Succession PlanningNovember 11, 2010

Office of Internal Audit

Succession Planning

• Office of Internal Audit Background– 12-14 professional staff– 3-4 managers– 2 career ladders

• Generalist

• Information Technology

– 3 positions on each ladder• Auditor

• Senior Auditor

• Principal Auditor

Succession Planning

• Multi-faceted process– Well defined and differentiated job descriptions– Well communicated performance expectations– Set of performance metrics– Performance appraisal process– Annual ranking of staff

Succession Planning

• What has worked well– Performance Requirement Matrix

Succession Planning

Performance

Requirement

Matrix

Position Requirement AuditorIS

AuditorSenior Auditor

Senior IS Auditor

Principal Auditor

Principal IS

AuditorAudit

ManagerIS Audit

Manager

AUDIT SKILLSAudit principles, skills, techniques D D R R K K R RKnowledge of U activities, processes, procedures D D R R K K R RRisk identification/assessment D D R R K K K KControl identification/evaluation D D R R K K K KAssessment of findings/results D D K K K K K KWorkpaper documentation D D K K R R R RRecommendation development D D R R R R R RPresentation/Communication of results (written and verbal)

D D R R K K R R

Professional development R R R R R R R ROrganizational behavior R R R R R R R RPartnership relations D D R R R R K KReturn on audit investment (risk/reward, efficiency) R R R R K K K KMulti-task (assignments/priorities) R R R R K K K K

PROJECT ADMINISTRATION

Planning/establishing scope n/a n/a D D R R R RAudit program/procedure development n/a n/a D D R R R RJob administration n/a n/a D D R R R RStaff supervision n/a n/a D D K K R RCoaching/staff evaluation n/a n/a D D R R R RReport compilation/editing n/a n/a R R K K K KManage productivity and time budgets D D D D R R R R

Position Requirement AuditorIS

AuditorSenior Auditor

Senior IS Auditor

Principal Auditor

Principal IS

AuditorAudit

ManagerIS Audit

Manager

MANAGEMENT SKILLSPerformance management n/a n/a n/a n/a D D K KCreation of positive work environment n/a n/a n/a n/a D D K KManaging business plan n/a n/a n/a n/a D D K KClient relationship building n/a n/a n/a n/a D D K KQuality of work n/a n/a n/a n/a D D K KStrategic planning n/a n/a n/a n/a D D D D

AUDIT SERVICESConsulting/advisory D D D D R R K KInternal investigations D D D D R R K KSystems development reviews n/a D D R R K R KInnovation/creativity R R R R R R R R

D = develop in positionR = requiredK = key to success in the position

Succession Planning

• What has worked well– Performance Requirement Matrix– Annual staff ranking

Succession Planning

• Identifying high potential staff– Those that think strategically– Those that keep abreast of changes in our

profession – or the University – and translate that to what we need to change to adapt

– Those that are innovatively and creatively productive

Succession Planning

• What has worked well– Performance Requirement Matrix– Annual staff ranking

• Work in Process– Performance Metric Measurements

Succession Planning

Performance

Metric

Measurements

Measure # Applicability Measurement Definition, Source, & Calculation Scale & Value1 Leads & Staff Achievement of a

Specified Billable Hours Percentage for the Year

Measured Annually

Actual billable hours is a measure of audit productivity, and is expressed as a percentage. The numerator is the total hours of Scheduled, Non-Scheduled/Special Project, Follow-up, Investigation and special departmental tasks (i.e., trending, process improvement, self-assessment, etc) per Timeslips. The denominator is 2080 hours (prorated based upon % appointment) reduced by vacation and sick leave used, training hours taken, holiday hours, and break hours charged to Timeslips. Monthly & YTD statistics will be available at G:\10 - Admin\40 TimeSlips Reports directory. The annual audit plan is built using a 85% billable hours rate.

<72% = 1 72% - 82% = 2 83% - 87% = 3 88% - 92% = 4

>92% = 5

2 Leads & Staff Completion of Assigned Audit Areas Within the Budgeted Hours

Measured per projectAveraged per project

Using the actual time spent per Timeslips for those areas of the audit(s) assigned to each auditor as the numerator, and the post-audit planning budget amounts for all corresponding area(s) as the denominator, calculate the percentage. Lead auditors must use the staff budgets approved for the project, including any approved adjustments (see G:\30 - Master for budget templates). Time spent on investigations and follow-up activities will not be included in the calculation unless a formal time budget had been established.Note: Budgets for shared modules should be split and agreed upon.

>120% = 1 120%-111% = 2 110%-101% = 3 100%-90% = 4

<90% = 5

3 Leads & Staff Achievement of Acceptable Auditee Evaluations

Measured Annually

Using the auditee survey results from each audit the auditor worked more than 80 hours on, develop an overall average score for those audits for the year. Note: the auditee survey questions utilize a ranking scale of 1 (poor) to 4 (excellent). All auditors on the respective project team start with the common score for that audit, but negative or positive comments from the auditee pertaining to a specific auditor can be used to adjust the auditor's score on that audit.

<3.00 = 1 3.00 - 3.24 = 2 3.25 - 3.49 = 3 3.50 - 3.74 = 4

≥3.75 = 5

4 Leads Only Completion of the Draft Audit Report and Forwarding it to the Director by the Target Date Specified on the Audit Checklist & Tracking Form

Upon completion of the audit planning phase, target dates are developed for various project milestones by using the Audit Checklist & Tracking Form. Completion of the draft report and forwarding it to Gail by the corresponding target date will be used as a tool to measure overall project management. Appropriate adjustments will need to be made for unplanned time away from the project that impact the draft report delivery date (e.g. being pulled from a project to work on an investigation). The number of working days less than or greater than the target will be determined and ranked (1-5) per project. The cumulative project rankings will be averaged over the annual performance period.Note: Leads should document uplanned time away in comment section of tracking form. Rule-of-thumb average to use when projecting target dates is 75% or 30 hours time allocable to the project per week.

≥ 16 = 1 15 to 11 = 2 10 to 6 = 3 5 to -5 = 4

< -5 = 5

5 Leads Only Completion of the Audit Project Within the Post Audit Planning Time Budget

Using the total actual hours charged to each audit project that had a budget during the year as the numerator, and the final time budget established for those projects upon completion of the audit planning as the denominator, calculate the percentage. This will measure overall project management by the leads. Post audit planning budget adjustments will need to be factored into the final budget number, but only those documented and approved by the Director via the Budget Adjustment Contract form. Time spent on investigations and follow-up activities is not included unless the project had a specified budget.Note: Module budgets should be updated on single budget form and in TimeSlips for all approved post audit planning budget adjustments.

>120% = 1 120%-111% = 2 110%-101% = 3 100%-90% = 4

<90% = 5

University of Minnesota - Office of Internal AuditAuditor Performance Measures for the Annual Evaluation Process

Effective 7/1/2008

Succession Planning

• Why they have worked well– Given each staff member a road map for their

continued professional advancement– Provided a template to identify training/

development needs– Prompts us to look for experiential learning

opportunities– Been able to consistently promote from within– Been able to move people out who don’t meet our

performance expectations

Succession Planning

• What would help more– University training programs – current ones don’t

fit our needs well– 360 assessment focusing on changes between

positions and what is important

Succession Planning

Challenges

• Succession planning is not part of the University’s culture

Succession Planning

Things I’ve learned:– Having a successor and having a back up are two

different things.– Successors aren’t necessarily just the next people

in line.– Long term succession planning often involves

looking down two or three layers.– Current performance is an indicator of succession

potential but not a determinant.