Internal audit involvement in enterprise risk management

Purpose The paper examines the impact of internal auditors’ involvement in Enterprise Risk Management (ERM) on perceptions of their willingness to report a breakdown in risk procedures and whether a strong relationship with the audit committee affects such willingness to report. The study also investigates the use of ERM and the role of internal audit in ERM in Australian private and public sector entities. Design/methodology/approach The study uses an experimental design, manipulating (i) the internal auditor’s involvement in ERM and (ii) the strength of the relationship between internal audit and the audit committee. Participants are 117 certified internal auditors. The study also gathers descriptive data on the use of ERM. Findings The study indicates that a high involvement in ERM impacts the perceptions of internal auditors’ willingness to report a breakdown in risk procedures to the audit committee. However, a strong relationship with the audit committee does not appear to affect their perceived willingness to report. The study also finds that the majority of organisations have recently adopted ERM. Internal auditors are involved in ERM assurance activities but some also engage in activities that could compromise objectivity.

Stimulating organizational ingenuity with design methods

Organizations invest in ways to stimulate new ideas for new products and services for the benefit of the organization, engaging in tournaments and competitions to generate new ideas or to combine existing ideas in new ways for new products and services (Terweisch and Uhlrich, 2009). Specifically, some large companies have developed platforms for posting intractable problems to tap into the ideas and problem solving abilities of a broader range of people (Huston and Sakkab, 2006; Morgan and Wang, 2010), and to develop new and elegant solutions often in an open innovation approach (Chesbrough, 2003). The notion of ingenuity is often applied to individuals who create innovative solutions in situations of constraint, where ingenuity in the form of elegant solutions can be understood as one form of resourcefulness (Young, 2011). However, the notion of organizational ingenuity locates ingenuity more centrally to an organization's strategic decision making and implementation, embedding ingenuity into the company's culture. Studies of organizations displaying ingenuity indicate a range of possibilities from extreme ingenuity (Baker and Nelson, 2005) to less dramatic but substantial changes (Thomke, 2003), sometimes in an experimental phase or as part of a move towards a new and distinct identity for ongoing innovation.

Improving megasite management performance through incentives : lessons learned from the Shanghai Expo construction

As the biggest expo site in history, construction of the Shanghai Expo site faced a lot of challenges, including involvement of lots of investors, megaconstruction scale, concurrent construction mode, involvement of more than 40,000 migrant workers, and extremely tight completion deadlines, among others. Consequently, these challenges imposed great obstacles on accomplishing the safety, quality, and environmental goals. Through a case study of the Shanghai Expo construction, this paper paper presents the design and implementation of multicriteria incentives in megaprojects to accomplish the safety, quality, and environmental goals. Both quantitative and qualitative findings were triangulated to demonstrate the outcome of the incentives. Six critical success factors (CSFs) for the incentives, rule design, process orientation, top management support, training and promotion, communication in process, and process learning and improvement are identified and validated through case study data and content analysis. It is believed that the findings of this paper can enhance understanding of multicriteria incentive schemes in general and provide insights in implementing these incentive schemes in future megaprojects, particularly in the People’s Republic of China (PRC).

Sustaining social innovation enterprises through a design led innovation framework

Constant changes in the global economic environment require companies to revisit traditional assumptions about how businesses create and capture value (Teece, 2010). In recent years, management practice literature has focused largely on better understanding business models and business model innovation (Amit, Zott and Massa, 2010; Johnson, Christensen and Kagermann, 2008). Much has been written on the benefits of linking design and design thinking to organisational strategies and business transformation. However, very little has been researched and reported on regarding the impact of design led approaches to triple bottom-line opportunities such as, social innovation enterprise. In the context of this paper Design Led Innovation is defined as the tools and approaches which enable design thinking to be embedded as an element of cultural transformation within a business. Being Design Led requires a company to have a vision for top line growth founded on deep customer insights and expanded through customer and stakeholder engagements. The outcomes of this are then mapped to all aspects of the business, enabling the vision to be successfully implemented and achieved. It is the latter part of this definition where we believe Design Led Innovation has the greatest value in transforming social innovation enterprise into a sustainable business venture. However, we also acknowledge that enabling these firms to think strategically about their business model is difficult given the unique operational and funding challenges that often characterize many social enterprises. The purpose of this paper, therefore, is to pose the question, do sustainable innovation enterprise innovate their business model? And if so, how? It is the authors’ opinion that such enterprises only innovate at the product or system level without a complete understanding of the business model structure, which underpins the long term viability. However, in this paper we challenge this notion and explore if such firms can overcome their size and operational constraints to become sustainable enterprises using a design led approach. This is achieved through contextualizing business model innovation, briefly defining social innovation enterprise and profiling a new and emerging industry in Australia – Clean Technology. Future research challenges and opportunities are also presented.

A biomechanical analysis of growing rods used in the management of early onset scoliosis (EOS)

The use of dual growing rods is a fusionless surgical approach to the treatment of early onset scoliosis (EOS) which aims to harness potential growth in order to correct spinal deformity. This study compared through in-vitro experiments the biomechanical response of two different rod designs under axial rotation loading. The study showed that a new design of telescoping growing rod preserved the rotational flexibility of the spine in comparison with rigid rods indicating them to be a more physiological way to improve the spinal deformity.

Design Minds Refresh Toolkit

The Design Minds Refresh Toolkit was one of six K7-12 secondary school design toolkits commissioned by the State Library of Queensland (SLQ) Asia Pacific Design Library (APDL), to facilitate the delivery of the Stage 1 launch of its Design Minds online platform (www.designminds.org.au) partnership initiative with Queensland Government Arts Queensland and the Smithsonian Cooper-Hewitt National Design Museum, on June 29, 2012. Design Minds toolkits are practical guides, underpinned by a combination of one to three of the Design Minds model phases of ‘Inquire’, ‘Ideate’ and ‘Implement’ (supported by at each stage with structured reflection), to enhance existing school curriculum and empower students with real life design exercises, within the classroom environment. Toolkits directly identify links to Naplan, National Curriculum, C2C and Professional Standards benchmarks, as well as the student capabilities of successful and creative 21st century citizens they seek to engender through design thinking. Inspired by ideas from a design project for second year Interior Design students at QUT School of Design, this toolkit explores, through five distinct exercises, different design tools and ways to approach the future design of environments (bathrooms) to facilitate the daily washing ritual, while addressing diverse and changing social, cultural, technological and environmental challenges. The Design Minds Refresh Toolkit particularly aims to promote ‘Lateral Thinking’ attitudes and empathy as an approach to create unusual and sustainable solutions to future problems that may affect our daily behavioural routines, and the spaces that facilitate them. More generally, it aims to facilitate awareness in young people, of the role of design in society and the value of design thinking skills in generating strategies to solve basic to complex systemic challenges, as well as to inspire post-secondary pathways and idea generation for education. The toolkit encourages students and teachers to develop sketching, making, communication, presentation and collaboration skills to improve their design process, as well as explore further inquiry (background research) to enhance the ideation exercises. Exercise 1 focuses on the ‘Inquire’ and ‘Ideate’ phases, Exercise 2 and 3 build on ideation skills, and Exercise 4 and 5 concentrate on the ‘Implement’ phase. Depending on the intensity of the focus, the unit of work could be developed over a 4-5 week program (approximately 10-12 x 60 minute lessons/workshops) or as smaller workshops treated as discrete learning experiences. The toolkit is available for public download from http://designminds.org.au/refresh/ on the Design Minds website. Exercise 2 (Other People’s Shoes) and Exercise 3 (The Future Bathroom) of the toolkit were used as content for the inaugural Design Minds Professional Development Workshop on June 28, 2012 to pre-launch the website to Queensland teachers.

Design Minds The Big Picture Toolkit

The Design Minds The Big Picture Toolkit was one of six K7-12 secondary school design toolkits commissioned by the State Library of Queensland (SLQ) Asia Pacific Design Library (APDL), to facilitate the delivery of the Stage 1 launch of its Design Minds online platform (www.designminds.org.au) partnership initiative with Queensland Government Arts Queensland and the Smithsonian Cooper-Hewitt National Design Museum, on June 29, 2012. Design Minds toolkits are practical guides, underpinned by a combination of one to three of the Design Minds model phases of ‘Inquire’, ‘Ideate’ and ‘Implement’ (supported by at each stage with structured reflection), to enhance existing school curriculum and empower students with real life design exercises, within the classroom environment. Toolkits directly identify links to Naplan, National Curriculum, C2C and Professional Standards benchmarks, as well as the student capabilities of successful and creative 21st century citizens they seek to engender through design thinking. Inspired by the Unlimited: Designing for the Asia Pacific Generation Workshop 2010 (http://eprints.qut.edu.au/47762/), this toolkit explores, through three distinct exercises, ‘design for the other 90%’, addressing tools and approaches to diverse and changing social, cultural, technological and environmental challenges. The Design Minds The Big Picture Toolkit challenges students to be active agents for change and to think creatively and optimistically about solutions to future global issues that deliver social, economic and environmental benefits. More generally, it aims to facilitate awareness in young people, of the role of design in society and the value of design thinking skills in generating strategies to solve basic to complex systemic challenges, as well as to inspire post-secondary pathways and idea generation for education. The toolkit encourages students and teachers to develop sketching, making, communication, presentation and collaboration skills to improve their design process, as well as explore further inquiry (background research) to enhance the ideation exercises. Exercise 1 focuses on the ‘Inquire’ phase, Exercise 2 the ‘Inquire’ and ‘Ideate’ phases, and Exercise 3 concentrates on the ‘Implement’ phase. Depending on the intensity of the focus, the unit of work could be developed over a 4-5 week program (approximately 4-6 x 60 minute lessons/workshops) or as smaller workshops treated as discrete learning experiences. The toolkit is available for public download from http://designminds.org.au/the-big-picture/ on the Design Minds website.

Design Minds Tomorrow's Classroom Toolkit

The Design Minds Tomorrow’s Classroom Toolkit was one of six K7-12 secondary school design toolkits commissioned by the State Library of Queensland (SLQ) Asia Pacific Design Library (APDL), to facilitate the delivery of the Stage 1 launch of its Design Minds online platform (www.designminds.org.au) partnership initiative with Queensland Government Arts Queensland and the Smithsonian Cooper-Hewitt National Design Museum, on June 29, 2012. Design Minds toolkits are practical guides, underpinned by a combination of one to three of the Design Minds model phases of ‘Inquire’, ‘Ideate’ and ‘Implement’ (supported by at each stage with structured reflection), to enhance existing school curriculum and empower students with real life design exercises, within the classroom environment. Toolkits directly identify links to Naplan, National Curriculum, C2C and Professional Standards benchmarks, as well as the student capabilities of successful and creative 21st century citizens they seek to engender through design thinking. This toolkit explores, through four distinct exercises, different design tools and ways to approach the future design of environments (classrooms/schools) to facilitate the Reggio Emilia philosophy of learning, while addressing diverse and changing social, cultural, technological and environmental challenges. The Design Minds Tomorrow’s Classroom Toolkit encourages students to explore architecture and interior design, and to think about their (life-long) learning as a product of inspiring interactions with people and the environments around them, and that their potential role in contributing to both delightful and functional design solutions requires a deep understanding of the user experience. More generally, it aims to facilitate awareness in young people, of the role of design in society and the value of design thinking skills in generating strategies to solve basic to complex systemic challenges, as well as to inspire post-secondary pathways and idea generation for education. The toolkit encourages students and teachers to develop sketching, making, communication, presentation and collaboration skills to improve their design process, as well as explore further inquiry (background research) to enhance the ideation exercises. Exercise 1 focuses on the ‘Inquire’ and ‘Ideate’ phases, Exercise 2 on the ‘Inquire’, Exercise 3 builds on ideation skills, and Exercise 4 concentrates on the ‘Implement’ phase. Depending on the intensity of the focus, the unit of work could be developed over a 2-5 week program (approximately 4-10 x 60 minute lessons/workshops) or as smaller workshops treated as discrete learning experiences. The toolkit is available for public download from http://designminds.org.au/tomorrows-classroom/ on the Design Minds website. This toolkit inspired the authorship and facilitation of a 2-day design workshop entitled Learning Environment 2050 at John Paul College, Daisy Hill, Brisbane on the 15-16 August 2013. 120 Grade 7 students and their teachers, under the mentorship of two design academics, 3 QUT design students and a professional architect, as part of a QUT School of Design Project Week community engagement activity, explored the formulation of a participatory design brief for the redesign of the school’s Wesley Precinct (including classrooms, a sustainable farm and recreation areas).

Design-build contractor selection for public sustainable buildings

Design-build (DB) is regarded as an effective means of delivering high performance green buildings, and the selection of DB contractors is of critical importance. The objective of this study is to evaluate the selection of design-builders for public buildings seeking Leadership in Energy and Environmental Design (LEED) certification and compare the selection practices involved with those of non-LEED-seeking DB projects through a robust content analysis of 74 DB request for proposals (RFPs) for public DB projects. The results of the content analysis reveal that the level of LEED certification is the dominant means of conveying the sustainability requirements in RFPs for contractor selection, with the majority of RFPs (60%) including sustainability requirements as part of the contractor evaluation package. With the exception of contractors' past performance, there is no statistically significant difference in the importance weightings of selection criteria between LEED-seeking and non-LEED-seeking buildings, and DB owners tend to place more emphasis on innovative technical solutions rather than the past performance of DB contractors. Additionally, the research findings also indicate that owners of LEED-seeking building projects tend to provide less design decisions in RFPs in order to solicit innovative design alternatives from potential DB contractors. This study provides DB owners with a number of practical implications for selecting appropriate design-builders for green DB projects.

How public owners communicate the sustainability requirements of green design-build projects

The design-build (DB) system is regarded as an effective means of delivering sustainable buildings. Specifying clear sustainability requirements to potential contractors is of great importance to project success. This research investigates the current state-of-the-practice for the definition of sustainability requirements within the public sectors of the U.S. construction market using a robust content analysis of 49 DB requests for proposals (RFPs). The results reveal that owners predominantly communicate their desired level of sustainability through the LEED certification system. The sustainability requirement has become an important dimension for the best-value evaluation of DB contractors with specific importance weightings of up to 25%. Additionally, owners of larger projects and who provide less design information in their RFPs generally allocate significantly higher importance weightings to sustainability requirements. The primary knowledge contribution of this study to the construction industry is the reveal of current trend in DB procurement for green projects. The findings also provide owners, architects, engineers, and constructors with an effective means of communicating sustainability objectives in solicitation documents.

CIB White Paper on IDDS Integrated Design & Delivery Solutions

CIB is developing a priority theme, now termed Improving Construction and Use through Integrated Design & Delivery Solutions (IDDS). The IDDS working group for this theme adopted the following definition: Integrated Design and Delivery Solutions use collaborative work processes and enhanced skills, with integrated data, information, and knowledge management to minimize structural and process inefficiencies and to enhance the value delivered during design, build, and operation, and across projects. The design, construction, and commissioning sectors have been repeatedly analysed as inefficient and may or may not be quite as bad as portrayed; however, there is unquestionably significant scope for IDDS to improve the delivery of value to clients, stakeholders (including occupants), and society in general, simultaneously driving down cost and time to deliver operational constructed facilities. Although various initiatives developed from computer‐aided design and manufacturing technologies, lean construction, modularization, prefabrication and integrated project delivery are currently being adopted by some sectors and specialisations in construction; IDDS provides the vision for a more holistic future transformation. Successful use of IDDS requires improvements in work processes, technology, and people’s capabilities to span the entire construction lifecycle from conception through design, construction, commissioning, operation, refurbishment/ retrofit and recycling, and considering the building’s interaction with its environment. This vision extends beyond new buildings to encompass modifications and upgrades, particularly those aimed at improved local and area sustainability goals. IDDS will facilitate greater flexibility of design options, work packaging strategies and collaboration with suppliers and trades, which will be essential to meet evolving sustainability targets. As knowledge capture and reuse become prevalent, IDDS best practice should become the norm, rather than the exception.

Built heritage management systems : the framework of a digital tool for the conservation of Brisbane City Hall

Brisbane City Hall (BCH) is arguably one of Brisbane’s most notable and iconic buildings. Serving as the public’s central civic and municipal building since 1930, the importance of this heritage listed building to cultural significance and identity is unquestionable. This attribute is reflected within the local government, with a simplified image of the halls main portico entrance supplying Brisbane City Council with its insignia and trademark signifier. Regardless of these qualities, this building has been neglected in a number of ways, primarily in the physical sense with built materials, but also, and just as importantly, through inaccurate and undocumented works. Numerous restoration and renovation works have been undertaken throughout BCH’s lifetime, however the records of these amendments are far and few between. Between 2010 and 2013, BCH underwent major restoration works, the largest production project undertaken on the building since its initial construction. Just prior to this conservation process, the full extent of the buildings deterioration was identified, much of which there was little to no original documentation of. This has led to a number of issues pertaining to what investigators expected to find within the building, versus what was uncovered (the unexpected), which have resulted directly from this lack of data. This absence of record keeping is the key factor that has contributed to the decay and unknown deficiencies that had amassed within BCH. Accordingly, this raises a debate about the methods of record keeping, and the need for a more advanced process that is able to be integrated within architectural and engineering programs, whilst still maintaining the ability to act as a standalone database. The immediate objective of this research is to investigate the restoration process of BCH, with focus on the auditorium, to evaluate possible strategies to record and manage data connected to building pathology so that a framework can be developed for a digital heritage management system. The framework produced for this digital tool will enable dynamic uses of a centralised database and aims to reduce the significant data loss. Following an in-depth analysis of this framework, it can be concluded that the implementation of the suggested digital tool would directly benefit BCH, and could ultimately be incorporated into a number of heritage related built form.

Understanding and impacting the practice of business process management

This presentation will explore how BPM research can seamlessly combine the academic requirement of rigor with the aim to impact the practice of Business Process Management. After a brief introduction into the research agendas as they are perceived by different BPM communities, two research projects will be discussed that illustrate how empirically-informed quantitative and qualitative research, combined with design science, can lead to outcomes that BPM practitioners are willing to adopt. The first project studies the practice of process modeling using Information Systems theory, and demonstrates how a better understanding of this practice can inform the design of modeling notations and methods. The second project studies the adoption of process management within organizations, and leads to models of how organizations can incrementally transition to greater levels of BPM maturity. The presentation will conclude with recommendations for how the BPM research and practitioner communities can increasingly benefit from each other.

From the editors : introduction and a compass for business process design

In this editorial letter, we provide the readers of Information Systems Management with a background on process design before we discuss the content of the special issue proper. By introducing and describing a so-called process design compass we aim to clarify what developments in the field are taking place and how the papers in this special issue expand on our current knowledge in this domain.