I
am always amazed at the lack of action I see in companies that are in the midst
of crisis. Problems abound and people
generally know what they are but everyone seems to tolerate them for some
reason or another. In cases such as
these, I ask a lot of questions but then finding myself telling people what to
do. My preference is not to give orders
but rather to help people learn how to make better decisions. Ultimately, I want to leave each of my
clients better than I found them. I want
their processes to be better and more efficient. Revenues and profits should be up and the
staff should have skills they didn’t have before I arrived on the scene. That being said, sometimes I have to make
staff development a longer term goal in order to be effective immediately.
I
always get surprised looks when I tell people to change operating procedures,
to do things they haven’t done before, to stop doing things they have done
“forever”, and when I invariably restructure financial reports. A typical question I get is whether the CEO
or owner had said “yes” to my direction.
My response is always the same. “I didn’t ask.” Too many people, sometimes even at
surprisingly high levels, have the belief that they should get permission for
everything that they do.
A favorite boss of mine told me something early in my career that I will always
remember. It is better to ask for forgiveness than permission. He added, you’ll always get forgiveness but
you’ll never get permission. He had a reputation
for being a bit of a cowboy in the organization. He also had the reputation for being highly
effective. He and I shared the belief
that if you wait for permission, you’ll never get anything done. In the entire time we worked together we were
only challenged once for breaking the rules.
It was a challenge that was easily overcome.
Another
question I often get is “What if we make a mistake?” “Then we’ll fix it”, I reply. Everyone makes mistakes but what people
often don’t realize is that they are making mistakes every day by not doing
things differently. They feel that by
following rules and procedures they are “being safe”. Usually the opposite is true. They are developing a reputation for
themselves of not being effective. Moreover,
that puts them in the “part of the problem” camp as opposed to the “part of the
solution” camp.
I
am not suggesting breaking rules or abandoning procedure just for the sake of
doing so. Processes and procedures do
exist for a reason. But when a company
is in crisis, things need to change and change comes from taking action. Often, a big part of the reason a company is
in crisis is due to lack of action. People wait and hope for things to get better
even in the face of overwhelming evidence that something needs to change. Sure, there will be a few mistakes along the
way but if action is well thought out it’s highly unlikely that those mistakes
will be any worse than the alternative.
Look
around your organization. Think about
the way things are being done and what is not being done. Then take action.
If
your business could benefit from fractional CFO services, I would welcome the
chance to speak with you. Please give me
a call at (314) 863-6637 or send an email to For more information, visit www.homza.com
your cash is flowing. know where.®
your cash is flowing. know where.®
Ken Homza
Copyright @ 2012 Homza Consulting, Inc.
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