Category: Practical Advice

Response to a Reader’s Question: Take a Position Abroad or Stay Home?


One of my readers, a fellow female CFO, have sent me an email asking for an advice on the following dilemma she is trying to resolve for herself:

"Hi Frustrated CFO

Please advice.

I'm at a crossroad between choosing to work as a group cfo in overseas subsidiary in US or stay in home country (malaysia) and becomes a group cfo of a division.

Both has its merits and demerits but i'm a woman and study shows that most women do not end at top spot without sacrifice. My family and I would have to sacrifice more if i choose to go overseas. My husband need to put his business on hold and becomes a house husband for a while until we settle down. Its good for the kids as they will go to international school and gain mastery in english language.

Staying in home country is not bad either. I will be in a familiar condition, i will gain new exposure, nothing need to change and i can send my kids to good schools at a higher fee.

Most people will say that experience abroad will change how people perceive you as a leader and thus this will give you greater opportunities within or outside the group.

What do you reckon?

Thank you.

Rgds
Anonymous"

Honestly, it is apparent to me that deep in her heart Anonymous knows very well that, professionally speaking, the best thing to do is to take the job overseas. I always said that a career CFO or a Controller needs to view every job as a line on her resume. Nothing more and nothing less. And what can make a better resume entry than a position showing that your knowledge and expertise are viewed to be unmatchable by a local talent pool in a foreign location? This is a great stepping stone in anyone's career development.

Men don't even think twice about opportunities like that, family or not. But women are naturally more considerate creatures. Many of us try to achieve an impossible balance between professional careers and personal lives. This requires a lot of trade-offs – you cannot possibly have everything. You want spend more time with your kids than you can. You don't want to be too tired for your husband. But, at the same time, your career is a source of income and, more importantly, social independence. The last thing a strong woman wants is to give that up.

I am also a strong believer in exposing children to foreign cultures. It broadens their horizons and sets them apart. Most professional parents do it through traveling and student-exchange programs, but here is a fortunate opportunity of a complete immersion. It would be a shame to pass on that.

So, the only real difficulty is the husband. Is it fair to ask someone to put their business endeavors on hold for the sake of perpetuating your own career? It's really a very private issue that depends on individual personalities, and it can be blown into a very complex problem. However, in my opinion, at the end of the day, it comes down to two major considerations:

1. What will guarantee better financial future for your family as a whole? We are financial professionals – we know how to count. Estimate the future values of each possibility.

2. What will secure the psychological stability of your family? If you are excited about the overseas opportunity, but decide to stay home for the sake of your husband, will you subconsciously hold it against him? Will you let the resentment corrode your marriage?

If you can honestly answer these questions, it will ease your decision-making process. I promise.

I invite other readers to express their opinions on this subject in their comments.

Strategic Planning vs. Crisis Management


“Harry Potter and the Deathly Hallows: Part II” (written by Steve Kloves, based on a novel by J.K. Rowling’s):

HARRY POTTER

We have to go there, now.

HERMIONE GRANGER

What? We can’t do that! We’ve got to plan! We’ve got to figure out —

HARRY POTTER

Hermione! When have any of our plans ever worked? We plan, we get there, all hell breaks loose!

And that, my dear readers, in a nutshell, is the principal difference between the two action-plan extremists.

In the red corner, equipped by multipage projections with color graphs and tables, are those who believe that strategic planning is the only way of life and one must ponder and weigh every situational possibility before taking any step forward (or backward). In the blue corner, wearing their firefighting suits with confidence and valor, are those who are convinced that when the shit hits the fan they will be able to immediately assess the entire spectrum of life-threatening circumstances and successfully handle the crisis.

Any kind of extremism is bad, kids, m’kay? In religion, politics, personal views, and business management. Different situations require different approaches. Only a balanced combination of executive instruments, including long- and short-term plans as well as emergency-response methodology, can guarantee an enterprise’s ability to efficiently evolve and weather any dangers that constantly arise in the volatile commercial environment.

In my book, “CFO Techniques”, I have devoted an entire section (Part VIII) to strategies and planning as crucial components of CFOs’ and controllers’ functionality – the important responsibilities that change financial managers from bean-counters to CEOs’ executive partners. Participating in analysis of opportunities and construction of well-devised action scenarios offers us a possibility to affect companies in the most significant way. Remember, that those executives who let companies run their course without looking into the future and carefully plotting their steps for further development, leave the businesses vulnerable in the face of the fast-advancing competition.

On the other hand, crisis management efforts applied in situations that present themselves without any warning are of extreme importance as well, particularly in small and midsize businesses, which are highly susceptible to the slightest deviations in market, financial, economic, and political environment. Moreover, these companies frequently have less than sufficient reserves to tide them over tough times. Implementation of a disaster-rescue mission requires high level of composure and rationalization. Those who’ve read my “About” note know that I consider my “fire-fighting” skills to be the most valuable to my employers and clients.

It is a mistake to think, though, that even a very experienced CFO can wing it without contemplating some sort of advance “what-if” scenarios. In fact, a crisis management policy is just another form of a strategic plan. On top of that, proper preparation for emergencies requires broader expertise and deeper knowledge of various commercial, marketing, technological, financial, legal, and organizational matters.

The truth is that a successful executive must be capable of devising a carefully-weighed and calculated strategic development plan with all visual bells and whistles her digital arsenal can afford, but in her special folder she always keeps a set of comprehensive tactical procedures for effective extinguishment of fires and post-disaster survival.

CFO Folklore: Defensiveness and Excuses


Coyote-Canis-Latrans-Puppy-28811856-0 It's funny how we, humans, manage to degenerate powerful natural instincts into regressive psychological traits. Look at that little coyote pup.  Something has attracted his attention.  He is in full alert, assessing the situation, deciding if its dangerous; ready to fight or flight – a perfect display of a healthy defense mechanism crucial for survival.  

People are granted the same insitincts.  Of course, those of us living in "civilized" conditions are rarely presented with real danger.  On the other hand, mentally we are constantly put to test.  The instincts are pushed into psyche, and there, they deteriorate into Freudian ego defense mechanisms, which can get neurotic and pathological.

CFOs and Controllers deal with defensiveness and rationalization (aka making excuses) all the time.  People become defensive at the slightest hint of criticsm, which frequently exists only in their imagination.  They don't understand that instead of helping them to survive, this degenerated mechanism makes them more vulnerable by exposing their insecuruty, fearfulness and anxiety.

A few years back I had an employee who was the best expert of trade finance documentation I've ever met.  At the same time, he was an incredibly difficult person.  Eventually I found out that this guy had a misfortune of being raised by an extremely critical adoptive father.  As unlikely as it sounds, in the early 80s, just 20 years old, he got hitched to a woman who hated everything about him.   As the result, he developed a severe case of defensiveness. 

Just invinting him to my office to discuss a business issue was enough to put him into a state.  Walking into my door, he already looked like an angry animal forced into a corner and ready to bite.  It would usually take me at least ten minutes of casual small talk to bring him back into normality, before I could address the matter at hand.

Of course, on few occasions I needed to point out a mistake or an inaccuracy.  What a nightmare! He wouldn't let you finish the first sentence: "I am swamped!  You gave me too much work!  It is impossible to deal with that bank!  I will not let you blame me for this!  " he would shriek, even though it was never about the blame.  His desire to shield himself from the imaginary threat was so strong – like a child, he would cover his eyes with his hand, avoiding your eyes.  He looked helpless, pitiful, and guilty.  Most importantly, the problems remained unresolved.  It was really painful.

Here is my advice: don't get defensive when you are criticised, justly or unjustly.  Listen.  Think.  Evaluate.  Maybe you will hear some constructive insights.  Maybe you could have done something differently and achieve better results.  Recognizing that will give you an opportunity to (1) disarm your opponent by owning up to your mistake and (2) find ways to avoid this situation in the future.  At the very least, you will save yourself from an emotional sparring match that cannot resolve anything.  Trust me.  I've been there – on both sides.

Job Search: The Reality and Heartaches of Downshifting


Stock_overqualified158x188 Here is the testimony to the current job market condition: the necessity-driven "downshifting" (taking a position below your lever of qualifications) has become so prevalent that HR consultants start addressing the issue as a separate subject with specific advices on how to do it successfully.  There used to be times when some over-50 empty-nesters wanted to lighten their workload and spend more time at leisure, so CFO's switched to consulting, and stuff like that.  Now, we are talking about highly-experienced middle-aged financial executives unsuccessfully trying to get whatever jobs they can in order to put food on the table and continue to support their post-college children, who have no chance of getting a good job either.  It's heartbreaking!!!

I always had a problem with the concept of "overqualified" candidates.  It goes against all commercial, practical, and common sense – why would anybody say "No" to buying a diamond ring for a price of a cubic zirconia?  Why wouldn't employers want to benefit from high-level expert if he is willing (moreoever, eager) to take a much lower position and pay than the ones he used to have?

The official explanation (especially, if you talk to recruiters at Robert Half, or ExecuSearch, etc.) is always (it's like everything changes around us except for the stupid banalities) that employers don't want to take the risk of hiring someone, who will be immediately looking to leave for a better opportunity.  This outdated explanation begs three responses. 

First of all, nowadays the process of looking for a job is unbearably excruciating.  Anyone who finally finds one is so relieved and enthused, he wouldn't want to continue that struggle for sometime (especially, if his attempts may leak through the Internet and jeopardize the position he already got). 

Secondly,  where are those better opportunities? The whole point is that there are no opportunities.  I remember after the Internet bubble burst, let's say 2001-2002, an opening for a controller position could generate 300-350 good (not garbage) responses.  It was terrifying.  Today, there is a thousand of unemployed financial pros for every CFO, controller, director or VP ad. 

Finally (and most importantly), even if the person leaves soon, what about the cost/benefit analysis of the time he does spend in the company?  Why wouldn't an employer want to sponge a superior knowledge off of him at a lower price?  Is it because the company still uses the outrageously expensive recruiting services?  Well, then the agreement should be negotiated in such a way that no fees are paid until the break-even grace period passes.  And anyway, people should stop wasting their money on recruiters altogether.

But we know that this explanation is bullshit.  In reality, no matter how beneficial it is for the company, CEOs and existing CFO don't really want the brightest and the most knowledgeable person in the position.  They want the non-threatening and obedient, know-your-place employee.  Especially the CFO – what if the newcomer turns out to be better than the present loser (only losers feel threatened by someone strong; winners have nothing to fear).

Anyway, this issue is so prominent that on August 26 Finance Ladder published not one, but two career advice articles on the subject: Getting the Job When You're Overqualified and Packaging Yourself for a Smaller Role, both by Sean Gallagher.  Here is the best quote:

"…Finding a job – even one that pays significantly less, with less responsibility — is still a challenge."

There are some interesting observations and advices as well.  Nothing groundbreaking – most of it you can figure out yourself, but still it may be a useful reading not only for those who are looking now.  Because it is not going to get any better.  If you are employed now, it does not mean you will have a job tomorrow.

         

Trying to Impress by Talking Too Much? Ur Doin It Wrong.


Images-1 Life screws with people: neglectful parents, inconsiderate spouses and partners, selfish children, boorish bosses, and disdainful co-workers create scores and scores of attention-deprived people desperately seeking approval.  Most frequent manifestation of this subconscious desire is excessive, out-of-place talking – lengthy stories with self-boosting subtext. 

This type of behavior is usually classified as social awkwardness.  I don't know a single person capable of keeping a grip on himself under any circumstances.  Once in a while certain conditions come together and something activates the stupid switch even in the most brilliant people.  I've seen some pretty impressive humans falling into this mode during lectures, important meetings, fundrasing parties, and social gatherings. 

During 2010 New York's World Science Fair, I attended a panel Consciousness: Explored and Explained with the screenwriter Charlie Kaufman (Being John Malkovich, Eternal Sunshine of the Spotless Mind, Adaptation) and the neuroscientist Giulio Tononi.  It was monitored by the actor and director Alan Alda (better known as Hawkeye Pierce of M*A*S*H) – a fairly smart guy who got close to popular science by hosting PBS's Scientific American Frontiers.  One concept that Giulio Tononi has described was too much for Mr. Alda to grasp.  He restated the scientist's words once, was corrected, then again, and again.  Finally, he realized that he wasn't getting it, but he couldn't help himself – he kept talking, and talking, and talking…  

Hey, sometimes I catch myself doing it and thinking, "What's going on?  Why am I relating my interpretation of A Streetcar Named Desire to this uninterested person?" But only very self-aware people are capable to recognize the symptoms and stop themselves.

Consequently, the degree of this affliction widely varies.  In some people it gets triggered by a selected audience (sometimes even one particular individual), or specific circumstances.  I had a sort of a paralyzing effect on my boss of two years ago.  He would be acting his aloof self around everybody else, but every time he would come to my office, he ended up ranting.  Eventually, I became wary of starting even super-important discussions with him.  It was always, "Let me tell you,.." and we would be off on an absolutely irrelevant tangent.  At one point he was telling me that he shares a surfing coach in East Hampton with Gwenyth Paltrow and Chris Martin.  I kept thinking to myself, "I am not impressed, dammit!"         

In many people this trait blows up to extreme proportions: people simply cannot stop themselves.  They don't need any special circumstances or triggers – they grab every chance they get to talk, even if they have nothing to say.  In public these people are usually extroverted, talking non-stop.   The overwhelming popularity of Facebook and Twitter is the testimony to the pandemic proportions of verbal diarrhea.

In social situations you can simply walk away, or turn your phone off to stop seeing three tweets per minute.  However, you cannot do the same at work.  You have to deal with it one way or another.  Ok, so not everyone can find the right way to tell their bosses to shut up.  And my advice – don't do it.  Even if it seems that you've done it in the mildest way possible, they never forget it.  And, as we all know, no one can hold the grudge as long as bosses do.  On the other hand, when it comes to your peers or subordinates, the issue must be addressed if it interferes (and it does) with the normal course of a meeting, an assignment, or a working day.

The best way to approach it is with a friendly private talk.  Most likely the person is not aware that what he is doing is an obvious display of insecurity, and that people recognize it as such.  Explain to the person that he achieves the exactly opposite results: while trying to impress and seeking approval, he gets co-workers and supervisors annoyed.  To earn this person's trust, you can share your own experience in similar situations (just like I did here).  Most importantly, tell them that the best way to make a difference and get appreciated is by doing the best job they can.