Many new CAEs set out to immediately fix everything. By injecting themselves into existing processes and executing flawlessly, they plan to transform the department in record time. 

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The problem is — this is a surefire formula for failing in record time.‍

As a new CAE, whether stated directly or indirectly, you are hired to improve how Internal Audit is run.  By jumping in and executing what your predecessor was doing, you run the risk of building on the wrong foundation by working inside your predecessor’s department instead of constructing your own.

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As a result, for better or worse, your reputation may be tied to your predecessor’s. 

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A CAE’s first 90 days are an opportunity to pause, take stock of Internal Audit’s operations and reputation, diagnose any problems, and only then formulate a plan to address those problems. It may feel uncomfortable at first, but it’s the best way I know to position Internal Audit for success.

I recently had the opportunity to speak with a Big Four leader preparing to transition to their first CAE role, overseeing a department of 15. I was excited to talk to him, because I had a clear vision of what his first 90 days could look like. This article summarizes our conversation.

Phase 0: Hit the Ground Running

Most new CAEs start with an advantage: During the interviewing and hiring process, they have just spent weeks or months learning about their new organization. 

This information can be a powerful launch pad.

It gives you another 30+ days to prepare for your first 90 days as CAE. For example:

• What key themes and priorities did you hear during interviews with key stakeholders?
• What are they hoping you’ll do in the role? What didn’t your predecessor(s) do? 
• What are investors concerned about, based on your review of 10Ks and investor reports?
• What insights did you gain from your own research into the company and its industry? For example, did you get a good pulse on company culture, leadership, or pain points from conversations with consultants or former employees?

Document and digest this information before your official first day. Set yourself up for more productive, meaningful conversations right out of the gate. 

Phase 1: Obtain Feedback by Building Relationships 

Your first 90 days as CAE should focus on listening and building trust. That means:

• Meeting with all key stakeholders, documenting what you hear.
• Meeting with them again, (1) echoing and validating key themes you’ve heard and (2) starting to propose ideas and gather feedback (e.g., “If Internal Audit made this change, what would you think?”).

In other words, you’re meeting with all of your key stakeholders twice before taking any action. 

You’re making them feel heard, included, and valued. You’re also building credibility, and increasing the odds they’ll buy into and support your strategy when you’re ready to roll it out. 

You’re making it about them, not about you.

Week One

• Meet with key managers. Meet with your administrative and functional managers to outline your 90-day action plan. Clearly set expectations about what you will do — and won’t do — to avoid any misalignment at the end of your first quarter. This plan should not involve managing or performing any day-to-day Internal Audit activities.

Months One and Two

• Interview key leaders. Conduct 15–25 interviews with key leaders to gather insights on Internal Audit. Ask about likes, dislikes, goals, expectations, and their understanding of Internal Audit’s role. Focus on listening without sharing your ideas or plans. This is a fact-finding mission to listen and gather insights, not to share your vision for Internal Audit.
• Draft initial strategy and action plan. From your conversations, you should have observed a few key themes and have an opinion on what needs to be done with your team. Summarize these into three to six major themes and takeaways. Then, begin drafting a strategy to address these themes as part of Internal Audit’s strategic plan.
• Reconvene with key managers. Reconvene with your administrative and functional reporting managers to present your identified themes and initial plans. Seek their feedback and buy-in, then revise your action plans accordingly.
• Reconvene with key leaders. After getting key managers' input, meet again with the key leaders. Echo back your notes from your first meeting, explaining how their feedback connects to identified themes and your leaders’ expectations. Outline your vision for Internal Audit. If there's misalignment between your vision and their feedback, ask for their patience and partnership as you implement your plan.

Phase 2: Meet and Fortify Your Team 

Phases 1 and 2 can happen concurrently. The only difference is that Phase 1 focuses on meeting with leadership, and Phase 2 on meeting with Internal Audit. 

Months One and Two

• Interview your team. When you are not meeting with key executives, meet individually with everyone on your Internal Audit team. Ask them four questions:
  
  • Why did you join Internal Audit?
  • What do you like about the role?
  • What don’t you like about the role?
  • What are you hoping to accomplish in a career in Internal Audit?
• Reconvene with your team. After you’ve drafted your initial strategy and validated it with key leaders and managers, meet again individually with your team. Share common themes from your first meetings, understand any new changes or concerns, and start sharing and gathering feedback on key aspects of the draft strategy and action plan. Proactively manage change by asking for their partnership, aligning expectations, and setting the stage for what comes next. 
• Perform internal and external due diligence. When not meeting with key executives and employees, use your time to review prior audit reports and presentations. Additionally, meet with external stakeholders such as consultants, external auditors, and even some customers to gain a better understanding of your new organization.

Phase 3: Align Strategy & Set Up for Success

Month Three

• Finalize strategic plan. By the end of the third month, finalize Internal Audit's strategic plan, including key initiatives to achieve it, vision and mission statements, and a tagline. These elements will align your team and organization toward accomplishing Internal Audit's strategic objectives. As appropriate for your organization, your strategic plan can be supported by: 
  
  • An initial operating plan.
  • Necessary budget considerations.
  • A bare-bones assurance map.
  • A connected risk strategy that enables improved communication, coordination, and collaboration across the organization’s second- and third-line functions. 

Set the Stage to Enable Positive Change

Your first 90 days as CAE are critical. 

Use them to listen, learn, and build strong relationships. 

You’ll gain vital knowledge and buy-in that will help you develop a strategic plan that enables positive, meaningful change in your organization.

‍Interviewing for — or in the process of starting — a new CAE role? Hopefully, this article offers actionable insights, guidance, and strategies to help set you up for success. And remember, you don’t have to go it alone: There’s an entire community of people that can’t wait to meet you and be of assistance. Join the Internal Audit Collective community today.

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