Features and Benefits of
In House Approach to Proving Operational Integrity, Effectiveness
and Efficiency
Objective
Aspect
Strengths
Weaknesses
To use in house resources to identify failings in operations
or process.
Likely
to be the least cost.
Very
intrusive and will impact normal business operations. Will
probably only quantify known problem areas rather than identify
all issues.
Approach
Aspect
Strengths
Weaknesses
A typical approach would
be to use internal staff to conduct a largely manual audit
of processes and data. Usually based on each department
auditing its own operations in isolations with the support
from the IT department.
Good
use of subject matter experts.
Due to volume: Likely to take the most time (and may never be finished) Likely to be the least accurate due time availability. Likely to be least thorough in terms of coverage. Due to personnel: Likely to be completed by staff who'd prefer problems
not to be found in order to protect their position. Least likely to find complex or subtle issues. Least likely to identify internal fraud Due to Methodology: Unlikely to involve cross referencing between departments
thus it is least likely to yield an enterprise view of issues
between departments or departmental systems.
Output
Aspect
Strengths
Weaknesses
Typical outputs are either very scant or completely verbose
in terms of volume. Output is usually subjective and often
biased (especially where departmental or inter-departmental
politics exist).
Output is typically not as professionally articulated
or presented due to lack of specialist training of those
involved.
No
cost involved when further clarification is sought.
Due to reports:
Valuable findings can often be lost as a result of poor
presentation or articulation.
No impartiality : Could lead to findings being manipulated to suite personal
objectives of those involved.
Residual Asset
Aspect
Strengths
Weaknesses
Other than initial report
and some intellectual capital based on findings, there is
likely to be no residual asset from this activity
No
cost of maintaining residual asset
Value often diluted over time as intellectual property
diminishes as a result of staff churn.
Significant cost involved to repeat process.
Resolving Problems Found
in Audits
Aspect
Strengths
Weaknesses
Typical approach is largely based on manual corrections
to records.
Where this involves large scale modifications, this will
often result in the use of temporary labour or result
in major departmental disruption. Occasionally IT systems
are modified to prevent future re-occurrences.
Progress
is made.
Where 3rd Party Labour is Involved:
Costs
Lack of subject matter expertise can also lead to further
corruption. Lack of quality often as a result of the lack
of accountability.
Where IT Modifications are Made: This can often involve significant cost and risk. Furthermore,
it is likely that further changes will be required over
time as a result of further findings or departmental changes.
This will incur further cost and risk.
Approach to Measuring/Monitoring
Operational Improvement
Aspect
Strengths
Weaknesses
The only approach to the
ongoing measurement and monitoring of improvement is to
repeat the process
Least
cost alternative
As A Result Of NO Monitoring being undertaken
Often impractical due to time and effort involved, resulting
in no monitoring. This can occasionally result in a worsening
of circumstance as where changes are made there is a risk
that they could be implemented wrongly, thus further compromising
operations. Where monitoring is not conducted, this can
result in significant losses as a result of compounding
the effects over time.
Where Monitoring Is Undertaken:
In the same way that an author often misses typing or grammatical
errors when proof reading their own material, subtle errors
are often overlooked as a result of over familiarisation
of those involved.
