the transformation process in group...
TRANSCRIPT
INTERNAL USE ONLY
May 12, 2017
Cesar Souza
Audit Masters 2017
The transformation process in Group Audit
The main challenges and achievements in the construction of a modern function
3
<1 year
40
Longevity
with GA >1 year <5 years
74>5 year <10 years
32>10 year <20 years
14+20 years
2
19Native
Languages
English
Spanish
Portuguese
Malay Mandarin
Cantonese
Indonesian
German
ItalianFrench Turkish Russian
Romanian
Polish
UkrainianDutch JapaneseArabic Albanian
27Nationalities
Represented
50% 50%GALT team diversity
Argentina
Australia
Brazil
Chile
Germany
China
IndonesiaMalaysia
ItalyJapan
Mexico
Russia
Spain
United Kingdom
United StatesSwitzerland
Hong Kong Taiwan
20
APAC
25%EMEA
51%AMERICAS
24%
Distribution of
the team
39% 61%
Countries
with GA presence
incl. Co-sourcing *
Balanced
gender ratios54% 46% 51% 49%
Men Women
50% 50%
* S. Africa
* India
Zurich Group Audit
6
The beginning of the journey
OUR BUSINESS IS TRUST!
OUR WORK IS AUDIT, BUT
OUR PRODUCT IS TRUST!
TRUST IS OUR CURRENCY!
Martin Studer
Establishing the vision - charging Emotions
Internal Audit 2.0: Group Audit House
8
Why, what & how we will achieve our purpose
WHY
HOW
DE
TE
RM
ININ
GS
UP
PO
RT
ING
Group Audit Mission
Competency model and L&D to drive individual growth
Design supercharged resource model
Operational model to drive transformation and efficiency
Set red line: Objectivity & independence and act accordingly
Co-develop expectations with GAC / GCEO / GEC
Top Down-Bottom Up-
Top Down approach
TRP at core of dynamic
Internal Audit plan
Vertical scope:
Connect global with local
Include behavioral aspects
in scope and App
Deploy pervasive
analytics as standard
Structured approach for
integrated audit using SMR
skills
Risk assessment Audit planning Audit delivery
WHAT: MANDATE HOW: POSITIONING
Impact reporting to stakeholder groups
WH
O:L
EA
DE
RS
HIP
AN
D P
EO
PLE
WH
O: L
EA
DE
RS
HIP
AN
D P
EO
PLE
WHATQUALITY DELIVERY
DEPLOYING APPROPRIATE
RESOURCES
1 2 3 4 5
Co-developexpectations
GA RiskAssessment
Audit Planning
DeliveringProjects
Reporting
SOURCING PLATFORMS
• Budget/Controlling
• Source mix
• Growth of people
• GA Academy
- Technical Growth
- Soft Skills
- Leadership aspects
- Industry insights
• Operating model (including Huband Spoke)
• Professional practice/ methodology
• Technology
• Knowledge repositories
• Quality Assurance Review
9
Transformation priorities – 2014-2016Focus on improving assurance, maximizing business impact,
developing talent & improving efficiency
Creating the flexibility and bringing the necessary resources
The sourcing model- one critical element
11
Investments ¦ Transformation ¦ Savings
Ideal sourcing mix
Creating the
flexibility & bringing
the necessary resources PromotingRecruiting Developing
Developing talent
12
Funnel Comments Start Ends CandidatesInterview
level
Nbr of
interviewsInterview by Approval
A1/A2/A3/A4A 1
Human
Resources (HR) or
Hiring Manager
(HM)
A4B+ 3HR & HM=RCL &
BFAL
A1/A2/A3/A4A2nd level 1 RCL
2nd level 2 FAD & COO
3rd level 1 Head of Group
Audit
A1/A2/A3/A4ACOO
A4B+
HGA
* Personality online assessment (not aware if this is obligatory in all countries)
*1: Initially was set upon contract signature, however RCL considered closed as they stopped the search for new candidates upon offer acceptance.
A4B+
When candidates
passed the first
interview
When candidates
passed the 2nd
or 3d interview
(depending on
the grade)
Offer accepted
Identified
Candidates who fit the minimum
requirements as defined in the tab such
as: Competency Tier 1, Tier 2,
Certifications, Salary range fit,
Professional English, % of Willingness to
travel, International profile & Other min.
requirements
Qualified Only for those candidates that fit the
minimum requirements,
Pursued
Interviews focused on behaviour and
technical competencies & personality
online assessment *
1st level
All
Closed
Offer accepted but contract not signed
yet *1
Review all initial
CV received
Selected
candidates for
interview
Selected
candidates for
interview
When candidates
passed the first
interview
When candidates
passed the 2nd or
3d interview
(depending on the
grade)
Standard selection process (2015) Global induction program (2016)
3226
14
201620152014
Attrition in %
9
39
Oct 16May 15
Open position
Attrition & open positions
GA career path
Recruitment and promoting talent
Developing talent
13
Competency self assessment & competence model
Tier 1 business
competencies
Professional
capabilities levels
Move L&D program to the next phase- L&D- Framework
Developing Talents
14
1.1%
1,832 hours
12h /FTE
2014
4.5%
9,004 hours2015
4.9%
10,185 hours2016
Forecast
5.8%
12,061 hours
70h /FTE
2017
Plan
Structured education in hours
ZED Talks
& Web
Conferences
© Z
uri
ch
In
su
ran
ce
Com
pa
ny L
td
INTERNAL USE ONLY
Data Analytics
Dashboards:
Visualization, risk scoring & rules-testingPredictive modeling & anomaly detection:
Validate key risk variables and events
Pattern matching & link analysis:
Identify hidden patterns & relationships
Case Management:
Investigative workflow & task delegation
Leveraging analytics to identifying red flags:
15
Denial
“There must be
something wrong with
the questionnaire
because our scores
couldn’t be that low”
A few things to know about change-The transformation curve
16
Y3+Y2+Y1+start
“What a bunch of
complainers. They don’t
realize how good they
have it here”
“These results are awful. I
don’t know how we will move
forward if our employees feel
this way”
“Given the changes we have
been going through, I’m
surprised they’re not even lower!”
“O.K these are our priorities
and we are going to move
ahead on these topics”
Negotiation
Anger
Depression
Acceptance
Decision
Action “I need to
ensure we let
everyone know
that this action
is driven by the
survey”
“Lets identity some quick wins
and start to understand the
other issues in a bit more
detail”
17
Q1-Opportunities to develop my
career
Q4-Diversity is valued
Q7-Discussed my questions and
ideas about the results of the
previous employee survey.
Q8-My manager has taken action
based on the feedback from the
previous employee survey.
Q9-Have seen positive changes
taking place as a result of previous
employee surveys.
VoE-Highlights- changes you have seen
Feeling the pulse every year
18
Q2-Performance evaluation not
clear
Q3-My manager is not always
listening and responding to my ideas
and concerns
Q5-Easy for people from diverse
backgrounds to fit and be accepted
Q6-Less flexible work arrangements
to balance work and home life
VoE-Challenges- what still needs to be improved
Feeling the pulse every year
19
Improving the toolsReplacing the main audit system
Moving to a new platform
will:
• Enable us to optimize audit processes
and adapt to more effective practices
• Reduce the duplication of information
due to integration of platforms and
data sources
• Enable us to comply with global and
local data privacy, security and
retention requirements
• Provide the Zurich business and our
co-source partners with a secure
access to Zurich and group audit’s
applications and platforms
• Prevent business disruption due to
inadequate support for our current
platform and the decommissioning of
lotus notes
Our new platform will be modular, role-
based, fun to work and tablet enabled.
I Modular
Implement core functionality
in a modular way on
common base frame of
infrastructure
Integrate individual modules
on the base frame, ensuring
one version of truth
Embed transformation
enablers in the workflow
II Role-based
Role based workflow relevant for
each member in terms of:
functionality for audit delivery
audit documentation,
MI/dashboards
segment and BU level
information
III Fun to work with
Hassle-free
Visually appealing
Works seamlessly across
tablet/PC and online/offline
Provides a personalized view
of the application
Task trackers and workflow
allow our people to focus on
activities that add value
IV Tablet enabled
Enables secure access to
modules and MI via web
browser or specific apps
20
Ambition 2020 in the four pillarsBuilding blocks
Anticipatory and fullyadaptable assurance2
017+
Consolidated skills-rich assurance2
016
Consolidated skills-rich assurance2
014
Share perspectives
2017+
Convey messages
2016
Deliver reports
2014
Differential careerenhancing experiences2
017+
Commitment topersonal development2
016
Delivering onemployment contract2
014
Acknowledged value forinvestment made2
017+
Create efficiencies to investin the function2
016
Delivering against budget
2014
IMPROVE ASSURANCE
DEVELOP PEOPLE
MAXIMIZE BUSINESS IMPACT
IMPROVE EFFICIENCY
Pervasive use of data analytics
Assessment of behavioural aspects
Professional Practice drives quality and
innovation
Relationship Management
Centres of excellence
Group Audit Way of Leadership
Group Audit Academy
Problem solving approach in our DNA
Fully embedded deployment tactics
Standardized work-flow
Hassle free supporting technology