Introduction to Agile & Agile Auditing Head of Audit Forum 21st

Introduction to Agile & Agile Auditing Head of Audit Forum 21st October 2020 Sarah Haigh - [email protected] Ann Maris Keoghan - [email protected]

Agile In Practice - Your Experiences: Question Responses How are you seeing Agile being used for Change Programmes? 1. 2. 3. 4. 5. Is your function using agile auditing? Yes No How mature is agile auditing in your function? 1. 2. 3. 4. 5. All change programmes Limited to Software Development Programmes Predominately Software & Product Development Programme Piloting use (e.g. on a small number of change initiatives) Not using Framework, principles and processes mature; evolution in progress for next iteration of agile Framework, principles and processes embedded Framework, principles and processes defined and being piloted/tested Framework, principles and processes not defined; terminology and techniques in pilot Agile auditing at initial idea stage; no pilots started.

IIA Change Forum: Introduction Vision To enhance the audit profession and establish best practice for auditing change for the benefit of organisations and individuals. Purpose The purpose of the Forum is to drive and participate in activities to achieve the vision, including but not exclusively: Keep abreast of changing delivery strategies and ensure lessons are learned from best practice and issues. Make use of internal and external stakeholders to share and exchange knowledge and industry insights. Prepare and submit guidance to IIA Practices Forum in relation to auditing change and review IIA guidance notes annually to ensure they remain appropriate. Scope Members of the Forum will come together to primarily review business change initiatives and projects to share insights, best practice and common themes, and forge new relationships. Topics for discussion will be collated on a backlog and prioritised for inclusion on meeting agendas as deemed appropriate. Membership Members of the Forum will be Internal Auditors and/or change delivery specialist who audit business change initiatives and / or projects either within the public or private sector. Deliverables Inputs: Backlog of items for future meetings Production of meeting agenda and content Outputs: Meeting content to be shared with members Production and review of guidance documents on auditing strategy, business change/projects and any other guidance related to these topics as deemed appropriate. Guidance will be submitted to the IIA view the IIA Practices Forum Sharing Best Practices & Adding Value: Auditing Strategy & Change (IIA Guidance Paper) Sharing Best Practices & Adding Value: Change Methodology & Approaches (IIA Guidance Paper Agile Change) Examples of Delivering our Vision Topics Discussed: Benefits & Business Cases Change Sponsorship Testing Business Readiness Tools Who Involved: 13 Organisations Represented Guest Practitioners Consultants/SMEs MORE WELCOME!!

Agile Concepts – Change Delivery: What is Agile Delivery? Agile delivery methodologies are used by projects and programmes to bring IT and business teams closer together when delivering change. The methodologies come in many shapes, names and forms e.g. Scrum, Kanban, Crystal. Agile is often referred to as iterative methodology by commentators and the focus of the delivery method is to achieve working software through small bitesize changes often referred to as Releases of Software. By this bitesize Release approach ‘Value’ is released many times over the project lifecycle rather than at the end of the Project under traditional waterfall methodology. The differences between waterfall and agile delivery are illustrated below: http://www.crmsearch.com/agile-versus-waterfall-crm.php The focus: Get a product or service in use as early as possible Minimum Viable Product (MVP) Once MVP is implemented adapt and learn to optimise Individuals and interactions for collaboration Risk management - risks potentially crystalize more frequently The Roles: Scrum Master: Lead and guide the development scrum team in its agile delivery adoption; support the Product Owner; Product Owner: Maximise the value delivered and has a deep understanding of the business area; Development (scrum team): A multi-skilled team consisting of project, business and assurance colleagues collectively responsible for development to live.

Agile Auditing Benefits: Organisations are increasingly choosing agile methods to deliver new software, products, organisational change. Agile is also being taken up by Audit. The concept of agile auditing is still evolving and one size doesn’t fit all - as the use of agile approaches increases across industries and functions it will continue to evolve. Benefits are similar to agile benefits in software development: Increased pace delivery Value is delivered iteratively - risks identified and tested Get actions moving to resolve findings quicker More collaborative working - audit teams working closely with stakeholders (part of the scrum team!) Better stakeholder engagement – they are part of the audit (rather than a receiver of the output) Move with business - they are increasingly using agile delivery Improve staff engagement – increased value to business and quicker delivery galvanises staff Internal Audit Scrum Master Product Owner

Agile In Practice - Sainsbury’s Bank: Looking for ways to achieve efficiencies in delivery & reporting; enhance stakeholder engagement etc. No Framework or Pre-Defined Processes specific for ‘agile’ Leveraging Pre-defined Materials: Our Change Function’s Agile Change Training & Concepts Industry Guidance We’re at the Start of our ‘agile’ journey . Audit Methodology & IIA Guidance Support Different Delivery Approaches – don’t need to change our core ‘what’ concepts ( more the how) Pilot 1: BAU Audit Use of Kanban Board (fieldwork) Burndown Chart for Testing Inclusion of Stakeholders in Stand-ups Pilot 2: Cross Function Cont. Monitoring Burndown Chart for Testing Iterative sharing of findings Pilot 3, 4, 5: Ongoing identification of audits & extension of Cont. Monitoring Iteratively learning lessons

Agile In Practice - Nat West:

Q&A What would you see as the pros and cons of Agile Auditing? Discussion & Comments Open Q&A Discussion & Comments

Agile Concepts – Applying to Auditing: Organisations are increasingly choosing agile delivery to deliver new software, products, organisational change. Agile has also being taken up by Audit. This concept of agile auditing is still evolving and one size doesn’t fit all - as agile use increases it will evolve. Below are how the basics of Scrum can be applied to auditing Audit Stage Application in Audit Pre-Planning Fact finding on audit context and how to approach the audit etc Planning Define a high level premise and draft approach to achieve it and walk this through with stakeholders Planning Following the walkthrough and reflection of feedback, define objectives of the audit and prioritise these, including sizing of each test objective; agree these with the audit sponsor Planning For each test objective define the test approach, confirm prioritisation and sizing; each test objective should be bite size pieces of work (not the full audit) Planning – Used in Fieldwork iterations (e.g. Sprints) Define what artefacts and other resources you need access to and when these are required to complete each test objective. Agree these with the audit sponsor or other key stakeholders Planning – Used in Fieldwork iterations Define what completion is for each test is e.g. what is the expected outcome Planning Prepare the Terms of Reference/confirm the Sprint Plan schedule Fieldwork iterations Iterative delivery of the fieldwork (Sprint plan) End of each Fieldwork Iteration Post Reporting Done is for each test Sprint and completion of all Sprints; what went well and what could be improved – part of audit de-brief.

Additional Reading: IIA Website: Resources for Auditing Strategic Change & Auditing Agile Delivery http://www.crmsearch.com/agile-versus-waterfall-crm.php Accessed on 30th March 2019 www.Agilemanifesto.org Accessed on 27th April 2019 https://www.mckinsey.com/industries/financial-services/our-insights/ings-agile-transformation Accessed on 10th April 2019 https://www.bcg.com/digital-bcg/agile/avoid-common-pitfalls-agile.aspx Accessed on 13th May 2019 https://zenexmachina.wordpress.com/2017/05/11/agile-as-a-mindset-agile-as-behaviour/ Accessed 13th May 2019. www.projectmanager.com Accessed on 13th May 2019