1. Project Management Techniques for Efficient Audit Projects Shanda Miller County Performance Auditor Lane County, Oregon October 2015 ALGA Regional Training, Portland OR 1

2. Planner – a person who makes plans 2

3. Brainstorm - Why is project management important for auditors? 3

4. Purpose of project management for auditing: To complete a quality performance audit project that meets audit objectives and is on time and on budget. 4

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6. Learning objectives State 4 principles for effective project management for auditors List three techniques or tools you can use to help avoid the audit project ‘black hole’ 6

7. 4 Principles 7

8. 1.Plan, plan, plan 2.Develop realistic timelines and budgets 3.Commit to good time management 4.Learn from the past 8

9. 1.Plan, plan, plan 2.Develop realistic timelines and budgets 3.Commit to good time management 4.Learn from the past 9

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12. 12 That one project we try to forget about

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14. Typical Audit Phases Pre- planning/Survey PlanningFieldworkBlackholeReporting 14

15. Identify clear audit objective(s) 15

16. 16. Criteria. Condition. Effect. Cause. Recommendation Potential Findings

17. Fieldwork Plan 17

18. Where is time typically spent? 18 1.Pre-planning/survey 2.Planning 3.Fieldwork 20% 80%

19. How time should be spent! 19 1.Pre-planning/survey 2.Planning 3.Fieldwork 40% 60% 20% 80%

20. Pre- planning/Survey PlanningFieldworkReportingLearning IDEAL Audit Phases 20

21. Poll question What is the ideal percent of your weekly time spent on planning? a)11-15% b)5-10% c)1-4% d)0.001% 21

22. 22 To Do List  Daily planning  Focused work  Admin tasks

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26. If you fail to plan, you are planning to fail 26

27. 1.Plan, plan, plan 2.Develop realistic timelines and budgets 3.Commit to good time management 4.Learn from the past 27

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29. 29 Triple Constraint Triangle

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32. 9 steps for realistic budget & timeline estimates 1.Develop a budget for each phase of the audit 2.Take enough time to estimate 3.Gather past data 4.Gather team data 5.Consult with others 6.Be clear on the scope of work 7.Build in a cushion 8.Evaluate team member experience 9.Develop the budget hours and timeline together 32

33. #1 Develop a budget for each phase of the audit Audit Phase Budget (hours) Time frame (weeks) Pre-planning/Survey1003 Planning1003 Fieldwork3008 Reporting/Wrap-Up2006 TOTAL70020 33 Example budget

34. #2 Take enough time to estimate 34

35. #3 Gather past data 35

36. #4 Gather team data 36

37. #5 Consult with others 37

38. #6 Be clear on the scope of work 38

39. #7 Build in a cushion 39 Budget +

40. #8 Evaluate team member experience 40

41. #9 Develop the budget hours and timeline together 41 Example budget

42. Exercise - Do a back-of-the- envelope budget & schedule estimate for a small work or personal project. 42

43. 1.Plan, plan, plan 2.Develop realistic timelines and budgets 3.Commit to good time management 4.Learn from the past 43

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46. The average person loses 1 hour per day to inefficiencies Perfectionism Procrastination Interruptions Meetings 46

47. Brainstorm - What are your top 3 time wasters? 47

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50. 50 15 minute increments

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54. 54 Willpower is highest in the morning & falls during the day

55. 55 Peak productive time a.m.p.m.

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57. 57 40 hours What doesn’t fit? Time wasters Disruptions Work Container What fits? Top priorities Tasks that get you to your next deliverable

58. 58 To Do List  Daily planning  Focused work  Admin tasks

59. Start your day with the three most important tasks (MITs) 59

60. To determine which 3 tasks are the most important – ask yourself: 1.Will this task move me toward completion of my audit/project? 2.How long will it take? 3.When is the deadline? 60

61. 61 Delete Delay Delegate The 4 D’s Diminish

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64. 64 Jo y of progress The

65. Recap – Shanda’s TM practices Track your time in 15 minutes increments & know your time wasters Turn off email notification and fully process email once or twice per day Block out time for focused work & schedule meetings tightly (if possible) Understand willpower and your peak productive times of the day Take breaks 65

66. Shanda’s TM practices cont’d Fill your work container with productive work and mind your hours Make time for daily planning and prioritizing Win the Day and complete your top 3 most important tasks each day Use the 4 D’s – delete, delegate, delay, diminish Beware of multi-tasking 66

67. 1.Plan, plan, plan 2.Develop realistic timelines and budgets 3.Commit to good time management 4.Learn from the past 67

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71. 71 Plan BudgetManage Monitor/ Report Performance Management

72. 72 Cycle time monitoring Budget to actual monitoring

73. Pre- planning/Survey PlanningFieldworkReportingLearning IDEAL Audit Phases 73

74. Ask yourself  Where did my budget and/or timeline estimating go wrong and why?  How will I use this information when estimating for the next project?  What were some unanticipated delays, bottlenecks, or other things that came up?  How can I take this information to improve my planning and/or build in a cushion next time?  What new project management tool can I adopt next? 74

75. 1.Plan, plan, plan 2.Develop realistic timelines and budgets 3.Commit to good time management 4.Learn from the past 75 4 Principles

76. 4 Tools 76

77. 1.Project Schedule 2.Budget to Actual Tracking Sheet 3.Project Plan 4.Weekly Team Check-Ins 77

78. 1.Project Schedule 2.Budget to Actual Tracking Sheet 3.Project Plan 4.Weekly Team Check-Ins 78

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81. 1.Project Schedule 2.Budget to Actual Tracking Sheet 3.Project Plan 4.Weekly Team Check-Ins 81

82. 82 Budget to actual tracking sheet

83. 1.Project Schedule 2.Budget to Actual Tracking Sheet 3.Project Plan 4.Weekly Team Check-Ins 83

84. Project plan  At the core of a project plan is the work breakdown structure (WBS)  Create a WBS for each phase – yes, including planning and reporting  Create the fieldwork WBS during planning 84 WBS survey planning fieldwork reporting Project Plan

85. Purpose of work breakdown structure Have all steps listed in one location Assign ownership Check off completed tasks 85

86. Components of work breakdown structure Step Owner Date initiated Date due Date complete (or Review date) Workpaper or other reference 86

87. Fieldwork Plan 87

88. 1.Project Schedule 2.Budget to Actual Tracking Sheet 3.Project Plan 4.Weekly Team Check-Ins 88

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90. Weekly team meetings  Report & celebrate accomplishments from prior week  Plan out the week – prioritize the work  Discuss upcoming meetings/milestones to plan for  Assign tasks/goals for the week  Set expectations for tasks  Discuss opportunities for development and on-the- job training  Ensure each person leaves with a clear to–do list 90

91. 91 Scrum Source: Borrowed from Kymber Waltmunson, King County Auditor’s Office, Project Management for Auditors presentation

92. 92 Not started In ProgressCompleted Sprint backlog/ Items due in next 2 weeks

93. The Pareto Principle – 80:20 Rule 93

94. 1.Project Schedule 2.Budget to Actual Tracking Sheet 3.Project Plan 4.Weekly Team Check-Ins 94 4 Tools

95. Learning objectives State 4 principles for effective project management for auditors List three techniques or tools you can use to help avoid the audit project ‘black hole’ 95

96. CONTACT: Shanda Miller Lane County Performance Auditor shanda.miller@co.lane.or.us 541-682-6267 96