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CEO's Diary: Time to play

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The CEO's staff are off - so he has time to think

December 29 - My brother-in-law is an academic. We saw his family over Christmas and we got talking. For some reason I mentioned our plan to survey customer opinion. In some ways I could say I'm sorry I did, but that would be untrue. It's just like many an accountant I rather like the idea of a survey that confirms what I already think. You know the sort. Design a series of questions with multiple choice answers and, maybe, the chance to add a comment (which you'll probably ignore) and hope that you got the design of the questions tight enough to get an answer that supports the conclusions you were seeking to verify.

As he pointed out, that's not always very useful (I know, but who doesn't like to be proved right?). And if you're serious it's not even considered very good research in many cases, precisely because the answer is too often predicated on the structure of the questions and answers offered, which may preclude any meaningful communication from those questioned to those seeking answers.

He suggested something which I have to admit sounds more interesting, maybe no more time consuming but which is a lot more risky. He called it a 'semi-structured interview' based survey. Your sample is smaller (which might be good news) but is carefully selected to represent the people whose opinion you're seeking. So the customer base has to be carefully profiled. And you start off with an agenda of questions which you want answered in a face to face interview, but having touched these subjects you allow free form development of the discussion to see what comes out of it. You hopefully record the process and transcribe the discussion to ensure it is captured for assessment and then you do just that - assess what the interviewees really say to see assess what is really happening. Based on that you try to come to answers.

Apparently this is common in academia (with which I am now blissfully out of touch). I see the point. It could help us answer the real questions to which we need answers. I'll need to discuss this with Newc.

But he's off until New Year. And I'm in taking quiet time to think budgets through (only two months to our own new year now) and all about business plans. Have you ever tried Mind Mapping? That's another thing he reminded me of that I have not done for some time. It's been real fun to find that this is now easy using software. I'm enjoying myself with some new trial stuff I've downloaded.

So, whilst the rest are away I can play. I like that. There's too little time to do so in 'normal time'.

* * *

December 22 - The solicitors called first thing. The signed agreement from Ops has been received. They've released his payment.

Phew. That's over.

Could 2007 be a year without such issues? I hope so. I wish I was confident. But at least I can relax about this one over Christmas.

* * *

December 21 - Newc and I discussed business planning today. He came up with a flipping good point. We've never actually asked the customers what they want from us. I mean, we sit in front of them and tell them what we have to offer. We've surveyed our competitors and are trying to stay ahead of them, but we've never done a survey or interviews to actually ask customers if we're getting it right.

He's walked himself into a job. It's on his agenda for the new year.

In the meantime I'm getting a little nervous that Ops has still not been signed off. I guess there's a day left before Christmas, and our lawyers are in, they assure me.

* * *

December 20 - I’m bemused by Christmas this year. I know when it is. It’s next Monday. That means most people have two full clear days off beforehand, unlike most years. So why does the world seem to be closing down already? It seems like we’re now into a two week national closedown.

Heck, I like time off. I don’t think I’m Scrooge. But what chance is there to make money when no-one wants to work? We’re already being turned away from premises where maintenance is scheduled already.

And we have to have some people on call over the whole period. And a skeleton office staff will be in between Christmas and New Year, me included, at least some of the time.

So why is the world giving up now?

* * *

December 19 – The final management meeting of the year. I had the option of discussing both business planning and new management structures here. I didn’t. It just didn’t seem the right time. There’s been a lot of uncertainty, but people seem happy that Ops has gone and at present seem relieved that Newc will cover the role in the north whilst we resolve who will do it more appropriately in the New Year (although options internally were discussed and there is pretty clear consensus that West’s #2 is the right candidate from everyone bar West, who does not want to let him go).

We all felt pleased with the financial results. The order book is good. Newc is proving to be popular because he’s a good listener, which is fantastic. The new product development on reporting is going well on trials, and feedback so far is good.

So we got through the routine business and went out to lunch. They deserved it. I’ve got a good team now. I feel ready for 2007.

* * *

December 18 - The board meeting.

I always dread board meetings. If I had to list the most stressful things in my life, they'd come way up there.

Today's was odd though. Ops was not present. Not at my request. The shareholders had told him not to come as he'd quit, although as yet we have not filed a resignation from the board. The ex-CEO asked the Chair to Chair - again a novelty. It gave the meeting a structure it had not previously enjoyed.

I summarised where we were with Ops. The compromise agreement had been, as far as we now knew, agreed. He’d agreed to the restraint of trade clause, although we all knew this would not be economically worth enforcing in almost any circumstance we would envisage. His termination package could be costed. We expected payment this week. Agreement was given to pay.

Then the fun began. I was grilled on how this happened, and why it had occurred. The ex-CEO clearly believes I had forced Ops out. I had to be robust, but subtle in making clear I’d tried to find ways to keep Ops with the company in May, so unless I was a bit of a sadist it would have subsequently made no sense for me to turn on him.

The Chair was careful and measured. He agreed that this situation was not foreseen. We’d all tired to be fair to Ops and had sought to give him what e wanted. Perhaps, as he suggested, Ops had not known what that was and only now realised it was time to move on. He attested to my frequent calls for advice and suggested that this was indication that I’d sought to manage a difficult situation as well as I could. I had carried the rest of the company with me through this. He thought that this most important thing.

I could tell this worked for the ex-Mrs CEO. As a result I could tell it did not work for her erstwhile spouse. But as he could see no further angles on it the Chair guided us on. He’s worth his weight in gold (well, at least his pay).

The Chair asked me to present the planned new structure but from the outset made clear he had been consulted on it, had advised me and supported the package. That made this much more comfortable. I’d felt on my own for a period on Ops. Here I did not. As a result it flowed well. And candidly, the shareholders did not, and have never shown much inclination to return to active management of the company. So after questioning I was relieved to get this through. And the Chair will join the Board – and sign the shareholder’s agreement to which all directors are a party. His pay will reflect that fact – and we’ll still save overall on Ops.

Finally, I did raise the question of a dividend. I made clear that the year was going well. Would they like to consider an additional dividend? No, said the ex-Mrs CEO. She always blocks such moves. I’m sure she’d like the cash, but refuses it to spite the ex- CEO who would like it much, much more (as would his girlfriend). Oh well, I tried to do the right thing.

And at the end of the day, if Ops signs I will have what I want. I can’t really complain.

* * *

December 15 – Enough navel gazing. I got a memo to the board out last night and today it’s on the road seeing customers. It’s another chance to also go out with Newc. I don’t need to hold his hand, or he mine, but I need to get him known. More importantly, I need to know him.

The reason is simple. In the New Year I want to write a business plan. Not just a glorified cash flow. A real business plan. One that says what we’re seeking to achieve for some time to come and for that I will need to have a good feel for what people want, think is achievable, and believe they can both accept and in turn sell.

I know I want to expand our market both geographically and vertically, the latter by servicing smaller sites. I think we will have the management structure right. I am reasonably confident that we have the right kit – but not so much so that we shouldn’t be keeping a much closer eye on this than we have in the past. This is an area where we appear to have been caught out too often.

It’s how we hang this all together that is the issue. I think the reporting issue adds to our value proposition (horrible phrase) for some of the big customers. The work that’s now been done on it makes it fairly easy to produce and is very largely automated, which is good. I don’t need to train people in new writing skills to get it done, and that’s pretty important as some of them haven’t got the requisite polish, but are still good at their jobs. So it’s not that. I guess what I’m searching for is the thing that identifies the business as distinct which lets us really stand out.

And that’s not a new logo. As I’ve told Newc, just in case he thought along those lines.

And when I really have it, I want to use the plan ton say how we’ll deliver it. A few days off over Christmas might help the clarity of my thinking.

* * *

December 14 – The Chair and I took time out to talk yesterday. It was important.

We bashed through the management ideas, and hit a rich vein. Having cleared Ops out (we think) it’s like a chance for a cabinet reshuffle. We’ve stuck to the idea of a two tier management system of the board and an operating committee. In the unusual circumstance of our directorship, which has to include two owners alienated from each other and the company itself nothing else makes sense.

That said though, an operating committee where I have no understudy is also a weakness. I do intend to go on holiday, and there has to be a management structure in that case. A free for all will not do. It was clear there is only on real candidate for this job. It has to be East. The office team of #3 and Office herself are good, but the business is driven from the customer perspective, and he’s way out in the lead on this. With the board’s permission we want to make him deputy CEO. West has earned no change in his status. Newc will formally becoming marketing and new business development director. He will also pick up temporary responsibility for the North now Ops is going, and given that he’s the nearest manager. But I don’t want that to last for long. Office and #3 will be given proper titles – systems director and finance director respectively. I worried about giving #3 that title as she is not really an FD, more a good accountant. But as the Chair pointed out, we’re not going to have a full blown FD. I cover that role.

Finally, we discussed the north. There is a man for there, internally. He’s West’s #2. He’s good. But we need to think hard on that. And we don’t know if he’d go. But I think he’d be a good solution, and allow another shuffle there as he also has an heir apparent available, which I like. In fact, isn’t that what management is about?

* * *

December 13 – Hassle all day. First the ex-CEO rang to say he’d been talking to Ops and thought it only fair Ops should be paid a consultancy fee after he left and maybe he should stay on the Board as a non-exec.

I knew this was Ops speak, and the CEO has always had a soft spot for him, but this was ridiculous. First of all, he’s offered nothing for ages, so as a consultant he would be useless. Second, on the board he’d only be a negative. Third, he can’t be a consultant and board member at the same time as far as I know, and he certainly can’t have an ex gratia and carry on.

But I bit my tongue, and said I’d think about it. I told the Chair who also thought it mad. And since cash is king for Ops we decided to play the ex-gratia tax free bit as the winning element of why he could not carry on in any formal way. I also said that I’d be delighted to give him consulting work if there were suitable projects available so long as it was with a company, and would be willing to discuss terms as soon as he left.

The ex-CEO bought this as fair, and accepted the ex-gratia argument. He agreed to sell it to Ops.

Then I had to deal with Citizens Advice. The person who I sacked last week has been to see them because I did (as advised here) tell him he had a right to appeal. He’s consulted them and they had questions. The first was would I be involved in an appeal? I said I wouldn’t, the Chair would do it and had never met the person before. Second, what form would it take? I said a full new hearing, but maybe without the abused person being asked to speak as they were still shocked by what had happened and it may not be reasonable to ask them to meet the sacked employee again. The CAB person was surprised. So what other evidence have you got then, they asked?

I explained that three people had agreed, almost word for word, the whole abusive tirade. This was obviously news to them. They thought it was one person’s word against another’s. What were those words she asked? I told her. At which point she admitted that she could not really see how an appeal would change the outcome. I said “You can say that; I couldn’t possibly comment”, which at least caused a laugh. She admitted that again this was nothing like the story she’d heard.

So I said I’d leave it with her. The appeal option was open. I don’t think it will arise though.

* * *

December 12 - All is proceeding well. The order book is looking good for December. The November management accounts have confirmed that the figures we fretted over in October were not a blip - our margin held up. What I hoped would happen is beginning to be delivered. Our labour costs in proportion to sales are falling and the new kit is simply more reliable and lets us target resources better so that the initial install cost is now being more than recovered, and we're seeing real gains. This is great news - and a real boost for me so soon after I have become CEO, although I can claim the original idea was mine.

Then I did another Christmas event last night - with a customer. What's worse? Your own, or someone else's? The latter, actually. But duty was done, and it was another stone cold sober night sipping tonic.

And, OK, the best bit was Ops got his letter of resignation in. And we got he lawyers to send out the offer to him (I think it wise). We've also paid for him to see a lawyer to make sure he's properly advised. There's no point in this coming back to bite - and he has to know the non-compete threat is as realistic as we can make it. So a proper compromise agreement is on the cards.

In the meantime he's officially having a few days off to deal with a domestic situation, and right now I can maintain that line. But I've told him I want to tell people on Friday.

Today it's a meeting with the Chair. I have an idea we should have a broader based and more formal two level management system. The Chair should formally join the Board, but the management team should take operational control. I want to bash this through with him before presenting it to the shareholders, hopefully next week. I think it could work, and maybe improve controls too. It seems only fair. To promote one or two managers makes little sense, and upsets the shareholders control of the Board. And the management don't need to meet them too often (if they can help it). So a balance with the Chair and I being the bridge seems the right way to go. Any extra cost for the Chair can be covered out of Ops salary. Whoever replaces him in the North - and that one needs careful thought - won't be on the same sum.

I was almost whistling when I got all this worked out. Better not show I'm too pleased, yet.

* * *

December 11 - I'd like in a way to report some dramatic follow up to my 'blog' on Friday evening that Ops has decided to go. Or to report that the office event on Saturday evening gave rise to newsworthy reaction. I can't.

The event was good, helped by my being in a much more relaxed frame of mind than I expected and the fact that we imposed a strict cut off so that people got sent home before the night was too old. You can say that this makes the management team a bunch of spoilsports, but by midnight some were showing enough signs of wear to make me relieved that we'd offered to arrange taxis for all who needed them (admittedly at their expense) so that they could get to the right home. I was horribly stone cold sober, but still managed to play my part in the evenings events. I even won 'management jive of the evening award' - though don't expect me on Come Dancing just yet!

As for Ops, I offered his apologies for absence to those who asked and added no more. My job today is to make sure the Chair and CEO are happy with his decision, and to then call a board meeting to decide how management should be arranged henceforth. I'll be the only executive director if Ops goes. That seems undesirable. And practical management issues like management of the bank mandate have to really be addressed now. And of course, I have to make sure that Ops really has not changed his mind - and so far I don't have his actual signature on a statement saying he is going.

But I'm reasonably optimistic. That's not just for me. It's also for him, and the company. He and we need to move on.

* * *

December 8 (again) - Ops has gone. He agreed the package. He doesn't want to come tomorrow. He's emailed his resignation subject to the terms we discussed this morning. He's acknowledged the non-compete clause (I made that a condition). He'll get his bonus for this year (he has to get something, I suppose, and it was in my budget). And I can announce it on Monday.

The Christmas bash has claimed another casualty. The thought did cross my mind that it may be the cause of my eventual demise, but I trust that's a way off yet.

If I could I'd have a drink. I will later!

* * *

December 8 – Ops called me again last night. I decided I should just let him talk and see what developed, not that I always find this easy.

He admitted as a result that he had been tempted to set up on his own in the north to provide services of the type we supply.

I checked whether he really meant ‘on his own’. He never gave a straight answer but I had a distinct feeling that this was not the whole truth.

I was emphatic. The covenant in his contract was to be enforced. I made clear, I had to do this for the shareholders. Interestingly, he did not seem to have thought about them.

“What do they think?” he asked. I had to be candid. I had not asked them. So I agreed to do so. I could only get hold of the ex-Mrs CEO. She was upset that he was going. And annoyed he had run us around, and we’d paid for his relocation. But she and I agreed a deal. He could go now, have 3 months gardening leave and 3 months ex gratia, but he had to understand that the 12 months non-compete in the contract was serious. She would want to sue if he broke it.

I reckoned this was fair.

I called him. He agreed to sleep on it.

He hasn’t rung this morning. The ball’s in his court.

* * *

December 7 – Ops called. He says he can’t make alternative arrangements for Saturday.

I said I didn’t believe him. He seemed taken aback. Enough to break through barriers. So we had a serious discussion.

I’m not sure why, but this time he opened up. In fact, he was candid. He said he can’t face seeing the whole company as ex MD when I am now in charge. At last! Some honesty. This was good news.

“So”, I said “you asked for this new option as a means of staying with the company, and now you don’t like what it entails. What do you want to do?"

“I’m going” he said.

“Where?” I asked, probably a little facetiously.

“I don’t know” he replied.

“When?” I added?

"Now" he said.

“What, now?” I asked, it being my turn to be taken aback.

“Can I quit with immediate effect?” he said. “I’ve made a mistake.”

He admitted he loved living up North. That had worked really well. He loved no longer being the MD, but his heart and soul were simply no longer in this. He was pretending half the time at work. He simply couldn’t bring himself to do what was required of him

The candour broke down the barrier between us, and I warmed to him. We were just about back to where we had been.

I was honest, I would be happy to have him go now, but for the company’s sake I had to make sure that this was the right deal. The conditions were straightforward. He would lose his options as a result of being paid for his notice period. And he had to agree to a non-compete clause. This is in his contract, and mine, but I made clear that this was going to be enforced. My reasoning was straightforward. I have wondered for some time whether he was minded to either start again or with someone else.

He did recoil slightly at this. “What’s competition” he asked?

“Why do you ask?” I replied. “Well, I might still have to make a living” he replied. “Not selling services like ours for the next 12 months” I replied. After that, I can’t stop you.

He asked me if he could think things over. I agreed. But said he hadn’t got long.

* * *

December 6 - It's Ops, again.

I got him to talk to me. He said he could not come on Saturday now. His wife is going out. "So what?" I asked. "Oh, that means I have to look after the dog" he said.

I just laughed. I know their dog. It's fine. It's left all day sometimes. He assured me there was nothing wrong with its health.

So I was blunt. I told him (and I've checked this with our lawyers) that the Christmas event is a work duty. I can reasonably ask him to attend under the terms of his contract. And I told him I'm doing so. He has a choice. He can come, or he can come to see me on Monday when he will be subject to a disciplinary hearing.

"What do you want?" I asked. And added "Or is it that you just don't want to be here at all?"

Yet again he asked me "Are you sacking me?". I changed my tune this time. "DO you want me to?" I asked.

"I don't know" was the reply. I resisted the temptatuon to respond with "Well, you haven't got long to decide" and did instead say "The ball's in your court".

I have no idea what he will do. I see no reason why we should compensate him for going (which is what I think he wants). I see no reason to try to keep him. I'm bored by the disruption he's causing. I'm almost hoping he won't arrive. But it's not adding to my sense of enthusiasm for what is already a low spot in my annual calendar.

What are the alternatives to Christmas bashes? The trouble is, a lot of people seem to like them. Why is that?

* * *

December 5 - OK, so I didn't keep my promise to report back yesterday. There were two good reasons. Ops didn't answer his phone. Then he sent a text to say he'd call later. He never did.

In the meantime I was totally distracted by a disciplinary hearing. One of our stock people was racially abusive to one of our operations people who was in for a regular stock check of his van and to have stock replenished. I suspect he thought he was not being overheard. In fact two people, including the stock controller, did hear him and took considerable offence. It was the stock controller who immediately reported the matter to me and encouraged the abused person to complain.

I take racial abuse seriously. I'm opposed to all discrimination, and the more so as I have two mixed race nephews and see the injustice they suffer compared to my own older children. It angers me, profoundly. So I dropped what I was doing immediately as racial discrimination is considered gross misconduct here. The stock person was asked if he wanted representation, refused it and so was allocated Office to look after his interests whether he liked it or not. As a matter of course I get another manager to sit in on disciplinary hearings to make notes. So that got #3 involved.

The stock person denied saying anything racist. This is for me the nightmare scenario. When racism is alleged and it's one person's word against another's I give the benefit of the doubt on the first occasion, and give final warnings (at most). In this case there were two witnesses who corroborated the abuse. I only had to ask them and the abused person what had been said, with all offering exactly the same answer, to conclude that serious racial abuse had taken place.

The stock person was asked to comment. He denied it. I sacked him. The whole episode took just over 90 minutes, beginning to end. His P45 and pay cheque were through his front door before close of business, and all notes had been produced and filed. And an email to all staff (without names being given) was sent at close of play reminding people that discrimination will not be tolerated.

You sometimes wonder what influence you have as CEO. Perhaps the biggest is to set the environment in which the business operates. This is a choice you can make. This reflects my choice.

* * *

December 4 - Spent the first part of this morning in an initial review of how the takeover is going with Newc, East, #3 and Office.

Newc has already got his old company heading for liquidation for tax reasons. In the meantime #3 and Office have worked well in getting integration underway. All the staff seem happy. All were paid on time. All seem content they got the right money. Some money is coming in from Newc's customers, in fact enough to clear all his small creditors who we are unlikely to deal with again. That eases some immediate complication.

East has seen all the major customers already (I'm sure he doesn't sleep, and that in itself worries me) and so far the feedback is good. Let's be honest, as we're giving an 18 month price commitment there's no reason why it shouldn't be.

Setting up new sales invoicing arrangements has not been as straightforward as we hoped. We simply hold more data on our systems than Newc did, where more was dependent upon staff knowledge and backs of envelopes. Office has been invaluable here. She has a knack at extracting information from tatty bits of paper and staff who prefer not to divulge what they claim is common knowledge, so progress is being made. That's important. Some are on monthly billing for maintenance (which is a pain, as we do quarterly) and so integration is a key issue. We have not promised people we will not change this. East is selling the change as a reduction in admin burden.

So I'm pleased. The team have done this pretty much without me being involved. I just had to chair things today.

So that leaves me with the problems of the week - seeing yet more clients and Ops.

He's next on my agenda. I know I did this rather than call him. But the Chair's words are ringing in my ears. So I'll do it now. And you neve know. When I've calmed down again I might report back.

* * *

December 1 - Ops gave me the chance to pose the question as to what he wants to do this morning.

He called me (not a common occurrence) to say he'd decided not to come to our Christmas event. For those with a long memory, this event has something of a history for me, having given rise to the sacking of the founding shareholder and CEO of the company. Maybe it's destined to play the same role again. Scheduled for next weekend, I'm dreading it, but expect the management team to all be there, so I grabbed the opportunity to challenge Ops on why he wasn't planning on coming.

"It's too much hassle" he said.

I was livid. I hope it didn't show, but kicked back with "Everything seems too much hassle for you right now. Are you sure you want to work here?"

He seemed taken aback. His first response when he replied was "Are you sacking me?"

"Of course I'm not" I replied. "I want you here. What I'm not sure about is whether you want to be here."

"Of course I do" he said. But it didn't carry conviction. I said so.

"Is there something you want to talk about?" I asked.

"I'll think about it" he said.

And that's as far as I got. But it's on the agenda, and as I told him I'm not taking "I can't be bothered" as a reason for not attending the Christmas event, which I've made clear is a company function in which he is obliged to participate, I've got plenty of grounds to pick this up again next week.

Oh, happy days. Why is it always people who make life difficult? I could even live with health and safety if I could avoid having staff. But I'm only kidding really. I actually like most of this lot, most of the time.


In November the CEO completed his takeover.

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

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

Number of comments: 21

AccountingWEB.co.uk 29-Dec-2006
Categories: Business Features, CEO's Diary
Times read: 17670

This item has been given an average rating of by 5 user(s)

User Comment Paul Hibbert, 22 December 2006 @ 00:26 AM

Children!
Why break up so early? For me, it's because Im taking the whole of the school Christmas holiday off to look after my 4 year old. I could let him alone in the house, but my risk analysis on that is pretty bleak.


User Comment Martin Tingle, 21 December 2006 @ 12:59 PM

Why break up early?
A lot of companies have a "use it or lose it" rule for annual leave and have the holiday year finish on 31st Dec. If like me you keep a few days leave back "just in case" of domestic emergencies then you often have some odd days to use up at this time of year.
Having had the three day gap between Christmas and New Year automatically booked for me by HR at the beginning of 2006 I can only use up my last few days by taking them off this week.
A lot of my colleagues are in the same boat so we have patchy cover this week, although all departments are working they are on reduced staff.


User Comment Mike Truman, 15 December 2006 @ 18:01 PM

'A few days off over Christmas'
... for a given definition of 'days off'...


User Comment The CEO, 15 December 2006 @ 17:21 PM

Thanks Jonathan
Director of Finance. I like that. Bang on the nail. I think that's a problem solved

Cheers

The CEO


User Comment Jonathan Williams, 15 December 2006 @ 15:13 PM

What's in a name
If you want to keep the word director in #3's title, why not Director of Finance... not quite the same nuances as being a director...


User Comment Alistair King, 15 December 2006 @ 14:11 PM

What is in a name ?
Christmas gets everywhere - Accountancy manger?

I am now imagining the accounting nativity scene - the cash cows are mooing, the baby is wrapped in spreadsheet printouts and is sleeping in this accountancy manger...

I couldn't resist.

But Gerald Slater raises a good point - for now, Financial Controller or Accounting Manager might be a better title for #3.

In the long term there is a different issue. How long will you continue to be both CEO and FD? Are you staying in the "FD" comfort zone?

If you are really going to lead and develop the company as a visionary CEO, then sooner or later you will need to relinquish being the FD. If your growth plans pay off then you should expect the demands for your time and attention will also grow.

Can #3 grow to be FD material? If yes, what are you doing about it, to get her there, so you can be fully free to focus on being the CEO? If no, then what is your succession plan for the FD slot?



User Comment Gerard Slater, 15 December 2006 @ 09:01 AM

What is in a name ?
Given your comment above I worried about giving #3 that title as she is not really an FD, more a good accountant. But as the Chair pointed out, we’re not going to have a full blown FD. I cover that role would it not be better to rename the role to financial controller/Accountancy manger, as calling #3 FD, when really she is not and you are, may lead to problems further down the line ?


User Comment Alastair Harris, 14 December 2006 @ 11:56 AM

titles!
why not financial controller - sounds like that is what you are asking her to do?


User Comment Alistair King, 14 December 2006 @ 10:31 AM

Broader Based Management
I like the 2 level management idea

Broader based management could be good for:

- Developing your people as managers and as a team
- Getting their buy-in into new iniatives and business development
- Giving them a sense of involvement and increasing theîr sense of belonging (good for staff retention)
- Encouraging them to think about the business and how it carries out its activities

Do your managers also hold team meetings for the staff who report into them? How do ideas/issues/etc progress through the company (upwards and downwards)?



User Comment Gerard Slater, 13 December 2006 @ 10:50 AM

Gettiing it the way you want it
I am surmising that with OPs going and the discussion you are having with Chair, that you are clearly getting the company structured in the way you want it ready for future growth.

(As a side question, can you divulge the nature of your business, as I may have missed it, if it was mentioned at the outset of this diary?)

Cheers


User Comment AJ, 13 December 2006 @ 09:24 AM

Non-competition clauses
I'm curious about the non-competition clause with Ops. I've seen numerous cases of these not being able to be enforced, and had conversations with grumbling MDs about how they don't work. Does anyone have any positive stories about them working at all?


User Comment David Honneyman, 12 December 2006 @ 23:45 PM

Young Peculiar
When I was young and at uni, I used to walk (we were all too poor to afford a car or taxis) home from student parties, in the early morning (no buses), after having had far too much old peculiar for a young en. Often I would fall asleep on the way home, and carry on walking whilst asleep. Some of the time I had to cross two main roads, and a few minor ones to get home (I feel lucky to be alive). I would wake up to unlock my front door, then fall asleep again, wake up to get into bed and fall asleep (I got tongue tied writing that). Oh what happy memories of being a young peculiar!


User Comment Alastair Harris, 11 December 2006 @ 16:17 PM

Old Peculiar
I have many a happy memory of this particular tipple - it assisted my studies no end (4 happy years in Newcastle) - but I never once worked out how I got home at the end of the evening, even though I do recall that a kebab featured somewhere in the equation!


User Comment The CEO, 11 December 2006 @ 11:18 AM

Right now my tipple is
Old Peculiar

But you're right, Alastair. I have plans.


User Comment Alastair Harris, 11 December 2006 @ 09:17 AM

time for a beer
when you have found a replacement for your northern patch - this sounds like a gowth region for you?


User Comment The CEO, 08 December 2006 @ 17:41 PM

Thanks
OK John. Point taken. We'll do it

Thanks


User Comment Gerard Slater, 08 December 2006 @ 11:51 AM

Freedom to drive on ?
CEO - if Ops ops for the package (couldn't resist it) will that give you more freedom to drive the company the way you want it going ?

Although I appreciatte that you are the MD, is there still some "weight" on your shoulders with Ops still around ?
Do you wonder when you make a decision that the staff may be thinking that OPs would have dome it differently ?


User Comment John Anzani, 08 December 2006 @ 10:53 AM

Ok but don't make it more difficult for yourself
As I posted before, I am concerned that you are weakening your position by not following statutory procedures. PLEASE at least write and inform him of the right of appeal and hear it with as open an attitude as possible.

Otherwise I think you will clearly be in breach of statute and I fail to see the advantage of weakening your position in such a way.

Best wishes


User Comment The CEO, 08 December 2006 @ 08:58 AM

If I was wrong I'll fight it
I have an inkling that the law is daft enough to mean I was wrong to act as quickly as I did on Monday in sacking the member of staff guitly of racial discrimination.

But if he takes us to tribunal I'll fight it all the way - I assure you this was not mild abuse, but worthy of instant dismissal. I won't repeat what was said. Suffice to say, I think any tribunal would agree that dismissal was appropriat and so damages would be small.

Candidly, I think it would be exceptional in that case if he fights it. But I'll wait and see. Some lawyer, somewhere might be daft enough to fight it.


User Comment John Anzani, 07 December 2006 @ 15:23 PM

Please check the statutory disciplinary procedures
I am concerned that you may already be in breach of the statutory disciplinary procedures. These require you to write to the individual and invite him to a disciplinary meeting, inform him of the allegations and evidence and advise that he can be accompanied. It does not seem that you have done that.

You must also write telling him of the decision [not just send a P45] and advise of his right to appeal and also advise that he can be accompanied. That appeal should be preferably be heard by someone not previously involved but by taking the first meeting yourself you have realistically precluded that [however it is not a requirement that a new person takes it].

i am worried that you may already have laid yourself open to a successful claim at a Tribunal.

You are right that it is part of your role to set the environment. I applaud your anti-racist sentiment BUT I would suggest that you should also be establishing an environment of due process.

I think you acted more hastily than you needed to. I doubt that you are the individual's line manager. I would suggest in future that you refer it to another line manager to chair the first disciplinary meeting and suspend the individual pending enquiries. When s/he is satisfied that there is a case to answer then write to the individual as outlined at the top of this post and take it from there. You are then in a position where you can hear any appeal. I would also advise against emailing staff about such an issue until after any appeal otherwise you are open to an allegation at tribunal that the appeal was a farce since you had so publicly made your views known.

If this individual has long service and no current warnings against tham it is entirely feasible that a tribunal may feel that the sanction applied was too great especially in light of the way in which the process was carried out.

I am sorry this is so long and seems so negative but I'm employed to give free HR assistance to SMEs in our council area and this sort of instant reaction is something I strongly caution against.

I hope that this doesn't come back and bite you.

Best wishes


User Comment Gerard Slater, 06 December 2006 @ 13:52 PM

Dealing with the issue
Just to say that I think the way you dealt with the race issue was spot on. Quick and decisive, so as not to linger longer than it need be.

Also the comment you had at the bottom of your post re set the environment was again spot on.

I am enjoying this diary.

Good luck for the future

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