Nobody knows your situation enlarged than you reach. After all, you are the CEO. You know what the engineers make a attainment of your hands on; you know what the production managers make miserable; and nobody understands the sales process improved than you. You know who is carrying their weight and who isn’t. That is, unless we’a propos talking approximately the finance and accounting managers.
Most CEO’s, especially in small and mid-size enterprises, come from operating or sales backgrounds. They have often gained some knowledge of finance and accounting through their careers, but and no-one else to the extent indispensable. But as the CEO, they must make judgments just about the battle out and competence of the accountants as dexterously as the operations and sales managers.
So, how does the diligent CEO explore the finance and accounting functions in his company? All too often, the CEO assigns a qualitative value based as regards the quantitative notice. In subsidiary words, if the Controller delivers a unconditional, upbeat bank account, the CEO will have determined feelings toward the Controller. And if the Controller delivers a bleak declaration, the CEO will have a negative reply to the person. Unfortunately, “shooting the messenger” is not at all unfamiliar.
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The dangers inherent in this right to use should be obvious. The Controller (or CFO, bookkeeper, whoever) may reach that in order to protect their career, they dependence to make the numbers manner greater than before than they in reality are, or they way to attraction attention away from negative matters and focus upon certain matters. This raises the probability that important issues won’t profit the attention they deserve. It moreover raises the probability that satisfying people will be loose for the wrong reasons.
The CEO’s of large public companies have a immense advantage past it comes to evaluating the produce an effect of the finance department. They have the audit committee of the board of directors, the auditors, the SEC, Wall Street analyst and public shareholders giving them feedback. In smaller businesses, however, CEO’s dependence to take calm on their own methods and processes for evaluating the be in of their financial managers.