the inside track on winning audits

 What’s next in the world of business improvement? Ask Duncan Lilley, SAI’s new Global Head of Assurance Services. Duncan brings impressive expertise and an exciting vision for helping SAI’s clients get the most from their businesses.

Duncan Lilley speaking at the recent Better Business Conference in Sydney
                                                       

Variously based in his native South Africa, Europe and more recently in the Asia Pacific, Duncan’s experience includes major roles with leading global corporate’s such as Kellogg, Brown & Root and Unisys prior to entering the assurance services space over 8 years ago, and holding top roles based both in the UK and Hong Kong.

A Bachelor of Science graduate and qualified chartered accountant, Duncan’s roles have included overseeing the commercial management of large capital projects including offshore oil and gas, civil engineering infrastructure and transportation projects to managing large complex IT&T bids with sales teams to leading business divisions across vast geographical territories and diverse cultures.

Item one on his agenda after his arrival at SAI Global earlier this year has been to make a detailed assessment of the scope and nature of services SAI provides.

“I am looking at what SAI Global does for our customers and the types of assurance services we offer with a view to ensuring that they are as relevant to the needs of organisations and their stakeholders as possible” he said.

“Areas like driving improvement, managing risk, protecting reputation and assisting with compliance have all gained greater prominence in the last decade or so. We are also looking at further ways to helping organisations that are striving to become more international in their operations as globalisation continues,” he explained.

"We are all aware that the business environment is becoming more and more complex. That’s why the key word for us is relevance: how can we actively help our clients take a strategic approach to management of these challenging and changing areas. We are looking at the full portfolio and seeing how we can make products more closely align and complement each other to deliver more value to our customers.”

In a business world that’s also becoming increasingly specialised, Duncan Lilley signals that a further refinement and evolution of both business management standards themselves and the types of assurance services on offer is also afoot. He also envisages closer relationship between the product certification side and business management systems.

This evolution may find its expression in the increased tailoring of the more generic Standards such as the ISO 9000 series to become more closely aligned with the characteristics and objectives of specific business and industry types.

“We are looking at more sector-specific options in the 9000 series, for example,” he said. “The popularity and success of such options for the health and legal sectors is already clear and more are being explored.”

In addition, he expects the already evident trend away from ‘certification for its own sake’ to continue.

“The benefit and importance of objective expert assessment to organisations – whether or not formal certification is the end result – is becoming increasingly apparent,” he said.

“More and more businesses are seeking what we call ‘second party assessment’. This is external verification against their own set of Standards or criteria, rather than what we describe as third party, which is assessment against an external set off standards or criteria such as something from the ISO Standards.”

He pointed out that second party assessment is a powerful safeguard and risk management tool because it provides the objective, independent evidence of the reality of a business’s operations, culture and compliance. It supports a stronger corporate governance culture and helps provide an objective basis for business improvement strategies.

“It’s not just words on a pretty brochure. It is evidence of what’s really happening,” said Duncan.

Naturally enough, he explained, evolution in the roles of assessment and assurance is also leading to an evolution in auditing style.

“Looking at the business as a whole and taking a partnership approach now involves the audit having a scope beyond that of purely ‘documenting procedures’,” he said.

Although stressing that a healthy balance between auditor independence and the input of his or her experience, technical and management knowledge remains essential, Duncan Lilley said that genuine business improvement occurs when this balance is achieved.

“Many clients need some help from their auditor to get to that next level, beyond mere compliance, so they can really use their system and SAI’s services to gain measurable and ongoing improvements.

“Sometimes SAI’s clients make the mistake of seeing the value of the certification or the assessment ending with the audit or certificate, then forgetting about it until next time.

“But the reality is that SAI’s products and services are designed to deliver benefits beyond the certification or the audit. It’s all about the built-in safeguards, the quality of the improvement feedback mechanisms, the quantification and solid information that an effective system and assurance process can provide.

“These constitute the real value,” said Duncan. “It is SAI’s aim to continue to refine its products and services to ensure that they continue to be relevant and that more of its clients can experience greater benefits.”

The benefits of a successful audit extend well beyond the granting of a certificate, and for small business in particular, there are some special advantages, says SAI auditor Andrew Thornhill.

Andrew is the auditor who certified this issue’s environmental case study company, AT&M, to the ISO 14000 standard.  Click here to view this case study.

As the impressive statistics relating to that company’s waste and expenditure reduction attest, the certificate on the wall is far from the major benefit of establishing the certified system in that case.

Andrew Thornhill says that companies like AT&M are showing other smaller outfits that playing with the ‘big boys’ by adopting international standards of practice and taking a leadership role is not only possible – it’s positively beneficial for all concerned.

“I am absolutely happy to see smaller businesses doing this and the genuine impacts and reductions in waste they are experiencing,” he says.

Andrew also cites the AT&M case as a prime example of continual improvement, again ensuring that the benefits of certification continue long after the certificate has been awarded. This can be an area of difficulty for some companies, which take more of a hit and run approach to their certification, putting in a lot of effort pre-and during audit, then easing off.

“Sometimes there is a lack of proactivity for setting the objectives and putting in place the mechanisms required for continuous improvement. But when a company really sits down and looks at every possibility, then has the integrity and belief to go for it – it is very heartening to see.

“I think that’s what impressed me with AT&M. I also believe that other smaller business could make similar gains if they adopted a similar commitment and approach. They should be using the benefit of not having many layers or bureaucracy to get through, use the fact that there can be greater directness in decision making to make a real difference.”

If you think your small business fits the bill and and should be recognised for its achievement in The Mark, please email us today at themark@saiglobal.com

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