“Success has many fathers, but failure is an orphan” is a quote commonly attributed to John Kennedy as he accepted responsibility for the Bay of Pigs fiasco. The idea, however, is an old one. Roman historian and politician Tacitus said that, “This is an unfair thing about war: victory is claimed by all, failure to one alone.”
When things are going well, it’s easy to share credit as a team. When things go sideways, buck-passing and finger-pointing rule the day. Success has many fathers, but for companies, so does failure. The thing about business is that it is always about the people, the process, and systems already in place. And those can fail over time, even at the most successful organizations. Errors, however, can actually help a business move forward – if the problem is identified and fixed. It’s how the owner and management team respond to those mistakes, misses, omissions — or even complacency — that can make all the difference.
InterimExecs surveyed interim leaders from around the world for our 2020 Interim Executives Survey. In addition to asking executives about who’s hiring them and the roles they’re taking on, we asked executives for insights into “The Biggest Mistakes Companies Make.” While their responses varied, clear themes emerged in the areas of leadership, operations, human capital, strategy, financials, and change initiatives. Focusing on these fundamentals is a good starting point for any struggling business.
In every business there comes a tipping point when change is needed to get to the next stage of growth. While as a company owner or CEO, you may be adept at running the day-to-day, at some point you may start to feel that you need to be more tuned into your finances.
Maybe you have a Controller or bookkeeper keeping transactions up-to-date so you can run reports for your banker from time to time. But what happens when transactions start to get more difficult to deal with or you need more insight into financial metrics that will drive strategic decisions? If the following situations sound familiar, it may be time to start thinking about hiring a Chief Financial Officer (CFO):
You are growing fast and looking to acquire or attract new capital
Investors or financiers are requesting more sophistication in reporting
The company doesn’t have the internal capabilities to consistently (and accurately) close out the books every month
The business is facing declining revenues, stagnant growth, or rising market competition that calls for someone to provide more strategic leadership and set out a direction and action plan
You feel like you don’ have a full handle on the metrics and KPIs that ultimately drive the business and measure your progress
The global market for legal marijuana is valued at $17.7 billion as of 2019, and Grand View Research says that number is expected to rise to $73.6 billion by 2027. A quickly evolving market, more interim and project-based executives are being called on to lead the charge.
Jon Paul started his career at Arthur Anderson in the seventies then moved to multiple Chief Financial Officer positions, before getting on the cannabis bus in 2018 when he was recruited to take San Francisco-based gummies company, Plus Products, public.
Cannabis industry newsletter Grown In interviewed Jon Paul about the challenges involved in taking a company to a listing on the Canadian Stock Exchange.
Can “good” HR be a strategic advantage in a crisis?
Through the largest and longest bull market in history, many business leaders continued to dismiss the human resources (HR) function as an operational, and largely administrative function. HR’s activities can appear to be – and often are – disconnected from the “real work” of an organization. But effective HR leadership is so much more, and can be a strategic advantage as businesses deal with the COVID pandemic. Let’s unpeel the several roles of HR to better understand how it can contribute.
World War II was devastating Europe. Bombs unleashed death
and destruction across London. The Allies could barely secure a beach head in
Normandy. Undaunted in those dark days, visionary leaders dreamed of a brighter
future when the world would emerge from the deadly carnage, and imagined the
structure of a post World War II world.
Businesses throughout the world now confront a different kind of mortal enemy, but equally deadly and disruptive in its own way. This microscopic virus is virtually invisible, knows no borders, and is agnostic to any demographic. It confines us all to our homes, burying loved ones dying senselessly for no cause and way too soon, and upending our work and home lives. Just as our forbearers prepared for a new world order once the terror of their present one surrendered, we now have some time to humbly roll up our sleeves and get ready for what awaits us on the other side once the pandemic is finally vanquished.
Many of the thoughts in this article are hardly novel, and really simply continue if not accelerate existing trends. Some ideas may seem like logical outgrowths of the pandemic provided they remain emblazed in our consciousness. Others may be dismissed as unrealistic or overly dramatic and alarmist.
No one, however, can doubt a few things. Our lives and approaches to work, our society and business will change, some for the better, others not. Like inventions, there are unintended consequences and manifestations, many of which we cannot now foresee. Finally, and most obvious as we emerge from this Act of God– man may make plans, but God just laughs.
While many companies are facing new challenges and increasing volatility, we’ve found that most leaders’ responses and outcomes tend to be unique. While quarantined with COVID-19, Todd Herman, author of The Alter Ego Effect, decided to interview 29 CEOs to hear how they described their circumstances.
Each company was experiencing a downturn. Herman analyzed each CEO’s word choice and language to see how they were reacting, noting the importance of a leader’s pronouncements: “words create reality.” He saw big differences in how executives were wired and reacted to the economic rollercoaster. His findings led him to divide the CEOs into three groups:
Fear-Focused CEOs – emotional, concerned, and overwhelmed. Tended to use negative future pacing words like ‘struggle’, ‘fear’, ‘hard’, or ‘difficult’. Spent the most time watching media or finger pointing rather than what could be done.
Unfocused CEOs – dismissive, uncertain, wait and see. Talked about getting a plan, but tended to use the word ‘plan’ in a negative or needs-based way.
Strategy Focused CEOs – take and use what’s given, focused on growth/opportunity. Positive. Spending time leaning into networks.
The worldwide outbreak of novel coronavirus (COVID-19) is
showing that crises tend to bring out the worst—and the best—in people.
Amid frenzied panic buying, supply hoarding, and finger-pointing, we’re also seeing individuals and businesses step up to help others. If the cloud hovering over the economic system has a silver lining, it’s that temporary changes to how companies define their mission statement could become permanent. Instead of focusing only on their bottom line, businesses might emerge from the crisis more focused on the greater good. In fact, many companies are already leading the way and providing inspiration during these uncertain times.
Anxiety is in abundance this Friday the 13th. We write from our mostly empty office building where both cautiousness and outright fear from COVID-19 seem to be in full effect.
Stock markets worldwide have become nonstop rollercoasters, now mostly plummeting downhill. Grocery stores are packed as people stock up on supplies. Panic seems to be at the root of many news articles and communications. As an owner, investor, or member of the management team it can be difficult to navigate the chaos to determine what this means for the future of your company and employees.
As owners and leaders it’s our obligation to step up during crisis – to be a light to those around us. This is at the heart of what we do. InterimExecs RED Team – an elite team of executive change agents — often run straight into the fire, doing what is necessary to listen, diagnose, set plans and execute. The successful leader must be the calm in the midst of the storm – a point of stabilization for the team and a trusted partner for those around them. So how should we react to the events around us?
Jen Giacchino was working as a recruiter in tech and every company seemed to be facing the same hurdle: how to hire women and with diversity, build an even stronger team. “Before I was a recruiter I just assumed there was a lot of gender bias in the hiring process, but when I got there I realized that a lot of these companies are desperate to hire women, and I saw that there were not a lot of women in the pipeline to be hired,” Jen says.
After volunteering with an after-school program for girls taking computer science classes, she realized that many of these young girls in seventh and eighth grade had a high aptitude toward learning tech programs but were lacking in confidence. As technology is actively impacting more and more of our daily lives from how we engage with communities and family, to how we perceive ourselves through social media, something had to change.
Jen dove into research and began engaging with the community to see what could be done. She ultimately teamed up with two other women, Dr. Emily Harburg and Anna Bethune, who were both passionate about closing the gender gap and empowering girls in tech. Emily and Anna were also concurrently pursuing PhDs looking at challenges from how to develop a confidence mindset in girls around technology to how best to integrate technology into education systems when kids don’t have prior access.
Our world, our universe is characterized by constant change. Stars are born and die, storms transform the landscape, nations rise and fall, people change over time. In the business world economies grow and collapse, business models evolve, industries transform and even the Top 100 list of leading companies completely changes in a matter of a few years.
But sometimes the speed and scope of change is extremely rapid, its consequences unforeseeable and unpredictable. This makes planning and decision making highly risky because it is so difficult to see what the future holds. “Everybody has a plan,” said championship boxer Mike Tyson, “until they get punched in the face.”
To help explain the often sudden, fluid, rapidly evolving and dynamic forces of change – that “punch in the face” — the U.S. Army War College created the term V.U.C.A. to describe and ultimately deal with highly dynamic, shifting and challenging situations.
First-year Change Agent members have access to the Interim Institute’s 4 hour audio program on the Fundamentals of Interim Management, and a one-hour strategy session to help jumpstart their interim career.
*$200 additional charge for Accelerator Program only applies for first-year members. After the first year, membership renews at $485/year.