diff --git a/.github/actions/e2e/create-cluster/action.yaml b/.github/actions/e2e/create-cluster/action.yaml
index dc1752a09..1ebae2d06 100644
--- a/.github/actions/e2e/create-cluster/action.yaml
+++ b/.github/actions/e2e/create-cluster/action.yaml
@@ -45,6 +45,9 @@ runs:
   - name: az set sub
     shell: bash
     run: az account set --subscription ${{ inputs.subscription-id }}
+  - name: create workload msi
+    shell: bash
+    run: AZURE_RESOURCE_GROUP=${{ inputs.resource_group }} AZURE_LOCATION=${{ inputs.location }} make az-create-workload-msi
   - name: create cluster
     shell: bash
     run: AZURE_CLUSTER_NAME=${{ inputs.cluster_name }} AZURE_RESOURCE_GROUP=${{ inputs.resource_group }} AZURE_ACR_NAME=${{ inputs.acr_name }} AZURE_LOCATION=${{ inputs.location }} make az-mkaks-cilium
@@ -54,12 +57,9 @@ runs:
       client-id: ${{ inputs.client-id }}
       tenant-id: ${{ inputs.tenant-id }}
       subscription-id: ${{ inputs.subscription-id }}
-  - name: create workload id
-    shell: bash
-    run: AZURE_CLUSTER_NAME=${{ inputs.cluster_name }} AZURE_RESOURCE_GROUP=${{ inputs.resource_group }} AZURE_LOCATION=${{ inputs.location }} make az-create-workload-id-msi
-  - name: pause for msi to become available
+  - name: create federated cred
     shell: bash
-    run: sleep 10
+    run: AZURE_CLUSTER_NAME=${{ inputs.cluster_name }} AZURE_RESOURCE_GROUP=${{ inputs.resource_group }} make az-create-federated-cred
   - name: update azure perms
     shell: bash
     run: |
diff --git a/Makefile-az.mk b/Makefile-az.mk
index 3f131a188..2f59d7580 100755
--- a/Makefile-az.mk
+++ b/Makefile-az.mk
@@ -14,7 +14,7 @@ KARPENTER_SERVICE_ACCOUNT_NAME ?= karpenter-sa
 AZURE_KARPENTER_USER_ASSIGNED_IDENTITY_NAME ?= karpentermsi
 KARPENTER_FEDERATED_IDENTITY_CREDENTIAL_NAME ?= KARPENTER_FID 
 
-az-all:         az-login az-mkaks-cilium az-create-workload-id-msi az-perm az-perm-acr az-patch-skaffold-azureoverlay az-build az-run az-run-sample ## Provision the infra (ACR,AKS); build and deploy Karpenter; deploy sample Provisioner and workload
+az-all:         az-login az-create-workload-msi az-mkaks-cilium az-create-federated-cred az-perm az-perm-acr az-patch-skaffold-azureoverlay az-build az-run az-run-sample ## Provision the infra (ACR,AKS); build and deploy Karpenter; deploy sample Provisioner and workload
 az-all-savm:    az-login az-mkaks-savm az-perm az-patch-skaffold-azure az-build az-run az-run-sample ## Provision the infra (ACR,AKS); build and deploy Karpenter; deploy sample Provisioner and workload - StandaloneVirtualMachines
 
 az-login: ## Login into Azure
@@ -41,11 +41,13 @@ az-mkaks-cilium: az-mkacr ## Create test AKS cluster (with --network-dataplane c
 	az aks get-credentials --name $(AZURE_CLUSTER_NAME) --resource-group $(AZURE_RESOURCE_GROUP) --overwrite-existing
 	skaffold config set default-repo $(AZURE_ACR_NAME).azurecr.io/karpenter
 
-az-create-workload-id-msi:
-	$(eval AKS_OIDC_ISSUER=$(shell az aks show -n "${AZURE_CLUSTER_NAME}" -g "${AZURE_RESOURCE_GROUP}" --query "oidcIssuerProfile.issuerUrl" -otsv))
-
+az-create-workload-msi:
 	# create the workload MSI that is the backing for the karpenter pod auth
 	az identity create --name "${AZURE_KARPENTER_USER_ASSIGNED_IDENTITY_NAME}" --resource-group "${AZURE_RESOURCE_GROUP}" --location "${AZURE_LOCATION}"
+
+az-create-federated-cred:
+	$(eval AKS_OIDC_ISSUER=$(shell az aks show -n "${AZURE_CLUSTER_NAME}" -g "${AZURE_RESOURCE_GROUP}" --query "oidcIssuerProfile.issuerUrl" -otsv))
+
 	# create federated credential linked to the karpenter service account for auth usage 
 	az identity federated-credential create --name ${KARPENTER_FEDERATED_IDENTITY_CREDENTIAL_NAME} --identity-name "${AZURE_KARPENTER_USER_ASSIGNED_IDENTITY_NAME}" --resource-group "${AZURE_RESOURCE_GROUP}" --issuer "${AKS_OIDC_ISSUER}" --subject system:serviceaccount:"${SYSTEM_NAMESPACE}":"${KARPENTER_SERVICE_ACCOUNT_NAME}" --audience api://AzureADTokenExchange