Sunday, October 25, 2009

Danger signs


When any member of your senior team is effectively ring fencing their area of responsibility so that no one else really knows what is going on, that is a weakness.

I took a call from MD Emily a couple of weeks ago. She told me about her long standing finance manager John. “He is good at his job,” she said, “but now the company is growing so quickly I want him to get an assistant so that he can leave the ‘grunt work’ behind and concentrate more on strategy.”

“So what’s the problem?” I asked. “Well,” she said, “at his last appraisal he told me that he enjoyed the basics, reconciling the sales and purchase ledger, handling cash and so on. He doesn’t want an assistant yet he complains about all the work he has to take home each week.”

“So why don’t you appoint someone over John, someone that can take you forward more effectively?” “Oh, John would have to leave,” she replied. “So what? “ I said.

The fact is that there are some jugular areas of the business that require genuine openness and transparency between the top team members. You may be too close to your own business to recognise the symptoms, but when someone’s personal agenda overrides the needs of the business, there will be trouble down the line.

Sort it now.

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