The Rug Lifters

September 2006

Imagine an entire floor of a high-rise office building filled with nothing but oriental rugs. Now, imagine well-dressed managers—one per rug—standing on top of these rugs.

Imagine an auditor going to each of the managers and saying, “Would you mind if I lift that rug?”

Some managers will balk, some will eagerly help the auditor lift the rug, and some will resign themselves to the inevitability of it all and step aside so that the auditor can lift the rug.

What will the auditor find under there? A mess. It is always a mess! No matter how well-dressed, well-educated, or well-qualified the manager is—there will always be some dirt under that rug.

What is the auditor going to do now?

Now the auditor has some options.

The auditor can lay the rug back down and move on to another rug. The auditor may do this because the mess is just too big for him to deal with right now or the mess is minor compared with the human-sized lump under the rug on the other side of the room.

The auditor might gently sweep some of the dirt out from underneath the rug. Or he might vigorously sweep it all out from under the rug and lay it back down.

He may take the rug out and hang it on a line—hoping that exposure to the sun will kill off some of the germs in the rug. While it is on the line, he might beat it with a stick to shake out more germs.

And in the most extreme case, the auditor simply takes the rug to the cleaners!

Which approach is best?

Which of these approaches is preferable? Well, it really depends on what you are trying to accomplish.

I have seen a wide range of approaches taken by audit shops. Some of it is cultural. I know two well-respected audit directors who are highly-qualified, certified, and connected.

One leads a shop full of attack dogs. The auditee rails against what they perceive as unfair treatment frequently and vehemently.

The other is so overly kind to the auditee, I have to wonder if he has any teeth at all. The client seems to get their way all the time.

Where do you draw the line?

Well, I think a lot of it depends on your attitude in approaching the audit subject. Let’s look at the extremes:

One common approach to auditing is the “Let me show you how smart I am” approach. In this approach, the auditor consistently maintains his or her stance as a superior judge of the auditee’s results. The auditor feels best when they can ferret out the auditee’s weaknesses and expose them for everyone to see.

The problem with this approach is that the auditee is more likely to resist suggestions for improvement AND more importantly, the auditor will not get invited to the company Christmas party.

Another all too common approach is the “don’t rock the boat” approach. The leader of this audit team may be ready to retire and they don’t want to jeopardize their future. Or it may be that the auditor is conflict averse (did no one tell her that auditing was ripe with conflict?). Maybe they just prefer doing a little data analysis and some bland reporting and get on with it.

Or, heaven forbid, they are doing the same thing that the auditors before them did, and the auditors before them did, etc., etc. The problem with this approach is that you are drawing down a salary for no good reason (which might make it hard to sleep) and the auditee will often walk all over you. Benefit: you never have to leave your office except to attend office parties.

The “At your service!” approach

But the approach that is the hardest to maintain is the “at your service!” approach. This approach asks that the auditor always have a bigger picture in mind—that they think of the actions they can take that would be best for the organization as a whole. Their own hide is not their primary concern. Exposing the auditee’s weaknesses is not their primary concern, either. The primary concern is getting the place cleaned up!

The problem with this approach is that you have to think strategically about your next move. You must be aware of politics and personalities. The great thing about it is that you will have more impact on the organization and you will always keep them guessing! Talk about strategic advantage.

And from the servant’s approach to auditing—any of the options for what to do with the dirt under the rug are valid. Sometimes, it will be best to beat the rug with a stick, sometimes it is best to lay it back down and move on to something else. You just want the place as clean as possible!

We rug lifters have a lot of power. And this power must be used wisely. “With great power comes great responsibility,” said Spider-Man.

I can’t tell you which approach is best. But I do know that every audit is a new day—with new people—and new circumstances—and thus deserves a new strategy.

A servant’s attitude is evident to everyone around you—it will almost glow. The client and the folks that pay your salary will see the servant in you and respect it. If not, maybe you are in the wrong place. You know that auditors are in high demand right now…

Next month—the tone of the report.