OBJECT Solutions Samples on "System Audit"

Wei,

You wrote:

"Could you elaborate a bit more on your second perspective with the focus on environmental audit, please? I would like to see whether I can identify the 'puma' in your observations."

Below are actually observations I made on System Audit (which can be Environment, Quality, Satefy, Health etc.). They are in the format of OBJECTS (refer my homepage explanation. If you are interested you may like to join as assoicaties of OutSights)

I am using Audit as a "spot" as you say to "see" the "System". But how organisation / management VISION may be blurred (due to lack of understanding or mind-block) that "seeing" of the system become distorted.

>Object #61

Goals

• How system audit can be carried out to add value?
• What is the difference between an auditor and a judge?
• Why system auditors can create illusion?

Fact

• Evidence of Practices
• System Audit
• Learning Organisation

Symptoms

• An external team of auditors was invited to audit on a system (e.g. Quality, Health, Safety, Environment etc.).
• It was concluded that "the system is in good control and effective" Symptom: Against each focused element of the system e.g. Leadership, Policy, Planning etc. general statements are made. For example "Top Management is committed", "Lack of structured competency requirements for staff performing critical jobs", "Department roles and objectives are inconsistently implemented".
• The audit finding report also includes "Areas for Improvement" : "Do this, do that, Suggestion here, suggestion there".

Cause

• More behaving like a judge than a system auditor.

Fixes

• The above symptomic behaviour shows role of judge and not of auditor. The main content of the report did not emphasise on "evidence of practices". The conclusion and summary can then be very mis-leading and create illusion to management.
• System auditor should see himself or herself like a detective, looking for clues (evidence of practices) and document them. Documentation can be in two categories a) non-compliance to established policy / procedure b) observations as per auditors' perspectives. Audit findings of non-compliance do not imply strict compliance but for auditee management to re-visit and review the established policy / procedure. Observations statement can be a very creative source of input from auditors based on their experience and perspectives. These can help audittee management to receive new ideas in relationship to their work / management practices.
• In summary, system auditors should help management to understand better CURRENT REALITY of their business for deeper insights and review to take place. This can be an effective way to help Learning Organisation.

>Object #75

Goals

• Why recommendations / suggestions from system auditors can impair Learning capacity of an organisation?
• How unintended negative consequences can be created by action based on good faith?

Fact

• System Auditors e.g. ISO 9000, ISO 14000 Fact: Evidence of Practices.
• Learning Loop.
• Learning Organisation.

Symptoms

• System audit e.g. ISO 9000 Quality System, or ISO 14000 Environmental Management System or Business system, is a common activity in most organisations. After audit findings, in good faith, many recommendation / suggestions are offered by auditors or requested by audited management.
• It is a common reactive behaviour from audited management to carry out the corrective / preventive action as per recommendation / suggestions from the auditors for whatever reasons.
• Repeat of above forms a vicious circle of Recommendation to Reaction, or Action to Reaction, a familiar Fire-Fighting behaviour. An unintended negative consequences.

Cause

• The primary role of system auditor not fully understood and made full use of i.e. as detective to give clues of "Evidence of Practices" for organisation self learning.

Fix

• System auditors' main contribution should only be "Evidence of Practices", which the organisation should take them as symptoms for analysis of underlying root causes. The domain of Creativity is invoked for effective corrective and preventive action to take place, to be further reflected upon with Management Review. What is just described is a LEARNING LOOP, to be repeated into a pattern for greater learning to take place. A Learning Organisation is then in the making.

>Object #76

Goals

• How organisations reduce the value-add of System Audit?
• How organisations loose LEARNING opportunity?
• An example of "Shift the Burden" in System Audit activity.

Fact

• System Auditors e.g. ISO 9000, ISO 14000
• Learning Culture
• Teamwork vs Blame Culture
• Shift the Burden

Symptoms

• System audit e.g. ISO 9000 Quality System, or ISO 14000 Environmental Management System or Business system, is a common activity in most organisations. Audit findings require corrective and preventive action from organisation. And such action requires identification of action party.
• As work is carried out in a process, that cuts across the boundaries of several departments, it is hard to identify who should be the main action party or co-ordinator. It is also a natural defensive behaviour on the part of auditee or interfacing parties not to accept being "directly" responsible for the non-compliance findings from auditors.
• Some organisations require internal system auditors to seek agreement from auditee as action party for corrective or preventive action. A seemingly logical and rational requirement.

Cause

• Transfer organisation problems in teamwork and cohesiveness to System Auditors.

Goals

• Organisations must understand that the primary role of System Auditors is to document "Evidence of Practices", not sorting out the mess and chaos of organisation teamwork / cohesiveness problems. By imposing a requirement that internal system auditors to seek agreement from auditee to be the action party, organisations stand to loose much LEARNING opportunity, especially if the auditors are junior members, having difficulty to get senior managers to accept responsibility of the audit findings.
• Fix: Organisations must realise that too much bickering in sorting out who is the action party for the necessary corrective and preventive action is a sign of serious breakdown in teamwork culture, and it is the Management Responsibility (Not auditors) to intervene.

>Object #77

Goals

• How organisations loose LEARNING opportunity in System Audit by getting stuck with "rock logic" or "localised logic" ?

Fact

• System Auditors e.g. ISO 9000, ISO 14000
• Learning Culture Vs Blame / Fear Culture

Symptoms

• System audit e.g. ISO 9000 Quality System, or ISO 14000 Environmental Management System or Business system, is a common activity in most organisations. Audit findings require corrective and preventive action from organisation.
• There is a compelling logic / reason that if the auditee do not have the authority or ideas as how to make corrective and preventive action, i.e. "seemingly no way to solve the problem", the documented audit findings should be dropped.

Cause

• Indirect admission that creativity, one aspect of organisation learning, can be dispensed with.

Fix

• Organisations must understand that the primary role of System Auditors is to document "Evidence of Practices", not dealing with creativity or problems solving for the organisation. Usually the above mentioned logic arises from deep seeded "fear of blame" of the organisation, the fear of being exposed of weaknesses of responsible parties through audit findings. But audit findings aims at capacity of organisation to effect system improvement, not attacking "culprit" in persons.

>Object #78

Goals

• How argument on "what is non-criticality to business on audit findings" can deprive organisations from LEARNING opportunity in System Audit ?

Fact

• System Auditors e.g. ISO 9000, ISO 14000
• Organisation Learning Opportunity

Symptoms

• System audit e.g. ISO 9000 Quality System, or ISO 14000 Environmental Management System or Business system, is a common activity in most organisations. Audit findings require corrective and preventive action from organisation.
• Auditee have the strong tendency to argue that the "Evidence of Practices" documented as audit findings are not critical to business, i.e. trivial in nature. Implying the audit findings should be dropped.

Cause

• Serious mis-understanding of the role of system auditors. That is, their primary role is just to present "Evidence of Practices", not judgement of their criticality nor non-criticality. Such judgement is left for organisation management.

Fixes

• System auditors should be viewed as non-specialists of the organisation business, the real business specialists are the organisation personnel. Hence the system auditors need not be concerned with "criticality or triviality" of the audit findings. In most cases, what is considered non-critical is merely opinion of a few auditee. But it is the organisation management who must make a serious review as to a) 'whether a small innocent lighted cigarette butt may ignite the whole forest" b) cause and effect relationship of so called non-critical audit findings with the rest of the business system over time and space.
• Indulging in unnecessary energy in fighting off audit findings in the name of non-criticality may seriously deprive organisations from LEARNING opportunity.

Appreciate your comments and critique

Andrew

End.

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By Andrew Wong, 5th Oct. 1997

COPYRIGHT @ 1997

� 1997 eMail-Andrew Wong

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