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CEO's Diary: The plot thickens - Get me out of here!

30th Mar 2007
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I think we have a snake in our midst

March 30 - All I really want to do is go on holiday - but I've also been working hard to make sure the team is ready for North's arrival - which is effectively the next date in my diary.

And Office has been tracking back our 'injured' electrician. He's been with us for six months. And we're now checking references, qualifications the lot. It's not looking good. At least one qualification looks bogus. And now she's phoning the references he gave to see if they're real. I don't know why - but I want everything checked. I'm seriously worried that this guy is a fraud. It's just instinct.

It's not the way I wanted to go on holiday - but I trust this crew to follow this through. And I don't want to be held responsible by anyone for anything if it's not our fault. And I'm really worried that's what might be happening.

* * *

March 29 - late. We've had a funny feeling developing today. It's about yesterday's accident. Something seemed wrong about it as things developed. Our guy claimed to have been electrocuted. And he certainly made a good bang in the customer's system. However, no one could find anything wrong with it afterwards. It was double checked by us and them. So it had to have been human error. This does, of course, happen.

But the next thing that did not stack was that he claimed to have been knocked out - but we gather (because we got a person to the hospital where we was taken) that this appeared not to have been the case. As I noted yesterday - they just said he was 'shocked', not that he'd had an electric shock, at all. But apparently if he'd really made the bang and been in the loop he'd have definitely known about it. In fact, he might not be talking about it at all.

We have no idea why, but this does not stack. We've told insurers and everyone else one has to follow up in these cases, but the interesting thing is our insurers are also concerned. They want the chap medically examined asap and they want us to investigate him some more.

I can't say why, but I think something fishy is happening here. And I don't like it.

* * *

March 29 – I’m mildly panicked. I’m only off for what is, in effect four days next week but there suddenly seems too much to do.

On reflection I’m telling myself this is my own fault. CEO’s should not be so integral to the daily operation of a business that they cannot have time out of it.

The answer has been to write down what I want done in a ‘handover’ document which covers the urgent issues I want others to monitor for me. Like checking yesterday’ accident victim is OK and we’ve covered all necessary reporting (which takes forever). I know, this should not be my agenda. But the out of the ordinary requires monitoring when there’s liability risk attached to it.

This led to two further thoughts. How do most people decide what is on their ‘to do’ list? And, how do they keep it? This is a serious question. If you can’t decide on this how can you be effective?

I’ve added it to the training list.

(If you want to know, I use Mind Mapping software to keep my lists and love it!)

* * *

March 28 – It’s a fact of life that when you undertake mechanical and engineering processes accidents will happen. I’ll be honest, although we’re sticklers for recording these things we have relatively few and we train like mad for them.

Nothing stops an idiot trying to blow himself up though. That happened this morning. One of our people tried very hard to electrocute himself. The miracle is he didn’t. He did go to hospital, but as it turns out more with shock and a for check up to cover us than anything else. He did (thankfully) blow out the customers trip switches to a very high level, which probably saved him. He was wearing appropriate kit. But 240v can still kill you. And it needn’t if you’ve turned the circuit off before you start.

For some reason he didn’t. Why on earth not we don’t know. He won’t say. I won’t push the issue yet. He’s OK, that’s enough. And we got other people there to sort out the mess ASAP. I think the customer will not be too irate. Little harm was done.

But the stupidity of people in the face of the need for health & safety (which is not an option – it’s vital) defeats me.

* * *

March 27 – I’m on holiday next week and North starts on my return. We had great intentions of having the induction all under control but Easter is fast trying to scupper this as East is off the week after and I wanted him heavily involved in this.

So we’ve changed our plan a bit. We’ve decided to start him here and get him used to the admin before we even introduce him to anything else. The guy is going to work more remotely than anyone else. That means he’s going to have to know the admin and IT well. So we’re going to give him time to learn it, properly. That’s not 20 minutes, a note of his login name and password and a quick ‘good luck’. That’s Office, #3 and our IT guy really showing him what it can do, and also, hopefully hearing his questions about what it might do and does not as yet.

That’s four days.

Then East is back. I’m not sure I should really be that hands on in this. Mind you, I do think I should be around to make sure progress is OK.

* * *

March 26 – The year end result is looking good. #3 has worked hard and we’ve got a first serious draft for the auditors now, polished enough for them to do all their serious planning on. Frankly I expect few further changes.

Given what happened during the year I think it’s a miracle we changed management team, bought a company, beat budget and generated as much cash as the original forecast for the year.

Now the need is to do it again, only better.

* * *

March 23 – Someone commented on this diary recently that all seems to be going too well for me right now. The result is that life is not as exciting as it has been of late. Well, to some degree that’s true. It seems extraordinary to have created a team that seems to want to work together.

I was out with Promo today. Following the management meeting where he displayed some insecurity I have gone out of my way to make myself available to support him at the moment. My main reason is simple. I want to make sure I know what he wants in the way of help and to then give that. At the same time I’m also keen not to overcrowd his space.

Usually I see people when we have a specific objective to fulfil. For example, they want me to go to a meeting with a customer or supplier. I also sit in on team meetings when asked, but only when asked.

I made an exception today. I went to meet him near his base: he lives some way from the office and that’s fine as his patch stretches into the far west, including some of Wales and Cornwall (although not much there – Plymouth seems to be the practical limit of our activity).

The discussion was about his ‘pipeline’ at first. He’s clearly worried about forecasting and, as we do, attaching probabilities to likely conversion of quotes so we can get an idea of likely work loads. The problem was he thought there was some clear, rational basis to this. As if seeing the future was a science. I persuaded him that, yet again, he had to use his best judgement. 0% chance is rarely likely to be right. 100% next month is likewise usually going to be wrong if applied in all cases. His gut feel is what we want.

He had the same issue with the accounts. What is clear is that promoting someone into management moves them out of the comfort zone where you can think the world is black and white into an area where it’s all ever so grey. This is a massive transition, and is the biggest issue when thinking about someone through this barrier. I’m convinced Promo will make this transition, but its one heck of a change for a lot of people. Some won’t ever get there.

* * *

March 22 – Office’s enthusiasm for the wiki is showing no limits. The staff manual is now on it.

So too are all daily notices – there’s simply a page for each day and people can post to it. I’d have thought this a duff idea but it’s perversely popular – subject to a couple of people having quick rebuffs over mildly inappropriate comments on the first day or two.

And a couple of new technical ideas are also up for comment – which again is working well. People are pointing out some things which to them seem obvious but are not to those who’ve written the proposal.

We haven’t invested a lot in this. But it’s working. That’s good enough for me. In a month or two I expect the wiki to be part of the infrastructure of the place. I like that.

PS The Budget - am I bovvered?

* * *

March 21 – There’s something rather satisfying in resolving a situation.

You might recall the order we lost before the year end, where I decided to invoke our right to charge a cancellation fee and then had a bit of a panic about revenue recognition on other contracts as a result.

The next bit won’t surprise you: they weren’t ‘over the moon’ about being charged. I could put that another way. They were pretty belligerent at first. But I stuck to my guns. I didn’t pay lawyers or anything. Having invested in some pretty plain English terms of trade I didn’t really need to do so. I just pointed out that they had ordered and cancelled and because of the lapse between the two events they owed us.

We had a stand off for over two weeks. Then they sought to negotiate m down. Once we were talking again a better solution came up. We’ve regained part of the business. The price is reduced, and part is going to someone else, but we would have still called it a win if we’d got the bit we’ve now won if the hassle had not intervened.

Actually I’m calling it a win despite the hassle. But the guy who screwed up originally is no longer the client contact!

* * *

March 19 – I hate company cars. North needs one. We have West’s. North doesn’t want it. It’s only just over a year old. I know I can terminate, but it has a cost. And is driving a second hand car so bad (I do, by choice, but I also refuse a company car)?

I need to keep him happy and I know the male ego seems driven by these things. But it does not endear me to him. I’ll just have to accept we all have our foibles. This is one of his, and mine.

* * *

March 16 – I tried some of the Chairman’s advice when out seeing a supplier yesterday afternoon. I confess I’m not as useful as East on this side of things, because he’s just more technical than me, but this one was a meeting about their terms of trade, about which they’re getting stroppy and so I went.

I realised on the way that if the Chair is right then I had to listen hard to work out why these people were playing up before deciding what to do. I admit this was against my inclination. Frankly, this was an occasion where I felt we were offering significant business, we have other options available to us and so I should be in the driving seat. It’s only long association that made me go, I thought.

But I felt I had to give it a go. So I got there and after the opening pleasantries asked them to tell me why they thought the problem had arisen. And I sat listening carefully, pen in hand, notebook on lap, looking attentive and writing fairly meaningless stuff occasionally to make it look like I was thinking hard. Doing so also let things flow without me having to talk.

Instead of responding to what seemed at first instance to add little to my knowledge because it regurgitated much of the narrative I knew, I asked why they thought the problem had occurred and what they would have liked to have happened differently.

Oh, sweet pleasure. This non-plussed them because it stopped them moaning and meant they had to be positive. At which point problems with our rejection rate and payment record (which I knew was rubbish) fell off the radar. What they are really miffed about is that we’re not buying in big enough batches to make it worth supplying the product we’re buying at the price we’re paying, according to them.

This was not the issue we’d heard. But if that was what was bugging them, now I had a negotiating position. OK, I said, I’ll up the batch order size. We’ll pay on time, but I want 3% to do so. This costs me nothing. It’s them who say we’re paying late, and we aren’t. And I want a guarantee that 99.5% of the product supplied will work straight out of the box in every batch or I’ll be debiting 5%. That’s the price of upping the order quantity.

Amazingly, they agreed.

I’ve walked away with discounts of up to 8% for consolidating our orders into batches, rather than being sporadic. Alternatively, we might spend less time asking for credit and pay for the quality we’d like. Either way it’s a win.

Annoyingly, the Chairman has a point. If I’d barged in I would not have got this.

Mind you, I still think it’s time to look at alternative supplies just in case.

* * *

March 15 – Met the Chair to discuss my thinking about increasing depth.

He has suggested three things I should think about (and given he has a career in training and business development behind him he’s obviously pleased at my conversion).

First I have to encourage people to listen well.

Second I have to encourage them to think well.

Third I have to encourage them to communicate well.

After that he says everything is easy. I said there was nothing in there about decision making. He said if you hear well you know the things you need to decide upon. If you can think well, you create clarity, which means you can make up your mind. And decisions aren’t decisions unless they’re acted upon, so communication is key.

Given we have a new team that now looks to be complete he thinks training on these issues is vital. I’m going to think about it. I told him that proves I’ve mastered stage one. I could tell he wasn’t wholly convinced.

* * *

March 13 – An obvious demonstration of the point I made yesterday on developing strength in depth came up today. We had our usual monthly management meeting this morning. It became clear that Promo is struggling with some issues. I don’t blame him; he’s new in his job. What was apparent is that he’s struggling now he thinks he hasn’t got a safety net, so issues on which he could decide are now becoming harder for him. As a result he’s falling back on asking for more data than is reasonably available.

The issue is question is a perennial one for us. When is it reasonable to accept abnormal costs on a job and when should they be investigated? I guess anyone who supplies a maintenance contract has this problem. Sometimes these will be loss making because things go wrong.

Because Promo is now answering for the profits of his division his gut instinct on this issue is being over-ridden. He thinks he needs facts. I curtailed discussion on this during the meeting. It was clear that #3 thought he was asking her for too much data. East is now so familiar with the issue he could not see the problem (I think). So I suggested he discuss it with me afterwards. No one needs to be embarrassed publicly.

It gave me the chance to have a good session with him. It gave me the chance to remind him I’d asked him to manage, which is to decide on things. There’s never enough data to make the guaranteed correct decision on most things, and in cases where there is it’s usually true that the decision is so obvious that data is not needed to make it. So we explored what was sufficiently relevant, reliable and timely data on which to act. I encouraged him to collect and keep the data – and reminded him that he can store as much stuff as he likes as long as it is electronic on the issues he has to look at, and should ideally do so (if he’s tidy). In fact, it completely baffles me why people don’t (and how hard is it to have a file on the system for each contract and a sub-directory for each date on which you review it?)

But the ultimate point was the simplest one. He has to decide when to act, and intervene quickly if he thinks it appropriate. He will get this decision wrong sometimes. In other words, there will be nothing to find and no improvement in performance that he can achieve. But that’s OK too. That means he is reassured that others are doing the right thing, and that in itself is evidence.

I think he left feeling better. It’s not my style to bark at people. It’s much more my style to encourage. But one thing I have to remember is that some of those who work for me don’t know this as yet. That’s part of building the depth we need.

* * *

March 12 (late) – I’ve been thinking hard about where this company goes. A fine weekend working in the garden provided time to do that, and I’ve discussed it with the chairman now.

I have to be realistic. I’m heading a management team here where no one has really been in post for more than a year (Office maybe excluded, but even her role has developed). #3 is experienced but still on her first year end, East has been rapidly promoted, Promo is new in post, Newc has not even got to the job he’s really meant to be doing yet because he’s been covering the north. North will be new soon. I’ve been a CEO for a limited period.

There are two ways we can grow. We can control more resources, such as people, customers and so on. Or we can grow in depth and do the existing tasks better for the time being, at least.

When I looked at it like that it became a no-brainer. I’d be mad to ask this team to take on more as yet when they must be able to deliver more in the roles they have than they’re doing now.

I’m going for quality. The chairman was relieved, and agrees. He says he’s worried about me taking on too much, let alone anyone else. Nice to know he cares, but I think its simple common sense for now.

The good news is that this means I’m stopping worrying about acquisitions. I’m not looking for them. That focuses my attention. The next stage is to identify where we grow organically. But at least I’m convinced now that I’ve got the right direction. In truth I’ve been wondering for a while.

* * *

March 12 – There are times when you are just so pleased with your staff. Office came to see me this morning. I’d shown her what I’d done on the Wiki last week and invited her to play.

Without telling me she’s put on all the admin forms and templates that people need to use, all password controlled as necessary. As she says, there’s now no excuse for anyone using the wrong one. They’re all there, and she has control of updating them.

This is stunning. I am so impressed. We’re now planning the rollout for use. This alone will save hours of frustration and error when people use locally saved old versions of things.

I knew these things had a use. And yes, I know there are alternatives to this solution – but a Wiki is so much easier to learn than a web page (as our evidence has proven), and when people work offsite as many of our staff do searching through a browser is ideal.

Well, I think it is and for those who don’t agree the time to change is nigh!

* * *

March 9 – Lunch today focussed on he who shall now be called North. The group are keen to have him of course, and we discussed induction.

As a company this is something we take seriously. That’s based on many horror stories from our collective past experience of half hour tours of the company, being given our business cards and (sometimes) appropriate passwords for systems which were not explained to us and then being left to sink.

I wonder how many people still do that? My wife’s organisation does.

We’re planning somewhat better – as we made clear to Newc who will have to cover whilst North is down south shadowing others and learning at first.

* * *

March 8 – I am convinced that we’re on a roll.

Having got back to the office #3 came to see me. She is really buoyant about the year end accounts. Margins are still rising and sales were good; debt was lower than expected.

East is bringing in sales like there’s no tomorrow and keeping his team happy.

Office has told our IT guy to stop playing with Windows Vista – there’s no way we’re going to do it. I am having him look at a Wiki (because they’re not out of my system).

Promo is clearly settling in.

Newc’s wagging his tail at the idea his time in the north is coming to an end.

Now what shall I do if they’re all happy? It might sound odd, but if people are happy I can be proactive. That’s the scary bit of management.

* * *

March 7 – OK, we’ve got our man for the North. Newc was right. He’s done a great job. The chap’s not been in our sector directly, but knows something about it. More importantly, he’s charismatic, can sell, can get his hands dirty and seems to know how to motivate. If all that’s right he’s ideal for this job.

It was one of those cases where you knew in the first few seconds. Before the interview was over we’d agreed terms, discussed the location we wanted (which is still available) which Newc and he are looking at today, but which suits him geographically, and a start date’s been agreed. He can do a month.

This seems almost too good to be true. But that has to happen sometimes, doesn’t it?

* * *

March 6 – I have to say it – leaving the office and doing this is difficult. I know that there are wi-fi connections all over the place, but they’re expensive because coverage from any one supplier is inconsistent or you use a phone, and that’s just a pain.

Still, coming North has been worthwhile. Newc and I have seen a new customer and they’re so keen that we have a guarantee they’ll sign up the moment the paperwork is in front of them.

That’s a plus before we even see the candidate for the job tonight. Which also means I won’t be home until tomorrow. So I have forked out for a babysitter.

* * *

March 5 – What’s happened to West has finally been resolved. I got a reference request for him today – or should I say, another one. So I rang him.

He admitted he had thought of joining Ops in a new operation – but was cagey about what, and I can’t blame him. He did authorise the telephone enquiry I got a while ago for a reference as a dummy. I admit, it worked. But he’d now decided that he should stop ‘following the leader’ – the leader in this case being Ops. He had wanted out of here. He was honest. He didn’t want to go the way I was going. But now he’s found a new, almost unrelated opportunity through a ‘friend of a friend’. If it’s as good as it sounds he’ll be using his skills and be no threat to us. I’m happy to give the reference and put this behind us. Nice to know Ops is isolated too.

In the meantime Newc is dragging me north tomorrow. He has a shortlist of one for the job there because he thinks the candidate is so good, and wants to jump with them if I agree. This won’t make me popular at home. Tuesday night is my wife’s chosen night out, so it’s either time to pay for another baby sitter or grovel again. Being CEO has a domestic price, even if there are rewards as well.

* * *

March 1 - It's very strange to be living through a year-end and not be responsible for the detail.

I know, I'm CEO now, but once an accountant can you ever quite not be an accountant? I mean, isn't that a cross we just have to bear? In which case doesn't the temptation to sometimes interfere not occur occasionally, especially when we think we know what to do? Can you imagine, for example, Gordon Brown having just a little inkling to look over the shoulder of his Chancellor when (if?) that time comes?

So I've worked hard not to micro-manage, which I've always thought a sign of weakness in managers I've worked for. Only #3 could say if I've succeeded - but I'll tell you, I've tried. I've even arranged to be out for some of today to indicate that I think my focus is elsewhere.

But I also want stock, WIP and other issues to be right. What it is to be conflicted!

* * *

In February the CEO got excited about all sorts of things - but isn't that the job of the CEO?

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

January
December
November
October
September
August
July
June
May
April
March
February
January
December
November
October
September
August
July
June
May
April
March
February
January
December
November
October
September
August
July
June
May
April
March
February
January
December
November
October

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Replies (13)

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By David160
30th Mar 2007 15:29

What is mind mapping software?
Sorry to appear thick, but what is mind mapping software?

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By User deleted
21st Mar 2007 20:53

Company Car
There is no comparison between a new car and a used car! With a new car you get to order the make/model you like and all the bits and pieces you want. With a used car you get somebody elses stains and smells!

I've had companies in the past promise me a new car and try to fob me off with an old one. It's a real downer.

I think you're probably in the minority with your ambivalence.

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By User deleted
16th Mar 2007 07:55

Is the Soap Opera experiencing a lull?
The rollercoaster seems to have hit a flat point. The CEO has everything under control. Nobody is posting comments. Come on script writers - maybe an office affair, especially if it involves the CEO, would spice things up!

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By User deleted
16th Mar 2007 10:23

That's just the way it is
Sometimes life isn't a roller coaster.

Give me a break!

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By User deleted
16th Mar 2007 14:34

Capability
Isn't the issue surrounding your - admittedly new - team one of capability? Merely saying that lots of them are new in their role does not address how capable they are of taking on additional responsibilty now and what areas of weakness there are that need addressing. Training of the sort your Chairman is suggesting should address this, provided that outcomes are clearly defined

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By User deleted
16th Mar 2007 11:09

Or maybe...
... as Mr CEO knows his audit manager is hanging on his every word, he's just holding his cards a little closer to his chest.

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By MarionMorrison
22nd Mar 2007 09:16

.
A car's a car. It's a metal box for getting from point A to point B. It can be better by being a quieter, more comfortable ride. Everything else is just male ego and compensation for other inadequacies.

However the fact is some people feel that way and if North is that way inclined, he sees the car as being some kind of comment on how he is perceived 'at Head Office'. If it's a cast-off he may see that as a reflection of his value to the company, however untrue that may be. In a way it's the same as listening to people - seeing things through other people's eyes.

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By Chris Smail
22nd Mar 2007 15:07

Not just male ego
My wife cares a lot about what car she drives, wheras I do not give a proverbial. But maybe thats a hairy ex-biker thing

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By User deleted
29th Mar 2007 16:13

To Do List
I use the 'Tasks' facility in MS Outlook.

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By AnonymousUser
29th Mar 2007 16:42

Mind Mapping software
I have been recommended to use Mind Mapping & I'm intrigued by the concept.
Can anyone recommend good mind mapping software?

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By User deleted
29th Mar 2007 20:17

Mind map software
I used Visual Mind for a while but I'm now completely sold on Mind Genius. The home version is cheap for a trial - but you will want the real thing. Google it for details.

It is incredibly easy to use.

The CEO

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By User deleted
01st Apr 2007 08:49

Didn't check refereneces?!
Can't believe such a control procedure would be missing from the CEO's company!

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By listerramjet
02nd Apr 2007 16:09

mind maps
see this link for a nicely concise definition. http://en.wikipedia.org/wiki/Mind_map

mind mapping software is simply software that facilitates mind maps. I have to say that I prefer paper and coloured pens to produce mind maps. using software misses the point!

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