Showing posts with label Financial Management. Show all posts
Showing posts with label Financial Management. Show all posts

Wednesday, January 30, 2008

Nurture Leadership from Below

"Leaders are made, not born. You learn to become a leader by doing what other excellent leaders have done before you. You become proficient in your job or skill, and then you become proficient at understanding the motivations and behaviors of other people."

Brian Tracy


Every leader started somewhere, and typically it was at or near the bottom. A big part of your job as a corporate leader is to recognize the innate and latent leadership ability in your subordinates and nurture those future leaders.

Ralph Nader once remarked that “the function of leadership is to produce more leaders, not more followers.” Successful and responsible leaders are always on the lookout for talented people within their organizations. They ask their managers for recommendations of employees with leadership potential, and they seek out potential leaders from outside the organization.

Formalize your leadership development programs. Make sure they are well-organized and providing the right opportunities for new leaders in the company. Take an active role in leadership development by regularly communicating with top prospects and building a solid pipeline for the future.

Last but not least, speak about the importance of leadership for the company. Communicate to your employees the importance of their leadership role within the organization. Inspire them to aspire to take your place. If you care about the organization, then you will inculcate leadership lessons in new generations.

(c) Adonis E. Hoffman, 2008.

Thursday, January 17, 2008

Mind the Money

"The essence of a successful business is really quite simple. It is your ability to offer a product or service that people will pay for at a price sufficiently above your costs, ideally three or four or five times your cost, thereby giving you a profit that enables you to buy and to offer more products and services."

Brian Tracy, personal and business success author


The old adage among prosecutors and investigators is: “follow the money”. By doing so, financial improprieties are inevitably discovered and many a corporate chief has fallen from grace.

There is no justifiable excuse for financial mis-deeds today, especially with the generous compensation packages abounding in most companies. Corporate treasurers, accountants and chief financial officers are under enormous scrutiny and pressure to demonstrate they have prudently managed the finances. Otherwise they face the wrath of the market, and more significantly, the risk of civil and criminal prosecution.

Your job as a corporate leader is to make sure that the money is handled prudently. You must put in place the people, frameworks and checkpoints for a credible system of financial accountability. A socially responsible company manages its finances prudently. A CEO should never be able to hide behind—as one leader claimed—a financial system that was so complex he did not quite understand it.

The company’s balance sheet is not the sole province of the CEO, but it should be one of her main concerns. Increasing profit and shareholder value should not be subordinate to prudent financial management.

(c) 2008 Adonis E. Hoffman