Category: Bosses

Scenes from a Business Lunch, or the Obnoxious Rudeness of Business Owners


Restaurant-TableSpeaking of lunches (and I swear this is my last holiday post of the year)…

Because there are so many corporate holiday events in December, many business people from all over the country and overseas come to New York City during the month.  Customers, suppliers, vendors, associates, partners, and other relations visit their customers, clients, etc.  So, on top of the parties, you've got lunches with out-of-towners. This is a perfect opportunity to observe the business-owners' behavior in a "casual" group setting (as opposed to conference rooms and other natural habitats).

For many visitors this is also a good occasion for combining business and pleasure (after all, NYC is still #6 most favored tourist city in the world and #1 nation-wide) and quite a few bring their spouses along.  Some are actually in business with their spouses.

At the most recent lunch outing of this kind my guests were a manufacturing business owner by himself, another business owner with a wife, an alpha-female head of a consulting group, and a husband and wife attorneys sharing a corporate legal practice. Fun bunch!  Don't worry kids, it's only going to get worse!

The manufacturer asked for a coke and downed it really fast; then had it refilled several times throughout the meal.  This, naturally, resulted in a fast accumulation of a lot of gas in his stomach, which he unceremoniously belched out every 10 minutes, or so.  It was obviously a habitual occurrence, because he did not even bother to apologize.  It's amazing, how we learned to hide our emotions in "business" situations – everyone pretended not to notice it, even though once in a while one could catch a hint of a smirk or disgust (depending on the personality) playing on the lips of other guests.

[Side note: This reminds me of another experience in my arsenal of wonderful memories.  Early in my career I worked for a company, whose owner, in my mind, will forever carry a title of The Farting Boss.  He was middle-aged, but had a younger second wife and wanted to loose weight by drinking glass after glass of Slim Fast.  This made him very gassy.  The man mastered the skill of silent farting, but the smell was literally unbearable.  Imagine my situation – we sat in the same room.  Good times!]

The lady consultant first tried her sales pitch on every guest around the table, but quickly lost her enthusiasm, when she realized that nobody is interested in her services, except for me.  Since my company already had a contract with her, she did not see a reason to waste anymore time on us and turned her attention to the Blackberry, answering emails between bites and white-wine sips.

The married businessman first attacked his wife in a very loud whisper (it could be heard even at the neighboring tables) for wearing shoes with heels.  This apparently slowed down his purposefully brisk gait that went well, I am sure, with his aggressive mannerisms.  After the woman's eyes welled up with tears he abandoned her to fight it back on her own and observed the rest of the battlefield in front of him.  Dismissing the burping guy and all females as inferior creatures, he concentrated his self-affirmation efforts on the attorney sitting across the table from him.

They went at each other like two roosters in a Filipino cockpit.  "Have you read this?"  "Do you know that guy?"  "I bought Apple at $25 and just sold it at $375." "I am keeping mine – it will be $500 a share in a year."  "I closed that famous private equity deal this year." "I brought this much venture capital to my business."  "I am opening new factory in China."  "We have a law office in Hong Kong!"

God!  I contemplated the scene thinking, "The things we must tolerate to earn a living!"    

Apple’s iAd Division Celebrates Christmas


Get-attachmentDecember is still with us and so are the corporate X-mas parties. The holiday cheer is inescapable for the dogged blogger like me.

Did you know that large public corporations, with their in-house event planners working schedules way in advance, always manage to have their parties as close to Christmas Day as possible? I guess it signifies how "family-like" those organizations are.

Apple's latest branching out child, the iAd division, held its party just six days before Christmas – on Monday, December 19th. Constructed out of the body parts of a mobile advertising start-up Quattro Wireless, acquired by the maker of iPhones and iPads in 2010, iAd was not moved to Apple Campus in Cupertino, CA. Instead, it stayed in the advertising capital of the world – New York City, albeit swapping the original small office in SoHo for a 45,000 square-foot expanse on Fifth Avenue at Union Square.

Everything needs to project an intended image! And so, they celebrated the traditional combination of year-end holidays in a semi-trendy restaurant in Chelsey, which is themed to alleviate nostalgic pangs of transplants from more humble regions of the US, while entertaining other patrons with a taste of Americana not found on the streets of Manhattan.

The spirit-lifting intent, customarily reserved for such parties, acquired a somewhat militant hue as iAd's execs came to the microphone, each with his own discourse on the same topic: "They all want to see us fail! But we will show them! We'll distroy them all!" Underneath all that bravado, however, there were unmistakable notes of fear. It's understandable, of course. iAd is locked in severe competition with Google for the $630 million market of ads streaming through smart phones directly into the sensory system of general public, incapable of ungluing itself from the beloved devices. The things are not going too well, though.

Apple first lost the edge when it couldn't outbid Google in acquisition of AdMob and had to settle for Quattro Wireless as a less desirable second choice. Advertisers have already rejected the original requirement of $1 million minimum commitment, which now has been slashed by more than 50%. And October departure of Quattro Wireless's founder Andy Miller, who originally accepted an Apple's VP position to lead the iAd team, only intensified the apprehension. This is public-company world – everything is about perception. The execs know their plight: today you are a big shot, but if you don't perform, you are out.

Booze and abusive behavior are traditional fear-drowning remedies for insecure males. The former was thoughtfully accommodated by the party organizers via the open-bar arrangement. Most attendees took advantage of the limitless supply; some with an enthusiasm of newborn calves, who need to be taken away from the udder lest they drink themselves to death. There was this one high-echelon specimen (let's call him The Boss's Boss) who was especially determined to stupefy himself, knocking down one gin after another. As he reached a certain condition, the desire to abuse could not be contained.

One of the waitresses serving the party was a remarkably attractive young woman (let's call her The Striking Girl). She had that star quality about her that causes double takes; something Nora Ephron once described as magnetism that makes a man across the room go, "Get me that!" An obvious target for a drunken bully.

He started by shoving a decorative tree onto her as she was passing. "I am pushing bush on bush," he sneered to other men around him. The Striking Girl didn't say anything – he was a customer. She remained poised and diligently went about her job.

You see, the thing about the hospitality industry in New York City is that a significant portion of waiting, bar-tending, catering, etc. staff consists of struggling writers, artists, actors, musicians – the creative hopefuls. Service jobs are usually divided into shifts and one can combine them into a flexible schedule that leaves time to attend to the true calling. The Striking Girl, as it turned out, happened to be an aspiring writer and a filmmaker, with her first short recently accepted to one of the New York's indie festivals. It explained her composure: she prepares herself to dealing with Hollywood and getting her ego bruised on daily basis.

So, she continued being friendly and pleasant to other attendees. When someone spoke with a Russian accent, she mentioned that she was born in St. Petersburg and was brought to New York as a baby by her political-refugee parents. The Boss's Boss, now never far away from her, heard that. "I have a friend," he said, "he just loves banging Russian pussy."

Next time he caught her in the tiny space of the service station. "Did you come to apologize?" she asked calmly. He thrust his drunken mug into her fragile cheek and responded with,"There is no need for apologies. It's that St. Petersburg love, baby."

Hey, I am a middle-aged broad. I know only too well that chivalry is dead, buried, its corpse rotted into dust long time ago. Still, it's shocking that not a single so-called "man" felt an urge to speak up on behalf of the young lady.

Is this the type of culture Apple Inc. cultivates? Of abusively unrestrained bosses and silent yes-men?

I wonder, how the parents of the Striking Girl felt, when they learned of this incident? Is this the type of democracy and liberty we offer here, in the United States of America, now? Any corporate honcho is free to behave like a dirty animal, while everyone else acts as if their mouths taped shut?

By the way, did you know that corporate execs in public companies get stocks as part of their bonuses? Well, I've sold my Apple stock after that party. The thought that my holding on to them may contribute to the further rise of share prices and one day make the Boss's Boss richer made me sick.

Joke of the Day


Based on an actual conversation.

New CFO: "Half of your in-transit inventory is not recorded on the books, because you have not followed the cost-recognition rules since you started this company six years ago."

CEO: "The books? Which books? Do you mean the Excel spreadsheet we call Order Book?"

New CFO (doesn't know whether to cry or to laugh): "Your books – your financial records! They are not in accordance with GAAP."

CEO: "GAP? What that cheap store has to do with our inventory?"

Insecure Business Owner/CEO


130px-Pointy-Haired_BossPeople write about insecure bosses all the time. There are blog posts, articles, book chapters, cartoons, movies, and TV shows devoted to the subject of dealing with a superior who feels threatened by his subordinates.  Hey, bosses are people and a vast majority of humanity is plagued by insecurities of various forms and degrees. The authors usually predict two possible outcomes of having such a boss: you will either find a way to overcome the problem and turn this person into your ally, or you get fired.  Curiously, in these writings "the boss" in question is usually another hired employee perched on a higher step of the hierarchy ladder.  (It has always surprised me, why these advisers never consider a possibility of you finding the way of getting the insecure boss fired.)

However, when your insecure boss owns the company that employs you, it's a completely different situation altogether.  Here he (or she, or they) was, the big boss with a business that he's built, thinking that he is the shit, the sharpest tool not just in some lousy shed, but in a suburban Home Depot… Until you came along, with your diverse expertise, broad fundamental knowledge, etc.

Now, you start discovering all kind of stupid stuff.  If you are indeed an experienced person, you are not running around like an idiotic show-off screaming that everything is wrong.  No, you tread lightly.  At the same time you must do your job and, therefore, correct the stupid stuff.  So, you say careful things like, "Excuse me, I mean no disrespect, but this and that is not done properly and will result in long-term losses; and, by the way, your accounting doesn't comply with prescribed rules."  You have no choice but to reveal painful observations such as, "You know, that operating system you bought just before your hired me (couldn't you wait?) on recommendation of someone you know, sucks!  You were misled – it's not an ERP, it's a retarded cousin of a real ERP twice removed."

Moreover, from time to time, things come out of your boss's mouth that are not just silly, they are embarrassingly incorrect.  Of course, you can ignore it, and yet you cannot, because if you don't clarify his confusions and educate him, he may say something stupid in front of your bankers, or investors, or auditors.  So, you have no choice but to find an appropriate way to straighten him out, raise his sophistication.

And even though you openly express due respect for his entrepreneurial abilities and acute commercial intuition, he cannot avoid feeling inadequate, insecure.  It's unpleasant and he doesn't like it at all.  Yet, unless you become rude and inappropriate, your job is secure.  The idea of firing you wouldn't even come to his logical conscious mind.  First of all, he knows that the company (i.e. his wallet) needs you and your improvements.  Secondly, you took over quite few tasks, freeing him for business development.   Finally, he doesn't have time or desire to go through the search process again.

Still, from time to time the subconsciousness feels pangs of wounded ego.  When that happens, he'll do anything to make himself feel better.  He will find one or another way to get back at you.  If you have an accent (Irish, Italian, Slavic, French), he will interrupt you in the middle of a meeting and ask the outsiders if they understand at least 30% of what you were saying, even though your English is fluent.  Your writing skills are likely to be far more superior than his, but he will make you run drafts of emails to important people by him, claiming their "political importance."  He may get into habit of reminding you that, considering your compensation, he expects a lot from you, even though you have exceeded all his expectations already.  And so on, and so forth…  

This behavior is childish.  The mere knowledge that it's rooted in his insecurity should help you to brush it off.  Don't let yourself to be hurt by it.  Don't think, "This is not fair, I am helping his business."  Don't take it as an insult.   Accept it as a testimony to your superiority.  

Writing Skills of Ivy-League-Educated Executives


Get-attachmentIt has always been my firm opinion that the quality of education depends on a person not the school he or she attended.  I even mentioned it in a hiring-advice chapter of my book, "CFO Techniques".  And I am always very objective about this issue, giving everyone the same treatment regardless of their educational background.

That said, I am absolutely convinced that one thing the Ivy-League alumni with business degrees do not receive for the price of $220,000 undergrad, plus $130,000 graduate tuition, is an ability to express their thoughts in writing.  Maybe it's because the curriculum is so concentrated on molding the future captains of industry, or maybe it's assumed that with their connections and parental support they don't need to be very eloquent…  Who knows?  But I am telling you, they cannot write to save their lives. 

I must admit, though, that this conclusion is purely empirical, based on my personal experience of written communications with business owners, corporate executives, bank officers, hedge-fund bigwigs, private-equity investors and such.  Ever since emailing became the predominant method of business interactions, the volume of the evidentiary material that supports my theory increases daily. 

And I am not even talking about Columbia MBA's who cannot spell or construct a proper sentence.  Those are extreme cases and I entertain people at parties quoting their pearls.  No, I mean an average, fairly literate Ivy-Leaguer who cannot make himself clear or understand what others write to him.  You know what?  Let me just provide you with a couple of examples.

I explained to my client (Brown + Harvard) that it is not recommended to keep excessive credit-risk coverages for inactive customers because the overall creditability of a particular customer is a finite amount and premiums are affected by your share in the overall limit.  For example, if underwriters established an overall credit power of a customer at $2 million and you keep a $1 million of that, your share is 50%.  Simple, right?  This is what he wrote to his credit clerks to explain the issue.

"We need to review our coverage of each account to make sure they are all appropriate; neither too little nor too much credit. We all understand the former need, as we want to be fully protected while maximizing our sales to each customer. However, the latter is important too, as the insurance company will charge us for asking for lots of insurance for a company and then not selling them anywhere close to that amount. The reason is that we are not the only client insuring our customers and the insurance company have a specific credit limit for each company. This reduces their revenue from their other relevant custs who are restricted in their sales to that company."

Sounds like he was trying to digest the information and make sure that he got it right himself rather than give instructions to employees: what to do and (MOST IMPORTANTLY!!!) how to go about it – which criteria to choose in reviewing the coverages, etc.  And why all these convoluted details?

Sometimes, they don't understand what they read either.  I represented this client (Dartmouth + Yale) in a bank's due diligence audit.  During the process the auditor wrote to him (with a copy to me) the following email:

" G&A was listed separately since we expect to include a detail supplementary schedule of G&A with our conclusions, but we normally do not opine on the supplementary schedules." [underline is by the Frustrated CFO]

This was the CEO's reply (I was copied again):

"…if what you are saying is that you will provide an analysis on the G&A, Marina will certainly be happy."

Well, I am certainly not happy, because that it not what the auditor said at all!  As I frequently say, it would be funny, if it wasn't so sad.