managers should be willing to offer their full attention to employees when approached for advice. Giving in to disruptions breaks both parties’ train of thought, and it may be perceived by the employee as inconsiderate. If a manager appears preoccupied, staff will be less likely to share important information.

Examine Conflict Resolution Skills

Being able to resolve conflicts effectively is a key skill for managers. Supervisors interviewed for a recent Robert Half survey say they spend, on average, nearly 20 percent of their time intervening in employee disputes. Auditors should consider how well they manage existing relationships and the extent to which they’re prepared to manage people who were once peers.

ROAD MAP FOR SUCCESS

Because of the intense concentration on details required for audit work, internal auditors often have little time to take a long-term view of their career. But it’s essential for practitioners to care for the career they’ve worked so hard to build by regularly revisiting plans for the future and the steps required to get there. As improving conditions open new possibilities, now is an ideal time for auditors to refocus efforts on where they want to go professionally.

The Bigger Picture: Succession Planning

Career management involves more than carrying out one’s own job responsibilities; it’s also critical to think about ways to support the organization as a whole. One important area to consider is succession planning. When employees or managers demonstrate the ability to look beyond their own role, it signals that they take into account the interdependence of staff members and the smooth functioning of the entire team. By grooming a successor, internal auditors can increase their value to the organization: Preparing others to assume their responsibilities can free up auditors to take on different projects that stretch their skills and expand their interests. Several steps can help auditors choose and prepare the right person.

Determine essential job requirements. While successors do not have to be clones, they should possess some of the same traits that have made their predecessor successful. A firm grounding in internal audit principles, the ability to supervise and lead others, and a knack for multitasking are likely mandatory qualities.
Identify prospective replacements. Rather than designating an heir apparent, auditors may want to select several viable prospects. Having multiple candidates provides the latitude to determine the most capable successor.
Coach your replacement. In addition to offering guidance on specific routines and procedures, auditors should concentrate on finding opportunities for their successor to further develop skills and leadership abilities in areas such as project management.

In a September 2010 survey, “Honest Measure: CFOs Cite Integrity as Most Important Trait for Future Leaders,” Robert Half asked more than 1,400 chief financial officers what — besides technical and functional expertise -— they look for most when grooming future leaders. The top survey responses were integrity (33 percent) and interpersonal/communication skills (28 percent). Other attributes of prospective leaders included ethical conduct in all activities and interactions, the ability to move easily outside their comfort zones, resilience to setbacks, enthusiasm about new initiatives, inclination to seek the counsel of a mentor, and willingness to volunteer for leadership positions outside the company.

See the "Rev Up Your Career" slideshow for additional guidelines on furthering your audit career.

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Excellent Article.
Posted By: Mahesh Sapra
2011-07-07 10:11 AM

Resource Planning and Performance Review
It is important that internal audit is viewed at the appropriate level of authority and responsibility within the organization when compared to other managers' career path in the same organization. Measuring performing across small, large and medium size organizations are not same even one ignores associated business aspects viz., volume, size of the operations, number of head counts within internal audit vs., outside of internal audit. Many larger organizations have charge back method of cost accounting for internal audit resources allocated to different offices. At the end of the day, profitable entity has greater and loud voice compared to loss entity that is still exposed to greater business risk. Internal auditors are blamed for looking the other way when things were going wrong in profitable entity and loss entity. Many auditors want to find their comfort zone and stay with it depending the individuals they deal with on many of their audits. Performance review should consider rotation within audits after reviewing the audit skill sets within internal audit and even suggesting better expert advice to Board. This calls for "consultant' hat wearing on the part of internal auditor. Sarbanes Oxley Act of 2002 has very serious compliance standard that keeps internal auditors on toes. This was the experience internal auditor had when BCCI scandal rocked the banking industry that forced FDIC Act of 1991. Threshold limit for FDIC is once again $50 billion and many banking organizations viz., foreign banks do not come close to $50 billion. Many foreign banks are not even publicly listed in United States and this poses a serious challenge in drawing the line when regulators or auditors try to draw parallel line between all of these aspects here. It is professional auditor's view that governs individual responsibility towards corporate governance under sarbanes oxley Act and Dodd Act here.
Posted By: Harish Kumar
2011-07-07 10:05 AM

Mapping Your Career
Useful article!
Posted By: Joel Lamm
2011-07-07 9:13 AM

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