"When men are pure, laws are useless; when men are corrupt, laws are broken."
Benjamin Disraeli
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"When men are pure, laws are useless; when men are corrupt, laws are broken."
Benjamin Disraeli
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It's the Oscars week. You cannot escape the promotional hype unless you cut yourself off from all media.
The movie leading in the preliminary rounds (Golden Globes, various Guilds, etc.) is "The Social Network." It's not surprising - the popularity of this movie is rooted in public's preoccupation with sudden success and overnight rise to riches.
Well, the reason for me to write about this film is that I cannot miss the opportunity to discuss a character, who in 2004 thought of himself as a CFO of Facebook.
When Mark Zuckerberg appointed Eduardo Saverin to be his CFO, it was a logical step for the 20-year-old code-writing CEO. Saverin was a close friend; appeared to be versed in business matters; more importantly, he had personal funds, having just made $300K through savvy oil investments. Is this enough to make somebody an acting CFO? Of course, not. However, one could have learned how to be one. It was not the case here.
If nothing else, the movie provides vivid illustrations to what a real CFO should NEVER-EVER DO.
1. The first thing that Mr. Saverin did wrong was not taking his appointment seriously. He did not bother to define his role, his functions, his practical responsibilities. If you are not creating the product itself, you should be doing other things that make you irreplaceable.
2. When you accept CFO position, you become your CEO's partner. That means you develop common vision, you define company's mission. When it's finalized, you shove your disagreements aside and you do your best to facilitate the success on the chosen path.
3. You NEVER separate from the company. All experienced CFOs know that things can happen behind your back even if you seat in the next-door office. If you are on the opposite coast and out of touch, consider yourself out.
4. With startups, you should always try to utilize your company's growth potential to the fullest and then capitalize on it. If Mr. Saverin wasn't so arrogant and argumentative, he most likely would realize that online advertising brings real money only on a big scale. Hence the right strategy was to look for more investors for the company growing with an astronomical speed. Instead, he wasted his time setting up appointments with advertisers.
5. If you want to stay with the company, you shoud NEVER do anything to damage it out of spite: closing accounts, calling the cops - that's just wrong.
6. And you ALWAYS, not just read, but study every single legal document you sign.
Following the film's paradoxical leitmotif of an awkward kid creating the largest social network on this planet, the filmmakers suggest that Mark Zuckerberg pushed Mr. Saverin out of Facebook, because Eduardo got accepted into The Phoenix Club at Harvard.
"You may say that I'm a dreamer," but I want to believe that Mr. Zuckerberg and people around him realized they have no use for someone who couldn't contribute into the exploding enterprise's development. Just screaming all the time, "I'm the CFO," doesn't make you one.
Posted in Business, Movies, Entertainment & Media, Nature of the Job, Professional Recommendations, Respect | Permalink | Comments (0) | TrackBack (0)
Tags: "The Social Network", business, CFO, CFO's job, CFO's responsibilities, CFOs, Eduardo Saverin, Facebook, Mark Zuckerberg, Oscars
I have no clue how those big-time CFOs, with seven-figure salaries, manage to get fired for screwing up and immediately land new jobs. It's like, their skins are coated with teflon and nothing sticks. And that's fine. May be they deserve such recognition. Most definitely, the companies who hire them deserve what they get.
Those CFOs and Controllers who toil in smaller companies, rarely get fired for poor performance. If they are knowledgeable, diligent and hands-on, they don't screw up. Yet, no matter how hard they work, they can loose their jobs. The owner retires; or someone makes him an offer he cannot refuse; or, despite everyone's best efforts, the business goes under. Very rarely one of us gets fed up with the abuse and quits on his own - I know a few brave people.
Well, nobody waits for the unemployed small business CFO or Controller with a new position. Nobody knows who he is. There are nearly 6 million companies with less than 100 employees in this country. Recruiters have never heard of them. So, this erudite, experienced, smart and loyal professional is thrown into the grinding machine of job searching, where every CFO/Controller listing generates thousands of responses.
It turns out, the trickiest part of the small business CFO's job search is the references list. Of course, you've got your connections - bankers, auditors, attorneys. There are former coworkers and subordinates who will be happy to speak about you. You compiled a two-page long list of excellent professional references. But... it fails.
Why? Because there are no "supervisors" on the list. Well, technically, if you are a real CFO, no one supervises you. The only person (sometimes, there are two) between you and the higher powers of the Universe is the Owner/CEO. And how many of them did you have in the past 15 years anyway? Two? Three?
In some instances, they are still reachable and you have permission to use them as references. However, most of the time... Who are you going to use? The one, who sold the company and went back to Thailand? Or the guy who has been hiding from creditors and changed all his contacts?
Now you have this prospective employer - another privately-held company. You passed all interview levels, including the owner. He seems to like what he is hearing from you very much. At the end, he asks,"May I have your last boss's number?" Didn't you just tell this guy that you were cheated out of your annual bonus at that job?
Here is my advice:
This is the best you can do.
Posted in Bosses, Business, Job Search & HR, Practical Advice | Permalink | Comments (0) | TrackBack (0)
Tags: boss, bosses, CFO, CFOs, Controller, Controllers, job interview, job search, references, small business
"Income tax returns are the most imaginative fiction being written today."
Herman Wouk
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There are some quite popular workplace sitcoms on TV right now. NBC seems to be leading the pack with 30 Rock, Parks and Recreations, and the subpar remake of Ricky Gervais's funny British import, The Office. Also, pretty much all crime-fighting dramas, police and legal procedurals - all the Law & Order's, the CSI's, etc, use colleagues' dynamics as integral parts of their storytelling.
Hence, the selection of TV coworkers with various annoying traits is vast. Yet, it's the character created by a brilliant advertising firm Duncan/Channon, who deserves the title of The Most Annoying Coworker: Frank - the self-aggrandizing customer service rep of Esurance, who requests to be called The Saver.
This guy pushes credit-hogging into ridiculous territory by claiming Esurance's standard on-line quoting feature to be his personal achievement. The insurance company's website states that Frank's "antics often produce groans from his coworkers." Well, that's mildly put! He annoys the hell out of them! I am sure the viewers exposed to people like that in their own workplace loath him as well.
Drs. Brinkman and Kirschner (check out their book Dealing with People You Can't Stand on my list) would classify Frank as a "THINK-THEY-KNOW-IT-ALL" type. He is someone whose desire to be appreciated has degenerated into uncontrollable attention-seeking behavior.
It is one thing to deal with your own peers acting like that. There are just a handful of C-level employees in a smaller company. Exposing someone who is a phony is not that difficult as long as you can restrain yourself from hysterics and resist the temptation to rip his head off. Let's say they take credit for your idea. Don't argue, instead start asking detailed questions. Even better - suggest that they should spearhead the further development. See what happens.
It is far greater responsibility, my fellow CFOs and Controllers, to stop someone like that from demoralizing your staff. You should be able to recognize such attitude in people who work for you. Your ear should be able to detect exaggerations, lies and false claims of accomplishment. When you do, you must act.
Of course, the simplest way to deal with the problem is to fire the pest. However, Esurance's Frank, for example, is a very good CSR and customers like him. Instead of throwing him out, you need to TRY TO REFORM him:
1. He seeks attention - give it to him. If he is good enough for you to keep him, make sure that you praise him for his excellent work.
2. At the same time, return stolen credits where they due and acknowledge other employees for their achievements without embarrassing the person in question.
3. Have a one-on-one talk with him, explaining the impropriety and foolishness of what he is doing.
4. If none of it works, you may be forced to expose him during, let's say your staff meeting. If that's what you need to do, refrain from harshness.
Most importantly, don't forget to use your favorite method of frustration release. Trust me, you'll need it.
Posted in Business, Dealing with People, Movies, Entertainment & Media, Nature of the Job, Practical Advice, Subordinates | Permalink | Comments (0) | TrackBack (0)
Tags: annoying coworker, Brinkman, CFO, CFOs, Controller, Controllers, Esurance, Esurance ads, Kirschner, the saver, workplace relationships
This is a story my friend MJZ shared with me. It just happened.
A headhunter, with whom she worked in the past, has contacted her. He has a client looking for someone with her qualifications. She is always interested to hear about new opportunities, especially those with potential to expand her CFO expertise.
Surprisingly, the urgency in the headhunter's voice was incredible. He sounded like a 911 caller witnessing an explosion. He rushed through the sentences, jumped from one point to another like a mad frog, even forgot to tell her what was the client's business . Somewhere in the middle of it, my friend has realized that she was somewhat overqualified for the job. Moreover, the title and the compensation weren't defined. That should have alarmed her. Yet in her vanity, and she knows it, she decided that all the hurriedness was fueled by the headhunter's worries of her not being interested.
Actually, there were a few aspects of the job that sparked her interest. MJZ relayed this to the headhunter. He was very excited and went about contacting the client on the next step.
Oh, my God! Within a couple of hours, he called her eleven times: "Setting up a phone interview; no, they are foregoing the phone interview and want to meet you in person straight away; you will meet four different people; no, just two; no, it will be two separate interviews back to back - first with the HR Manager and then with the Owner. Please, pleeeeese, can we do it tomorrow?"
And so, the next day MJZ went to the company's offices and met with the HR Manager. Talking to him, she was wondering if he would be able to make it through the meeting without falling into a panic attack. Eventually, he led her through the hallway to meet with the Owner/CEO. His agitation escalated in alarming stages. It was like playing a Liszt's Etude, which calls for "fast" on the first page, then for "faster" on the second, "as fast as possible" on the third, and still "faster" on the next.
At the very moment she got to shake the hand of the tiny man behind the huge desk, it finally donned on her. It had nothing to do with MJZ and her, even though impressively outstanding, but not fear-inducing, qualifications. This miniature boss of an interesting, but relatively tiny company ($30M) exuded a sense of grandeur of Napoleonic proportions. He had everyone scurrying like scared mice. Even those who were not employed by him; including the headhunter, who works for one of the top 3 international recruitment houses.
The first thing he told her was, "I need a second in command who can keep the troops under control. There were two before you, who were dismissed." Funny guy!
Posted in Bosses, Business, CFO Folklore, Job Search & HR | Permalink | Comments (0) | TrackBack (0)
Tags: boss, bosses, business, CFO, CFOs, Controller, headhunter, job interview, job search, Napoleon Complex, scary boss, small business
"Like all self-made men he worships his creator."
Unknown
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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.
Posted in Business, CFO Folklore, Dealing with People, Nature of the Job, Practical Advice, Subordinates | Permalink | Comments (0) | TrackBack (0)
Tags: blame, business, CFO, CFOs, Controller, Controllers, defensive mechanisms, defensiveness, ego, rationalization, subordinates
I remember reading Dale Carnegie's How to Win Friends and Influence People when I was about sixteen years old. Early in the book, he talks about dangers of criticism and gives examples of written but unsent letters: by Abraham Lincoln, Theodore Roosevelt, Mark Twain. It made a great impression on me. I cannot avoid being critical entirely - the tongue is difficult to control. However, I made a rule of letting stinging letters to stew for 2 days. Then I re-read them. If I still think it necessary, I send the letter. 90% of the time it doesn't get sent.
This is a recurring topic for management training gurus, self-help writers and bloggers. They say,"Write an angry letter, if it makes you feel better, just don't send it." Unfortunately, no matter how many times people hear that advice, they write and send flaring mail, causing commercial and social damage. If the problem was not persistent, there wouldn't be any demand for products I have described in the Cautionary Tale About Artificial Intelligence Progress.
As CFOs and Controllers, we deal with a lot of irking and ireful people. With my firm believe in therapeutic qualities of writing, I always advise to let the paper or the monitor to bear your negative emotions. As supervisors we also have to manage the anger of our subordinates. How do we prevent hostile writing from going out?
In the times of hand-written letters, it took longer to complete them. Plus, you had to stuff, seal, stamp and post the envelope. By the time you were done, you might have changed your mind about the whole thing. Dictating a letter worked even better. Saying the angry words out loud had a potential of making you sound ridiculous even to yourself, leave alone those girls in the typing pools.
Emails made us more vulnerable to our impulsiveness. In the beginning, at least the ISPs were slow enough for you to recall the unwanted message. Nowadays, soft keyboard, easy mouse, and fast internet create a volatile combination.
Here are few preventive measures I can recommend:
1. Always leave "To", "Cc" and "Bcc" fields of the email header blank until you are absolutely positive you need to send it.
2. Re-read your letter at least three times right away and then yet another time later.
3. I have previously described my habit of putting stick-ons, stating "Please re-read all your emails before sending them out," on the sides of employees' monitors. If you know that you suffer from the short writing fuse, then stick one on your own monitor as well.
4. Whether for my electronic or conventional mail, the 2 days stewing rule works very well. You should try it too.
5. The Frustrated CFO actually offers a healthy alternative allowing you to go a step further than just writing your message. Sharing your stories here lets you spill your frustration onto the virtual page and actually send it. Not to the object of your anger, but to me - an understanding and compassionate reader.
Posted in Business, Coping Advice, Dealing with People, Nature of the Job, Practical Advice, Subordinates | Permalink | Comments (0) | TrackBack (0)
Tags: anger management, angry letters, business, CFO, CFOs, Controller, Controllers, Dale Carnegie, emotions control, frustration, subordinates, therapeutic writing
"I'm going to speak my mind because I have nothing to lose."
S.I. Hayakawa
"You can only speak your mind when you have nothing to lose."
MJZ
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