Category: Dealing with People

Business Owners’ Favorite Style of Management


Some people are born with incredible natural aptitude for managing people.  Many years ago I observed a girl on a playground.  She was about 5 years old playing with a group of children the same age.  At one point some play rules, or another important issue, needed to be established, and I was amazed not only by the assertion of authority, but also by the uncanny logic exhibited by this extraordinary little person.  She started with a commanding, "Children, listen to me!" and continued laying out a proposal that nobody has any inclination to dispute.  I remember thinking to myself, "That's a naturally born leader!"

Unfortunately, people like that constitute a small percentage of general population and, strangely enough, they are even rarer among business owners.  Just because someone had a great idea and entrepreneurial drive to establish their own business doesn't mean that they also have sufficient managerial aptitude.  Only few of them had formal business management education and most of them never worked for anybody else long enough to gain on-the-job expertise.  

This pretty much leaves their leadership skills at intuitive level at best.  And if the sixth sense fails them… well, all kind of sad things occur: they cannot see the difference between a pompous phony with an impressive voice spewing well formulated lies and genuinely knowledgeable, but quiet workaholic; they have very little or no understanding of delegation of duties; frequently they cannot even figure out their own roles in the company.  

The most common executive management conundrum such Presidents/CEO's (especially first generation of business ownership) encounter after the enterprise reaches the "established" stage of development can be described as follows.  Their entrepreneurial talents draw their minds to further commercial improvements, to generation of new ideas that will help to expand and strengthen the business.  At the same time, the wonderful feeling of accomplishment plays dirty tricks on them: subconsciously they want to rest on their laurels – they feel that they deserve to work less, to take summers off, etc. etc.  Moreover, since the business is their child that they have born and reared applying their own talents and titanic efforts, they have incredible aversion to the idea of letting other people to completely take over vital tasks of the company's ongoing functionality and maintenance.   

(Side note: I am really tempted to state here that the majority of them are control freaks.  However, I don't have scientific evidence for that, just my own and my colleagues experience. More importantly, it does not make a difference, both obsessive and perfectly balanced CEO's display the same symptoms.) 

You have to agree that this position is absolutely psychotic.  What do they do?  They resort to their favorite style of management – what I personally coined several years ago as "Hands-Off Micromanagement."  

Let me show with this example how this control style may manifest itself. On one hand, the CEO can completely forget that you are working on establishing a $10 million credit line with a new bank, or that you have just upgraded your accounting system to a new version that basically made the entire budgeting function automatic.  But on the other hand, he keeps asking without a fail every month why the Federal Express bill is $2,000 – when he was starting the business it was never more than $100.

I am sure a lot of my fellow CFO's and Controllers have recognized the disease as they have to deal with it and the frustration it causes on daily basis.         

The Ethicist Randy Cohen Talks About Your Boss


You worked real hard day in and day out.  You applied yourself to the very best of your abilities.  Finally, you have reached the senior/executive management position.  Now, you are the CFO, the Controller, the Director, "the right hand," "the most important person in the company without the title" – it doesn't matter what they call you: you've achieved it.  And it's irrelevant that the business is small – in this small pond you are a big fish.Does this mean that now you can tell your boss, the owner of the company, to stop watching porn on your computer after work and leave it on overnight?  Even my favorite columnist Randy Cohen, cannot give you a clear answer in his response to one of our peers' query in June 27th New York Times Magazine - The Ethicist: Porn in the Office.He is trying, though: yes, it is not right that the boss doesn't close the browser, that he leaves it for the next user to see, but he doesn't really do anything illegal either, etc, etc, blah, blah, blah… 

The point is that our dear entrepreneurs do not separate themselves from their businesses.  They treat their place of work as their second home: watching porn, meeting with their friends, letting their kids and pets run around.  This could be a $200 million business you helped to build, but THEY REALLY DON'T CARE WHAT ANYBODY THINKS.  It wouldn't even come to their minds to consider the possibility that somebody may be offended, or simply surprised, by the images on the computer screen.  And it is not about porn.  It's one thing today and another tomorrow – the principal (pun is always intended) attitude is always the  same.

And the unfortunate truth is that no matter how important you are to the company, you cannot criticize them, because they will never forget it.  They will hold the grudge forever, because subconsciously they feel that they are untouchable royalty in their little kingdoms and NOBODY dares to point out their shortcomings.  And if you are experienced and shrewd enough, you will not say a boo (neither would I).

So, here you are, frustrated out of your mind by the unbalance between your professional achievements and organizational position on one side and inability to exercise your personal freedom on the other.  All I can advise you to do at this point is to pick your favorite from my list of coping devices listed in One CFO's Personal Tools for Frustration Relief. That's all you can do.

Executive Recruiter aka Thoughtless Pest


 Let me explain right away that this is not an attack on the entire human resources profession.  There are many thoughtful in-house HR Managers and freelance consultants with whom I worked.  I have no problems with them. 

This is about scores and scores of functionaries buzzing around in international headhunting factories that pretty much monopolize the executive search field – Robert Half, Michael Page, Execu|Search, Ajilon and their lesser competitors.  I kind of hoped that they would be extinct by now.

These pests have neither time nor dedication to understand the actual specifics of positions they are paid to fill.  Even in the pre-internet times, all they ever did was looking for matching items between some laundry lists of requirements and applicants’ resumes.  Did you actually think they read them?  Nope!  It’s a matching game.  Nowadays, they don’t even do that, they don’t even look at CVs.  Now, they’ve got a “cool” software known as  Applicant Tracking System (ATS).  The computer plays the game and just reports the score.    

This insults my intelligence.  It used to devastate me as a job seeker.  It offends me as a hiring executive who goes out of her way looking beyond the resume phraseology for the spark of brightness.  For me hiring was never about check marks.  Recruiting, especially on the senior executive level, is about real jobs and real abilities.     

What I don’t understand is why there is still demand for their services?  Why people are still willing to pay $30K-$100K for a “good enough match”  that rarely produces satisfactory results?  People tell me that they see the same job postings for six, sometimes even 12 months.  Are you kidding me?

Don’t employers know that for a very reasonable fee they can post their ads on job boards such as Monster, CareerBuilder, The Ladders, where all job seekers look?  They can be even more effective (still for a very reasonable fee) and use those boards’ search engines to access thousands of resumes.  It may be time-consuming, but trust me, it has higher value/cost ratio.

Eliminating recruiters from the market would make the job boards’ fees even more competitive.  Meanwhile, they are polluted by big-name ads.  With this post in mind, I took a quick look.   It seems that nearly 80% of postings are coming from just four players.  And the “Requirements” are so similar – they must be copied from the same template.  I am sure they enjoy big discounts too by getting the bulk deals.

With so many people presently out of work, the stories of headhunter encounters just pouring in.  Some of them are so fascinating, they can warrant their own feature posts.  However, there is a striking similarity in all of them – the notion of mindless attitudes and inconsiderate actions.  It appears that like doctors, who have seen so much pain and devastation, they became absolutely insensitive to other people’s anxieties and worries, the recruiters also forgot that they deal with live human beings.  

Well, I am not dealing with them.  How about you?

How Far Can They Push Us?


The post about infringement of freedom in the workplace generated further discussions among my peers. 

Some people actually said that I made them very depressed by putting into words realizations they try to avoid.  I would like to remind these people that the Welcome page of this blog, Reason to Share, clearly expresses my belief that sharing frustration gives us therapeutic relief.

Others felt that my "uplifting" statement that one can always quit was clouded by the suggestion that most CFOs and Controllers cannot afford to do so.  Indeed, I keep talking about how difficult it is to find a CFO/Controller level job nowadays.  That's why I don't suggest quitting without lining something else up or having sufficient funds to keep yourself afloat during the job search.  The truth is, you need to establish an emergency fund anyway – as I always say, there is no such thing as job security for anyone in this new world.

But let me tell you from my own experience, there comes the time when you just know you cannot deal anymore.  You are so frustrated, anxious, depressed, angry and hopeless, you cannot breath.  No matter what you do to get a grip, it feels like your balance is slipping away.  If that's the case, it is time to make your move, because otherwise the suffering is going to destroy you either psychologically, or physically, or both.

I have many stories about people pushed too far and, hopefully, I will be able to tell them here at one or another point.  However, for this particular post I decided to use, as means of a more familiar illustration, a Hollywood classic by Billy Wilder – "The Apartment" (1960). 

The main character (forever great Jack Lemmon) is not a CFO or a Controller, but he is an ambitious person and the gist of the story is very relatable to subordinate employees on all levels.  You see, he really wants to climb the career ladder.  So, he lets the VPs to use his apartment for their extramarital encounters.  He even lays out snacks and liquor for them to enjoy. 

When he allows himself to be convinced by his boss to leave his apartment on  a rainy Christmas Eve, he is angry and frustrated, but he keeps his mouth shut.  And finally he gets that "big promotion" he'd wanted.



Jack's character falls in love with the elevator girl.  He doesn't know that she has been to his apartment with one of his bosses as well.  When the moment of truth finally comes, he feels so overwhelmed, he realizes that he cannot be a doormat anymore.  The time has come to be a human being.



So, gives up his job.  Of course, as in all Hollywood fairy tales, he gets the girl (an adorable Shirley MacLaine) as a reward for his courage.  But it does not matter: rewards or not, everyone has their own threshold of pain tolerance.