DRIVING OPERATIONAL

EXCELLENCE IN CONCERT
WITH AUDIT AND OPERATIONS

CONTENT

True Identity of Internal Auditor.
Operational Excellence Concept.
Key Drivers of operational Excellence.
Factors Affecting Operational Excellence.
Internal Audit Role in Operational
Excellence.
Recommendation & Conclusion
What is the true identity of the Internal Auditor?
A DINOSAUR, bestriding
the organization like a
colossus? If this is the
perception, audit must act
quickly; otherwise you
may become extinct, just
like the dinosaur.
A SNAKE - in the grass,
waiting to trap the unwary
and unleash venom?
Should we see the auditor
as such? Should the
auditor be feared or
respected?
What is the true identity of the Internal
Auditor?
A WATCHDOG Reliably &
faithfully guarding the
business as a safety and
comfort provider? Is the
watchdog identity still
relevant in contemporary
times?
A BEE - Buzzing from flower
to flower not staying long in
a place; ready to sting in
the tail if things get really
tough? If this is the identity,
is he perching on the right
flowers at the right time?
What is the true identity of the Internal
Auditor?
PRAYING MANTIS. This insect
looks reverent and calm (as if it is
praying!) but if a tasty morsel
passes it, it is ready to strike and
become a preying mantis. Is
internal audit outwardly innocent
but a menace in disguise?
DOLPHIN? Supper-intelligent,
sleek, fast and loved by
everyone. It would be very good
to be thought of as a dolphin. This
is very good goal for internal
auditor, although I am not sure if
you will ever be loved by
everyone.
A LION - Strong, agile,
feared and can be very
fierce and ruthless? Is the
lion identity compatible
with cooperating for
business growth?
EAGLE - flies majestically across
its domain, completely in control,
able to watch over its
surrounding and take everything
in; and when necessary can
swoop down and deal with issues
decisively. I believe this should
be the desirable identity!
What is the true identity of the Internal
Auditor?
MEANING OF OPERATIONAL
EXCELLENCE CONCEPT

Operational excellence can be defined
as a philosophy of leadership, teamwork
and problem-solving resulting in conti-
nuous improvement throughout the or-
ganization by focusing on the needs of
the customers, empowering employees
and optimizing existing activities in the
processes.



MEANING OF OPERATIONAL
EXCELLENCE CONCEPT
It addresses the way the business is set
up and how the work is executed on a
day-to-day basis with the optimal
objective of achieving cost efficiency,
seamless/gratifying and highly rated
customer satisfaction that attracts
repeated patronage. This ultimately
enhances efficiency and profitability.
KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Leadership
Lead By Example.
Passion.
Be Organized.
Delegate.
Take Ownership and Responsibility
Communicate Effectively.
Be Brave and Honest.
Great Listener.
Know Your People.
Be a Follower
KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Teamwork
Listening
Questioning
Persuading
Respecting
Helping
Sharing
Participating

KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Problem-solving
Define the task clearly.
Set priorities.
Develop an appropriate strategy.
Use experience from similar problems.
Set targets.
Develop an action plan.
Get started.
Monitor your performance against targets and
indicators.
Evaluate your performance.
KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Continuous improvement
Increase Flexibility, Reduce Setup Times and Improve
Product Flow.

Boost Capacity and Improve Quality by Increasing
Your Asset's Life Expectancy.

Stop Searching for the Wrong Problem - Learn to See
Where Value Truly Is!

Slash Lead Times and Increase Productivity by
Improving Product Flow





KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Continuous improvement (CONTD)

Accelerate Product & Service Flow. Achieve and
Sustain Clean, Safe and Organized Workplaces.

Improve Your Cash Flow, Throughput and
Competitive Position.

Involve Your Workforce in the Pursuit of Eliminating
Wastes!




KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Needs of the customers

Friendliness.
Understanding and empathy.
Fairness.
Control.
Options and alternatives.
Information.

KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Empowering employees by:

Workers feel they are given the opportunity to
do what they do best every day.
They believe their opinion counts.
They sense their fellow workers are committed to
quality.
Theyve made a direct connection between their
work and the companys mission.

KEY WORDS MEANING IN
OPERATIONAL EXCELLENCE CONCEPT
Optimizing existing activities in the
processes (3Es):

Efficiency.

Effectiveness.

Economy.

KEY DRIVERS OF OPERATIONAL
EXCELLENCE.

Having the right personnel in place:
Dependability, Punctuality, Initiative,
Positive attitude towards the job, Ability to
get along well with others, Flexibility,
Motivation, Organization and; Ability to
perform assigned duties.

Having and ensuring compliance with
service level agreement:
-Complying with terms and condition of
contracts
-Ensuring quality and timely delivery of service


KEY DRIVERS OF OPERATIONAL
EXCELLENCE.

A state of perfection ensuring that
there are no errors, rejects or irregularities.

Ensuring compliance with rules, policies,
procedures and practices.

Ensuring compliance with regulatory
provisions.

KEY DRIVERS OF OPERATIONAL
EXCELLENCE

Timely execution of transactions in a
flawless manner at a minimum cost with
the requisite resources.

Having a sense of ownership and taking
responsibility of keeping the organization
going.

Being a team player.

Having adequate resources and both
materials to work with.


.
Automation Of Agreed Process:

-Employees can easily retrieve information from
various databases for decision support.
-Various internal groups can easily share data.
-All product-related information (price, product
description, and catalog) is available online.
-Customers can customize their orders online without
phone or face-to-face interactions.
-A comprehensive FAQ section is available online.
KEY DRIVERS OF OPERATIONAL
EXCELLENCE.
Zero tolerance for Account Dormancy.
Strategic Reduction In Operating Costs.
< 0 % Fraud/Operational Losses.
Supplier selection criteria are well
documented.
Supplier evaluation metrics are well dened
and applied.
Supplier quality monitoring process is well
dened and applied.

KEY DRIVERS OF OPERATIONAL
EXCELLENCE.
Zero Loss of Key Accounts Due To
Service Failure.

99% System Uptime , Integra, Sage and
mail.

Zero Errors On Transaction Processing.

Zero Regulatory Infraction


KEY DRIVERS OF OPERATIONAL
EXCELLENCE.
NEGATIVE FACTORS AFFECTING
OPERATIONAL EXCELLENCE

Where team work as defined by operational
excellence is lacking.

Adoption of unapproved processes in effecting
transactions with little regard to services and impact
on the company.

Wrong notions of operation units about who an
auditor is .which results to infractions of company
policies and that of regulatory and which in turn
affects the company.

NEGATIVE FACTORS AFFECTING
OPERATIONAL EXCELLENCE
Audit and Control checks are largely
reactive instead of proactive especially on
fraud detection, prevention and control.

Lack of self-audit and peer review of
activities.

Limited information on industry development
as it relates to fraud for proactive
management.


THE ROLE OF AUDIT AND CONTROL
IN TERMS OF OPERATIONAL
EXCELLENCE OUR PERCEPTION



The audit and control unit play a
major role in operational
efficiency/excellence.


THE ROLE OF AUDIT AND CONTROL
IN TERMS OF OPERATIONAL
EXCELLENCE OUR PERCEPTION

Reduction of the business risk, error and
vulnerabilities from daily operation.

Ensuring zero regulatory infractions.

Ensuring compliance with the Group policies.

Identification of potential risk areas and pursue
regulation.


THE ROLE OF AUDIT AND CONTROL
IN TERMS OF OPERATIONAL
EXCELLENCE OUR PERCEPTION
Ensuring zero or minimal loss through
fraud.

Proactive education and audit aimed at
fraud prevention.

Review for resource adequacy

Regular value for money audit

THE ROLE OF AUDIT AND CONTROL
IN TERMS OF OPERATIONAL
EXCELLENCE OUR PERCEPTION

Regular product and policy review for
suitability and acceptability.

Timely review of transaction media with
prompt reporting of exceptions and
irregularities.

Policy pronouncement enlightenment.


RECOMMENDATIONS TO BOLSTER SYNERGY
BETWEEN OPERATIONS AND; CONTROL &
AUDIT TOWARDS EFFECTIVE OPERATIONAL
EXCELLENCE
There is need for re-orientation of the
audit/control staff for value addition audit
instead of mere investigative and after-the-fact
audit as it is presently the case.

Emphasis system audit more than manual
control functions.

Control should always look for root causes and
preventive measures in exceptions resolution.



RECOMMENDATIONS TO BOLSTER SYNERGY
BETWEEN OPERATIONS AND; CONTROL &
AUDIT TOWARDS EFFECTIVE OPERATIONAL
EXCELLENCE
Operations and Audit and Control (field
officers) should once in a while come
together to seminar on issues like this
(operational Excellence) for betterment of
the organization.

Automated Controls should be explored
more for fraud prevention.

RECOMMENDATIONS TO BOLSTER SYNERGY
BETWEEN OPS AND CONTROL & AUDIT
TOWARDS EFFECTIVE OPERATIONAL
EXCELLENCE


Regular review of the company extant operational
policies for possible update as the need arises.

There should be continuous auditing and monitoring
of processes, transactions and controls to
automatically track and audit system configuration
changes, segregation of duties conflicts, and over-
ride across key processes and controls.

Strengthening the manpower in operations and
control.



There is need more than ever before for Vigeo
Holdings as a Group as she aspires to achieve
leadership in various industry lines, to ensure that its
operations suite is duly fortified/equipped to deliver
the much seamless operational excellence.

The Operations and Audit & Risk Units must be seen
to be working towards achievement of a common
goal which supports operational excellence.
CONCLUSION



THANK YOU