IMPROVEMENT OF KPI PERFORMANCE

8/18/2019 IMPROVEMENT OF KPI PERFORMANCE

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Using KPIs to Improve Audit Performance

Gary ArmstrongVP of Audit Services

Cherokee Nation Businesses918.384.5829

[email protected]


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Outline

• CNB Environment• Key Performance Indicators• Catalysts for Change• Audit the Auditors• Action Plan• Results

• Next Challenges• Questions

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Our Environment

• CNB employs more than 6,000 people and posted more than$600 million in revenue last year.

• Fast paced, highly regulated Gaming Industry – Required Regulatory Compliance Reviews

• Government Contracting• Aerospace & Defense Manufacturing• Fraud Investigations• Consulting Projects

• Department of 27• TeamMate Shop

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Key Performance Indicators

• Performance measures designed to offercomprehensive information to assess efficiency andeffectiveness

• Must establish clear performance expectationsfocused on results

• Must be relevant• Must be measured consistently• Must be monitored on an ongoing basis

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Catalysts for Change...

• Making sure we are meeting growing company needs withcurrent staff or determine if more staff is needed

• Become more accountable for Project Budgets• More accurate and timely status updates and performance

reporting to Audit Committee• Multiple open projects across multiple disciplines• Projects took too long to complete• Delayed Audit Report Issuance

• Employees didn’t feel successful

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Audit the Auditors...

• Reflection: – Quality of Audit work and documentation high; too high for

the cost to the organization?

– Are we sacrificing value for the “no stone unturned”approach?

– How do we become better Project Managers? – How do we better measure productivity? – How do we attain more focus? – How do we establish more meaningful and attainable

project budgets? – How do we ensure staff feel successful?

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Audit the Auditors...

• Identified Weaknesses: – Good Auditors – Poor Project Managers – Department Structure – Lack of Focus – Inability to properly prioritize tasks – Lack of meaningful performance information

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Action Plan...

• Simplified Time Tracking • Restructured Department:

– Siloed into areas of expertise – Flattened management structure to gain

efficiencies

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Action Plan...

– Time

– Project Milestones• Days to Completion• Review Cycle Time• Coaching Notes Cycle

Time• Days to ReportIssuance

– Auditor Performance

• Utilization• Average Step Time

– Number of WPs – Number of Issues – Number of Coaching

Notes

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• Determined metrics that would serve as KPIs:


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Action Plan...

• Determined Benchmarks and Goals: – Utilization levels for each job grade based on time tracking – Review Cycle Time < 4 Days

– Coaching Note Cycle Time < 2 Days – Report Issuance < 45 days from fieldwork completion

• Implemented automated tools to minimize overhead

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Automated KPI Tools...

• Weekly Time Summary Reports• Project Status Update• Daily email alerts

– Open Steps Summary – Open Steps Aging – Overdue Steps – Open Coaching Notes – Overdue Coaching Notes

– Project Status Summary• Auditor Performance Tracking• Automated Audit Services Dashboard

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Weekly Time Report (sample)

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E m plo ye e W E _0 10 72 01 2 W E _1 23 12 01 1 W E _1 22 42 01 1 W E _1 21 72 01 1 W E _1 21 02 01 1 W E _1 20 32 01 1

Allen Bauer 83.44 75 65 67.19 70.63 82.5

Andrew Becket t 3 .13 4 .17 6 .25 6 .25 4 .17 5

David Bradley 87 .5 82.14 60.42 73.13 65 73 .44

Forre s t G um p 54.17 79.55 50 50 46.25 50

J immy Dugan 82.81 87.5 89.06 93.13 92.5 82 .81

Joe Banks 61.46 75 64.06 54.17 66.25 78 .13

Pep Streebeck 84.38 47.5 33.33 33.75 50 78 .13

Robbie Wheel ing 92.66 92.88 82.32 90.5 80.47 99 .63

Sam Baldwin 97.66 93.75 86.67 90.63 79.33 93 .75

She rman McCoy 32.29 36.11 32 .5 27.63 25 33 .75

Steven Gold 25 .6 53.13 20.49 38.75 67.19 38 .13

David Basner 100 0 116 .67 91.88 81.25 50

Scot t Turner 54.69 62.5 54.69 62.5 60.63 61 .25

Paul Edgecom b 105 .08 92.86 90 90.88 90.63 104.38

Chuck Noland 35 41.67 46.88 41.41 37.88 33 .13

Viktor Navorski 95.31 0 75.89 101 .25 93.75 97.5


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• Weekly Time Summary Reports• Project Update Report• Daily email alerts



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Project Update Report

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Open Steps Summary

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Open Steps Emails

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P ro je c t F o ld e rC o d e F o ld e r P ro c e d u re T it le S ta te LM D L M U A g e

G u e s t S a tis fa c tion A .3 .P R G A u d it P ro ce s s W ra p -u p C h e c k lis t B lu e d 1 /6 /2 0 1 2 la rry.c ro w ne 5

G ue s t S a tis fa c tion B .1 .P R G R isk an d Co n tro l A n a lys is Id e n tify k e y ge n e ra l r isk s P re p a re d 1 /9 /2 0 1 2 joe .fo x 2

G ue s t Sa tis fa c tion B .1 .P R G R isk an d C o n tro l An a lys is R ole s an d re s p on s ib ilit ie s P re p a re d 1 /9 /2 0 1 2 joe .fo x 2

G ue st S atis fa ction B .1 .P RG R isk a nd C on tro l A na lys is C om m un ic atio n c ha n ne ls P re pa re d 1 /9 /2 01 2 fo rre st .g um p 2


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– Project Status Summary• Auditor Performance Tracking• Automated Audit Dashboard

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Open Notes Email

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Project Status Summary

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Auditor KPIs...

Project Title 31

Manager Larry Crowne

Lead Forrest Gump

Auditor Hours

IssuePrepared

IssueReviewed

NotesPrepared

NotesReviewed

StepsPrepared

StepsReviewed

WPsPrepared

WPsReviewed Items

AvgItem

AvgStep

PAvgItem

PAvgStep

AAvgItem

AAvgStep

Andrew Beckett 77.5 0 0 0 0 2 0 2 0 4 19.38 38.75 0.64 2.63 0.68 2.74Joe Fox 187 7 0 16 0 14 0 44 0 81 2.31 13.36 0.64 2.63 1.88 5.92Larrry Crowne 110.8 1 18 2 42 0 123 0 394 580 0.19 0.9 0.64 2.63 0.56 1.62Chuck Noland 120.5 0 0 31 0 33 0 98 0 162 0.74 3.65 0.64 2.63 1.41 4.96Carl Hanratty 9 0 0 0 0 0 1 0 2 3 3 9 0.64 2.63 0.24 0.88Viktor Navorski 35.75 0 18 0 8 0 128 0 8 162 0.22 0.28 0.64 2.63 0.25 0.63Michael Sullivan 171.5 0 0 8 0 22 0 88 0 118 1.45 7.8 0.64 2.63 1.05 3.97Paul Edgecomb 158 2 0 14 0 17 0 118 0 151 1.05 9.29 0.64 2.63 1.8 7.26

John Miller 130.2 3 0 13 0 13 0 68 0 97 1.34 10.02 0.64 2.63 1.6 6.39Forrest Gump 247.5 17 0 4 38 28 93 31 391 602 0.41 2.05 0.64 2.63 0.99 3.51

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Results…

• Reduction in Review Cycle Times by 95% over last 2 years• Reduction in days to issue Audit Reports by 65%• Addition of 17% more coverage in audit plan

• Increase in Departmental Morale of 110.7%

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0

20

40

60

80

100

120

140

160 Review Cycle Time

Prepared - 1st Review 1st Review - Last Review

ImplementedOpen Step

Emails

ImplementedTeam Silos andOpen NotesEmails

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Results…


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Next Challenges…

• Remaining cognizant of the fine line between effective projectmanagement and micro managing

• Making sure we use the data as a management tool rather thanrelying completely on the data

• Keeping Auditors Utilized!

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Questions?

Date post:	07-Jul-2018
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IMPROVEMENT OF KPI PERFORMANCE

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