Nissan Motor Co., Ltd. has earned a reputation for high quality and reliability at the forefront of innovation and technology development throughout the automotive industry. In line with its mission statement of "Promoting innovations that enrich people's lives," Nissan Motor took bold steps to improve its governance structure in 2019. The internal audit team had to evolve rapidly to meet new business requirements and evolving risks. Due to the speed and complexity of change, the evolution of a global internal audit team has had to be based on technology that supports its purpose to protect and enhance the organization's values. In addition, it was necessary to adopt a technology that was scalable, flexible, easy, and quick to implement.
ⓒWolters Kluwer
Wolters Kluwer has supported Nissan Motor's successful transformation for six months, and the internal audit team continues to maintain its position as a trusted partner.
What Nissan Internal Audit Requested
Michelle Baron, Vice President/Chief Internal Audit Officer (Chief Audit Officer) of Nissan, started the study with a clear goal:
The Internal Audit Department is made up of approximately 100 internal auditors located in various locations around the world. Transform geographically dispersed internal audit departments onto the same technology platform to support greater team cohesion, collaboration, and consistency.
It should enable auditors to identify issues and report them in real-time, reduce the manual effort involved in tracking management actions, and make them transparent and accessible to executives, allowing greater transparency and agility.
High quality must be achieved by standardizing internal audit practices for documentation, including how to record so teams can share experiences, highlight common findings, and learn from one another.
Collectively, these results should drive greater performance in increasing strategic value and improving operational productivity and efficiency.
In addition to functional results, Barron wanted to change the culture within the organization by showing that internal auditors are strategic partners who can add value and support to the business, rather than 'police officers'. Baron not only provides assurances to stay compliant but also repositions the internal audit team as a partner in discussions on new projects and critical developments in the business, enabling the internal audit team to become a key contributor as it drives business growth. envisioned Realization required the team to focus on assessing new risks and opportunities, advising on strengthening the control framework, and improving the effectiveness of the governance structures necessary for successful growth.
As with all innovations, the first important step was convincing the team members. Giving people broader roles and greater responsibilities, while at the same time encouraging them to think more strategically and use new technologies to report and track issues faster, is incredibly taxing and disruptive. Any system can fail without employee consent.
On the other hand, the opportunity to develop the internal audit role and scope, if managed properly, was exciting and had potential value in energizing and motivating employees and attracting new talent.
ⓒWolters Kluwer
Journey with TeamMate
TeamMate+ Audit was selected as the audit management solution to help Baron and his team achieve their goals and grow into the future. Barron's team investigated and conducted extensive due diligence, including reviewing well-documented success stories by internal audit colleagues and employees' experiences of using Teammate in the past. Among the features provided by Teammate, there were essential features.
A centralized platform and faster reporting
“I like that it can be used in so many different ways and can accommodate multiple elements throughout the comprehensive audit process, including reporting, tracking, and managing J-SOX compliance,” said Barone. “Because flexibility is important,” he said.
A centralized platform not only enables auditors who work in multiple locations and time zones to better collaborate, share and compare results but also enables effective communication during times when telecommuters are common. Takeshi Mashiko, general manager of the Global Internal Audit Office at Nissan, said: “With the pandemic, business travel has decreased a lot, making it difficult to build personal relationships,” she says. The Teammate platform provides a common language.”
The Audit Committee also focuses on the timely resolution of reported audit issues. Teammates with a centralized problem or recommendation information provide real-time information to audit committee members, eliminating the need for lengthy review and question processes as before. Easier reporting has allowed audit teams to increase the frequency of reports and audit committees to increase the quality of their audits. As a result, disclosure recommendations have declined dramatically and remain at very low levels a year after implementation.
“For a company that operates in multiple locations around the world, such as Nissan Motor Co., everyone across cultures can see the same content at the same time,” said Mashiko. I think it's important to have a single platform that's there."
Ease of use and implementation
Implementing the new audit management solution required Nissan's two valuable resources: time and money. Therefore, implementing an appropriate solution was essential. "With Teammate, we've been able to transition into a department that can fully support the audit committee and management," says Baron. "Management doesn't want to wait weeks for an answer. Email someone to see how the audit is progressing. If you have to send it, there will be a delay, and time is wasted.”
Management Collaboration and Reporting
"Ensuring compliance is an important criterion, but reducing manual input allows you to think ahead, spot trends and act strategically," Barron said. “Executives and internal auditors who want more influential and exciting roles want this change. I can say to those who will take on the auditor role that internal audit is where they play a key role in understanding the overall business and managing emerging risks.”
Baron's team has not only further enhanced their reputation as 'trusted advisors', but is now committed to actively supporting business growth by providing timely, complete, and accurate information to the board and shareholders.
ⓒWolters Kluwer
Increased speed and agility
Performance is at the heart of Nissan cars. So Baron wanted to speed up internal audit work and increase agility. It sought a way to ensure that audit reports from around the world were submitted promptly.
After setting a reporting deadline, teammates supported the internal audit leader's comparison with others, unintentionally creating healthy competition to submit reports before their peers.
Mashiko adds that transparency motivates managers to complete recommended actions, which is a real driver. Also, “I wanted to be more nimble in identifying the problems that emerged. Therefore, the frequency of follow-up on PDCA (Plan-do-check-act) audit results was increased from twice a year to four times a year. “The dashboard gives you a quick glance at the number of unresolved issues, which increases your motivation.”
The ongoing evolution of Nissan Motor's internal audit
Teammate says the team has moved from an annual audit plan to a more continuous process. Baron and his team are looking to move towards a more agile planning process that can respond to changes in the broader business environment. The teammate function was a very important factor in the establishment of the new audit planning methodology.
“Teammates are a very important solution,” said Baron. “Because risks are constantly changing, you need a planning process that can accommodate that change.” “You have to look at resources and tasks around the world and figure out how to reschedule your plans to meet new demands,” he said. This is only possible if you have all your data in one place and in full transparency. You have to be able to change direction at any time.”
The mission of environment, society, and governance (ESG) is a particularly difficult task in the automotive industry. Nissan Motor has set ambitious goals and plans to develop electrification, connected cars, and artificial intelligence. Baron is confident that the team has the tools to not only monitor and measure progress towards these goals but to make them a reality.
"The new goal is technology-driven change, so it's important to keep pace with the change and meet the needs of the organization," says Baron. “Teammate is an essential element as an audit management platform that supports what is needed in a situation where we may not have all the answers, but we must continue to adjust our roles to become true business partners,” he said.
"Teammates give you room to grow," said Mashiko. “There's a lot of functionality built-in, but over time the team has more flexibility. There is room for expansion and development, which is especially important in organizations with complex organizational structures.
“We have a platform that will serve as the basis for our future audit team,” said Mashiko. The next steps will focus on how to analyze and use the data.”
Using TeamMate, Nissan Motor's internal audit team has revolutionized the way they work globally over the past year. However, the journey will not stop here. Teammates will continue to support teams seeking new ways to provide the assurances management and audit committees demand and add more value through transparent collaboration and the use of data and real-time information. In the fast-paced automotive industry, internal audit's evolution and ability to support new developments will keep Nissan Motor's corporate engine running smoothly and safely.
0 Comments