CEO's Diary: Not what I wanted for Christmas

The CEO ends the year with a heavy heart

December 21 - #3's leaving do was a touch and go affair.

I had to ask #1 if she thought it appropriate to attend as she was her replacement. She agreed that maybe it wasn't. But I know, and she knows, that was not the real reason, even though I have said nothing to her.

As a result I laid down a three line whip on East attending - he'd sought to avoid it presuming #1 would be there.

Then North and Promo presented good reasons for not being able to make it - it did drag them in from afar.

So it was small party. #3 is full of bubbles and excitement. I wish I could share her exuberance. I don't.

East was muted. But thankfully Newc was on hand and so was Office. Both are high on my favoured list right now.

But I end the year with a heavy heart. #3 has gone. I have a replacement who I have to ask (indirectly) not to come to an event she should have been at. I know I will have to spend Christmas musing about whether this really makes her position sustainable. I already think I know the answer. However good she is (and she is) and however likeable she is (and she is, too much so it seems) can I really rely on someone with such lack of discretion?

And will East recover from this?

With Promo still not really up to scratch I do wonder whether the new year might bring more change than I had planned.

I can think on it.

But it's not what I wanted for Christmas.

* * *

December 19 - I had to do some work with East this afternoon. Routine review stuff of some contract renewals.

He was sheepish. Then he asked if he could discuss a sensitive issue with me. I played innocent.

And he admitted he'd made a fool of himself and that everyone knew it. And he's terrified his wife will find out.

I assured him she would not from me, but I could give no other guarantees. And there was nothing I could do to stop tittle tattle. If I tried it would only make things worse.

But I did thank him for being candid. I admit, from my perspective this makes things better. It's much easier to work with someone who can admit a mistake than one who does not.

But I was curious about his next request. He asked if it changed #1's position. I asked him if he thought it should. I think he wanted me to say that it may mean her trial period will be terminated, as if that would help him.

I did not say that. She's single. What she does is her choice. I made that clear. And so long as there was no relationship I felt there was nothing more I could or should do in a work context (bar keep a wary eye on her discretion).

He's not a happy man. Nor am I. But at least I'm not carrying a burden of guilt.

Why do three letter words ending in x always cause trouble?

* * *

December 18 - The feedback is that East and #1 definitely spent the night together on Saturday - because he was seen leaving her room on Sunday morning. But on the other hand there has been no sign of any obvious contact in work these last couple of days.

I cannot do anything on that basis, although we have rules on work relationships. I can however feel massively disappointed in them both, whatever anyone else thinks. I will never trust East as much as I did before - people who can deceive their partners are not wholly trustworthy. But I'll have to live with that. It just makes me a feel a little more isolated, I guess.

And I'm just drifting to Christmas now, I admit. I want a break. And I really want to get back in January which is normal time without all the issues Christmas brings but does provide the chance to get on with things.

Mind you, with the way commercial property values appear to moving right now I am increasingly pessimistic about our next financial year. Moves, relocations and renovations are all good news for us. I can see fewer of them and a greater emphasis on the maintenance work right now. That's unexciting, but it is cash flow. And no one can argue with that, especially if times get tough.

* * *

December 17 - I was right to hate the idea of the Christmas party. It was, as ever, a nightmare. So much so that the first and most obvious benefit of any economic downturn next year will be the cancelling of this fiasco henceforth and forever.

Why? Well, take this. #3 turns up a blond. She's never been that before. And she has a new man in tow. The story that she was going to join her husband in business is complete hogwash. She's joining a new man and starting a new life with him.

I was staggered. Call me naïve (and I am on these issues) but I'm always amazed by unfaithfulness. And I hate being duped. I have been. My heart and soul went out of the evening.

And it got worse. At 1am as we were shovelling the last revelers up to bed at the hotel where the event took place or into cabs Office whispered in my ear that East had been seen disappearing into the new #1's room, with what she described as the appearance of amorous intent.

Surely, surely not? I know she's not married. But he is (but was unaccompnaied on the night). And I can't, to be polite about it, face having two senior managers in bed with each other - and within weeks of one of them arriving.

Now do you see why I hate these things?

I might be boring in my monogamy. But I don't care. It makes life a lot, lot less complicated.

As for today - well with #3 I'll just grin and bear it. That's no problem. But Office has already agreed to be my additional eyes and ears on what is happening with East and #1. I just hope this came to nothing - or at least comes to nothing sustained.

* * *

December 14 - I'm amazed that some people still seem to think it's OK to give Christmas gifts to suppliers. I do wonder what they're trying to achieve.

Our rules are simple. All gifts are declared, just as all hospitality is declared. In appropriate hospitality must be refused. All gifts estimated to be worth over £25 are refused. Those worth less than that are accepted because they are hard to refuse without giving offence - but then we raffle them for charity. It seems the best outcome w can achieve, and another hassle of this time of the year.

Not as big a hassle of the Christmas party - which is tomorrow and seems to cost a fortune in straight cost and the associated tax settlement. I just hope and pray it goes off smoothly. Over 80% of the company will be there. That's a good turnout given the distance some have to come. But my wife still wishes she could be in the 20%. Playing the bosses wife is not a role she enjoys. And I can't blame her. I'm not at all sure I'd like to be the bosses husband!

* * *

December 13 - The customer in the North has cleared their backlog of debt. I'm still annoyed about being taken for a ride, but this was welcome pre-Christmas. It means much more on deposit over the holiday than expected. As I quipped here this morning, we're doing our bit to solve the bank's festive liquidity crisis. No one laughed much. I wonder if it will work better with accountants?

* * *

December 12 - Suddenly occurred to me that it probably fell to me to arrange #3's farewell. So I delegated it to office and got her to see if we can get a lunch booked to say goodbye. Not easy at this time of the year, but it would be good to do it after next week's management meeting.

Nor, I gather, has it been easy arranging the Christmas rota. But this year I'm not on it. I have been in here on Christmas Day before now on a call out. We're going away this year - and for once my in law's are seen as being a blessing.

The difficulty is though that as the long Christmas break becomes embedded in society the cost of having people at work gets higher. It's triple time for a longer period this year to get people to come in. And with bigger geographic spread more are needed now. It will hurt results this month.

* * *

December 11 - Spent the morning running through next year's plans with #1. She listened, then commented and then suggested that she would like to improve the way we do some of our financial reporting.

I was impressed with her care is doing so. She knows that in this respect she's really taking over from me, not #3. So her language amused me. She said 'improve' when she meant 'change'. And 'revise' when she meant 'get rid of'.

As a result she failed to raise my self defence mechanisms, and the barrier of #3 proved useful in that way. I too could pretend that this was not my work she was asking to alter.

But candidly, one point apart where we really use what she did not see as relevant (she'd forgotten more than one divisional manager may need information on a customer even if it was not their key client responsibility so that some duplication of reporting between divisional reports has been proven to be useful) what she had to say was good.

So I sent her away to model the changes so they can be circulated. She has some time right now before she really takes over from #3.

* * *

December 10 - Newc has secured the people we need to expand into our new market. It wasn't hard. We knew they were keen. But along with the recruitment of #1 I count this good news.

Newc also seems quite keen to cover Promo.

But he is finite. We need a new sales and marketing person. This is not getting the attention it needs.

Another cost for the plan.

* * *

December 7 - I've been reading some of the stuff on income shifting that seems to be all over this web site right now.

Now, how does this relate to my company's situation? I have two directors who are shareholders. I sacked them both long ago. Does that now mean I am now shifting income to them? It's true. I am. But I guess this is ignored.

But seriously, is their 50:50 ownership now beyond challenge because neither works full time even if when both had been working full time I think it could have been argued that the ex-CEO was the driving force and the ex-Mrs CEO was a useful person, but not worth as much?

Or have they found the ultimate planning loophole round this, which is to retire?

I'm confused.

Advice anyone? In manageable chunks please.

* * *

December 6 - It's hard to say how much I hate days with IT problems.

Our server spent more time down than up today. OK, it's rare. But it's like having your leg chopped off.

Good job I'd scheduled a half day with #1 to review the last few years accounts (yes, I mean that - few years). I want her to understand the trends in this business and where it has come from to get here. Without that narrative she can't understand where we might be going.

It was also another chance to see whether she really has got what it takes to understand accounts. She has. She seems to have that rare quality to instinctively look at ratios in her head which is pretty much a pre-requisite of reading a balance sheet.

And that, in itself, is a rare art. But she's perceptive and could relate to me the way the narrative could be seen working out in the figures. I like that. I always recall a dreadful FD I worked for once who thought his job was done if the balance sheet balanced with all control accounts reconciled (not quite a foregone conclusion in those days). I didn't agree with him then and I don't now.

Accounts are not an answer, they're an agenda for raising questions and a good accountant has to anticipate those and be able to answer them. It's no mean achievement. #1 looks like she can do it, probably better than #3.

And I still like her. She's really easy to get on with.

* * *

December 5 - I feel like we've been through the wars a bit of late. Today was different.

East and I needed time to discuss a range of issues and went together to meet a customer, mainly as a goodwill gesture and to give us time to talk whilst travelling.

But the good news was that the customer was not only pleased with what we do, they offered to host an event for us if we wished to say we they were pleased, and to invite people along who might like to hear about that fact.

They admit whether or not their competitors use us is a matter of complete indifference to their business model. But being seen to encourage good business practice is a matter of benefit to them - because they're selling into a market where proving their own competence is vital to building value in their client relationship. So showing they can source well is an issue for them - and they think we're an example of their good sourcing.

This is very good news indeed. We're up for it. We'd be mad not to be.

* * *

December 4 - Horrible hangover from yesterday's agreement around here. No one is happy with it. But that's life.

More important though, the new #1 has arrived.

This, of course, takes a lot of time. I've done some of this. Office some, but a lot will fall on #3 as they have a fairly short transition period now.

But I have to say that so far everyone is pleased. Alleluia! She really does have the gumption to make this work, I think.

Which has left me with another sensitive issue - agreeing details of the Christmas bash with Office who also has the job of running things like this. By the time we've shipped in people from all over as this is the only time we ever get people together this is a big logistical issue - and I have had to agree the drinks budget having seen what the rest will cost.

Sound trivial? Not here. I'm ultimately CEO here because of the December 2003 Christmas bash going wrong and I'm not taking risks again. Risk takes management - and I reckon staff plus booze equals massive risk. I hate it.

* * *

December 3 - The answer from the customer in the north is they want a 3% discount. I called and said let's cut the negotiation. I'll give 2.5% if all balances are cleared and the rest are paid on time.

We settled.

What a waste of effort.

And I can live (reluctantly) with the P & L impact.

* * *

For previous installments of the CEO's Diary, see:

November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004
September 2004
August 2004
July 2004
June 2004
May 2004
April 2004
March 2004
February 2004
January 2004
December 2003
November 2003
October 2003