Empowering IA teams with evolutionary leadership

Vulnerability: Creating space for experimentation and learning

Learning requires vulnerability; one cannot learn without admitting a knowledge gap. A Chief Audit Executive (CAE) at a large investment firm was dissatisfied with the business impact his function’s audits were delivering. He saw the potential in Agile principles to improve outcomes but admitted his understanding was limited. By confessing this at a town hall, he created a safe space for the department to learn collectively, using Deloitte's coaching. This openness led to increased satisfaction with audit value within four months.

Unlearning old habits: Leaders speak last

One of our clients’ leaders had the habit of beginning team meetings with her directions to the team. This habit had made her successful in the past. Still, it interfered with her desire to lead an empowered, high-performing team that could self-organize, giving her time to elevate her focus to more strategic questions.

The fundamental transformative moment in her inward journey arrived when she began acting on a tiny piece of advice we gave her: “Start meetings by asking your team what you can do for them.” She continued to provide direction, but learning to speak last was key to unlocking her team’s potential. But learning is uncomfortable! She persisted, and the shift in her approach encouraged her team to take the initiative, enabling her to focus less on details and more on strategy. In other words, unlearning an old personal habit kicked off a virtuous cycle.

“It (Agile methodology) was awkward the first few times I tried it, so I was tempted to return to old ways. But I persisted, and my team started learning to come prepared to speak first.”

— Product Owner at a large oil and gas company

Releasing authority: Trusting the team

In leadership, increased control can ironically lead to decreased performance. In one instance, a team leader doing Sarbanes Oxley (SOX) work in a traditionally hierarchical culture found himself in that situation. His underperforming team was burdened with long hours, and his micromanagement style exacerbated the problem, leading stakeholders to label the team as a poor performer.

Recognizing the team's exhaustion, we advised the leader to relinquish control, allowing the team to devise their own problem-solving methods. This shift from a conventional leadership style was challenging but yielded immediate improvements. The leader redirected the time he had spent micromanaging into ensuring the team understood the bigger picture, which equipped them to solve problems independently. Then, as his team took greater ownership of day-to-day issues, he found more time to manage his difficult stakeholder relationship. As the end of the testing cycle drew near, this team finished their work before every other SOX team. They used their extra capacity to take work off the plates of other teams to help the entire organization, earning the label “worst to first.”

Toward a new leadership style

All these leaders found their inward journeys to be challenging. Becoming vulnerable by admitting one’s own lack of knowledge, unlearning a familiar leadership habit, and releasing authority in a traditionally hierarchical culture required leaders to evolve inwardly before creating the desired external change. Their inward evolution made all the difference for their teams.

Next in the series: The new IIA Standards are more Agile than ever.

In case you missed the earlier reports from this series, take a moment to explore the insights now:

Infusing Agile in Internal Audit
Why mindset takes priority over process

Embracing an Agile audit methodology for enhanced efficiency
Unlocking transformation through the Scrum Framework

Empowering internal audit with Agile leadership
What leaders should consider as they embark on the transformation journey

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