SuccessFinder measures the strength of interest in 35 different career themes. They are classified into the following six occupational clusters: Business, People, Expressive, Investigative, Services and Trades. It can predict success for more 2,500 specific careers.
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All ten programs for associations look great to engage our members. Which program should we start with?
For associations, engaged members are their reason for being, so getting and keeping members truly engaged in the organization is critical for survival. In his post, Building a Strong Nonprofit Part 7: Engagement Pyramid and Cycle, Michael J. Brennan offers a simple equation for looking at engagement:
Engagement = Relationship + Action
We recommend that you start with the program that creates opportunities to engage your members.
- Relationship — All members know students. Most members like to help students, especially when they are interested in their association or their profession. So that is a good place to start.
- Action — An hour or two of conversation with one of your members can set a student on their journey to career success and satisfaction. The action is easy, no special training required.
So that is a good place to start. Our CareerSuccess program is the best way to start and keep a student on their career journey for success and satisfaction. You members can play an important role in that journey.
We are happy to walk through all ten programs with you. You can assess the value of the program on how it may engage your members.
Affinity programs must be more than just getting your members a good deal. So focus on how we complement your goals.
Andrew Carnegie – What were his Rules of Success?
10 Rules Of Success Andrew Carnegie Used To Become One Of The World's Richest Men
Andrew Carnegie arrived in the U.S. in 1848 with barely a dollar to his name. By 1901, he was the richest man in the world.
At the height of his power, he was approached by a young journalist named Napoleon Hill who was interested in telling the stories of successful people.
Carnegie saw a special drive in Hill and in 1908 decided that Hill would document all of the strategies that made him a legendary businessman and philanthropist.
Together, they helped pioneer the self-help genre, and Hill's 1937 book " Think and Grow Rich " has gone on to become one of the top-selling books of all time.
When Hill began his career writing about success, Carnegie gave him his "10 Rules of Success" that provided a foundation for much of Hill's wo rk. Here's a synopsis of the rules, which appear in the forthcoming collection " The Science of Success ":
1. Define your purpose. Create a plan of action and start working toward it immediately.
2. Create a "master-mind alliance."Contact and work with people "who have what you haven't," Hill says.
3. Go the extra mile. "Doing more than you have to do is the only thing that justifies raises or promotions, and puts people under an obligation to you," writes Hill.
4. Practice "applied faith." Believe in yourself and your purpose so fully that you act with complete confidence.
5. Have personal initiative. Do what you have to without being told.
6. Indulge your imagination. Dare to think beyond what's already been done.
7. Exert enthusiasm. A positive attitude sets you up for success and wins the respect of others.
8. Think accurately. In Hill's words, accurate thinking is "the ability to separate facts from fiction and to use those pertinent to your own concerns or problems."
9. Concentrate your effort. Don't become distracted from the most important task you are currently facing.
10. Profit from adversity. Remember that "there is an equivalent benefit for every setback," Hill writes.
Are there any specific accounting packages that MindBridge Ai-Auditor cannot recognize the data set?
Technically, No. We’re able to ingest exports from most accounting software programs into the MindBridge Ai-Auditor and use it in our financial risk assessment services.
However, some data massaging might be needed to have them conform to some requirements.
- Account Number
- Account Description
- Transaction ID
If anything fails during upload, we’ll work with the client by
- requesting permission to view the file
- adjusting the ingestion process to take that file into consideration
For instance, there are some ledgers that have account numbers after the ####-#### format. At present, those cannot be ingested, but by working closely with us, we’ve made, the next update will take allow those formats, but we also work with the client to ‘adjust’ the column(s) to work today while addressing the future.
Exporting from Oracle/SAP works. the column names must be uniformed as outlined them above. Oracle has uses a format such as, “ACNT_DESC”. Changing that to Account Description will work.
Can I buy the MindBridge Ai-Auditor for my internal audit team?
MindBridge Ai-Auditor Internal Audit
We are an authorized agent of MindBridge Analytics Inc. We would be pleased to help you get a license for the MindBridge Ai-Auditor Internal Audit. As machine learning consumes large amounts of computing power, the license is based on the expected number of general ledger transaction that you would test. This varies on the testing frequency and the number of general leger transactions.
We suggest trying our Financial Health Check-Up service before setting up on your own. We support and train your team and then you can decide if you want the product in-house.
The solution is a cloud based solution. It is possible to have the MindBridge Ai-Auditor installed on site. However, the hardware requirements are substantial.
Can I launch an internal audit process with your financial health check-up service?
This is an excellent approach. Most organizations under 500 employees do not have an internal audit process. It will give you facts to show those who think you are too small that you are exposed to the same risks as big companies.
Today organizations face an unprecedented confluence of risks. Two-thirds of CEOs see more threats to their business than opportunities. To stay competitive, you must pursue two parallel strategies: risk resiliency and risk agility.
Forward-looking companies have both the solid infrastructure and processes to help them weather any storm, as well as the flexibility to move quickly to meet new opportunities.
A comprehensive internal audit function plays a critical role in helping your organization achieve good governance—by providing an independent and objective assessment of your risk management strategies and control frameworks.
Can I print a report for the transactions for each account or select accounts, e.g. cash, AP, etc.?
You can bulk create tasks for those reports, export and print them in the MindBridge Ai Auditor.
You can also create reports by going to Transaction Table, Filter on what you want, then go to Bulk > Export, and voila!
Can SuccessFinder assist with my career development plan?
This of career development as a journey. Your career development plan is to get you to the next milestone on your journey. SuccessFinder Career Development leads to career success and satisfaction. We encourage you to review your plan annually and adjust as needed. You need to make your way around our cycle annually.
SuccessFinder Career Development Steps
Identify your dream
- Read biographies
- Study role models
Identify your strengths & challenges
- List your strengths
- Performance Review
- SuccessFinder Assessment
- Test Results
Research career options
- Explore online resources; we have two on our Student page
- Look at job on Workopolis, Monster, Canada Job Bank
- Gather labour market information
- Attend a conference — most have great rates for a student
Talk with successful practitioners
- Use network of your parent, relatives, teachers, coach
- Cold call, most professionals will spare some to help out a student
Develop the required new skills
- Identify specific job that uses your strengths
- Find out what the skills you are missing for the next step, online job posting boards are a good place to look
- Determine to best to get them—online, courses, self-study, volunteering, etc.
Link your education and career
- Focus on the competencies you have acquired i.e. problem-solving skills
Learn about yourself
- Approach all sorts of people for balanced feedback — What are some things that I did well? What are some things I could have done differently or better?
- Am I where I want to be?
- Where else could I use my strengths?
SuccessFinder career development is unlike other assessment approaches. We offer a single tool that can be used across the organization: for all roles and levels and at every stage in the employee life cycle. We help people discover their behavioral strengths and suggesting roles that optimize their potential. Our talent analytics are essential to effective career development plan. SuccessFinder offers a predictor of success in any role.
In addition, SuccessFinder is only career assessment tool committed to meeting the rigorous APA C1 standard based on its validity for decision-making.
Can the install the MindBridge AI-Auditor in-house?
MindBridge Ai-Auditor Local
The minimum requirements to deploy the MindBridge Ai-Auditor in your environment are:
- 6 vCPU, 24 GB RAM
- 3 disks
- OS - 16 GB ○ Data - 270 GB (thin, SSD)
- Backup - 270 GB (thin, nearline)
The MindBridge Ai-Auditor requires considerable computing power. We recommend our secure cloud-based solution.
Here are some pros and cons of cloud vs in house servers.
PROS AND CONS OF CLOUD SERVERS
|No need for onsite hardware or capital expenses. Well suited to rapidly growing companies that may outgrow their infrastructure too quickly.||The user experience is limited by the speed of the Internet connection.|
|Easily scalable; can be added to as needed. Solutions are often on-demand, so you only pay for the options you want.||Third party cloud services could have direct access to your data.|
|Workers can connect from anywhere, using any computer, tablet, or smartphone. Companies can implement BYOD (bring your own device) policies.||If the Internet goes down on your side or on your cloud provider’s side, you won’t have access to any of your information.|
|Data can be backed up in the cloud as regularly as 15-minute intervals, minimizing data losses in disaster situations.||The costs can outweigh the benefits for companies not as dependent on uptime.|
PROS AND CONS OF IN HOUSE SERVERS
|Gives you physical control over your server.||Requires a capital investment in hardware and infrastructure.|
|Keeps critical data in-house; no third party has access to your information.||Requires space in your office for rack space or a server room/closet, as well as dedicated IT support.|
|No need to rely on an Internet connection for access to data.||May be more susceptible to data loss during disaster situations due to in-house location. How often you take the data offsite will reflect how much data you’ll lose in an emergency.|
|Can be more cost-effective for companies that are not as concerned about uptime.||No uptime guarantees.|
Do you have other examples of organizations using SuccessFinder for strategic hires?
Certified SuccessFinder practitioners have been successful helping organizations make strategic hires for key individuals (board members, CEO’s and key executives) as well as teams. But some of our most dramatic success has been when we partner with organizations to identify key roles that aren’t at the top of the house. And we build specific hiring benchmarks focused on how these roles meet specific business objectives.
- One large retailer identified the store manager as a pivotal role. They were interested in improved performance and retention in the role. The high-performing store managers identified by our benchmark produced significantly higher items per transaction and outperformed others in our 18-month pilot. The estimated return on investment was $100,000 —per store— when they promoted the SuccessFinder-recommended candidates to these roles.
- A large insurance provider was spending $30,000 to train and onboard each inside sales representative. After collaborating with SuccessFinder, the new hires identified by our results produced higher sales and stayed longer in their roles.
- A high growth engineering firm was facing pricing pressures as well as stronger competition. SuccessFinder defined a robust behavioral profile of the engineering staff and statistically compared this with 500 benchmark profiles of high performers. Interestingly, when the behavioral data for all managers were combined and graphed it showed a remarkable consistency overall and matched the technical profile of consulting engineers. Validity in behavioral decision-making moved from 30% to over 80%.
Today, SuccessFinder is used across the whole employee lifecycle and has proven to be the “radar” this firm needed to drive individual and organizational performance. In each client example, the practitioner provided hiring managers easy to read reports allowed them to view individual performance against the benchmark. SuccessFinder has become a critical tool in making strategic hiring decisions for the most important roles in the company.
Do you offer executive coaching after I complete my assessment?
We offer executive coaching after you complete our career assessment. Executive coaching enables you to achieve higher levels of performance, through demonstrations of your leadership, know-how, and interpersonal skills. We recommend that you commit to at least 15 coaching to get the full value. We bundle your coaching with either development plan or the career assessment. Setting up the sessions are simple, but the work you have to do is not simple — if it was you would have already done it!
Our personal development plan is a self-managed approach. Our employee development plan can be supplemented with executive coaching if you are doing the development with your current employer. We tailor our executive coaching to meet your needs.
We will help you reach higher and more sophisticated levels of development — conducive to superior levels of performance.
Confidentiality, open and relevant communications make sure the success of the coaching process.Decision-making diagnoses and analytics, including SuccessFinder, a comprehensive talent analytic system.
We suggest that during the first two-hour session we establish your needs and get you started. We urge you to embark on a journey of self-discovery. We are there to inspire you and support you.
Typically coaching occurs every two to four weeks depending on your needs. We find that spreading the coaching over six to twelve months with 90-120 minute sessions work best. We help you explore new horizons and offer you the necessary tools to enable you to integrate the transformation and acquire renewed awareness.
Does MindBridge Ai-Auditor have in-app support?
On June 16th, after months of talking to awesome clients like yourself, we are happy to announce that we will soon be offering an in-app support (complete with in-app chat) feature to get you all the help you need to use the MindBridge Ai-Auditor effectively!
Soon, you'll log in to your accounts, and you will notice a blue bar towards the right of the screen. At present, the cupboard is bare, but the full in-app documentation will be rolled out in the coming weeks. You'll be able to use this feature to get easy access to all things related to the MindBridge Ai-Auditor! It'll even be available right at your fingertips via your mobile device!
Throughout the course of the next few weeks
You're probably wondering, "what is this thing?", or "finally!" or, "I love it!". But, after months of talking to our customers, we are happy to announce that we will soon be offering an in-app support feature that'll get you all the help you need in order to effectively and efficiently use the MindBridge Ai-Auditor.
What you'll see is Phase 1.
Going forward, when you log into your account, you will always notice this little blue bar towards the right of the screen. At present, the cupboard is bare, but the full in-app documentation will be rolled out in the coming weeks. No firm date yet, but by golly it'll be spectacular!
Soon you'll be able to use this feature to get easy access to all things related to the MindBridge Ai-Auditor! It'll even be available right at your fingertips via your mobile device!
With in-app support you will be able to:
- Have access to in-app chat from Monday to Friday between 9 AM and 5 PM (EST).
- Get uninterrupted navigation of your MindBridge Ai-Auditor account.
- Seek explanation of the key features of your account.
- Get instant access to information you need about any aspect of your account.
- Book a call with a MindBridge support team member at any time.
- Read detailed descriptions for all releases (constantly updated).
- Quickly see the status of our servers.
- Get email support for off-hours.
Throughout the course of the next few weeks, you will receive additional emails informing you more about in-app documentation, and other support initiatives.
How are machine based learning anomaly detection different from those derived by rules?
Rules in the machine based learning anomaly detection in the MindBridge AI Auditor "if yes, then this”. They are specifically geared to check a use-case. If something falls outside of the scope because the rule was not geared to catch it, it’ll go unnoticed. Think of it this way, if I told you to only pay attention to tell me how many people in red shirts came into the store today, you’re only going to report back the number of red shirts while ignoring every other coloured shirt.
See our complete set of financial analytics that use machine based learning anomaly detection.
How do I conduct a structured interview?
A structured interview is almost twice as effective as the common unstructured interview. It calls for a systematic approach, trying to measure candidates’ competencies in an objective way. It still doesn’t predict future job performance like SuccessFinder but it will remain an integral part of hiring due to the benefit of face-to-face contact. It pays to make interviews as effective as possible, in other words, transform them from informal discussions into reliable, structured processes.
Think about your usual interview process for a moment.
- Do you have a list of common interview questions from which you choose a few examples on the spot (in other words a semi-structured interview)?
- Do you prefer the unstructured interview, doing no preparation at all?
Without a pre-determined scoring system, your interpretation of the candidate’s answer may often be based on intuition. The loose flow can even pose litigation risks as spontaneous questions won’t have been assessed for legality in advance.
A structured interview works differently. Here, we provide a step by step guide to structured interviews:
What makes a structured interview?
During a structured interview, the same predetermined questions are asked to all candidates in the same order. They’re all correlated to important job competencies derived from a detailed job description and can be either behavioral or situational. They’re rated with a standardized scoring system with a range of acceptable answers. When there is more than one interviewer, consensus on the order of questions and the interpretation of answers is required.
This process has shown greater reliability and validity that the unstructured interview, reducing the likelihood of a bad hire. It also ensures that discrimination issues can be avoided completely as all candidates are treated fairly and are given the same opportunities to showcase their abilities. Yes, it takes a little more time and expense but its benefits far outweigh its costs.
How do you conduct a structured interview?
Step 1: Job analysis
For each position, you have to use job analysis to match skills to job tasks. Information from this process is essential to design a structured interview. It can help you develop a professional and informative job ad, structured interview questions as well as salary ranges. Apart from selection, it can also help towards your training and organizational needs.
Tip: Results of a job analysis may be already in place. If not, you can do it using a variety of methods like interviews, questionnaires and observation. Common job descriptions may help you identify duties and qualifications that fit your own requirements.
Step 2: Define requirements
Now that you have a list of requirements needed for the position, you need to provide a full definition for each one. For example, what are communication skills? We all understand it in the abstract but you need to indicate what this means for a specific role. This will be a great help for later when you’ll have to develop a grading scale or behavioral examples.
Tip: Depending on the position, you can even divide competencies in core and secondary and place different weight on each one.
Step 3: Develop lead and probing questions
Interview questions should be developed with great care, preferably with the help of an expert. Assuming you’ll have to evaluate around six core attributes, you can develop a set of 12 structured interview questions. The number is largely up to you though, you can ask less or more if you have time.
Both situational and behavioral questions are job-related. You can choose great questions from existing lists and categorize them according to the requirements you want to assess. If you have situations that are expected to happen frequently to a position, you can include them in the process. Take care, though, to link them to specific attributes that have been indicated from the job analysis and have experts test them if possible.
Probing questions aim to clarify points or gain more information about the candidate’s answers and should also be predetermined. The following example comes from the US. Department of Personnel Management (OPM) and uses the STAR method (Situation/Task, Action and Result) to ask probing questions:
Competency: Interpersonal Skills — Shows understanding, friendliness, courtesy, tact, empathy, concern, and politeness to others; develops and maintains effective relationships [..].
Initial Question: A very angry client walks up to your desk. She says she was told your office had sent her an overdue check 5 days ago. She claims she has not received the check. She says she has bills to pay and no one will help her. How would you handle this situation?
Probing questions: Why do you believe this situation occurred? (Situation/Task), What factors would affect your course of action? (Action), How do you think your action would be received? (Result).
Step 4: Determine grading scale
The presence of a scoring system is very important to ensure objective decisions. You can choose the common scale of five or seven points ranging from low to high. The key here is to accurately define the scoring levels.
According to the abovementioned example from the OPM for interpersonal skills, the grading scale can look like this:
Level 1- Low: Handles interpersonal situations involving little or no tension or discomfort and requires close guidance
Level 3- Average: Handles interpersonal situations involving a moderate degree of tension or discomfort and requires occasional guidance
Level 5- Outstanding: Handles interpersonal situations involving a high degree of tension or discomfort and advises others
It’s also helpful to develop examples of behaviors for each grading level specific to the position. The distinction between them will be more apparent this way.
Want more detail on how to anchor your rating scales? Download our free structured interviews guide.
Tip: Test the reliability and validity of the grading scale along with interview questions with the help of subject matter experts.
Step 5: Conduct the interview
Structured interviews may be challenging for an interviewer. It’s best if there’s a guide that hiring managers can use as a reference to understand and follow the process. Some training may be necessary for those unfamiliar with the structured model.
Being friendly, respectful and avoiding mistakes that put off candidates are a matter of importance in all interview forms.
Tip: Take clear and concise notes to help you remember answers. Avoid writing down your assessment of the answer but do write the answer’s main points. Resist the temptation to evaluate attributes that aren’t job-related and not included in your planning.
Disadvantages and limitations
The disadvantages of structured interviews reflect the benefits of the unstructured interview. The latter proceeds more like a conversation and allows for a personal connection between interviewer and interviewee. Conversely, the structured interview may appear cold and impersonal without allowing participants to digress from the established interview process. The interviewer can still be friendly and help the candidate to relax but the lack of spontaneity makes the environment stricter and doesn’t permit exploration of interesting tangents that may come up.
Moreover, the structured interview, for all its preparation and standardization, is still not immune to interviewer biases. The existence of a panel of interviewers may moderate their effect, but it doesn’t help to make the process any more comfortable for the candidate.
Nevertheless, for more senior roles or positions of responsibility, it’s a good idea to use a structured interview that can mitigate the risk of a bad hire. Keep in mind though, that selection should include different types of assessments. Leave the interview as a final stage and include work samples, tests and other methods to craft a complete, reliable hiring process.
How do I handle a passive-aggressive boss?
Being on the receiving end of passive-aggressive behavior can be infuriating — and it gets even more complicated when the person dishing it out can fire you. Executive coach Ron Carucci offers a few pointers to help you keep your cool (and your job).
- Clarification is key. If you have a boss who tends to blindside you with new information, try to beat them to the punch and ask clarifying questions in advance. The more you know, the less ammo they have.
- Take the high road. You may want to talk back or complain about your boss’ behavior. Don’t. It damages your credibility and may very well make your manager’s behavior toward you even worse.
- Save your face, and theirs. Rather than matching their behavior, ask if there’s something about your performance that they want to be different. The earnest, respectful route may very well neutralize the situation.
Consider a Development Plan
Moreover, a personal development plan will help guide you on your career journey.
How does MindBridge Ai™ increase auditor assurance?
The number of accounting scandals is amazing. Most result in re-stating the accounts and some in major scandals. The issue of regulatory oversight is frequently in the press. However, even with enforcement increasing and getting penalties higher, a new accounting issue is never far behind. It continues to get worse. Just look at the impact on British Telecom’s stock because of the irregularities found in accounting in their Italian division (read about it here).
At MindBridge Ai focuses on solving one of the massive issues underlying these scandals. We are building an expert system to help both internal and external auditors. This provides us with higher levels of assurance about the financial statements they are sworn to certify.
And the baseline issue we are dealing with is the amount of financial data they need to consume. There has always been too much of it.
With Big Data, auditors are asked to “go fishing in a murky lake” and find accounting anomalies and irregularities for further review. Accountants and regulators agree to use statistical account sampling. Yet, the quality of the sample can only be measured after it has been sampled and analyzed. With the time pressure on providing audited results, if an irregularity or anomaly is found, the process has to start again. Moreover, this leads to costly re-statements which impact shareholder value and confidence in the audit firms.
To solve this, Mindbridge Ai leverages machine learning AI to provide auditors with a more highly justifiable sample before the audit begins. Our Ai Auditor service ingests and analyzes the entire leger. We pinpoint areas they should be investigating early on with a higher degree of justification against the standard, and currently accepted sampling techniques. This gives auditors a higher assurance rate. It helps them improve upon the current approaches that only meet the standard, and not move past it. This moves towards the answers we, the press and firms like British Telecom need.
How does outlier detection work?
It is often the case that it is not a single transaction that indicates an anomaly but a group of transactions such as a recurring monthly event. As such, normal outlier detection does not work as it is often a set of transactions that individually may seem to be normal or acceptable practices but collectively do not follow normal or acceptable practices. To address this, outlier detection is built in several layers to consider how rare a given business process may be and the outlier score of transactions based on other transactions in its group, and the ledger.
Anomalies such as financial misstatements, or fraud, are often not detected because they are carefully hidden among other similar transactions. Sophisticated fraudsters hide their work among similar account interactions and values.
This is where outlier systems need to consider many dimensions of the data at once. While human beings are good at seeing an outlier in 2 or 3 dimensions, a machine can do the same work tirelessly, considering 10 or more dimensions at a time. This capability helps machines to spot the outliers which are hiding next to normal activity and within an established process.
How does the MindBridge Ai-Auditor compare with tradition audit analytics tools?
Below is a comparison of MindBridge versus traditional audit analytics tools.
Traditional Audit Analytics Tools
Coverage of testing
|100% of known areas of interest||100% of known and unknown cases||MindBridge|
|Trusted, but outdated technology||Breakthrough technology, with growing evidence of its effectiveness|
(MindBridge positioned to surpass)
Knowledge curve (coding)
|100% of known areas of interest||Not required|
Ease of use (user interface)
|Cumbersome, requires repetitive, extensive user training||Highly visual, intuitive with little-to-no training|
|Time-consuming to set up rules for each client file||Not required|
|Dependent on ERS resource||Self-service||MindBridge|
Composition & depth of algorithms
|Rules are hand-crafted scripts and results are logged.||Packaged industry standard rules enhanced with automated, scientific algorithms, results are logged and exported||MindBridge|
|Rules are created to handle each case||Once flagged, machine learning automatically excludes them from future analysis|
|Built-in, automated “smart ingestion” leveraging machine learning|
|Subjective & selective: reliant on professional skepticism and experience to find potential financial misstatements||Objective & inclusive: AI risk-based analytic tests prescribed by the Center for Audit Quality, plus extended analysis that further improves audit assurance|
How does the MindBridge expert system work?
A prudent safeguard is always to consult experts. The MindBridge expert system — MindBridge Ai-Auditor — has been built in collaboration with audit professionals and engaged multiple experts in the field to augment its ability to find unusual and incorrect financial patterns. Generating a risk score that combines the “expert analysis” with transaction flow analysis, rules-based systems and machine learning represents a formidable resource in focusing and accelerating the audit process.
How much should my internal audit budget be?
Today internal audit budget for companies average $3,900 per million dollars of revenue. The range they actually spend is from $2,500 to $14,000 per million dollars of revenue.
Some organizations made the difficult decision to drop internal audit positions in touch time and rehire in good times. Unfortunately, this approach often backfires because controls are most likely to fail when systems are undergoing change. When it comes to internal auditing, cyclical budgeting based on external economic conditions is a dangerous proposition.
As someone who spent the majority of my career as a CEO, I have consistently found that internal auditors add the most value during two opposing scenarios:
- when spending is expanding rapidly
- when revenues and spending are under pressure to contract
Budget cuts may sometimes be necessary
Audit committees and oversight authorities should consider their options carefully before the make a decision to cut internal audit. This services is important for several reasons, as internal audits:
- ensure accuracy of financial reporting — As organizations seek greater access to capital markets, the accuracy of financial reporting becomes particularly critical
- give assurance of efficiency and effectiveness — operational audits and performance audits are among the principal services offered by many government audit organizations
- foster greater accountability by shareholders and stakeholders — accountability over the effective use of scarce resources is vital
- find opportunities for cost reduction and containment — when forced to make difficult choices on which services to continue as revenues falter, your internal auditors are uniquely positioned to offer insights and perspectives to management
Most important of all, internal audit fosters good governance — especially when the effectiveness of board oversight is increasingly being questioned.
How were the default values for “Control Points” established?
The MindBridge data scientist team consulted extensively with auditors to determined the default control points values. Remember, marking them all as 100% is like you saying everything is important to you. Not really conducive to finding what you don’t like. These values provided a reasonable risk profile.
We recommend that you start out with the values at default. Over time adjust your weighting to focus on a specific risk area.
Depending on the rule-based and Machine Learning-based risk scores for every transaction will be assigned an aggregated risk score and grouped into low, medium, and high-risk strata(i.e., buckets), which allows for easy prioritization and further review from the audit team.
Rule-based control points
For rule-based control points, the control point indicators should be customized to consider client-specific risk areas. For example:
- Weekend entries might be normal business practices for one company and irrelevant to them, but highly suspicious for another.
- Material Value may be set to something other than 0 because most organizations do not care about 0.00$ transactions. They consider that “normal”. That’s not to say that every company is the same, but if it’s important to include it audit for a client, then enabling it to be >5% (with a value of whatever you wish, e.g., $100) would say that anything that has a value > $100, start giving it a higher Risk Score because that’s important for our analysis.
If I love my job, is being a workaholic bad for my health?
Being a workaholic isn’t bad for your health — if you love your job.
The general assumption is that being a workaholic is bad for you and will lead to a heart attack. People who are not engaged in their work have higher risk of metabolic syndrome, which is the overarching measure for cardiovascular disease and diabetes.
Simply working long hours doesn’t increase the risk of serious health issues (although it can cause stress-related physical complaints like headaches), according to a new study conducted by Simon Fraser University, in conjunction with the Wharton School at the University of Pennsylvania and the University of North Carolina Charlotte.
What makes all the difference for for a workaholic is engagement. A look at 763 employees of an international firm found that those who felt disengaged were more prone to major health risk factors like high blood pressure and obesity, while engaged and happy workers showed none of those signs. So if you want to burn the midnight oil to finish that assignment, go ahead — as long as it’s out of love and not ambition or stressful workplace challenges.
You need to be really honest with yourself about why you work and what the intrinsic motivators are. Do you work because it’s meaningful or because you truly enjoy what you’re doing? If so, those are healthy drives. But if you’re only working long hours because you need the money to fund your lifestyle or you’re addicted to the status, those aren’t healthy. Lieke ten Brummelhuis, assistant professor of management at the Beedie School of Business at Simon Fraser University
Workaholics have two different dimensions:
- those who work excessively
- those who work compulsively
The difference is the former group works that way of their own accord, while the latter is driven by compulsion and guilt.
An engaged workaholic is not immune to subjective well-being indicators, like sleep issues, fatigue, stomach upset and headaches, but their engagement indicates an active mentality. Engaged people take action and do something about it, like re-evaluate their job and question if it’s right for them, as well as seek support to make sure things improve.
… But it doesn’t mean you should never disconnect. Boston Consulting Group ran an experiment back in 2004:
They made each worker pick a weekday to completely disconnect. What they found is that communication, satisfaction, and employee retention soared; consultants worked more closely together and stopped sweating the small stuff.
They also had more space to do “deep work”—the sort of intense thinking that’s often much more valuable than the daily tasks that eat up our time. Yes, technology blurs the distinction between work and life but if we want to do anything more interesting and important than just answering e-mails and IMs, it seems a separation is necessary. Manoush Zomorodi, podcast host and author
Successfinder measures workaholism, guilt, compulsion, and satisfaction amoung its 85 behavioral traits to enable you to know if you are at risk. We analyze your unique behavioral make-up and career interests to predict your potential success across 500 of the most sought-after job roles – the right job is good for your health!
Is self-awareness important?
Self-awareness is important because when we have a better understanding of ourselves, we are able to experience ourselves as unique and separate individuals. We are then empowered to make changes and to build on our areas of strength as well as identify areas where we would like to make improvements. Self-awareness is often a first step to goal setting. Self-awareness is being conscious of what you're good at while acknowledging what you still have yet to learn. This includes admitting when you don't have the answer and owning up to mistakes.
In our highly competitive culture, this can seem counterintuitive. In fact, many of us operate on the belief that we must appear as though we know everything all the time or else people will question our abilities, and then perhaps judge us. If you're honest with yourself, you'll admit that really the opposite is true. Because whether you acknowledge your weaknesses or not, everyone still sees them. So rather than conceal them, the person who tries to hide weaknesses actually highlights them, creating the perception of a lack of integrity and self-awareness.
For more on how to approach self-reflection in a constructive rather than destructive way go to: https://warwick.ac.uk/services/counselling/informationpages/selfawareness/
Is there a better approach than sampling data when looking to detect anomalies?
We believe in the analysis of 100% of transactions to detect anomalies and not in the sampling of data. We also believe that sensible business rules based controls can help, to comply with existing audit recommendations. Vitally important is that these methods are combined with advanced analytics and data science.
You don’t want to choose one approach or the other, but instead a blended approach.
Use of Machine Learning
It much improves the effectiveness of anti-fraud controls by identifying outliers and anomalies by combining rule-based techniques with robust algorithms. This enhances accuracy based on what they see. Machine learning uses modeling and makes data-driven predictions about a given situation. Machine learning is one way for the system to feed what it learns back into the anomaly detection engine. The more exposure to data they have the smarter they become. This is important because it alleviates the manual rules maintenance and decision-making that has proven slow and ineffective in the previous generation of financial anomaly detection.
By doing this, the investigator have access to not only a data scientist in a box but a virtual forensic auditor that brings potential misstatements to your attention. At the same time the auditor or internal auditor can select from a number of well accepted fraud scenarios (control points). They have the financial statement reviewed based on his/her risk-assessment and comply with company policy and audit standards.
Is there a financial statement fraud case study about MindBridge Ai-Auditor in use?
You can learn about how we use advanced financial compliance analytics to conduct a financial risk assessment in audit, internal audit and financial due diligence for merger and acquisition work.
You may find the Top 14 Financial Frauds of All Time to be of interest.
Is there a limit on the number of people in a team development session?
Our process work effectively with teams that have up to 10 members.
Is there an ideal number of members on a team?
Think about the benefits of a large group versus the ideal number of people. The more people you have, theoretically, the better chance you have of getting the best information to make the best decision. Research has shown that collective intelligence does exist. But, according to research reported in Science, the October 2010 issue by authors Anita Williams Woolley, Christopher F. Chabris, Alex Pentland, Nada Hashmi and Thomas W. Malone:
This “c factor” (the group’s collective intelligence) is not strongly correlated with the average or largest individual intelligence of group members but it correlates with the average social sensitivity of group members, the equality in conversational turn-taking, and the number of women in the group.
Emotional intelligence and soft skills are important to the functioning of teams than focusing on the ideal number. Our assessment of the behavioural traits of the team members using SuccessFinder can create the needed diversity of thought for the team to be extremely effective.
Hackman and Vidmar (1970)
Moreover, their research on optimum group size for member satisfaction showed a similar outcome. They determined the ideal number was 4.6 members, let’s call it 5. The number is just one factor. Social sensitivity and being able to read emotions are attributes of successful team decision-making. Consider the number and consider the members. Maybe they’ll need a little training in empathy and being sensitive to others as well as having a culture that allows all to fully take part.
Is your service consistent with CAS 240 standards?
Yes. CAS 240 is the Canadian Audit Standard that deals with the risk of management override of control. This standard needs to be met in all financial audits regardless if the auditor’s risk assessment gives concern for such an override or not. This risk is unpredictable and requires special audit considerations.
The main approach suggested in CAS 240 to address this risk is to test journal entries for material misstatements due to fraud or error. CPA Canada acknowledges that practitioners struggle with this goal. The wide-spread use of sampling techniques to select journal entries for testing gets increasingly criticized.
CAS 240 Compliance — Five step approach to guide auditors
To assist practitioners we propose a five step approach to guide auditors through the process of identifying and testing journal entries:
- Understand the information system and business processes relevant to financial reporting.
- Make inquiries of people about inappropriate or unusual activity on the processing of journal entries and other adjustments.
- Select the journal entries and other adjustments with characteristics of potentially inappropriate journal entries and other adjustments.
- Test the appropriateness of journal entries and other adjustments.
We describe each of these steps in detailed documentation and show how our approach meets and exceeds the CAS 240 requirements. It is a must for auditors. It makes sense that management uses the high standard that their auditors will use in their internal review processes.
What are machine learning applications?
Machine learning is the subfield of computer science.
computers have the ability to learn without being explicitly programmed
There are many machine learning applications.
Machine learning evolved from the study of pattern recognition and computational learning theory in artificial intelligence. Data scientists construct algorithms that learn from the data and adapt over time.
The focus is statistical learning. Machine learning deals with predictions and not causality. It is effective at developing more complex relationships than humans can process. Machine learning performs well in nonlinear and interactions settings.
Examples of machine learning application
- Assessing financial transactions – advanced detection of anomalies though flow analysis of transitions. The MindBridge Ai Auditor is an excellent example.
- Outage grid management – predict storm damage and direct workflow and assets, thereby minimizing outages and operational costs
- Wire-Down Management – identify key drivers in wire-down events and direct preventive measures
- Self-driving cars
- Classifying DNA sequences
- Other applications for machine learning include: adaptive websites, affective computing, bioinformatics, brain-machine interfaces, cheminformatics, classifying DNA sequences, computational anatomy, computer vision, including object recognition, detecting credit card fraud, detection of network intruders or malicious insiders working towards a data breach, email filtering, game playing, information retrieval, internet fraud detection, marketing machine learning control, machine perception, medical diagnosis, economics, natural language processing, natural language understanding, optimization and metaheuristic, online advertising, recommender systems, robot locomotion, search engines, sentiment analysis (or opinion mining), sequence mining, software engineering, speech and handwriting recognition, financial market analysis, structural health monitoring, syntactic pattern recognition, user behavior analytics, translation
Learn about how we use machine learning for financial risk assessments.
What are some examples of an unusual transaction?
It’s important to note that an unusual transaction depends on the context. An unusual transaction for one company might be completely normal for another company. The internal audit team has a better sense of what’s normal in an organization.
In our fraud case, study the CFO reversed Cost of Goods sold. It was flagged as highly unusual.
Machine learning is often used to spot “red flag” patterns in structured data (data with a predictable structure, like spreadsheets, databases, and financial data formats). Examples an unusual transaction include identifying suspicious insurance claims, unusual banking transactions, and credit card activity.
Machine learning is also useful in network relationship analysis. In this application, machine learning explores the connections between people and entities. Often complex, relationship networks are quickly quantified with an unsupervised learning approach called “clustering” allowing the examiner to efficiently find key relationships and the web of communications and influence. The source of such data is often corporate email, but may also include phone records and social media.
What are some types of misconduct that are considered as municipal corruption?
One of the perhaps the most obvious and yet still most consistently recurring municipal corruption related problems for local governments is conflicts of interest, possibly due to the many and varied circumstances in which such conflicts may arise. The prevalence of this type of corruption is demonstrated by the amount of legal authority and case-law available on the topic.
- the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in charge of a public or legal duty
- taking money to give people preferential treatment. identified areas of concern include bribes from developers in permitting process, payback for zoning decisions, equipment contracts, or service contracts, bribery of building inspectors to obtain permits, bribery of elected officials for development variances and approvals, bribery of planning staff to obtain recommendations for development approvals
- may take the form of inappropriate gifts/sponsorship such as hockey tickets and other gifts for politicians and/or staff
- cronyism may include awarding contracts to people affiliated with the municipality or corrupt official, patronage appointments based on connections rather than qualifications, awarding contracts at inflated prices
- nepotism may include such issues as favoring family members in municipal hirings, zoning regulation changes based on friendships among colleagues rather than disinterested analysis
- misappropriation of money or resources under a local government official or employee’s control
- making false claims for benefits in order to abuse systems such as social security
- occurs when a public official forces someone to give them benefits in exchange for acting/ not acting in a particular way, or when an external actor does the same to a public official
Conflicts of Interest
- a personal interest in a matter that goes beyond the interests of other members of the community, and might reasonably be expected to influence the elected official’s performance of his or her duties e.g., close links between developers and city staff, campaign contributions from developers, conflict in contract awards, personal interest in administrative decisions
Breach of Duty
- local government officials and employees ignoring applicable municipal legislation, e.g. sale of municipal assets for less than market value
Misuse of Authority
- lack of transparency/democratic concerns such as inappropriate use of in-camera meetings, non-public altering of official records, dishonesty concerning legislative options
- fraudulent use of expense accounts such as reimbursing inappropriate expenses, double expensing – influence on independent third party bodies, such as boards, which are intended to be at arm’s length
- including organized crime, internal theft/fraud, petty theft/fraud
source: Municipal “Best Practices”: Preventing Fraud, Bribery and Corruption – Elizabeth Anderson
What are the 26 behavioral competencies?
A behavior attribute such as knowledge, skill set, teamwork, leadership skills, technical know-how, etc. which contributes to the development of an individual in the organization to take up bigger roles is known as behavioral competency. It can be applied to individuals at all levels, which simply means that it is not restricted to the top, middle, or lower level.
A behavioral competency consists of 3 to 7 of the 85 behavioral traits. Our behavioral competencies are grouped into six categories.
Behavioral competencies are used to enhance the competency of employees at all the positions in the organization for the smoother transition of the workflow. It is not just limited to career, but personal life as well. It involves traits which an individual has or should have to be successful.
A behavioral competency is the kind of skill set that an individual should have so that he or she can meet the goals of the organization. Measuring behavioral competency is a tough job for any human resource manager. SuccessFinder makes it easy. Due to the increasingly complex structure of the organization, it is very important for individuals to have a good and healthy relationship with people across departments.
At some organizations, include behavioral competencies is part of their appraisal as well.
Because it plays an important role during succession planning, workforce planning, and training and development.
What are the 35 career themes in SuccessFinder?
What are the 85 behavioral traits used by SuccessFinder?
To be successful, a person must be able to conceptualize solutions to problems. This section addresses the unique style or type of intelligence. When we report on Problem Solving Style, we are talking about the way one is intelligent or how the intellect is manifested.
- Experiential Learning
- Theoretical Reasoning
- Common Sense
- Street Sense
- Quantitative Orientation
This dimension evaluates human relations skills. It considers the effectiveness of behavior towards others in interpersonal or social scenarios. The vital skills of interrelating with others are rarely taught in school settings. Yet, success on the job is getting things done through, with, and for people.
- Popularity & Visibility
- Tact & Presence
- Political Acumen
Productivity is closely associated with successful work habits. Some people demonstrate competency via action and results vs. intellectual sophistication alone.
- Written Communication
- Profit Awareness
Means of Self-Assessment
Self-issues are important because everything one does or thinks is influenced by self-image. The issues in this self section may provide deeper understanding into the personality dynamics effecting the career strengths or career restraints in the other sections of this report.
The formula for a successful life requires achieving a well-balanced life. Family, leisure, socializing, learning, health, community purpose, artistic-cultural expression and physical environment each account for 10% of the happiness quotient.
We all cope with life’s problems in different ways. This section considers how one may respond under adverse conditions in order to cope with difficult emotionally challenging situations. The following descriptions may not relate in any way to one’s typical behavior on a day-to-day basis.
- Erroneous Beliefs
- Sensitivity to Criticism
- Avoidance of Intimacy
- Accident Proneness
- Stress Intolerance
- Somatic Concerns
Productivity is closely associated with successful work habits. Some people demonstrate competency via action and results vs. intellectual sophistication alone.
What incentives motivate one to work? How important are the financial reward, power or job security? In the following analysis, we have outlined the vocational incentives and assessed which is most motivating.
What are the behavioral competencies necessary to enable career success and satisfaction?
In addition to the technical or professional skills, education and years of experience, research has shown that specific behavioral competencies are necessary to enable career success in a specific profession.
Engineering as an example
The SuccessFinder competency model (refer to the image below) is made up of 26 competencies that are organized into 5 broad categories of behavior. As I spent my career in engineering and lead large engineering organizations for 15 years, I will use engineering as an example. The same approach applies to all professions. However, the behavior competencies are different. We work with associations to make this powerful analytics available to young people considering your profession as a career. Through our CareerSuccess program, we also make this analytics available to students and new graduates as they embark on their journey to career success and satisfaction. We encourage this journey to start before considering your college major. Most don’t and 80% of college students change their major!
When the SuccessFinder Researchers benchmarked the behavioral competencies of engineers against the full range of competencies, the researchers found 10 dominant competencies that high performing engineers demonstrate in the workplace.
Top 10 behavioral competencies for engineering are highlighted in green
Top 10 Engineering Behavioral Competencies in Order of Importance
|Reasons Critically||Demonstrates the ability to tackle difficult problems by using logical, quantitative reasoning to identify patterns relevant to problem solving.|
|Builds Consensus||Enjoys working as part of a team. Emphasis is on appropriate compromise, demonstrating tact, maintaining emotional control and interpersonal tolerance rather than making demands.|
|Demonstrates Character||Honors interpersonal commitments, maintains the courage of high-minded convictions, values living rightly and plays by honorable rules.|
|Thinks Conceptually||Demonstrates the ability to comprehend theoretical concepts and be curious about the broader "why?" or holistic perspective on problems.|
|Strives for Excellence||Demonstrates a desire to produce the best quality products or service and conscientiously tracks and double checks the accuracy of work.|
|Overcomes Adversity||Demonstrates an ability to persevere when pursuing difficult challenges and responds positively to adversity in the face of failure.|
|Maintains Accountability||Demonstrates an attitude that is defined by taking responsibilities and loyalties very seriously, by assuming a sense of personal accountability of one’s results, as well as co-workers’ actions without seeking to blame or provide excuses for failures.|
|Establishes Alliances||Establishes friendly relationships, enjoys expressing one’s views and participating socially with others in a manner that reflects genuineness and interpersonal intimacy.|
|Initiates Independently||Demonstrates a preference for taking action, pursuing high risk and initiating projects independently of prior approval or requests.|
|Focuses on Results||Prepared to make the personal sacrifices or expend extraordinary dedication to one’s work when frequent overtime is required to complete assignments.|
What are the benefits of SuccessFinder to my business?
Business Benefits of SuccessFinder
A bad hire is bad for business. It wastes time, stresses the organization and the person you hired and fired. Our approach to achieving strategy of business success focuses on achieving value for the shareholder and has two necessary conditions: satisfied customers and a satisfied workforce. We drive employee success and career satisfaction.
In addition to avoiding the cost of a bad hire, you:
- Slash onboarding costs with targeted development/coaching right from point of hire
- Increase retention due to better-fit hiring and promotion
- Avoid costly litigation by hiring without bias
- Differentiate high potentials from high performers
- Increase bench strength and know who to target for accelerated leadership programs
- Decrease training costs based on highest need behaviors
- Increase engagement due to people operating in their strengths
- Transform your workforce into one focused on performance at every level
What are the main good governance characteristics?
Good governance means that board makes sure that all resources increasingly contribute to achieving the organization’s mission and vision. Our governance alignment program provides analytics and methodologies give boards and management with the tools to rapidly model, assess and optimizes your organization. This requires generative thinking and governing.
Accountability is a fundamental requirement of good governance. The organization has an obligation to report, explain and be answerable for the consequences of decisions it has made on behalf of the people serves — shareholders, customers workforce and other stakeholders.
Good governance uses generative thinking
We view these structures collectively as “governance chains”. Good governance means that you make sure that all resources increasingly contribute to achieving your mission and vision. Our analytics enables you to objectively align your governance chains for success.
Good governance is transparent
People should be able to follow and understand the decision-making process. This means that they will be able to clearly see how and why a decision was made – what information, advice and consultation were considered, and which legislative requirements (when relevant) were followed.
Good governance follows the rule of law
This means that decisions are consistent with relevant legislation or common law and are within the powers of the board.
Good governance is responsive
The organization should always try to serve the needs of shareholders, customers workforce and other stakeholders while balancing competing interests in a timely, proper and responsive way.
Good governance is fair and inclusive
Feelings of well-being results from shareholders, customers workforce and other stakeholders are considered by the board in the decision-making process. This means that all groups, particularly the most vulnerable, should have opportunities to take part in the process.
Good governance is effective and efficient
The organization implements decisions and follow processes that make the best use of the available people, resources and time to make sure the best possible results.
Good governance is participatory
Provide an opportunity for anyone affected by or interested in a decision to take part in the process for making that decision. This can happen in several ways:
- provide interested parties with information
- ask for their opinion
- offer the opportunity to make recommendations
- make them part of the decision-making process
What comes first structure or strategy?
Aligning organizational structure with its strategy is essential for an organization to deliver its plans and achieve success.
Here is how we define:
- Strategy is how your organization goes about its work is its strategy (vs. your strategic plan document). This includes the plans that set out how your organization will use its major resources to meet specific goals.
- Structure is the way the pieces of your organization fit together to meet a common goal. The structure is much more than an organization chart. It is the people, positions, procedures, processes, culture, technology and related elements. It defines how all the pieces, parts and processes work together.
- Alignment means that every human, organizational, technical and financial resource increasingly supports and contributes to the achieving strategy in a fashion that is: demonstrable, measurable, efficient and effective, and comply with your principles, policy directives and constraints.
- Workforce is the resources to deliver your plans. It includes staff, partners, outsourced work, and consultants.
Do not view structure separate from strategy
Your organization’s structure is a powerful force. It can support your efforts or work against them. You cannot direct your organization to do something for any length of time unless the structure is capable of supporting your strategy. Task overlap creates confusion, inefficiencies and lack of accountability because it is not clear who does what by when. A strong foundation for long-term productivity requires you to structure your entire workforce to avoid task overlap and confusion.
With our Governance Alignment Program, you optimize your structure. It provides a platform to adjust the structure every time you adjust your priorities.
Aligning structure with your strategy improves efficiency, promotes teamwork, creates work together, and reduces cost. Structure and strategy are dependent on each other. You can create the most efficient and team oriented structure possible and still end up in the same place you are or worse if a good strategy is not adopted. Great your strategy right first.
With a clear focus on what you want to do, align your structure in such a way to best do this. Be thoughtful. Divide responsibilities for optimal results, create branches and decide whether each effort or group participation is the best method for it to meet your goals. The structure needs to support strategy. The strategy is fluid. When you change your strategy, you must make sure your structure supports the new strategy. Otherwise, the existing structure pulls your organization back to its old strategy.
When you make major changes, you must carefully think out every aspect of the structure required to support the strategy. Every part of your organization, every person working for it needs to focus on supporting the vision and direction. Integrated all the effort and resources support the strategy.
It takes the right structure for a strategy to succeed
Management that is solely focused on results can have a tendency to direct everyone on what they need to do without paying attention to the current way your organization works. While members of the workforce may carry out these actions individually, it is only when their daily work supports strategy that your organization’s direction is sustainable over time.
To carry out such a strategic shift requires a change in your organization itself. A well-thought-out structural change is based on a detailed cause and effect analysis. You do not just change a structure to change it. Make sure the changes support your strategy and your workforce understands the reasons for the change. At the same time, do not just start a better leadership and engagement approach in your company or alter the organizational chart without evaluating how that will affect your ability to carry out your current strategies.
We cover this in detail in our "achieving strategy approach." Our "goal alignment program" provides robust tools and methodologies to create the structure that best supports meeting your strategic goals.
What does machine learning do on the data set?
Machine learning compares the data set by looking at Row 1 and its columns vs Row 2 and its column data. Then, Row 3, etc. The MindBridge Ai-Auditor ingests 100% of the file. It then analyzes 100% of the file with 100% of the rest of the file. This is hard to explain as this is the background of how the MindBridge Ai-Auditor works, but it takes data from the GL and breaks them down into ‘nodes’ where the machine learning occurs.
We use this approach in all of our financial risk assessment services and examine every transaction.
Data Set — An Example
The example follows a simple use-case: CITY POPULATION. Imagine every dot represents 1 person in a city.
Those circled by Green show that it’s within normality. In that, the large part of the population lives near to one another. There isn’t anything odd about where they live. That’s not to say that once you dive in you won’t find anything (there might be cases of crime, theft, etc), but from a high-level, it looks normal.
Then, Orange is starting to show that the distribution of people is starting to scatter. This is odd. Why is that? Why are they living slightly further away from the general population?
Now, those in Red are real outliers. Why are they so far from not only the general population but also from one another? What is the story behind these dots?
This is what you would consider a High-Risk %, and would need further analysis.
Think of MindBridge Ai-Auditor like that when it breaks the file down. Think of machine learning as everything a human cannot do. There is absolutely no way a human would be able to ingest 100% of the file for 100,000 Journal Entries. More so, a person would not be able to properly map out every single entry into a format that makes sense.
What does machine learning mean in the context of MindBridge AI-Auditor? Can you tell me what specifically MindBridge AI-Auditor does?
The MindBridge Ai-Auditor machine learning translates every incoming GL into a language the machine understands (the 5 account mapping feature). Because of this translation, the machine is able to understand the monetary flows within a GL and identify unusual transactions. Traditional CAAT tools don’t do that, they simply scan numbers in isolated (for example show me all weekend entries). They don’t need to understand the GL to find such transactions.
Machine learning translates the GLs use in our suite of financial compliance risk services.
What does the statement “and those derived by machine based learning anomaly detection” mean?
Traditional analytics rely on rule-based methods for anomaly detection. These decision rules follow simple Boolean logic: if a vendor address matches an employee address and its wire transfer account matches the employee bank account, then it is likely a fictitious vendor.
Machine learning is a useful type of AI that is able to learn without predefined decision rules. Machine learning constructs its own decision tree based on meta-tagged data, e.g., “red flag” or “not,” to decide how “red flag” transactions are related. Machine learning applies the learned logic to new data and is remarkably adept at making the right decision. Machine learning’s ability to learn from a complex array of data and not just a few variables leads to greater accuracy.
Another type of machine learning, called “unsupervised learning,” constructs decision trees without meta-tagged data; it identifies patterns of interest and anomalies using its own decision-making criteria. This allows fraud examiners to find new forms of fraud not previously detected or codified into rules-based methods. Both supervised and unsupervised machine learning systems are self-refining, in that they become more accurate as more data is encountered.
What does the statement “and those derived by machine-based learning anomaly detection” mean?
Machine-based learning anomaly detection
Machine learning is a useful type of artificial intelligence. Machine-based learning anomaly detection looks at all the numbers. It is able to learn without predefined decision rules. Machine learning constructs its own decision tree based on meta-tagged data, e.g., “red flag” or “not,” to decide how “red flag” transactions are related. Machine learning applies the learned logic to new data and is remarkably adept at making the right decision. Machine learning’s ability to learn from a complex array of data and not just a few variables leads to greater accuracy.
Traditional analytics rely on rule-based methods to detect anomalies. These decision rules follow simple Boolean logic: if a vendor address matches an employee address and its wire transfer account matches the employee bank account, then it is likely a fictitious vendor.
Another type of machine learning called “unsupervised learning,” constructs decision trees without meta-tagged data; it identifies patterns of interest and anomalies using its own decision-making criteria. This allows fraud examiners to find new forms of fraud not previously detected or codified into rules-based methods. Both supervised and unsupervised machine learning systems are self-refining, in that they become more accurate as more data is encountered.
What is an entrepreneurial leadership style like?
Entrepreneurial Leadership is a primary force behind successful change. These wealth-building Entrepreneurial leaders are not simply “executing better” – they’re radically changing the rules of the success game in the workplace. For the Entrepreneurial leader creativity is a continuous activity. They always seeing new ways of doing things with little concern for how difficult they might be or whether the resources are available. But the creativity in the entrepreneur is combined with the ability to innovate. They take the idea and make it work in practice.
This seeing something through to the end and not being satisfied until all is accomplished. This is a central motivation for the entrepreneur. Entrepreneurial Leaders need to encourage expansive out-of-the-box thinking to generate new ideas, but also filter through these ideas to decide which to commercialize. Use a balanced “loose-tight” style of leadership alternates creating space for idea generation and freeing exploration with a deliberate tightening that selects and tests ideas for further investment and development. Looseness usually dominates the early stages of the Entrepreneurial Leaders process; in the later stages, tightening becomes more important to scrutinize the concepts and bring the selected ones to the market. A balanced approach is essential to Entrepreneurial Leaders. Those who remain loose too long generate plenty of ideas but have difficulty commercializing them.
What is blockchain?
The blockchain is a public ledger where transactions are recorded and confirmed anonymously. It’s a record of events that are shared among many parties. The blockchain is actually managed by distributed nodes. These nodes all have a copy of the entire blockchain. Nodes will forever come and go, synchronizing their own copies of the chain with those of other users. By distributing copies and access, the chain can’t simply “go down,” or disappear. It’s a decentralized system that is both sturdy and secure. More importantly, once information is entered, it cannot be altered. Here is blockchain explained in fewer than 100 words
You (a "node") have a file of transactions on your computer (a "ledger"). Two government accountants (let's call them "miners") have the same file on theirs (so it’s "distributed"). As you make a transaction, your computer sends an e-mail to each accountant to inform them.
Each accountant rushes to be the first to check whether you can afford it (and be paid their salary "Bitcoins"). The first to check and validate hits “REPLY ALL”, attaching their logic for verifying the transaction ("Proof of Work"). If the other accountant agrees, everyone updates their file.
This concept is enabled by "Blockchain" technology.
Surely it's more complicated?
Yes - but as a concept, not much more. Complexities come in the implementation and the journey to realize value from such implementations. The above example will, of course, be overly simplistic for some — but may be a starting point for others.
In a traditional environment, trusted third parties act as intermediaries for financial transactions. If you have ever sent money overseas, it will pass through an intermediary (usually a bank).
It will usually not be instantaneous (taking up to 3 days) and the intermediary will take a commission for doing this either in the form of exchange rate conversion or other charges.
The original blockchain is open-source technology which offers an alternative to the traditional intermediary for transfers of the crypto-currency Bitcoin. The intermediary is replaced by the collective verification of the ecosystem offering a huge degree of traceability, security, and speed.
In the example above (a "public blockchain"), there are multiple versions of you as “nodes” on a network acting as executors of transactions and miners simultaneously. Transactions are collected into blocks before being added to the blockchain. Miners receive a Bitcoin reward based upon the computational time it takes to work out:
- whether the transaction is valid and
- what is the correct mathematical key to link to the block of transactions into the correct place in the open ledger.
As more transactions are executed, more Bitcoins flow into the virtual money supply. The "reward" miners get will reduce every 4 years until Bitcoin production will eventually cease (although estimates say this won't be until 2140!). Of course, although the original blockchain was intended to manage Bitcoin, other virtual currencies, such as Ether, can be used.
How Blockchain Works
Why do I need to know about Blockchain?
There are three reasons why you need to know about Blockchain:
- Blockchain technology doesn\'t have to exist publicly. It can also exist privately - where nodes are simply points in a private network and the blockchain acts similarly to a distributed ledger. Financial institutions specifically are under tremendous pressure to demonstrate regulatory compliance and many are now moving ahead with Blockchain implementations. Secure solutions like Blockchain can be a crucial building block to reduce compliance costs.
- Block-chain technology is broader than finance. It can be applied to any multi-step transaction where traceability and visibility are required. The supply chain is a notable use case where blockchain can be leveraged to manage and sign contracts and audit product provenance. It could also be leveraged for votation platforms, titles and deed management - amongst myriad other uses. As the digital and physical worlds converge, the practical applications of Blockchain will only grow.
- The exponential and disruptive growth of blockchain will come from the convergence of public and private blockchains to an ecosystem where firms, customers and suppliers can collaborate in a secure, auditable, and virtual way.
Source: Blockchain explained... in under 100 words — Richard Bradley, Director, Deloitte
What is clustering and business process mining?
Every organization has business processes which are typically reflected in their accounts in some way. Each business generates revenue which in a basic example is typically the result of a client purchasing a product or service. This process would be reflected in the finances of the business and the same is true of payroll, expenses and many other more complex business processes. By modeling an organization’s accounts, a machine can find all the processes that impact the finances of a business. More interestingly, clustering and group these business processes, the machine does not need to understand them. The machine does this by simply analyzing the monetary flows and understanding which accounts in the ledger participated in the transactions. In order to understand the business process groups, a machine looks for common patterns and repeated interactions.
What is ideal amount of data from a machine learning perspective?
At present, the MindBridge Ai-Auditor only 1 GL can be analyzed. It’s ideal to have 12 or more months of data rolled-up into 1 file.
Cohort Analysis (ie., analyzing multiple files, such as 12 files where 1 file is 1 month) is something that’s coming in the future in our sub-ledgers update.
Read Mansbridge's Story.
Data for machine learning
There is not a 'one size fits all' answer to answer the question: "What is the minimum sample size required to train a deep learning model. The amount of training data you require is dependent on many different aspects of your experiment:
- How different are the classes that you're trying to separate? e.g. if you were just trying to classify black versus white images then you'd need very few training examples! But if you're trying to solve ImageNet then you need training data on the order of 1000 examples per class.
- How aggressively can you augment the training data?
- Can you use pre-trained weights to initialise the lower layers of your net? (e.g. using weights trained from ImageNet)
- Do you plan to use batch normalization? It can help reduce the amount of data required.
Data scientist work to squeeze maximum advantage from a small training dataset to give the best results.
What is inspirational leadership style like?
Inspirational leadership is a leadership style where the leader engages with others in such a way that leaders and followers constructively raise one another to:
- higher levels of motivation
- effective relationships
- quality orientation
- overall workplace productivity
Inspirational leaders are team builders and place a great deal of faith in the value of teaching and coaching and will go the extra mile with their people while refusing to compromise on their vision or intent.
This leadership style challenges employees to be creative problem solvers, and developing followers’ leadership capacity via coaching, mentoring and provision of both challenge and support. This democratic leadership style is also called the participative style as the leader encourages employees to be a part of decision-making.
The National Research Council of Canada has defined in detail the core competencies of inspirational leaders.
What is Machine Learning? Where is it used?
Machine learning is the subfield of computer science.
computers have the ability to learn without being explicitly programmed
It evolved from the study of pattern recognition and computational learning theory in artificial intelligence. Data scientists construct algorithms that learn from the data and adapt over time.
The focus is statistical learning. Machine Learning deals with predictions and not causality. It is effective at developing more complex relationships than humans can process. It performs well in nonlinear and interactions settings.
Examples of Machine Learning Application
- Assessing financial transactions - Advanced detection of anomalies through flow analysis of transitions. The MindBridge Ai Auditor uses machine learning to detect anomalies.
- Outage grid management – Predict storm damage and direct workflow and assets, thereby minimizing outages and operational costs
- Wire-Down Management – Identify key drivers in wire-down events and direct preventive measures
- Self-driving cars
- Classifying DNA sequences
Other applications for machine learning
- Adaptive websites
- Affective computing
- Brain-machine interfaces
- Classifying DNA sequences
- Computational anatomy
- Computer vision, including object recognition
- Detecting credit card fraud
- Detection of network intruders or malicious insiders working towards a data breach
- Email filtering
- Game playing
- Information retrieval
- Internet fraud detection
- Marketing machine learning control
- Machine perception
- Medical diagnosis
- Natural language processing and understanding
- Optimization and metaheuristic
- Online advertising
- Recommender systems
- Robot locomotion
- Search engines
- Sentiment analysis (or opinion mining)
- Sequence mining
- Software engineering
- Speech and handwriting recognition
- Financial market analysis
- Structural health monitoring
- Syntactic pattern recognition
- User behavior analytics
What is Regulatory Excellence?
Regulatory Excellence requires both the regulator and the licensees to achieve the public interest mandate at a cost that exceeds the total cost impact a regulation or policy might have on business, community organizations, and individuals.
Regulatory Excellence Attributes
What makes a regulator excellent is answered in several distinct ways, each of which gives rise to distinct types of attributes. What makes a regulator excellent? Applying the attributes of regulatory attributes and having a process of assessing the regulator’s outcomes versus the attributes.
Characteristics of a regulator (as an organization)
When defining excellence in terms of characteristics, adjectives will be used to describe the qualities or capacities of the regulator as an organization: e.g., “knowledgeable,” “well-funded,” “adequately staffed,” “credible,” “honest,” “legitimate,” and so forth.
These characteristics do not describe specific actions or outcomes, although they may well be affected by (or in turn affect) actions and outcomes. Rather, they describe a general “state” of the regulator, a standing set of resources upon which it has to draw or a general posture that it holds in conducting its day-to-day operations and affecting outcomes in the world.
Actions (or best practices) of regulating
Another way to define excellence lies in the type of actions the regulator takes in the course of regulating. Attributes as actions might be articulated in general terms, describing the regulator’s actions in the course of regulating. Perhaps using adjectives such as “vigilant,” “serious,” “reasonable,” “transparent,” and so forth.
Or excellence as action might be articulated in terms of specific types of best practices.
- “An excellent regulator takes enforcement actions against the biggest risks.”
- “An excellent regulator uses flexible regulatory instruments.”
- “An excellent regulator adopts a problem-solving rather than a punitive approach to enforcement.”
Outcomes (or indicia of regulatory performance)
Ultimately the characteristics that define an excellent regulator lead to desired outcomes. The actions that it takes also have to align with the desirable outcomes. These outcomes, then, might be what gets used to define regulatory excellence.
Many outcomes, when used as attributes of regulatory excellence, will describe substantive states of the world. For example:
- effectiveness (impact in terms of solving the problem or achieve an ultimate outcome of concern)
- cost-effectiveness (achieving a specific level of the desired outcome at a low cost)
- efficiency (balancing the desired outcome – i.e., problem reduction – with other outcomes or concerns, such as costs, so as to achieve an “optimal” level of problem reduction)
- equity (a fair distribution of the costs and benefits of regulatory action)
All of these examples focus on substantive outcomes. But other outcomes that define regulatory excellence need to be thought of in process- oriented terms. For example, the key attributes of an excellent regulator’s stakeholder engagement process might be defined in terms of legitimacy or trust by the public. If a regulatory process leaves members of the public feeling they were listened to and respected, that is a kind of process outcome that might define regulatory excellence.
Indicia of performance
Whether substantive or process-based outcomes – will presumably have some connection with a regulator’s characteristics and actions. Sometimes this connection will be instrumental, in that a regulator possessing certain characteristics, or a regulator that takes certain kinds of actions, will be more likely to achieve excellent outcomes. For example, a regulator that is highly knowledgeable (a characteristic) will be more likely to achieve effective outcomes. Or as another example, a regulator that adopts flexible rules (action) will be more likely to achieve cost-effective or efficient outcomes. And of course, outcomes may well feedback to shape a regulator’s characteristics or actions too.
What is the difference between the “Reversal” and “Reversed” control points? How do they work differently from each other?
The reversal control point flags transactions which are reversals of a previous transaction in the ledger.
The reversed control point flags transactions which are reversed by a subsequent transaction in the ledger.
The algorithm kind of finds both at once and then pairs them together. The earlier one is “reversed” and the later one is “reversal”.
Here’s an example
Basically a normal buyer/seller relationship is
- I sell you something
- You give me money
- I give you what you paid for
- You’re happy
What Manager 1 was doing, is that he was pretending to be the Buyer
- He would sell himself goods
- Take the money
- Shortly after, he’d ‘return’ the item into Inventory, but never actually took the money back. This is known as “Reversed“.
- He went back into the books and adjusted the original transaction. This is known as “Reversal“.
Reversal happens when they go back and adjust the original ‘purchase’ (i.e., previous). Reversed is “oh darn, they returned their goods. we gave them back their 100$” (how a typical return happens. The Manager in this case just wasn’t returning the $)
This is a common type of fraud where someone would say, “look how much money we’re making! We sold so much!” then they would reverse the transaction and say, “oh darn, they returned all their stuff… 🙁 but thanks for all the money you paid us for our stock!!”
What is the MindBridge Ai Auditor?
MindBridge Ai Auditor is a revolutionary approach to analyze financial transactions to detect anomalies - unintentional and intentional - by automating manual processes and providing a risk-based assessment to help organizations ensure compliance and minimize their exposure to financial loss and liability.
MindBridge AI Auditor - Enhancing Profesional Judgement
The MindBridge AI Auditor is bridging the gap between human and artificial intelligence (AI) by enhancing professional judgment across multiple industries. Recent advancements in artificial intelligence have enabled a new class of converged analytics to analyze financial transaction flows and better detect anomalies - unintentional mistakes/errors and intentional.
Using algorithms based on data science, MindBridge generates actionable insights through an interactive, user-friendly visual interface to help organizations minimize risk exposure to the financial loss while supporting audit professionals to meet and exceed regulatory and industry standards. The MindBridge application has been tested by industry leading professionals and is proven to detect unusual human activities and transactions that incumbent systems cannot.
Financial Transactions Analysis, Evolved
The tools currently used to analyze financial transactions are not keeping pace with the needs of today’s auditor and investigator professionals. Existing computer assisted audit tools are often time-consuming to use and do not provide the insights and analytics required to help effectively advise auditors or develop a comprehensive financial analysis. MindBridge offers intelligent audit technology to help increase the speed and accuracy of every audit and investigation.
Comprehensive analysis for accurate audits
Current audit and investigative techniques are limited by time and tools, restricting the financial analysis to random sampling and data filtering. What if you could review every financial transaction in the general ledger from every entry across every department?
With MindBridge there is no data set too large, meaning the system is capable of reviewing 100% of the data provided and calculating a risk score for every process or person that interacts with corporate data. This is how you can find more instances of financial misstatements suspicious financial discrepancies.
Intelligent anomaly detection to help you:
- Uncover more misstatements & potential fraud by reviewing 100% of corporate data
- Know where to look due to intelligent risk-scores
- Smarter control points that combine best practices and data science
- An intelligent system leveraging machine learning that adapts to your needs
Take financial audit efficiency to the next level
Automation is key to maximizing the efficiency of each financial audit or review your organization performs. By removing manual processes, it is possible to streamline time-consuming activities, which frees up team members to use their expertise more effectively.
MindBridge’s Ai Auditor helps you be more efficient by offering:
- Smart data ingestion of your financial records saves you time importing and shaping data files
- Automated risk-scoring is based on a blend of control points and anomaly detection algorithms to help guide you to entries that appear suspicious
- Automated insights recommend similar items to look at and which steps to take next
An unbiased analysis of each transaction history based on numerous control points and data science algorithms.
For maximum impact, the system is intuitive requiring little to no training meaning it can be used by anyone for the most basic of investigations, audits and all the way up to a forensic investigation.
A visual summary of all transaction data and risk scores so that each auditor and investigator can determine where to focus instead of using sampling techniques alone.
Better Meet Audit Standards
- Leveraging Artificial Intelligence to meet and exceed standards including:
- SAS 99 Fraud in a Financial Statement Audit
- IAS 240 / CAS 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
- Know where to look due to intelligent risk-scores
Automatically assigns a risk score to all transactions to focus audit, 100% coverage of all transactions.
Intacct Web Services, modern web-browser (Chrome or Firefox are preferable)
Price: contact: firstname.lastname@example.org
What is your approach to achieving strategy?
Our approach combines five processes, 25 years of achieving strategy as a CEO and the advance teaching of the Rotman School of Business. into our Achieving Strategy method. The methodologies are:
- Theory of Constraints – Eli Goldratt
- Strategic Doing – Purdue University
- Goal Alignment Program – J.A. Harcourt and Kim Allen
- Stats with Why – Simon Sinek
- Lean start-up
In his Harvard Business Review article Five Questions to Build a Strategy former Rotman Dean Roger Martin outlines his preferred approach. He treats strategy — making as developing a set of answers to five interlinked questions. The questions — which cascade logically from the first to the last — are as follows:
- What are our broad aspirations for our organization & the concrete goals against which we can measure our progress?
- Across the potential field available to us, where will we choose to play and not play?
- In our chosen place to play, how will we choose to win against the competitors there?
- What capabilities are necessary to build and maintain to win in our chosen manner?
- What management systems are necessary to operate to build and maintain the key capabilities?
The Theory of Constraints (TOC) is a management model that views any manageable system as being limited in achieving more of its goals by a very small number of constraints. There is always at least one constraint. TOC uses a focusing process to find the constraint and restructure the rest of the organization around it. TOC adopts the common idiom “a chain is no stronger than its weakest link.” This means that processes, organizations, etc., are vulnerable because the weakest person or part can always damage or break them or at least adversely affect the outcome. TOC views that all organizations exist to create shareholder value. There are two necessary conditions satisfied customers and satisfied staff. In our approach we expand the view to encompass the entire workforce. Organizations rely on the entire workforce to deliver value to customers.
Strategic Doing teaches people how to form collaborations quickly, move them toward measurable outcomes and make adjustments along the way. In today’s world, collaboration is essential to meet the complex challenges we face. Strategic Doing enables leaders to design and guide new networks that generate creative solutions. It is a new strategy discipline that is lean, agile and fast—just what organizations, communities and regions need to survive and thrive.
The diagram below combines TOC and Strategic Doing for a dynamic process of strategic execution.
For not-for-profit organizations defining shareholder value is often more challenge. In Associations, members may be the shareholders, workforce and customers all at the same time. Thus knowing who the shareholders, workforce and customers is essential to effectively achieving strategy.
The Goal Alignment Program is a rigorous, sustainable governance model where regulatory policy development is integral to the way organization does work. This model ensured that every human, organizational, technical, and financial resource supports and contributes to achieving the objects of the purpose of the organization in a way that is demonstrable, transparent, measurable, efficient, effective, and comply with its principles, policy directives, and constraints.
Starts with Why – Simon Sinek → The idea that great leaders inspire others by putting:
- the Why (the purpose) before
- the How (the process) or
- the What (the product)
These revolutionary philosophies on leadership can easily be used in any professional and personal situation that calls for inspiration and influence.
Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster. This method teaches you how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with greatest acceleration. It is a principled approach to new product development.
What theory of constraints — TOC applications do you offer?
We off the following TOC applications:
Winning Collaboration builds four day-to-day management skills to get people working together in organizations facing change. Every manager and employee must be able to resolve conflicts, within and between departments and functional areas, in a win-win way that meets organizational goals. Another essential skill is in better understanding and preventing adverse effects that can occur from change—from implementing ideas that are not well enough thought through. A third skill is in being able to formulate project plans for change that incorporate significant concerns of team members and stakeholders. Finally, managers must increase their effectiveness with buy-in, meetings, and procedures. These are the skills that Winning Collaboration builds.
Compelling offers to the market do not sell themselves. To be effective, salespeople must overcome a root problem of many sales failures. This root problem is described in Neil Rackham’s book entitled SPIN Selling—the tendency to jump too quickly into solutions before the customer agrees with you about their issue. The TOC approach to sales rigorously works at overcoming the layers of resistance to change, through a formal process. Learning how to involve the customer and take a step-by-step approach, Salespeople go through extensive role plays to perfect the TOC sales skills.
This process creates a comprehensive strategy designed to meet the company’s goals. The techniques first build the commitment of all key members of the senior management team. Using Goldratt’s general analysis of each part of an organization and supply chain, the facilitator carefully translates this material to the participant organization. The first four days build, through a powerful combination of participant interaction and Goldratt lectures, a shared understanding of the cause-effect relationships across an organization. In the second 4 days, each executive defines their major problem blocking them from meeting the Viable Vision. The issues are analyzed using Theory of Constraints Thinking Process tools, and the collection of ideas that comprise the strategy is developed. The session concludes with a plan that designates the milestones necessary to accomplish the goals, the sequence, the responsibilities and estimated duration. Documentation of the entire effort, including a Critical Chain project plan, is provided.
The TOC Thinking Process, in combination with the Five Focusing Steps, give an individual the ability to take any organization and improve it, making a significant contribution to that organization’s goals. An expert in these processes, or ‘Jonah,’ has the skill to analyze any situation and get others to buy-in to their logic. To learn and understand these processes, an individual must apply them with success to their organization or client. Furthermore, to avoid re-inventing the wheel, these methods should be used in conjunction with the applications of TOC already invented in the areas described above and below (i.e., production and distribution logistics, etc.). In a Viable Vision effort, these processes are used to deal with issues that do not have generic solutions. In most implementations, it is normal for such problems to arise.
As Goldratt explains, Marketing is bringing the ducks to desire the corn in your field. In fact, if marketing is doing their job, the ducks should be sitting in your area with glue on their feet. Sales’ job is to shoot the sitting ducks. To create such a compelling offer to the market, Marketing people must analyze the undesirable effects that customers experience, NOT WITH YOUR COMPANY, but rather with the entire industry. The proposal is based upon overcoming industry-wide adverse effects. Such a scheme is never based on price reductions or inherent product modifications. The solution is intended to give a minimum two-year competitive advantage. It documents the components to enable salespeople to effectively overcome the layers of resistance to change in selling the solution to the market.
One of the keys to embedding new, positive behavior into an organization lies with financial reporting and measurements. A good measurement system must give every individual the tools to make correct, real-time decisions. Also, individuals must have simple, clear reports and information that show them the impact of their decisions on the goals of the company. TOC’s Throughput Accounting approach to achieving proper metrics and reporting does not replace existing accounting systems.
- Traditional systems are still used for external reporting.
- Throughput Accounting is used to help managers make better holistic decisions.
The primary metrics include the impact of any decision on Throughput, Investment, and Operating Expenses. Supply Chain metrics include Throughput Value Days and Inventory Value Days.
Many companies made an enormous investment in technology over the past few years. How many CEOs have you heard bragging about their fantastic ERP and I.T. implementations and the incredible return on investment they provided? Annoyed CEOs are looking for the “sweet spot” of technology, and so are I.T. executives. However, I.T. and functional executives are often in conflict as they struggle to find common ground. Technology vendors are part of this battleground. TOC believes in the application of technology to help address the organization’s constraint. It asks a series of questions that help ensure that Technology is used in the right places and with significant changes in organization rules. This approach—changing rules to take advantage of changes in technology– helps to ensure the sufficiency of technology to yield outstanding, tangible results.
After 40 years of Critical Path experience, projects are still frequently late, over budget and not within specifications. Critical Chain reveals new assumptions about human behavior and overloaded project environments and offers a breakthrough solution. Clients who have implemented Critical Chain claim that their project durations drop dramatically and that they can flow many more projects through without adding resources. Critical Chain uses a statistically sound method of protecting projects while removing harmful old metrics. The “Relay Runner Work Ethic” becomes the new way of project performance.
Most people that face the daily challenges of a production environment blame their management problems on “Murphy.” Murphy occurs when, for example, suppliers deliver late or with poor quality, machines break down, tooling fails, and many other unanticipated problems occur. As illustrated in Dr. Goldratt’s best-selling book, The Goal, TOC proposes Drum, Buffer, Rope as a way to success in spite of “Murphy.” Through the application of the compelling Five Focusing Steps of TOC, clients claim to have reduced lead time by half, within a period of less than a year. Furthermore, the approach dramatically simplifies daily operations while providing a practical process of ongoing improvement on the shop floor.
Establish a pull system, with just the right inventory in the right place at the right time. Increase total supply chain Throughput by reducing obsolescence, increasing shelf space variety, lowering stock-outs of favorite products and reducing lead time for replenishment. TOC’s distribution logistics provides a compelling alternative to the traditional “min/max” approach to inventory management. While significantly reducing overall inventories, the TOC Distribution Logistics method simultaneously raises the service level. Re-ordering is handled quickly and directly by rules, rather than by exception. Trends are noted and acted upon automatically, to reduce risk and increase sales across the supply chain.
What you mean by “unusual combinations of debit/credit”?
Due to the unique and creative ways employees “game” the system with purchasing cards and expense reimbursements, machine learning is also useful in identifying previously unknown schemes in these areas. These activities can create unusual combinations of debt and/or credit.
Case experience has shown machine learning to be effective in identifying purchasing behavior such as frequent vendors, unusually consistent amounts, certain transactions that occur in tandem with each other and items occurring with unusual regularity. Similarly, expense reimbursements may be flagged as unusual by a machine learning based system that may not conform to typical rules-based observations such as rounded amounts, “just under” threshold amounts and the traditional Benford’s Law analysis.
It basically boils down to the fact that we (humans) cannot analyze the entire file and find trends in that data. Machine learning in the MindBridge Ai-Auditor can decompile the entire structure, observe trends, identifies unusual combinations and present that information. These are anomalies that are ‘unusual’, and which the auditor might not have thought about.
Who is MindBridge?
MindBridge is bridging the gap between human and artificial intelligence by enhancing professional judgment across multiple industries. Recent advancements in artificial intelligence have enabled a new class of converged analytics to analyze financial transaction flows and better detect anomalies - unintentional mistakes/errors and intentional. Using algorithms based upon smart data science, MindBridge generates actionable insights through an interactive, user-friendly visual interface to help organizations minimize risk exposure to a financial loss while supporting audit professionals to meet and exceed regulatory and industry standards. Using the MindBridge Ai-Auditor is enhancing professional judgment as far less time is spent searching for anomalies and more time determining the underlying causes of the anomalies.
The MindBridge application has been tested by industry leading professionals and is proven to detect anomalous human activities and transactions that current incumbent systems cannot.
Year Founded: 2015
Why did Dr. Larry Cash develop SuccessFinder?
SuccessFinder started as the Pathfinder Career System. Forty years ago, its founder Dr. Larry Cash started it with the specific intention of helping people maximize career success, including satisfaction (enjoyment). While knowledge, skills, and experience are necessary prerequisites for any job — behavioral style that most clearly differentiates the level of career success achieved by otherwise similarly qualified people. Also, enjoyment forms a part of that success. However, it contributes only about 20% to the success equation. Yet, we all want to enjoy how we spend our working day.
To create a system capable of capturing the uniqueness of both people and careers was a huge undertaking, and it became Dr. Cash's life’s work. In the end, it has been able to help tens of thousands of individuals. As a result, they better understand how they prefer to apply their talents and to point them toward career directions that most closely align with that preferred style.
Using Talent Analytics
We use the talent analytics from SuccessFinder in selecting talent, team development, employee career development and personal development plans. Because of Dr, Cash's keen interest in helping people succeed, we are able to offer special pricing to associations who want to engage and develop its members and potential future members.
About Dr, Larry Cash, Founder & Creator
An innovator who co-developed the SuccessFinder tool and framework that has been used for over 35 years by companies globally. Featured in over 20 publications including WSJ, Canadian Business magazine and Financial Post. Larry holds an MS in Clinical Psychology and Ph.D. in Counselling Psychology at OISE where he taught as a graduate instructor for five years.
Why focus on an employee’s strengths over weaknesses?
Gallup researchers have studied human behavior and strengths for decades. They discovered that building employees\' strengths are a far more effective approach than a fixation on weaknesses.
A strengths-based culture is one in which employees:
- learn their roles more quickly
- produce more and significantly better work
- stay with their company longer
- are more engaged.
In the current study, a vast majority (67%) of employees who strongly agree that their manager focuses on their strengths poor positive characteristics are engaged, compared with 31% of employees who strongly agree that their manager focuses on their weaknesses.
When managers help employees grow and develop their strengths, they are more than twice as likely to engage their team members. The most powerful benefit a manager can provide his or her employees is to place them in jobs that allow them to use the best of their natural talents, adding skills and knowledge to develop and apply their strengths.
Leadership is about behavior, regardless of a person’s title or where they fall in the company hierarchy. As organizations face new and unfamiliar challenges, success depends on increasing the frequency of leadership behavior from individuals and teams across the organization to ensure that the organization can deploy the right leadership at the right moment for the right context. So instead of redefining criteria and isolating a small group of “stars,” the challenge is to understand and unleash the largest source of potential: The entire workforce.
We take a holistic view of potential — beyond simply identifying leadership potential among individuals. Instead, we aim to surface, activate, and accelerate potential in every individual, within teams, and across the full force of your organization.
Our leadership ladder provides the framework and process to develop and support the leaders in your organization from first level manager to CEO.
Why rules-based systems alone not sufficient to detect all errors?
Existing practices in financial anomaly detection typically use rules-based systems to find breaches of control. An example of such a rule is a transaction amount limit.
Using rules-based systems is the backbone of today’s auditing methods. However, often this approach fails to find material financial misstatements and fraud. Clever fraudsters understand these rules and get around them. Rules only capture what is explicitly coded into them.
Rules are designed and implemented for each known circumstance that requires control or management. This means rules based systems will not catch unanticipated scenarios. Even with the example of the transaction amount limit, the commonly known way to ‘work around’ simple limit rules is transaction splitting. Often the rules themselves create the opportunity or scenario for the exploit. The data from the Association of Certified Fraud Examiners shows that the higher the education level of the perpetrators, the higher the loss the organization suffers and in most scenarios the perpetrators have at least a University level education.
Tip-off most likely way to catch a fraudster today
The most likely means of which a fraudster gets caught today is through a tip-off, roughly 40%, and industry associations tell organizations to add “fraud hot lines” to gather these tips. Conversely, automated controls and IT systems based on rules only catch a small percentage of scenarios — approximately 3%.
The rate of fraud is increasing and the time to detect fraud is also increasing. In almost every measurable way rules based systems which use data sampling are losing this battle. To compound the problem, Lexis Nexis estimates that the cost to correct $1 of fraud is $2.40.
It’s time for a change because clever people will figure out a way around rules.
Why should I hire Allenvision as a consultant?
Seven Reasons to Hire Allenvision
Many consultants will tell you what to do — after we jointly determine what need to be done — we work with you to show you how to do it. While we are happy to undertake the complete implementation of a project, we prefer to coach and teach your team how to do it. We believe that success growth is mutually beneficial for us.
From filling a short-term executive gap to the implementation of a major program of organizational structural change — hire Allenvision. We provide valuable expertise and insights to help you achieve your goals and execute a strategy.
When is the right time to hire Allenvision?
What on-going steps should you take to ensure you get the best out of a client-consultant relationship?
- External validation: Allenvision has a broad overview, understanding, and external perspective. We use an evidence-based approach in all of our work. A second opinion can provide reassurance before making a critical business decision.
- More time and cost-effective: We focus on a project and see it through on deadline, without distractions and day-to-day pressures. This often makes bringing us in much more time and cost efficient than running a project in-house.
- Specific knowledge, skills, and experience: Allenvision gives you the opportunity to bring in niche skills, without the commitment of employing someone.
- Ability to challenge: Our objective position means Allenvision can bring a fresh perspective. We are not afraid to challenge, and our unique position means we can do so without the fear of reprisals that your employees might have.
- Impartial advice: Hiring Allenvision can offer you a way to reach or justify a desired conclusion and avoid internal conflict. This can be particularly valuable in stressful situations such as job cuts and significant operational or strategic changes.
- Knowledge of best practice: Allenvision works with multiple clients and often serving various clients facing similar problems across different sectors.
- Access to information and resources: Allenvision specializes in dealing with matters related to people, money, and governance. We can bring in data and systems that may not be financially viable for your company.
Overall, Allenvision brings a wealth of strengths to your business and can deliver a full range of services. So, if you are seeking a solution to a particular business problem, developing your employees, creating succession plans, undergoing organizational change or can see new market opportunities but lack the resources to follow them up, Allenvision may be the answer you need.
Learn more about our team members and partners.
Why use behavioral competencies?
Using behavioral competencies, we are able to provide an additional view of a candidate versus a higher performer.
In addition to technical skills, academic background and professional experience acquired, an individual’s natural behavioral tendencies are key elements to achieving success at work. Our goal in creating this model is to provide better ways for organizations to capture these natural behavioral tendencies and leverage them to develop the strong, resilient leaders required to drive today’s business strategies. SuccessFinder measures 85 behavioral traits. The 26 behavioral competencies consist of three to six behavioral traits. The competencies are grouped into five categories. They are very useful for developing a performance plan as they reflect the interaction of the traits.
How the traits combine along with career theme in different dynamic combinations to predict business and career success. These combinations constitute the complex behavioral trait dynamics that we see in the workplace and can be measured using competencies and a readiness to directly influence others.
A behavioral competency is the kind of skill set that an individual should have so that he or she can meet the goals of the organization. Measuring behavioral competency is a tough job for any human resource manager. SuccessFinder makes it easy. Due to the increasingly complex structure of the organization, it is very important for individuals to have a good and healthy relationship with people across departments.
At some organizations, include behavioral competencies is part of their appraisal as well.
Why do organizations need to understand behavioral competencies?
Because it plays an important role during succession planning, workforce planning, and training and development.