I didn’t realize that when I posted my last blog entry “Have You Defined Your Blog Rules of Engagement”, that I would so quickly see a press release outlining the termination of the CFO of publicly held Francesca’s. As the article highlighted, the CFO of the company had been very active in his usage of LinkedIn and Twitter. However, that was not where he ran afoul. As later press releases started bringing more details to the table, it was rather shocking some of the postings that he had actually made on Twitter.

            As it was outlined in the WSJ article, choice postings include;

-          “Board Meeting. Good numbers=Happy Board”

-         “Draft S-1, pages of risks (sigh). I tell lawyers to add the risk that a meteor strikes earth, killing all life causing investors to lose”

-         “getting ready for a big SEC filing”

     Needless to say, there were more postings that carried this same type of theme, as well as the highly “articulated” points of view carried in his previous posts. It really is disheartening to think that an individual with this level of “discretion” would be considered a peer.

     These postings are not in error because the company was a publicly held entity. These would have been serious transgressions even in a private company. If you have been entrusted with the CFO post, public or private, there is an inherent level of trust with your Board, fellow Executive team members, and investors that needs to be maintained. There’s also a level of communication that needs to be maintained from an internal perspective as well and these postings were certainly not done in the spirit of maintaining professionalism.

     Although I’m sure it won’t be the last, I would hope that we don’t see these situations with any degree of regularity as C-level executives continue to expand their use of social media.

Thanks for reading…

Jeffrey Ishmael

            For the last 2-years I went dormant with this blog and took some time away to develop some steadfast rules regarding the content of this site and the subjects I write about. Those guidelines have sometimes flexed in the  past depending on the size of the company I’m working with, whether a public or private entity, but the goal has always been to keep content at the most professional level.

            With a recalibration in mind, let’s take a look at some of the more basic ground rules that should be in place for a blog for a corporate finance professional:

·         Specific numbers should never be discussed, regardless of whether it is already in the public domain or not. Leave that to the reporters.

·         If you find yourself working for a public company, refrain from discussing, even generally, initiatives or change management, regardless if it might be in the past.

·         If working for a private company, make sure you have an understanding of the culture and how your writings might be viewed by management…as a liability or a signal of the value you bring to the company.

·         Even if you don’t work there, is it appropriate to discuss your efforts there and the initiatives/improvements you managed. There are a few companies in my resume that I simply don’t discuss in this forum.

            Great, so you’ve just taken away a lot of my day-to-day experience that I can write about…what do I have left? When it comes to strengething your skills as a Finance professional there is no shortage of topics that you can choose that can continue contributing and impacting your personal growth.

·         While you’re going to be part of a larger “reporting” group, you can always choose new developments in accounting topics that are of particular interest to you.

·         Discuss situational experiences with colleagues at other companies, what they were challenged with, and the strategies they employed.

·         Are there any recent books related to your functional area to write a review on?

·         Are there any industry or professional summits that you attended which would be of interested to your readers?

·         What professional organizations do you regularly contribute to? I’ve been a member of FEI for 3-years and expanded my contribution to the Board last year, which has provided some great discussions and content.

·         Are there any recent magazine articles or interviews that you have an opposing view on.

            Very simply, the everyday experiences in your current work environment aren’t your only source of content inspiration. As a Finance professional we are all tasked with knowing what the available resources are and how to deploy them. With the challenge of developing content, your office isn’t the only resource available to you.

Thanks for reading….

Jeffrey Ishmael

     When I first started this forum I launched it with the intent of having a forum that would allow for a collaborative and a relatively non-technical corporate finance forum. When I mean “non-technical” I’m referring more to not having a constant focus on recent GAAP or FASB developments, or similar topics.  It was really more intended to provide additional insights into the Finance department, it’s work with other areas, and shed a bit more light on what motivates and drives the Finance group. It’s as much a forum for my non-finance colleagues as it is my direct peers.  During the 2-years+ I’ve been updating this site I’ve made some great contacts, have had some great discussions, and received great feedback.  As I’ve continued to build the resume with companies I’ve worked with, it has provided me with a wealth of situations to review and compare against the “standards” and how I can continue to improve my own personal performance. Since I’ve always tried to keep the scenarios generic, it would be easy enough to associate them with any company I’ve worked with, including my current. For this reason, I’m going to refrain from posting until further notice.  I obviously need to be keenly sensitive to the fact that I work with a public company and any perception of scenario association needs to be avoided. In the mean time, there’s plenty of great things ahead for the 2010/2011 FEI season, mentoring of staff, and potential Alumni involvement with USC. I look forward to the point that I can again resume my contributions to the site.

Thanks for reading . . . .

Jeffrey Ishmael

     Anyone who knows me knows these two things:   I have a passion for networking, and I love Jeffery Gitomer’s books.  I have given out literally hundreds of copies of his Little Black Book of Connections, which I happen to think is the best networking book available.  I am such a good customer at BuyGitomer.com that all my books arrived signed by the author and I receive a nice discount.  Mr. Gitomer is smart, his books are excellent, and I look forward to the day when I can say that he is part of my personal network.

     Recently I read Gitomer’s Sales Bible.  Given my situation as a small business owner and a salesperson in this tough economy, I try to read at least two Bibles!  In it he writes that he loves sales because “you can make your own miracles.”  I know from experience what he is talking about.  One of the best parts about the profession of selling is that your success is limitless.  Of course, so is the possibility for failure…  For people who have never been a salesperson it is hard to describe.  Before I entered the accounting profession and went to work at Price Waterhouse, I was in sales and every year my income was different.  The unlimited possibilities were exciting and motivating!  Indeed though, that kind of uncertainty doesn’t work for everyone’s temperament, but there are still lessons to be learned from it – even for accountant types like us.

    Now when I read Gitomer’s line about making miracles in sales, I instantly think about networking.  My personal mantra is:  “Through networking everyone has the opportunity to make their own miracles.”  Every day I see people go into the job market and through networking create miracles by finding fantastic jobs with great companies.  People solve unsolvable problems by asking the right person the right question at the right time.  I established a new career in my forties and started a successful company during tough economic times through relationships with great people.  In fact, I didn’t know anyone in Orange County when I moved here 10 years ago, yet I’ve created “miracles” through opportunities I seized as a result of a strong network.  

     My advice for you is to make your own miracles by creating relationships with the people out there who can and will help you.

Ken Tudhope

Project Pro Search

ktudhope@projectprosearch.com 

     In my prelude post yesterday, I gave a brief overview of my intended presentation for the San Diego FP&A Summit hosted by the IE Group ( www.theiegroup.com ), who is a global summit organizer. As expected, I had some great conversations with both attendees and presenters, as well has having the opportunity to meet up with colleagues I hadn’t seen in a while. Unfortunately I didn’t have the opportunity to stay for the entire event, but they clearly had a strong line-up of speakers, which also included Oakley, AMD, Juniper Networks, Disney, HSBC, and a host of others. Below is the full presentation I delivered today at the summit.

KPI Presenation – San Diego FP&A Summit

Thanks for reading . . . .

Jeffrey Ishmael

            Tomorrow I’m being given the opportunity to speak at the San Diego FP&A Summit, which is sponsored by the IE Group ( www.theiegroup.com ). I was a bit hesitant in the beginning, but once I spoke with Richard Bracchi and realized the line-up he was putting together there was no way I could decline. We also started talking about what subject I might be tasked to speak on. It didn’t take long with I saw the topic of KPIs on the list. A subject that is near and dear to my professional heart! Besides, how in the heck do you drive improved performance without have metrics in place to measure all the triggers you need to pull?

            After the presentation tomorrow I’ll post my full presentation, but I had a great time assembling what I hope will be a valuable presentation for those in attendance. I get a sincere kick out of discussing this topic with my peers….

Ask most Finance professionals how they measure their business and they’ll cite our typical tools….

–      Income Statement

–      Cash Flow Statement

–      Balance Sheet

•       These are merely reporting mechanisms for the true tools that we use to measure our respective businesses.

•       What are the KPIs that help you make your business decisions?

•       How do you create value for the Company in the absence of such critical reporting?

•       How do you price a Service Offering when you don’t know your costs?

•       How do you formulate staffing decisions when you don’t know how hours are consumed?

•       How do you drive improvements when you don’t even know where the waste is?

These are only some of the questions we’ll be addressing tomorrow….

Thanks for reading . . . .

Jeffrey Ishmael

     I’ve never really taken the time to share a comment any further than posting them in a side column on this site. However, I received this comment from a Sales person in my direct network, and needless to say, was a bit floored that I received this kind of comment from a Sales professional. One of the main goals for my site has been to bridge the communication gap between Finance and the other functional areas in the organization. I’m very pleased that this seems to be the case….although I’m not sure the facilitator at this meeting would endorse the reading of my blog!

OK- I have been sitting in my very boring all day business review today and have been reading your blogs..I just wanted to tell you that I love them and found myself really surprised at how much I enjoyed them.   I know your target audience is more than likely your financial peers ~ but I must tell you that as a total outsider to finance (who admits total naivety) I really feel like I get a great grasp of not only Finance, but how Finance is kind of the window to the world of business when reading them.  You do a really good job of not only describing the Finance piece, but sharing how the finance piece is so relevant in every facet of business and how it all interconnects- not to mention really calling people to the carpet to challenge themselves to be better professionals with a real “think outside the box” strategy.  
Just wanted to tell you that….definitely attracted to your writing and the way you are able to paint a picture and connect with your intended and even non-intended audience.   Kudos to you! 

     One of the more satisfying posts I can make is when a direct introduction within my network results in an offer letter. Whether it’s a Senior Accountant, Controller, or even a Sales or Marketing position, it’s great to see one less open job on the market. This week I was extremely happy to see a former colleague receive an offer letter for a Manager of FP&A position within a consumer products company. Knowing how this individual works, his skillset, and his commitment to the development of his career, he was well deserving.  It looks like there might be a few more in the works right now as I continue to see more opportunities opening up in the market. Funny….I haven’t spoken to a single person in the last few 6-months or more that secured their job through an online posting….hmmmm.

Thanks for reading . . . .

Jeffrey Ishmael

            Did you ever notice how kids love to create fire with magnifying glasses?  If given the chance, my kids sure do!  Why, you might be wondering?  First, fire is basically pretty fascinating.   Years ago when I attended Indian Guides camp outs with my three young boys, I was always amazed that nearly every boy there would attempt to burn anything from paper plates to plastic cups – just to watch in amazement at fire’s intense power.  Second, using the magnifying glass is like a science experiment, and I never stopped them from using this scientific method to generate fire in a safe and controlled environment. 

            The patience and persistence it takes to generate fire with a magnifying glass is a great metaphor for success.  Imagine that tiny intense white beam of light coming through the magnifying glass that is hot enough to start a fire.  If that beam of light wasn’t focused, there is no chance for fire.

            In my work every day, I talk to people who are novice networkers looking for work.  They know that they need to “network” to find their next job, but they aren’t skilled yet.  Continually, I encourage these job seekers to be persistent because, in my opinion, the people they are calling should return their calls! Who among us hasn’t been looking for work at one time or another – and maybe even very recently for some of you.  The average life span of a CFO is now 3 years!  

            So many people think of networking as something you do when you’re out of work.  And while I regularly espouse the benefits of networking while in a job or out of one, job seekers in particular need to be as focused as the beam coming from the magnifying glass igniting the paper.  People can’t help you if you can’t tell them what you are looking for.  The worst offenders are the most experienced and talented people looking for work because they can do anything and everything.  Your network of contacts can only help you if you have a specific goal.  When you are networking for a job, you need to know the answer to the question, “How can I help you?”  So my advice to both the novice and experienced networkers who are in a job search is to call, call, call!  Get those meetings, talk about your specific goals, and watch them lead to job opportunities.  Focus, Focus, Focus!

Thanks for reading . . .

Ken Tudhope

            Last night I had the chance to attend another great FEI dinner for what has been a great 2010 season. Although the events have all been memorable this year, last night provided another opportunity to revisit the topic of securing your first Board of Directors seat. It was a repeat of the panel hosted earlier in the year by Woodruff-Sawyer, which also happens to be a sponsore of the Orange County Chapter of FEI.  Also a good opportunity to catch-up with Ron Pakhouz and Jared Pelissier and hear about their great start to this year and the new clients they’ve been signing.

            For the panel last night, we were also fortunate enough to have the same high-caliber panel, which include Paul Folino (Chairman of Emulex), Priya Huskins (D&O expert extraordinare of Woodruff-Saywer), and Bruce Lachenauer, who specializes in Board member recruitment. I’m not going to go into a full overview of the panel, since much of what was discussed at the earlier one was repeated here. However, below are some of the key takeaway points by the panel members last night.

- More HR positions relative to the Comp committee.

- 40% of current new Board members are brand new vs. 16% previously.

- Last 4-months Board activity is up 40%.

- Large increase due to need for financial expertise.

            A. 25% are CFO’s

            B. 25% are from Audit firms

            C. 25% are from Investment Banks.

            D. 25% from other functions.

- “The days of the Generalist on the board are dissipating…” – Folino

- Develop a Board that has broad-based strengths and can contribute to all areas… – Folino

- Regardless of your functional area of expertise, you better be able to have a valuable point of view/position on all Board issues – Priya Huskins

- What can you do to make yourself a more attractive Board candidate? – Bruce Lachenauer

- There is no on-the-job training for a Board…you need to hit the ground running – Lachenauer

- How do you leverage Private or Non-Profit Board experience to Public? Typically there are Public individuals sitting on the former. – Folino

- I can’t think of a better time for individuals to be looking for Board seats than now. – Folino

- It’s not just about D&O insurance, it’s about the conduct leading up to questionable events and the quality of due diligence. – Lachenauer

- It moves beyond more than just the financial risk, but the risk to your personal reputation – Folino

- There’s an absolute need to scrutinize your fellow Board members & their reputations – Huskins

- What are the opportunities to interview the Executive Team of the company before making a decision? – Lachenauer

- I can’t imagine not having someone w/ a strong legal background on the Board when it comes to M&A activities. – Folino

- Participating as a Board members vs Advisors involves a much higher level of accountability. – Huskins

- This is the first year that Brokers will not be able to cast votes for Board members, which may create a very interesting environment for Board retention. – Huskins

- The Nominating Committee is now usually headed up by an outside Director as opposed to the CEO. – Folino