Tag: controller

The Frustrated CFO Takes Lessons from Karl Pilkington


Images Karl Pilkington of Ricky Gervais Show and An Idiot Abroad has nothing to do with CFOs and Controllers.  Nevertheless, his unconventional wisdom, profound understanding of how bizarre life is, and unwavering ability to stay calm, deserve recognition in this blog.  After all,  the majority of issues we discuss are related to coping with the overwhelming strangeness of our professional existence, and human behavior.   Moreover, we look for the ways to get rid of our anxiety and frustration, and Karl has a good grip on his emotions and an admirable attitude towards life.  Watch the video at the the end of this post and you will see what I am talking about.

It is difficult for over-educated and jaded people like us, who spent their lives doing what was expected, to take lessons from someone who accepts life as it comes and is not afraid to voice his unusual opinions.  Karl Pilkington possesses the truthful innocence that we either never had or lost in the early stages of our childhood through severe parental and educational brainwashing.  Nevertheless, considering how frustrated most of us are with our lives, we should definitely try.  So, here are five lessons The Frustrated CFO draws from Karl Pilkington's wisdom.  None of them are profound breakthroughs and you probably knew them to be true already.  It's just that we frequently forget these truths, while Karl lives by them.

1.  If you keep your cool and don't refuel attackers, they stop pretty quickly.  We see Ricky laughing at Karl's every sentence, calling him names, etc.  Karl just sits there with Zen calm, not even smiling, or saying anything back.  The attack dies very quickly.

2.  If you don't retaliate people's insults, you automatically get yourself on the sympathetic side of the argument.  Ricky calls Karl an idiot, an empty-headed buffoon, etc.   We never hear a single crass word back.  So, what happens?  People say that Ricky is "soooo mean"  and everyone loves Karl.

3.  If you criticize a group of people instead of attacking a particular individual representing that group, it will have a much better effect.  When you address faults of one person they get offended and stop listening.  When you speak about shortcomings in general terms, people think its not about them, but subconsciously may recognize their own traits.  Karl never says "my doctor," or refers to his local Chinese restaurant.  So, instead of attacking an employee whose lack of urgency drives you insane, or throwing accusations of oppression into someone's face, we should find a right moment to talk about laziness and bullying in general.

4.  You can speak your mind and cover up your harshest statements with innocent humor.  Of course, this one is hard – not everyone possesses a sense of humor, but I found for myself that a smile alone goes a long way when you make severe statements.

5.  This is the hardest lesson to learn.  If you manage to unclog your mind of politically correct, pre-programmed bullshit, you can unlock free-thinking abilities that you didn't suspect were inside your head. 


 

Job Search: Ageism


Age discrimination is an undeniable fact of our lives.  Young people are never taken seriously as customers, clients, health patients, philosophers, business developers, etc.  On the other hand, media, entertainment, advertising and marketing adore youth.  And one thing is sure: their "young" status is going to change.   Discrimination of older people even more pervasive and they don't even have a benefit of hoping for improvements. 

The problem is particularly acute in human resources.  The age discrimination is at its worst when you are searching for a job, or expecting layoffs, or know you may be deemed too expensive.  

 According to a research quoted in The Gale Group's  Small Business Encyclopedia, over 52% of surveyed executives admitted that age is one of the key factors in job searches for people 47 years old and up.  What do I think about that number?  The other 48% lied.  Age is ALWAYS a factor. For one or another reason, when we hire people we take their age into consideration.  So, we should accept that, when the tables are turned, we will be treated the same way.

I have to own up to the fact that while wearing the CFO's hiring hat, I automatically estimate the age of applicants.   I don't care about their age per se.  I do it to quantify their accomplishments against the length of their careers.  It helps with assessing their work ethics and personal ambitions.  

Other hiring managers and recruiters don't even have a justification like that.  They just go, "Too old," and send the resume into Trash.  With the job security becoming a myth of long-forgotten times, more and more middle aged people will be forced to enter the circles of job search hell.  This possibility practically hangs over everyone's head in the world of vulnerable small-size businesses.

Having that in mind, I would like to share with you an extremely useful The Ladders' article on adapting your job search, your professional "brand" and your resume to your age: Job Search in Your 20s, 30s, 40s, 50s and 60s.

By the way, is it just me, or have you also noticed the funniest thing (I am not laughing) that's happening in our media?  The "official"economists, major newspaper analysts and politicians are trying to convince us that the recession has ended months ago and we are "recovering".  Yet, every article or post related to job search and HR issues contains a phrase "especially in this economy" and you can almost hear the author's sad sigh.  

I think the old terminology of recession, recovery, economic conditions have lost their meaning.  People just don't want to admit it to themselves, because, as I frequently say, they are afraid of changes, especially changes for the worse.    The phrase "this economy" gives a false hope of a better future.  The truth is – we live in a NEW REALITY.  This is the "recovered" state.  Things are only going to get more difficult.  Everyone should be prepared to face job search ordeals in their 50s, 60s, and beyond.

Female CFOs and Controllers: Are We Equal?


March 8th, 2011 marked the 100th Anniversary of International Women's Day.  

I have to confess my aversion to such holidays.  Why do we need designated days to appreciate mothers, fathers, love, Earth, women?  It's like we treat them badly all year long and then try to make up for it in a single day. 

The Women's Day also troubles me because of its Socialist origins.  However, it provides an opportunity to raise issues of social and professional inequality.  If we have to choose between one day of awareness vs. none, of course, one is a better choice. 

Especially, if A-list stars like Daniel Craig and Judi Dench commemorate it with a video for Equals? partnership.  Watch it: Dame Judi spends two minutes reciting statistics of global-scale injustice.  It's important, but may create an illusion of remoteness.  When she says that women perform 2/3 of work, but earn only 10% of income and own 1% of property, surely, it accounts for all those "other" countries. 

Well, are we equal to our male counterparts here, in corporate America? 

Let's see.  The pay gap is still 19%.  Let me spell it out: a female CFO or Controller will make 81 cents against a dollar earned by a man in the same position.  Among the Fortune 500 companies,  only 9% of CFOs are female.  The same goes for Midcap 1500…  Enough of this lifeless statistical data.  Let me pull few examples out of my personal experience folder.

The brightest auditor I've known was assigned to my books by the CPA firm I've engaged about eight years ago.  Every time I praise her to the senior partner, he tells me that she knows ten times more than he does.  At one point I asked, when she was going to make a partner?  The answer was, "Well, the company never had a female partner before…"    

For many years I've been invited to participate in executive focus groups.  Banks are particularly interested in researching opinions of CFOs, Controllers and Treasurers.  There is never more than 25% of women in a group.  Once, when the subject was Board of Directors' accounting awareness, I was the only female participant.

Speaking of BODs, during internet bubble I worked for a high-tech start-up backed by venture capital.  The investors had their hands in a lot of businesses, which forced them onto a merry-go-round of board meetings.  They were freshly surprised every time I presented monthly results.  All other investees had male CFOs.

Five years ago I was asked by my boss to give up my CFO office for a newly hired COO.  What made this person more important than me?  Nothing at all, except for his gender.  The boss said, "I just cannot put him into a smaller office."  Really?  This big shot spent most of his time just staring out of the window.

Notice how cleverly the Equals? video is set up: even though M is 007's boss, she would never get away with shenanigans that make James Bond so endearing to the world.  So, no, we are not equal. 



 

CFO Folklore: “The Servant of Two Masters”


440940251img1_mediumTwo-headed bosses are common when people work for businesses founded by relatives, which, I am sure, can be a source of fascinating undercurrents and rivalries.  I invite my readers to share relevant stories.

I, on the other hand, worked (more than once) for equal partners who were not related.  Each of the duos consisted of individuals so different, it was a miracle they stayed in business together.  As a CFO, forced into the middle of the co-owners dynamics, I was able to observe common behavioral tendencies in the bosses themselves and people around them.

Business partners' alliances are usually symbiotic.  One is an idea generator, the other is an implementer.  One is brains, the other is money.  One can close a deal in seconds, the other makes sure the company performs.  They always complement each other, or they wouldn't be in the trenches together. 

Either will squeeze all juices out of you, and yet their personalities differ just as much as their abilities.  One is usually more diplomatic, better with people, logical, frugal.  The other is brash, careless, erratic, a lavish spender.  They don't see eye to eye about the majority of business issues and frequently talk to their CFO or Controller separately, presenting contradictory positions.

260 years ago, in "The Servant of Two Masters," Carlo Goldoni depicted the delirium of working for two employers who try to find each other without knowing they live in the same hotel.  Sounds familiar?  Poor Truffaldino is so anxious, he develops a stutter.  Imagine the hilarity!  Well, at least he got double wages.  When your single-salary job depends on maneuvering two conflicting bosses, you don't feel like laughing. 

Most people end up aligning themselves with one of them.  Sometimes, it works out in a natural way: if one owner oversees Production, while another spearheads Sales and Marketing, it is obvious where VP of Ops and VP of Sales allegiances will lie.  

Even when it's not clear-cut, people have a tendency to navigate with their issues toward the boss who is perceived to be "nicer," regardless of his preparedness to make relevant decisions.  As the result, you may end up with a wrong solution, or the issue is brought to the other owner's attention anyway; only now he knows that you tried to bypass him.   Either way, you are screwed.

CFOs and Controllers should not form any alliances when they work for two partners.  When monetary matters are concerned, both must be kept in the loop.  In super-important cases, get them into the same room, whether they like it or not.  I am known for bringing bosses into the office from their summer residencies in the middle of July, when I had to.

Of course, you have to earn your right to do so with hard work and authoritative success.  You also need to be very diplomatic with both of them – either must think you prefer deal with him and inform the other out of courtesy.  It takes Machiavellian skills to boss the bosses.  Otherwise, you will end up stuttering, like poor Truffaldino.

We Are All “Up in the Air”


MV5BMTI3MzYxMTA4NF5BMl5BanBnXkFtZTcwMDE4ODg3Mg@@._V1._SY317_ Back in the Fall of 2009, when "Up in the Air" was released, I didn't see it, but people told me I should have.  I watched it the other day.  Wow!  It is not just an excellent movie and the most realistic piece of American cinema I've seen since 2005.  It is also a gold mine of occupational themes that hit so close to home, it's unreal.  You know, the subtle truths about corporate existence, which are so familiar to those of us, who have been boiling in that soup their entire lives.  Thank you, Jason Reitman!

Our new economic reality of depressed businesses and desperate people serves as a recognizable background to the personal stories unfolding in front of us.  The uncertainty of survival in the contemporary corporate world is so pervasive, nobody knows what tomorrow shall bring.  "Living in the Now" is not a conscious choice of enlightened individuals anymore.  Whether a CFO or a receptionist, in companies large or small – every wage-dependent person lives one day at a time.

As the matter of fact, George Clooney's character, Ryan Bingham, is sent to large companies.  These companies can still afford to hire an outside firm to conduct the "separation" exercise for them, with fancy folders and severance packages. 

In small business environment, even during the best of times, you wouldn't think of spending money on protecting yourself from the brutal necessity of firing people with whom you worked side by side.  As a CFO/Controller, I've had my share of sitting across the table in a conference room, looking into a person's eyes and delivering the bad news.  I developed my own style as well: do it gently, make them feel better, give them hope…  Some even thank me at the end.  Just doing my job, like Ryan Bingham.

He, actually, works for a small company owned and managed by his boss (Jason Bateman), who (how typical!) changes his mind about the company's direction three times in a few depicted weeks.  Ingeniously, the filmmakers reduce smooth and dashing George Clooney to a powerless subordinate: his entire way of life is about to be changed by his boss's decision and there is nothing he can do about it.  "…Here's the boat?.. Do you want to be in the boat?"  You are either in or out.  You have no choice.  You swallow your pride and you go along.  Just doing your job.

What are we doing?  How do we go on and live with ourselves when we fire someone who is good at his job?  How do we sleep at night after dismissing hundreds of hopefuls' resumes?  And what happens when our own resumes get swept into trash?  Do people feel anything at all?  Those are our hopes that get dismantled.  Do we register the weight of what we do?  I don't know.

Everyone's life is up in the air, with no help coming.  Help ourselves? We can try to stay positive and continue struggling on – that's the best we can do.