GLOBAL KNOWLEDGE BRIEF

DATA ANALYTICS MANDATE

Part 2: Develop and execute strategy and tactics
Table of Contents

Introduction ................................................................................................................................................... 1

Data analytics has become a strategic imperative ............................................................................ 1

Your data analytics strategy ......................................................................................................................... 2

Tell a story showcasing the positive implications of data analytics ............................................... 2

Six keys to build a program................................................................................................................. 3

Strategy-supporting tactics ......................................................................................................................... 4

Successful tools ................................................................................................................................... 4

Closing thoughts ........................................................................................................................................... 6

Capture excitement by starting with a quick win .............................................................................. 6

INTRODUCTION
Moving beyond simply understanding the benefits

Data analytics has become a strategic imperative

Embracing data analytics is by no means a new idea for
internal auditors, but judging by the number of “how to get “It is quickly becoming a
started” articles that continue to be published, adoption is strategic imperative, one
still in its infancy — particularly when it comes to smaller that can make or break a
audit functions that may be resource constrained.
company’s ability to retain
Today’s world is overwhelmed with readily available data, customers, grow revenue,
and chances are your various departments or business and maintain its
units already are collecting bits of valuable information. If
competitive advantage.”
aggregated and analyzed with the aim of enabling your
organization to achieve its objectives, this data may — “Winning with a data-driven strategy”
present myriad opportunities from which to boost profits, Strategy+Business1
reduce expenses or waste, and grow.

One barrier to embracing the power of data analytics may be obtaining buy-in from your organization’s leaders.
This is where internal auditors have an opportunity to make the case. Not only is data analytics the way of the
future, but organizations of all shapes and sizes across all industries cannot afford to ignore a tool with the
capacity to yield an irresistible bounty. The key for internal auditors is to win the hearts and minds of decision-
makers who can pave the way for adoption of a solid data analytics strategy.

As noted in “Data Analytics Mandate, Part 1: Where do we go from here?,” this paper will review strategies
and tactics for those in the early stages of data analytics adoption or those who have yet to begin.2

1
Pawan Kumar, Ramy Sedra, and Javier Barguno Casanova, “Winning with a data-driven strategy,” Strategy+Business,
June 5, 2019, https://www.strategy-business.com/article/Winning-with-a-data-driven-strategy.
2
“Data Analytics Mandate, Part 1: Where do we go from here?” The IIA, June 2019,
https://na.theiia.org/periodicals/Member%20Documents/GKB-Data-Analytics-Mandate-Part-1.pdf.

1
YOUR DATA ANALYTICS STRATEGY
Two strategies for two elements of the plan

Tell a story showcasing the positive implications of data analytics

Before you get the go-ahead to design and implement a data analytics strategy, you need to first notify
senior management and the board of your plans. To obtain interest and ultimately buy-in from those who can
align the teams and resources needed to make a successful data analytics strategy come to life, you must
first capture their attention and imagination. You can do this by framing your presentation to inspire and
engage them. Paint a picture they can visualize by sharing examples of others who have embarked on
successful implementation.

“Winning with a data-driven strategy” shares insights from Ilunion Hotels’ use of its systems to aggregate more
than 12 million data points to create user-friendly dashboards. This allowed managers of the Spanish hotel
chain to identify issues and opportunities to “sharpen decision making and inspire process innovation.” 3 That
is the simple idea behind data analytics: better information results in better decisions.

Stories are plentiful; you just need to know where to look and then apply creativity to adapt examples to your
circumstances. Part 1 of Data Analytics Mandate includes an example of a “quick win” for one organization
that employed a simple data analytics exercise to realize a savings of $40,000 annually that internal auditing
alone had not previously discovered.

Seek to understand the best way to reach your audience. Busy executives and board members want the
bottom line up front. There is even an acronym for that: BLUF. Brush up on ways to create short, impactful
presentations that hold back on the data but show your audience the story rather than having to explain what
you mean.4

3
Pawan Kumar, Ramy Sedra, and Javier Barguno Casanova, “Winning with a data-driven strategy,” Strategy+Business,
June 5, 2019, https://www.strategy-business.com/article/Winning-with-a-data-driven-strategy.
4
drjim, “Speakers Need To Know When Too Much Is Too Much,” The Accidental Communicator (blog), June 4, 2019,
http://theaccidentalcommunicator.com/create/speakers-need-know-much-much.

2
Six keys to build a program
Once you have presented your case for a comprehensive
data analytics plan, or possibly an incremental approach “By knowing what to avoid,
leading to bigger-and-better things, how do you embark on internal audit departments
the second phase of actually constructing a program? An
can keep a data analytics
Internal Auditor magazine article, “Building a Data
Analytics Program,” lays out six keys to help auditors build
program on track to reach
a comprehensive data analytics program, recognizing that its full potential.”
some audit functions may lack capabilities in areas such as
database and programming skills. —“Building a Data Analytics
Program,”Internal Auditor magazine5
1. Create awareness rather than a silo.
2. Understand the data before investing in a tool.
3. Plan sufficiently.
4. Think big picture.
5. Partner with IT.
6. Take advantage of visualization tools for inspired reporting.

Recognize that, while missteps will occur along the way, most failures provide learning opportunities. Careful
and deliberate planning can help avoid pitfalls and possibly anticipate mistakes before they are made. As the
article states, “By knowing what to avoid, internal audit departments can keep a data analytics program on
track to reach its full potential.”6

“Building a Data Analytics Program” is an excellent tutorial on beginning or furthering a data analytics program
and is highly recommended as a platform from which to start.

5
Braun, Gordon, Andrew Struthers-Kennedy, and Gregg Wishna. 2017. “Building a Data Analytics Program.”
September 13, 2017. InternalAuditor.org. https://iaonline.theiia.org/2017/Pages/Building-a-Data-Analytics-Program.aspx.
6
Ibid.

3
STRATEGY-SUPPORTING TACTICS
Plan to execute then execute the plan

Successful tools
Once a strategy is in place, you must develop tactics to support it. Jan Beckmann runs a training and
consulting firm after spending 20 years in the audit profession with organizations including Deloitte, Anheuser-
Busch, and ACL. As a presenter at The IIA’s General Audit Management ConferenceTM in 2019, she discussed
some of the key elements needed to support overall strategy.

Quality. Ensuring the quality of data is half the battle in ensuring quality results. Safeguarding data quality is
an ongoing effort, but putting in place a dedicated, informed team to consistently gather and supply data to
analyze builds confidence in the output’s integrity. To deliver and build in quality to future data analytics
projects, Beckmann suggests considering these items in your scope of work:

 Meaningful objectives.

 Accuracy of results.

 Impact on the business.

 Relationship development.

Budget. Some audit functions may be open to expansion but likely, many are not, so learn to work with your
current budget. Many organizations may already have popular name brand software available that is
underutilized and could be leveraged for basic data analytics.

Reporting. According to Beckmann, reporting is key, because that is the deliverable. It is important to begin
the work with the end in mind. In her GAM presentation, she referred to this as project completion, which
should be:

 Timely and efficient.

 Documented and reviewed.

 Free from extraneous data.

 An instrument for future projects.

Beyond the obvious benefits of timeliness and efficiency, Beckmann stressed the need for solid
documentation, indicating she had worked with teams who failed to review workpapers before moving to the
next phase. This is a key element, so it is imperative to build time into the schedule for documentation.

4
Removing extraneous data is like a visit from a plumber, Beckmann said. There may be a mess when he or
she gets there, and there will probably be a mess after the work is completed. Beckmann suggests removing
this “mess” from your deliverable reports. Again, remember BLUF. Relegate the details to the workpapers so
your audience can focus the results. This also helps to tell your story without showing every single data point.
In other words, tell the story the data tells — simply, clearly, and objectively.

Beckmann’s final point is about learning from the process. When a data analytics project is completed, what
lessons can apply to future undertakings? Can you use a new programming script on a different project? What
mistakes or dead-end tangents should we avoid in the future? The key is to gather those learning points while
they are fresh in the minds of those who worked on the project.

Don’t forget to measure your success. Set targets or designate key performance indicators to monitor your
progress with analytics. Aim to make your successes known to gain support and traction for incorporating data
analytics into all appropriate future audits.

5
CLOSING THOUGHTS
Start with a project that will yield an impactful result

Capture excitement by starting with a quick win

Despite years of discussion, internal audit continues to
struggle with data analytics, with many audit functions
Suggested Reading
failing to get beyond the basics.10  Integrating a Data Driven
Approach.7
Two articles, “Analytics Refresher” and “Building a Data  Data Analytics: Evaluating Internal
Analytics Program,” referred to in Part 1, provide steps for Audit’s Value.8
any size organization at any stage of maturity on the path  Data Analytics: A Road Map for
to developing a solid program.11 A number of topical books Expanding Analytics Capabilities.9
are available from The IIA Bookstore, as well.

There are definitive early steps you can take to get started on the data analytics journey.

 Build one or two strategies based on your unique circumstances to demonstrate to management the
importance of embracing data analytics.

 Create a structure or framework on which to build a dependable, repeatable process.

 Leverage early wins by targeting one or two relatively simple projects likely to generate solid results.

 Support your data analytics process with tactical tools to ensure success.

Once started, seek out areas of the organization that can benefit from audits that employs data analytics, and
choose candidates that will showcase just how powerful a strategy and tool data analytics can be.

7
“Integrating a Data Driven Approach,” Global Knowledge Brief, The IIA, 2018, https://global.theiia.org/knowledge/Pages/Global-
Knowledge-Brief.aspx.
8
Warren W. Stippich Jr., and Bradley J. Preber, Data Analytics: Evaluating Internal Audit’s Value (Altamonte Springs, FL:
The IIA Research Foundation, 2016). https://bookstore.theiia.org/data-analytics-elevating-internal-audits-value.
9
Richard Cline, Ward Melhuish, and Meredith Murphy, Data Analytics: A Road Map for Expanding Analytics Capabilities,
(Lake Mary, FL: Internal Audit Foundation, 2018). https://bookstore.theiia.org/data-analytics-a-road-map-for-expanding-
analytics-capabilities.
10
Susan Moore, “Gartner Data Shows 87 Percent of Organizations Have Low BI and Analytics Maturity,” Gartner press
release, December 6, 2018, https://www.gartner.com/en/newsroom/press-releases/2018-12-06-gartner-data-shows-87-
percent-of-organizations-have-low-bi-and-analytics-maturity.
White, Neil, “Analytics Refresher.” InternalAuditor.org, October 22, 2014. https://iaonline.theiia.org/analytics-refresher.
11

Gordon Braun, Andrew Struthers-Kennedy, and Gregg Wishna, “Building a Data Analytics Program,” InternalAuditor.org,
September 13, 2017, https://iaonline.theiia.org/2017/Pages/Building-a-Data-Analytics-Program.aspx.

6
About The IIA
The Institute of Internal Auditors (IIA) is the internal audit profession’s most widely recognized advocate, educator, and provider of standards,
guidance, and certifications. Established in 1941, The IIA today serves more than 200,000 members from more than 170 countries and
territories. The association’s global headquarters is in Lake Mary, Fla., USA. For more information, visit www.globaliia.org.

Disclaimer
The IIA publishes this document for informational and educational purposes. This material is not intended to provide definitive answers to
specific individual circumstances and as such is only intended to be used as a guide. The IIA recommends seeking independent expert advice
relating directly to any specific situation. The IIA accepts no responsibility for anyone placing sole reliance on this material.

Copyright
Copyright © 2019 The Institute of Internal Auditors, Inc. All rights reserved. For permission to reproduce, please contact [email protected].

July 2019

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