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DRIVING OPERATIONAL
EXCELLENCE IN CONCERTWITH AUDIT AND OPERATIONS
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CONTENT
True Identity of Internal Auditor.
Operational Excellence Concept.
Key Drivers of operational Excellence.
Factors Affecting Operational Excellence.
Internal Audit Role in Operational
Excellence. Recommendation & Conclusion
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What is the true identity of the Internal Auditor?
A DINOSAUR, bestridingthe organization like a
colossus? If this is theperception, audit must act
quickly; otherwise you
may become extinct, justlike the dinosaur.
A SNAKE - in the grass,waiting to trap the unwary
and unleash venom?Should we see the auditor
as such? Should theauditor be feared or
respected?
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What is the true identity of the Internal
Auditor?
A WATCHDOG Reliably &faithfully guarding the
business as a safety andcomfort provider? Is the
watchdog identity stillrelevant in contemporary
times?
A BEE - Buzzing from flower
to flower not staying long ina place; ready to sting inthe tail if things get really
tough? If this is the identity,
is he perching on the rightflowers at the right time?
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What is the true identity of the Internal
Auditor?
PRAYING MANTIS. This insect
looks reverent and calm (as if it ispraying!) but if a tasty morsel
passes it, it is ready to strike and
become a preying mantis. Is
internal audit outwardly innocent
but a menace in disguise?
DOLPHIN? Supper-intelligent,
sleek, fast and loved byeveryone. It would be very good
to be thought of as a dolphin. This
is very good goal for internal
auditor, although I am not sure if
you will ever be loved by
everyone.
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A LION - Strong, agile,
feared and can be veryfierce and ruthless? Is thelion identity compatible
with cooperating forbusiness growth?
EAGLE - flies majestically across
its domain, completely in control,
able to watch over its
surrounding and take everything
in; and when necessary canswoop down and deal with issues
decisively. I believe this shouldbe the desirable identity!
What is the true identity of the InternalAuditor?
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MEANING OF OPERATIONAL
EXCELLENCE CONCEPT
Operational excellence can be definedas a philosophy of leadership, teamwork
and problem-solving resulting in conti-nuous improvement throughout the or-ganization by focusing on the needs ofthe customers, empowering employees
and optimizing existing activities in theprocesses.
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MEANING OF OPERATIONAL
EXCELLENCE CONCEPT
It addresses the way the business is setup and how the work is executed on aday-to-day basis with the optimal
objective of achieving cost efficiency,seamless/gratifying and highly ratedcustomer satisfaction that attracts
repeated patronage. This ultimatelyenhances efficiency and profitability.
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KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Leadership Lead By Example. Passion.
Be Organized. Delegate.
Take Ownership and Responsibility
Communicate Effectively.
Be Brave and Honest.
Great Listener.
Know Your People.
Be a Follower
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KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Teamwork
Listening Questioning
Persuading
Respecting
Helping
Sharing Participating
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KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Problem-solving Define the task clearly. Set priorities.
Develop an appropriate strategy. Use experience from similar problems.
Set targets.
Develop an action plan.
Get started.
Monitor your performance against targets andindicators.
Evaluate your performance.
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KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Continuous improvement Increase Flexibility, Reduce Setup Times and Improve
Product Flow.
Boost Capacity and Improve Quality by IncreasingYour Asset's Life Expectancy.
Stop Searching for the Wrong Problem - Learn to SeeWhere Value Truly Is!
Slash Lead Times and Increase Productivity by
Improving Product Flow
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KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Continuous improvement (CONTD)
Accelerate Product & Service Flow. Achieve andSustain Clean, Safe and Organized Workplaces.
Improve Your Cash Flow, Throughput andCompetitive Position.
Involve Your Workforce in the Pursuit of EliminatingWastes!
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KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Needs of the customers
Friendliness.
Understanding and empathy.
Fairness.
Control.
Options and alternatives. Information.
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KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Empowering employees by:
Workers feel they are given the opportunity to
do what they do best every day. They believe their opinion counts.
They sense their fellow workers are committed toquality.
Theyve made a direct connection between theirwork and the companys mission.
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KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Optimizing existing activities in theprocesses (3Es):
Efficiency.
Effectiveness.
Economy.
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KEY DRIVERS OF OPERATIONAL
EXCELLENCE.
Having the right personnel in place:Dependability, Punctuality, Initiative,Positive attitude towards the job, Ability toget along well with others, Flexibility,
Motivation, Organization and; Ability toperform assigned duties.
Having and ensuring compliance with
service level agreement:-Complying with terms and condition of
contracts
-Ensuring quality and timely delivery of service
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KEY DRIVERS OF OPERATIONAL
EXCELLENCE.
A state of perfection ensuring thatthere are no errors, rejects or irregularities.
Ensuring compliance with rules, policies,procedures and practices.
Ensuring compliance with regulatory
provisions.
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KEY DRIVERS OF OPERATIONAL
EXCELLENCE
Timely execution of transactions in aflawless manner at a minimum cost withthe requisite resources.
Having a sense of ownership and takingresponsibility of keeping the organizationgoing.
Being a team player.
Having adequate resources and bothmaterials to work with.
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Automation Of Agreed Process:
-Employees can easily retrieve information from
various databases for decision support.-Various internal groups can easily share data.
-All product-related information (price, productdescription, and catalog) is available online.
-Customers can customize their orders online withoutphone or face-to-face interactions.
-A comprehensive FAQ section is available online.
KEY DRIVERS OF OPERATIONAL
EXCELLENCE.
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Zero tolerance for Account Dormancy.
Strategic Reduction In Operating Costs.
< 0 % Fraud/Operational Losses.
Supplier selection criteria are well
documented.
Supplier evaluation metrics are well defined
and applied. Supplier quality monitoring process is well
defined and applied.
KEY DRIVERS OF OPERATIONAL
EXCELLENCE.
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Zero Loss of Key Accounts Due ToService Failure.
99% System Uptime , Integra, Sage andmail.
Zero Errors On Transaction Processing.
Zero Regulatory Infraction
KEY DRIVERS OF OPERATIONAL
EXCELLENCE.
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NEGATIVE FACTORS AFFECTING
OPERATIONAL EXCELLENCE
Where team work as defined by operationalexcellence is lacking.
Adoption of unapproved processes in effectingtransactions with little regard to services and impacton the company.
Wrong notions of operation units about who anauditor is .which results to infractions of companypolicies and that of regulatory and which in turnaffects the company.
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NEGATIVE FACTORS AFFECTING
OPERATIONAL EXCELLENCE
Audit and Control checks are largelyreactive instead of proactive especially onfraud detection, prevention and control.
Lack of self-audit and peer review ofactivities.
Limited information on industry developmentas it relates to fraud for proactivemanagement.
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THE ROLE OF AUDIT AND CONTROL
IN TERMS OF OPERATIONAL
EXCELLENCE OUR PERCEPTION
The audit and control unit play amajor role in operationalefficiency/excellence.
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THE ROLE OF AUDIT AND CONTROL
IN TERMS OF OPERATIONAL
EXCELLENCE OUR PERCEPTION
Reduction of the business risk, error andvulnerabilities from daily operation.
Ensuring zero regulatory infractions.
Ensuring compliance with the Group policies.
Identification of potential risk areas and pursueregulation.
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THE ROLE OF AUDIT AND CONTROL
IN TERMS OF OPERATIONAL
EXCELLENCE OUR PERCEPTION
Ensuring zero or minimal loss throughfraud.
Proactive education and audit aimed atfraud prevention.
Review for resource adequacy
Regular value for money audit
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THE ROLE OF AUDIT AND CONTROL
IN TERMS OF OPERATIONAL
EXCELLENCE OUR PERCEPTION
Regular product and policy review forsuitability and acceptability.
Timely review of transaction media withprompt reporting of exceptions andirregularities.
Policy pronouncement enlightenment.
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RECOMMENDATIONS TO BOLSTER SYNERGY
BETWEEN OPERATIONS AND; CONTROL &
AUDIT TOWARDS EFFECTIVE OPERATIONAL
EXCELLENCE
There is need for re-orientation of theaudit/control staff for value addition auditinstead of mere investigative and after-the-factaudit as it is presently the case.
Emphasis system audit more than manualcontrol functions.
Control should always look for root causes andpreventive measures in exceptions resolution.
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RECOMMENDATIONS TO BOLSTER SYNERGY
BETWEEN OPERATIONS AND; CONTROL &
AUDIT TOWARDS EFFECTIVE OPERATIONAL
EXCELLENCE
Operations and Audit and Control (field
officers) should once in a while come
together to seminar on issues like this
(operational Excellence) for betterment ofthe organization.
Automated Controls should be explored
more for fraud prevention.
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RECOMMENDATIONS TO BOLSTER SYNERGY
BETWEEN OPS AND CONTROL & AUDIT
TOWARDS EFFECTIVE OPERATIONAL
EXCELLENCE
Regular review of the company extant operationalpolicies for possible update as the need arises.
There should be continuous auditing and monitoringof processes, transactions and controls toautomatically track and audit system configurationchanges, segregation of duties conflicts, and over-
ride across key processes and controls.
Strengthening the manpower in operations andcontrol.
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There is need more than ever before for VigeoHoldings as a Group as she aspires to achieveleadership in various industry lines, to ensure that itsoperations suite is duly fortified/equipped to deliver
the much seamless operational excellence.
The Operations and Audit & Risk Units must be seento be working towards achievement of a common
goal which supports operational excellence.
CONCLUSION
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THANK YOU