<b>Business Feature:</b> FD's Diary - Sinking feeling

The FD faces a contract pricing crisis

March 31 'I thought there had been enough go wrong this month, which has, without doubt been the worst start to any financial year I've known at an HR and simple organisational level. But last night Ops came to see me ashen faced.

We celebrated winning the big new contract. And now he's had to admit to me that it's been wrongly priced. None of the quotes include the price for getting power to the installation. The kit involved has just been omitted from the pricing.

He looked sick under my questioning. It seems that spares equipment has been used on the trial sites, bought out of trial stock and not therefore priced to the particular job. So no one priced the same kit when it's now got to be bought in bulk now for a real installation.

He accepted he should have noticed, but worse, he had no idea whether the time allocations also omitted the necessary work. That would be much worse. Cable and transformers are one thing, the time to rig it is much more expensive.

It's going to be a long Friday working through this one to see what the damage is. Because I know there's no way we can re-negotiate.

I went home feeling sick again. Ops was still at it. I decided to let him sweat. Now we have to go through it all. Not the end of the week I wanted.

* * *

March 30 ' Finally back at work. I know I managed some at home, but most of the last week is best forgotten. And for all who said this was the barbecue's fault ' how dare you malign my cooking? I have to conclude it was a bug in the end as it now seems some others (who did not attend the barbecue) have had similar things).

But it's leaving my desk looking like chaos has hit it. To add to the problem, #3 badly needs a holiday and I had already consented to her having the next two weeks off, part as time off in lieu as she has put in so much extra effort whilst I've been covering paternity duties.

The only good news is AJ seems OK, and #4 has decided to come in whilst #3 is away after all and I've decided to dump a pile of schedule preparation for the year end on her, not least because I know she's good at it. That will let me tackle real issues. Like the impending PAYE year end which I'm looking forward to immensely. In fact, my next session is with my ever quiet #5 to review the payroll to make sure it's all ready for year end runs. Yuck. It's almost enough to make me wish I was still at home.

* * *

March 27 - The FD has told us that he regrets the fact that he has not posted for a few days.

He says that he regrets the fact that over that same period he and his stomach have been in discord with each other somewhat more.

He assures us that a normal service will be resumed sometime after he has enjoyed (and retained) a meal. Until then he requests your forbearance.

(Ed)

* * *

March 21 ' AJ is back, thank goodness. She's not her usual self, but better than I expected.

The year end close down is over now. But there's a mass to do for the final accounts as yet. Why does so much need to be analysed in detail for tax? And, what really irritates me, why do car leases have to be so complicated? It doesn't take that long to do, but I always think there must be a better way of doing these things.

Still, the good news is that we've beaten all targets and I've not had to play any fast ones to get there, so I'm pretty sure the figures are robust. Even the stock figure.

PS There's general agreement the barbecue was a great success. I doubt we could ever do it again, but as a one-off it really worked and got our message out.

* * *

March 17 ' St Patrick's Day, but more importantly (sorry all you Irish folk out there) the day of my first ever breakfast party at work.

Ops and I got here at 7 this morning ' before almost anyone arrives. And, using the booty the stock controller bought yesterday afternoon we set about setting up a temporary barbecue in the yard. We didn't tell anyone what we were doing. We just began to cook at about 7.45, which is about the time vans begin to come and go. At first people looked at us, almost with concern.

'What are you doing?' they asked.

'Cooking breakfast' we replied.

Stunned silences followed. Then we said 'Do you want some?'

'OK'.

After a bit the questions followed. 'Why are you cooking us breakfast?'. So we took the chance to explain the new order, what it might mean and that we were chuffed to bits, so we thought a breakfast was called for.

I can't count how many sausages and slices of bacon we'd barbecued and put into baps by the time the office staff joined in. Nor can I relate how cold it was. A little snow just added to the atmosphere. But it was really well worth it. It got a buzz, it was enjoyed because it was unannounced and was simple, but fun. And we got our message across.

I give full marks to Ops for thinking it up.

And after that AJ came in, and that went as well as I might have hoped. Not a bad day really. Pity about the lack of progress on some year end issues, but they can wait. People are sometimes more important.

* * *

March 16 ' Some good news, at last.

As you might have gathered our new financial year has not really been a bundle of laughs here. But tow things have lifted my spirits. First (and entirely selfishly) baby Olivia is now sleeping through the night. The value of seven uninterrupted hours of sleep is only known to those who do not enjoy them, even if the panic I suffer on waking after the first night during which any of our children slept through undisturbed does not appear to have gone away.

Second, sales have landed a really big order not just for our new kit, but for the way we want to now install and service it. They've been working on this for some time, and it's a seriously good bit of news, with good profit prospect. I'm delighted. So much so that Ops and I agreed to spring a surprise celebration tomorrow. It has, or course fallen to accounts to organise it (since we can keep a secret, unlike everyone else around here) and our credit controller cum temporary accounts clerk has added the role of party organiser to her job spec this afternoon. But I think it will be worth it.

I'll find out tomorrow.

* * *

March 13 ' I was beginning to think we might need a temp when AJ rang. She's clearly not herself, but she says she'll be back in for a while on Friday with a planned full return next Monday.

#3 has agreed to have coffee with her first on Friday. We all know there will be that difficult moment when we all have to say we're sorry, and will feel hopeless about it. I think she's quite wise to give herself the weekend to get over that, then face the reality of work with the issue then probably being tacitly ignored by everyone except those she wishes to discuss it with ' if anyone at all.

I'm relieved. I know there are good temps in the world. But I really don't need to spend time briefing one right now.

* * *

March 9 - Why is it that when you're under pressure nothing goes right? We've had power cust this week - somthing we've almost never known in my experience here. It's the fault of some building work, apparently, but whilst we've lost no data we have lost work time.

We can ill afford that.

* * *

March 7 - The reality of AJ's situation has begun to evolve.

I have of course begun discussing staffing with people other than her to cover her maternity - #4 in particular. Now I face the prospect of AJ back, but knowing she is likely to leave later this year when her partner moves abroad, but with #4 having told me she will not be here. Of course forearmed helps, but how much when you have no idea when or if things will happen as people say? The reality is I'm left with the uncertainty about the future and a present reality, which is I am short of people.

I'm taking no hasty action. No banking or other covenant requires us to produce our accounts with undue haste. We have none of those silly US deadlines. All I need to do at the moment is an orderly month end close down with, perhaps, a higher degree of rigour than uMarch sual on cut off and so on.

Short term our new credit controller (who came with some accounting skills) can cover some sales ledger and other routine tasks, with which to some degree she has needed to be familiar simply to do her own job to best effect. We'll take a short term risk on cash flow chasing and then see what AJ does about a time to return to work.

What I won't do is pressurise her. I treat miscarriage as something pretty serous. Not just physically, but emotionally as well. She needs time and I've basically told Ops (whose not quite as sympathetic) that she'll have it (well, within reason). Trouble is, we have no policy on this (I wonder how many people have?) so we're playing it by ear, but that's life.

* * *

March 6 ' We're all downcast. AJ lost her baby at the weekend. I know it happens (my wife had a very early miscarriage once). But she'd got as far as telling everyone, was so excited about it and was clearly building her plans around a new life focussing on being a family.

And now she won't be, at least for now. And come what may, I know she'll forever wonder about the baby she never had.

I've left a message asking her to talk to us sometime in the next fortnight, but not to feel under pressure.

Heaven knows this doesn't help the year end schedule. But right now that doesn't seem to be much on anyone's mind.

* * *

March 2 ' Our year end has been and gone.

Stock counts (as necessary) have been done, although we rely quite heavily on our systems ' and after much discussion the auditors have agreed that this remains appropriate despite recent problems, even if they were here late into the day doing spot checks with our people. One auditor even had the fun of going to count some site stock with a returning members of our ops team after he'd been to Tuesday's meeting. Neither looked too pleased at the prospect!

Now it's the slog of getting close down done. I know we produce regular month end accounts, but the year end always requires a bit more effort. And the shenanigans of the last few months haven't helped. Babies and possible frauds have all delayed some of the work I often do in preparing year end materials before the date so it will be head down now. #3 might cover the month end, but I'm definitely doing double entry for the next few weeks.

* * *

In February the FD put his budget to bed, and faced the loss of AJ on maternity leave. And then it was year end.

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