1. Reed Early, Manager Performance Audit Office of the Auditor General of BC Office of the Auditor General of BC CES National Conference Ottawa, June 2009

2. Performance Audit Redesign Need identification Existing process Redesign work Design team Committee structure CI learning Implementation Rollout planning Performance indicators More implementation Jan 2008 June 2008 Jan 2009 Earlier efforts 2007 Redesign tools

3. Need identification Current performance Current performance - On time/budget metrics - length of projects increasing New Auditor General New Auditor General Training for new staff Training for new staff Example from New Zealand Example from New Zealand

4. Need identification con’t - Cheaper audits overall - Better consistency, guidance, auditee relationships - Faster process 6-9 months Create a continuous improvement culture

5. Committee Structure Steering committee Steering committee Core team Design team

6. Input Input -Contracted CI experts -Focus groups -Executive direction Project launch Project launch - Introduction and Training

7. Continuous Improvement A learned process A learned process –Not intuitive in corporate setting Principles of Business Process Redesign Principles of Business Process Redesign –Be Bold – challenge everything –Eliminate re-work loops –Assume success and learn from our errors –Maintain control standards –Set indicators, monitor, improve

8. Redesign work -Design Team looked for - opportunities to improve - shorten or eliminate steps - allow concurrent steps - a consistent process - Use technology wherever possible

9. Redesign - 54 steps (was 150+)

11. Redesign tools Templates and checklists Templates and checklists “Guide on the Side” “Guide on the Side” Consistent file structure (CaseWare) Consistent file structure (CaseWare) Analytic software (QDA Miner) Analytic software (QDA Miner) Users manual (yet to be done) Users manual (yet to be done)

12. Performance indicators Indicate areas to track Indicate areas to track Purpose is improvement (not acc’ty) Purpose is improvement (not acc’ty) Balanced scorecard measures Balanced scorecard measures A few measures A few measures Target 100% on each Target 100% on each

13. Performance indicators con’t IndicatorData SourceMeasure Elapsed Time TenroxProject – elapsed time between first state date to deliverable, by phase i.e. start Planning to delivery of Plan Billable Hours TenroxProjects’ actual hrs by phase and total Project Staff Resource Utilization Quality project status reportUse of all templates Use of all audit process steps Learning and Growth project status reportStaff capacity post project statusProfessional practices Clients Perspective Auditor General’s Performance Post Audit Auditee response to recent audit re performance of our office. Executive Perspective Annual Survey of Executive Response by Exec to statements:

14. Office of the Auditor General of British Columbia Public Report - Performance Indicators Summary Reporting Period: Quarter 1 (Jan-Mar, 2000) Completed By:J Auditor - Data Test Performance Summary: % Indicators Met (by Balanced Scorecard Group)

15. Roll Out planning Implementation plan for each tool, template, checklist Implementation plan for each tool, template, checklist – who, what, when, number of hours Monthly meetings to monitor implementation Monthly meetings to monitor implementation Overall communication/roll out Overall communication/roll out

16. Implementation (Jan 2009 to current) - Training - incorporates all templates, tools, checklist, guides - Continuous Improvement Working Group established (12x, 4x)

17. Continuous Improvement: flexibility or standardization?

18. Questions to ask Questions to ask What is more important: flexibility or standardization and why? What is more important: flexibility or standardization and why? What challenges would you anticipate having if you set out to streamline your process? What challenges would you anticipate having if you set out to streamline your process? What do you think are the critical success factors for a process improvement project? What do you think are the critical success factors for a process improvement project?

19. Improvement – so far First indicator baseline results First indicator baseline results – Time/budget targets not met – Staff satisfied with training and templates but not following all steps – Suggestions for further improvements – “Consumer” Executive/auditee indicator results to come

20. Challenges Other changes happening in parallel: Other changes happening in parallel: – Narrower more defined projects – Shorter reports – New communications team – Project management processes

21. Challenges con’t Initiating and sustaining CI culture: – Inertia and natural resistance – CI Team, ourselves, and executive – Risk averse setting – Quality driven

22. Challenges (cont’d) It is Rocket Science! It is Rocket Science! Professional standards Professional standards Analytical, cautious staff Analytical, cautious staff Getting key people to table Getting key people to table Flexibility versus standardization Flexibility versus standardization

23. Critical Success Factors Executive support and leadership Executive support and leadership Time and resource commitment Time and resource commitment Recognition that change is needed Recognition that change is needed

24. Critical Success Factors (cont’d) Excellent external facilitator Excellent external facilitator Good design team: mix, competencies Good design team: mix, competencies Willingness to embrace continuous improvement philosophy Willingness to embrace continuous improvement philosophy

25. Reed Early rearly@bcauditor.com C I