Quite a few years have passed since the business tome "Dress for Success" first convinced a generation of corporate up-and-comers that how they looked could have a significant impact on their prospects for upward mobility. While changing corporate cultures and the advent of business casual and "jeans Fridays" have moderated that message over the years, the basic premise remains valid.

However, while choosing the right suit can help build confidence, it takes more than that to build credibility, authority, and trust – all qualities vital to effective internal auditors. It demands a combination of external and internal qualities that can be characterized as "executive presence."

Executive presence is not a concept that is easily defined. It is more than self-confidence and deeper than image. It is a combination of confidence, personal bearing, empathy and insight employed in ways that enable the auditor to influence others and to accept conclusions, recommendations and judgments as a peer professional.

In my experience, the qualities making up executive presence can be broken down into the following categories:

• External components are ways in which internal auditors dress, carry themselves in posture and behavior, employ facial expressions, voice, eye contact, and outward bearing when dealing with coworkers and management.
• Acumen relates directly to the intelligence, skills, insights and strategic focus the internal auditor brings to the table, supported by his or her technical knowledge and experience.
• Core characteristics of auditors with executive presence include the individual auditor’s personal values, philosophies, integrity, honesty, initiative, optimism, and the ability to develop effective relationships.

 

The value of executive presence is not limited to individuals such as chief audit executives and others who may have regular, direct contact with the audit committee, senior management or even the board of directors. Obviously, in such interactions, a bearing of executive presence is a prerequisite for effective communication.

 

In reality, few auditors will have contact with management at these levels. However, they have frequent contact with executives who report to these individuals and are department heads, vice presidents, senior vice presidents, etc. The need to demonstrate executive presence with these people is just as important when dealing with executives at lower levels within the organization.

 

True executive presence is a hallmark of professional maturity. It is an acknowledgement of the understanding that the perception of a team leader affects perceptions of the entire team. It demonstrates a desire and ability to make the team's performance congruent with the big picture objectives of the organization. And, it is an acceptance that the team is only as strong as its weakest performer, driving a commitment to continually improve performance. 

Building trust

Trust is both an essential building block and a desired consequence of executive presence. In my experience, there are five distinct stages in the process of building trust.

 

First, the internal auditor must engage the other person in an open discussion about the issue or problem to bring the issue into clear focus and demonstrate to the other party that the auditor can deal with it. This kind of engagement facilitates the auditor's ability to tell and hear truths about a given situation or set of concerns.

 

The auditor must listen to what the other person says and leaves unsaid during an interchange about a particular issue, in order to diagnose the problem and define the issue.

 

The auditor’s next step is to frame the discussion in a way that enables the other person to crystallize and organize the issue, including a clear description of the root cause of the problem.

 

The auditor needs to enable the other person to envision what the desired solution or outcome might be. It is during this step that the other person begins to believe that the problem’s resolution is achievable.

 

Finally, the auditor must obtain the other person’s commitment to take action that will lead to problem resolution.

 

Ultimately, the trust-building process contributes to the auditor’s executive presence by increasing the auditor’s credibility and influence. By creating trust, the auditor earns the reputation of reaching agreement without bloodshed and animosity.

Tips for talking to the top

Inevitably, you will be required to communicate with senior management – situations when your executive presence will be put to the test. The following communication tips will help you in such situations and strengthen your executive presence:

 

• Begin your message or presentation with your ultimate communication goal firmly in mind. This will help you to be concise and remain focused on your objective throughout the interchange.

 

• If you are engaged in follow-up communication, summarize the results or conclusions of any prior meetings before proceeding to "new" material. This will help to re-establish rapport and refresh the major points that have already been covered or decided.

 

• As preliminary findings emerge and you begin to draw initial conclusions, informally discuss your results with decision-makers and decision-influencers. Watch for their reactions so that you can make appropriate course corrections and modifications in your word choice and frame of reference going forward.

 

• Use easily understood, "plain" language. Jargon or technical-speak may engender confusion, provoke interruptions, and send the discussion off course.

 

• Address each topic deliberately and slowly, using win-win terminology to explain the business impact of each issue or recommendation.

 

These kinds of techniques are particularly important when delivering bad news. Keep in mind that people, including department leaders and other executives, have a natural resistance to hearing things they would rather not. This resistance can manifest itself as a diminution of your authority and presence, or even outright resentment. I have witnessed line managers, while reviewing negative audit assessments, question what auditors really know about the business anyway since they have never had "real" jobs.

 

Delivering bad news

To combat this perception and deal effectively with your clients’ responses to bad news, consider using the following techniques to soften the blow and demonstrate your executive presence :

 

• Tailor your presentation appropriately – Do not employ bright colors and automated transitions in your PowerPoint presentations in an attempt to spice up a series of grim statistics. Stick to simple background colors and a simple font or just use your standard corporate template. Save the lights and color for happier presentations. And remember that your physical image will contribute or detract from your presentation, so be sure to dress in accordance with the seriousness of the situation.

 

• Do not invite extra spectators – When you need to schedule a meeting to cover bad news, invite only the managers who need to be there. Give them the facts and leave it up to them to disseminate the information to their teams.

 

• Do not be overly dramatic – Stick to the facts and leave your personal judgments and predictions out of the mix. The severity of a situation, and some of the potential directions to take to fix it, will be implicit in the information. Do not overplay your message.

 

• Do not sugarcoat your message – Part of your credibility and executive presence depends on whether you can discharge your obligation to share the facts – even if they are alarming or upsetting to others. So, tell it straight and without ambiguity because this is the best way to deliver bad news.

 

Developing executive presence can deliver tangible benefits in the here and now, as well as in the long-term by creating a cohort of audit professionals who have the organizational insights, people skills, and cultural perspectives to become the effective leaders of tomorrow.

 

About the Author: Ann M. Butera, CRP is President of The Whole Person Project, Inc., an organizational development consulting firm. She is a frequent speaker at internal audit conferences and has worked with audit departments of all sizes to provide auditors with the tools and techniques needed to improve risk management practices within their organizations. Ann is regularly cited in Who’s Who and has been honored by Women on the Job with the Business Achievement Award. She is a member of The IIA, the American Society for Training and Development, the Association of Government Accountants and the International Society for Performance Improvement. She welcomes your comments and can be reached at annbutera@cs.com.