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Category Archives: hiring practices

Who is Your Betty?

My first CFO job was working for a relatively small organization with an administrative assistant who still used a typewriter and refused to have a computer on her desk.  She had been with the company since its origination and she knew where everything was located.  She had all the contracts, historical Board reports and legal agreements in a file drawer.  If you asked her for a document, she could stand up from her desk open one file drawer and hand it to you within 3 minutes tops.

The truth is, in today’s environment, to locate corporate, financial and administrative documents when they are needed can cost organizations unbelievable amounts of money.

Who is Your Betty?

Betty did not like me too much when I became CFO, as she thought I was taking a job away from a man. My approach to this and all discrimination I have experienced in my career is to analyze the situation and determine if I could make it better by doing such an awesome job no one could ignore me.  If that was not possible, I would have changed my geography.

When she came to some of the first C-level management meetings, she would ask all the men in the room what they wanted to drink and skip over me.  I was fortunate to have a wonderful boss who would then follow her out of the room and tell her what I would like.  I quickly realized that if I wanted to be successful in this position, I had to figure out how to win Betty over so that I could get to those documents and of course get a cup of coffee at the management meetings.

Who’s Job is it to Manage Corporate Documents?

Times have changed and the days of Betty or any administrative assistant asking if you would like something to drink or logically organizing documents have gone the way of the rotary telephone.

Businesses have, for the most part, eliminated the administrative assistant position as they feel the position is not needed now that professionals have email and all the APPs and tools a computer provides. Even if there is an administrative assistant, the job description generally will not include managing and maintaining corporate documents. I frequently ask when I begin a new job with a company who has this responsibility; C-Level executives of small and large organizations look at me just like I asked them what kind of cheese is on the moon.  They have no idea.

Failure to follow a document management process costs your organization in the following ways:

    1. The C-Level executives do not have a clear line of sight to the contract terms they are bound to as they are carrying out their corporate responsibilities.  This can lead to losing major customers, noncompliance issues with regulatory bodies and lawsuits that take a tremendous amount of time to litigate.

 

    1. Creates negative relationships with vendors.  I once spoke with a professional who had served as a manufacturer’s rep for an organization for several years.  The management of the company changed, and when the manufacturer’s rep came to meet with the new management, they were told: “I looked in the file drawer, there was not a contract, so I am terminating our relationship today.”  The manufacturer’s rep had a long-term relationship with the company and its customers in a very closely held industry.  Once the new management realized the mistakes they had made, it was too late. Not only did the contract had a 90-day termination notice clause, but the rep was well-loved by many customers.  The negative ethical behavior on the part of company management left the rep unwilling to work with that company.

 

    1. I have seen many a deal fall apart, and the potential investor or buyer walk away, before due diligence is complete.  When a company’s documents are distributed in corporate and personal emails, shared corporate drives, personal drives, even the email files of terminated employees, locating them takes valuable time in which the potential buyer can find a lot of other things that interest them, causing them to move on to another deal that is ready to move forward.

 

    1. Compliance issues are not dealt with on an ongoing basis.  As a new CFO at an organization with government contracts, a governmental agency called me to report my organization was out of compliance with the terms of the contract.  I pulled the “I am the new kid on the block” card and asked to call them back.  It was shocking how long it took to locate the contract after I hung up the phone and even more shocking to learn the terms of the contract to which we had agreed. It was apparent to me that our organization had failed to thoroughly read and understand their contractual obligations.  When I appealed to the agency that the terms were not reasonable, the agency basically said, “Well you (meaning the organization) signed the contract and you will be compliant, or we will terminate the contract.”  This was not the welcoming present I was looking for.

 

Who is Your Betty?

If I had a nickel for every time someone sent me a contract they considered final, but was not fully reviewed and executed with all signatures, I would be inviting you to my corporate yacht this weekend.  Betty would never have filed an incomplete document in her precious filing system without all the signatures, dates, notary stamps and corporate seals.  Honor Betty and her memory, as she now rests in peace in the clouds; put someone you trust in charge of finding and organizing all the corporate documents and maintaining them.  Your organization will be better for it.

 

Barker Associates has the unique ability to work with all sizes of organizations and building infrastructure that matters.  Contact us today!
Mindy Barker, Founder & CPA | Jacksonville, FL 32256
(904) 394-2913 or (904) 728-2920 | CFO@MindyBarkerAssociates.com

Would You Purchase a $200,000 Piece of Equipment That Does Not Work?

WouldYou-shutterstock_271781597What kind of question is that … of course you would not purchase a piece of equipment that does not work! Yet you may be doing exactly that if your hiring practices have not grown and evolved to support the growth of your company.

 

As the founder or CEO of an entrepreneurial growth, or family owned company, an honest evaluation of your hiring practices might highlight if you are investing in employees who do not “work.” In this context, “work” means they are not suited for the current stage of your company, prompting the question, “How did I not see this happening inside my own company?”

 

Entrepreneurial growth founders and CEOs tend to hire friends and family at the early stages of startup, relying on people who they trust, and with whom they have an existing relationship. This type of employee tends to be fiercely loyal to the founder, willing to put in the hours to help get the startup moving in the right direction. My observation has been the founder has enough day-to-day interaction with all employees to fill in the gaps and correct shortfalls that result from hiring based on relationships versus skills and qualifications.

 

As your company has evolved, perhaps these types of employees are no longer team players; or possibly your superstar employees have become discouraged as the company has grown and changed, so they are leaving and taking valuable company intelligence with them.

Companies that survive three years in business and realize success in their revenue goals also find that the needs of the organization have changed. Hiring practices require more structure and objective measures, which means additional up front planning when considering a new hire. Here are my recommendations for putting in place that structure and objectivity:

 

  1. Complete job descriptions for existing and new positions. Since this process has Fair Labor Standards Act (and other regulatory) implications, refer to a source such as the Society for Human Resources Management (SHRM: http://bit.ly/1pJUinA), for guidance.
  2. Use the job description to create a job posting, describing the new position and the criteria for candidates to apply.
  3. Make certain you have an organization chart that clearly illustrates everyone’s relationship within the company.
  4. Properly communicate to existing employees you are hiring a key team member and explain the reason for the hire and eligibility requirements for applying for the new position.
  5. Prepare a template of key metrics the employee must have for the position before you identify the first candidate. Metrics such as job skills, education level, and experience should be included.
  6. Reproduce the template for each candidate you interview. Use it to evaluate all candidates during the hiring process to help you stay focused on the essential needs of the organization – rather than letting your emotions get away from you and hiring someone you really like but is not suited for the position.

 

During the actual interview, the founder/CEO and select team members, trusted advisors or others, should be involved in interviewing candidates using the interview template for that position. Final applicants should be vetted with a background check, confirmation of all certifications, degrees and employment verification, prior to making a formal, written offer to the selected candidate.

 

If you have suddenly realized that it’s time to implement more formal structure and hire key executive positions for your growing business, contact Mindy Barker & Associates to find out how we can assist with the process. From developing the criteria for key executive positions, to working with firms to source qualified candidates, we will not only lead you through the process, but also leave you with a documented procedure to follow as your company continues to grow.