Part 4 E – 1 V3.0 THE IIA’S CIA LEARNING SYSTEM TM 1.Conflict resolution 2.Added-value negotiating Section Topics Part 4, Section E

Part 4 E – 2 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Why are negotiation and conflict management skills so important to the role of the internal auditor? Answers: Help build relationships and trust. Understand and handle adversarial communication. Effectively deliver reports and recommendations. Discussion Question Part 4, Section E, Introduction

Part 4 E – 3 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Nature of Conflict Conflict is a disagreement between parties about interests, ideas, opinions, beliefs, values, and behaviors. Individuals Groups (within/between) Systemically within or among organizations Part 4, Section E, Topic 1

Part 4 E – 4 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Value differences Unethical behavior Poor communication Change efforts Different goals and objectives Resource allocation Lack of information Environmental stressors Group incompatibility Cultural background differences Questionable motives Incorrect assumptions Leadership and management approaches Status differences Lack of trust Reward systems Short-sighted problem solving Conflict Triggers Part 4, Section E, Topic 1

Part 4 E – 5 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Individual Resolution Strategies Competing—focusing on winning Accommodating—giving in, even if not convinced Avoiding—ignoring the conflict Compromising—giving in to gain some resolution Collaborating— working together for a win/win Part 4, Section E, Topic 1

Part 4 E – 6 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Manager Styles: Resolution Strategies Withdrawing—avoiding or ignoring conflict Smoothing—finding common ground; may involve giving in Forcing—dominating and forcing a win/lose situation Compromising—reaching a compromise for both sides Collaborating—looking for a win/win solution together Part 4, Section E, Topic 1

Part 4 E – 7 V3.0 THE IIA’S CIA LEARNING SYSTEM TM I.You and a partner have gathered all of the data for an auditing report, which is due in one week. You disagree on the report format due to personal report writing preferences. II.You would like to continue work with a vendor but are in conflict over what you can pay and what they will deliver for that amount. Discussion Question Answers: I.If either format will communicate the important points, you might accommodate or compromise to get the report done on time. II.Since you want to keep the vendor, you might collaborate by looking for a win/win solution that will meet your needs and support the vendor quality you have come to expect. Which resolution strategy might you use in each circumstance below? Choose from competing, accommodating, avoiding, compromising, or collaborating. Part 4, Section E, Topic 1

Part 4 E – 8 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Separate the people from the problem. Focus on interests, not positions. Generate a variety of possibilities. Base results on objective standards and mutual interests. Principled Negotiation Outcomes are not based on the positions of parties but on mutual interests and fair standards. Part 4, Section E, Topic 1

Part 4 E – 9 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Select appropriate time and place. Identify your goal. Set a discussion agenda. Focus on facts and real issues. See the other party’s point of view. Separate people from the problem. Discuss in a respectful manner. Use good communication skills. Remain calm. Find common ground. Consider winning and losing consequences. Use a facilitator or mediator if necessary. Develop alternatives. Come to agreement. Resolution Considerations Part 4, Section E, Topic 1

Part 4 E – 10 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Added-value Negotiating Win/Win Added-value negotiating is a cooperative approach, based on shared interests and objectives. Parties present exchanges of value and multiple deals, which requires a good deal of advance study and preparation. The ultimate goal is a win/win agreement. Part 4, Section E, Topic 2

Part 4 E – 11 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Negotiating Steps Clarify interests. Identify value options. Create several offers. Select the best offer. Perfect the deal. Part 4, Section E, Topic 2

Part 4 E – 12 V3.0 THE IIA’S CIA LEARNING SYSTEM TM What are some of the special considerations in global deal making? Discussion Question Answers: Cultural background differences, negotiation practice differences, time and distance differences, cross-border legal issues, possible need for cultural mediators and informants Part 4, Section E, Topic 2

Part 4 E – 13 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Reinforcing Activity 4-5 Part 4, Section E, Topics 1 and 2 Negotiating Part 4, Section E, Topics 1 and 2

Part 4 E – 14 V3.0 THE IIA’S CIA LEARNING SYSTEM TM Questions? End of Section E Part 4, Section E