Over the course of the last year, primarily due to the economy, I have had to build a more comprehensive network and have become incredibly appreciative of this network and the sharing of knowledge. One of the recent discussion threads has been the challenges of moving from a larger corporation to a smaller one. I have been especially keen on this topic since my most recent engagement has me going to one of the smaller companies I have been with. Although I had worked for a $30 million (revenue) company, it was not in the capacity of leading the Finance department and working as an integral part of the decision-making team.

My most recent experience over the last decade has had me in companies ranging in size from $100 million to multi-billion. Most recently leading the North American effort for a $900 million company, which was part of a $10 billion entity. Needless to say, the resources are virtually limitless in this type of environment, whether it be headcount needs or financial needs for projects or capital expenditures. While I still tended to manage the Finance department in a VERY hands-on capacity and knew the details behind virtually every financial figure, I still had a solid staff that made the close happen each month, was available to investigate anomalies I believed needed attention, or pursued projects that would provide sustainable long-term benefits. Basically, so long as I could justify the expenditure, almost regardless of size, the resources would be made available.

Let’s fast forward to the considerations for taking on the task of leading the Finance effort in a Micro-Cap…or SUPER Micro-Cap. This is the point where you really need to start doing some honest Q&A with yourself.
1. Is my skillset strong enough that I can honestly take on a significant hands on role in this Finance department? You need to honestly ask if you’re capable/willing to get into the nitty gritty for all transactions, perhaps even entering your own journal entries.

2. Do I have a strong enough Operations background to be creative in my ability to identify savings opportunities for the company? Your ability to impact the organization is not going to come from restructuring bank relationships, implementing new systems for improved efficiencies, or other major projects, but from partnering with all functional areas to understand the nuts & bolts of the business. Besides, you may not have the resources available for your typical savings initiatives.

3. Do you have the personality that will allow you to work with every level of staffing within the company? Your efforts are not going to be confined to the “C-Suite”. You’ll need to be working with, and get to know, every employee within the company. You need to have the ability to communicate the financial goals of the company to every employee level.

4. So long as you’re not compromising reporting integrity, do you have the ability to be flexible and recognize that there are more shades of grey than the typical company? Things are not going to be so black & white moving to a smaller entity. There’s likely to be a high degree of restructuring, and not in a negative sense, but in a conformation sense. You’ve got to understand that the changes take time and you can’t go in with a “shock therapy” approach.

I absolutely appreciate being in a smaller company and the ability to be hands on in every aspect of the company. That when all is said and done after my introduction period, that I will have an intimate knowledge of the company and what makes it roll. That I’ll be able to see the delicate balance that it operates on and the intangibles of the culture behind it. Although there are certain accounting rules that must be adhered to, the shades of grey is what makes things interesting. Moving to a small company is not for the faint of heart and you need to be honest in your assessment of your personal capabilities and what you can offer the organization.

Thanks for reading. . . .

Jeffrey Ishmael