Posts Tagged ‘business consulting’

Swatting a Fly with a Sledgehammer

fly with a sledgehammerWhen someone is interested in purchasing another business, it is common practice to hire an accounting firm to investigate the affairs of that prospective purchase. We recently welcomed one such firm to complete some due diligence on one of our clients.

In any acquisition, it is important to make sure that the financials actually are what the seller claims them to be.  In addition to the audit, the buyer also needs to ensure that the purchase price is based on an accurate valuation.

These processes are important, however some firms often confuse quality with quantity.  During this particular firm’s recent visit, there were more people present than necessary to complete the assessment.  We equate this approach with “trying to hit a fly with a sledgehammer.”

The client pays for the time spent by the due diligence team; it becomes overly expensive and not cost beneficial when time and resources are spent on items that do not make a difference.  At our firm, we first think things through and determine what factors are important.  We focus on what matters to our clients — including getting a job done cost efficiently.  We use a process called the Quadrant Planning System to consistently analyze, strategize, and deliver.  Some would say that we try to hit flies with fly-swatters!

 

Read more about our Mergers and Acquisitions services here.

Pain Denial Syndrome (PDS) – One of the Best Kept Dirty Little Secrets

Our great friend and mentor, Dr. Brad Spencer of Spencer, Shenk, Capers, has spent a lifetime considering and counseling business executives. He recently shared this previously unpublished article on suffering. He has given me permission to share his wisdom with all of our friends and clients.

PAIN DENIAL SYNDROME (PDS)

Yes, I just made up the term…(there is no such thing in the DSM-5, the bible of psychological disorder diagnosis.) But tell me it does not exist and I will point to several contradictions. Recently a ‘medical historian’ reviewed 14,000 pages of medical texts and journals…he found only 17 pages that referenced ‘pain!’ (Why do you go to a doctor if not to alleviate or avoid pain?) If doctors don’t deal with it out loud than who does?

It occurred to me as a behavioral consultant, that I have read hundreds of books and thousands of articles on issues related to management, organizational and leadership effectiveness in the past 30+ years. I cannot remember one reference to avoiding/alleviating executive pain in one of them….and that is at the heart of what many of these books are attempting to address and certainly a major part of our practice.

At best, they refer to disappointment, frustration, being upset, or in rare cases even admit to being angry. And my clients mimic this language in our initial discussions. We do not admit (and even energetically deny/rationalize) these are forms of pain because then we would need to confront the root cause.

Because you reach the ‘C suite’ in no way means you are free of suffering. In fact, contrary to the belief of so many who are not on executive row, the titles, pay, perks and power in no way prevent, and may even increase the performance/family related anxiety and problems resulting in deep mental anguish. Contrary to the myth so resentfully held by so many, those that do not have time to join the bowling league often have more anxiety and pain than those who struggle to make ends meet. It may not be more, only different, but there is little acknowledgement it even exists.

This is not an apology for those in powerful positions, they chose their fate. And few I know few who would voluntarily change places with many, but the reality is much of my work is helping them deal with or avoid suffering. That is when they recognize it. This may sound like a strange comment, but much of their unconscious energy is spent denying or repressing the ‘feelings’ that are the manifestation of the issues they face. The attempt to be logical and ‘explain the issues away’ is the antithesis of dealing with (working through) the suffering.

And it would not be right to imply that all pain is equal in intensity or duration. Common sense bears mentioning, there are clearly degrees, and a gall stone is a dramatically different threshold in both intensity and duration from a stubbed toe. Having to lay off a number of long tenured employees is different than cutting expenses.

Suffering is divided into four distinct categories by those who have made a career of studying it.* You want nothing to do with any of them. And each of them can be debilitating.

The first type of suffering is “Pain.” This refers to physical suffering, the kind of thing that takes you to the emergency room. If you have ever had a broken arm or appendicitis recognize it…even a splinter or back pain is something that can capture your undivided attention. This is truly the place for the physician.

The second type of suffering is “Psychological.” Again if you have ever been deeply distressed, had your heart broken by a high school sweetheart (yes, you feel ‘life as you know it’ can never go on) or at the end of this very long continuum, lost a loved one, you do not need to be told what this is. It can vary from deep depression to just feeling rejection or not competent enough…it hurts and often causes you to obsess on the areas of discomfort. The executives and football coaches I deal with are often subconsciously obsessed with avoiding the pain of ‘not being competent.’

In a fruitless effort to avoid that feeling their compensating behavior induces pain in others who are over-controlled or trying to figure out what is really expected, but never quite able to jump over the constantly shifting bar. Nothing is ever good enough to please the boss or themselves.

This repression is of course complicated by the fact that ‘real men’ (and women) believe they need to be stronger than others. Part of this strength comes from making hard decisions ‘rationally.’ That is not the issue, the true problem comes to the fore when they do not deal with the hurt they experience for all the families affected by the plant closing that must occur for all the right reasons.

The third type of suffering is “Spiritual.” That is: “am I committing a sin?” You do not need to be religious to experience this type of pain. The moral boundaries for dealing with others (often encoded as corporate value statements) are manifestations of these questions. The issue faced in dealing with promotion/layoff decisions often fall into this arena. Am I really doing the right thing by all involved, is meritocracy really at work?

It is not usually as black or white as cheating on one’s expense account, but we all have issues at home or work that cause us to doubt our righteousness. In organizations we often call it integrity. And we all admit to falling far short of the ideals we set for ourselves. For my American and European clients with the strong Judeo-Christian value system this is where guilt** raises its ugly head to compound the suffering immeasurably …”what have I done to deserve this punishment?”

The forth form of pain carries this continuum to its least day to day, moment to moment arena. That is “Existential” pain. The most abstract of the four, this is an attempt to leave this earth with a meaningful footprint. One of the things that separates man from other life forms is the search for a meaning for our existence. And then if we finally articulate what it is, are we accomplishing it?

At a recent workshop, when a hardnosed GM in a major corporation got in touch with the legacy he wanted to leave, and where he stood on the continuum, he broke into tears in front of his amazed staff. The suffering was palpable as he came to grips with the reality that if he held his current path, he would go to his grave not leaving the legacy he so longed to create.

For my Asian clients with a Buddhist-Shinto value system, shame*** is the underlying issue that magnifies the question “why could I not be more worthy?”

So what would happen if you were to label something as suffering rather than simply trying to label it in a way that minimizes your responsibility to change it? The first step is to start talking about it and ‘languaging’ it correctly rather than ignoring it as pretty much all the literature does, or sweeping it under the carpet as though it did not exist.

Yes, language matters and it matters most in self talk…if a friend describes themselves as frustrated, we assume it is a human condition they must live with…if they tell us they are in pain, we are more likely to take an action to alleviate it. And while we recognize this how we treat others, we often deny this is true for how we deal with it ourselves. The way you describe it will truly make difference in the burning platform of dealing with it.

*The basis of “total pain theory” goes back to an incredible woman, Dame Cicely Saunders.
**I define ‘guilt’ as thinking/feeling I have done something profoundly wrong.
***I define ‘shame’ as thinking/feeling there is something profoundly wrong with me.

Founding Partner, Tony A. Rose, Releases New Book “Five Eyes on the Fence: Protecting the Five Core Capitals of your Business”

Already a Forthcoming Feature on Harvard Business Publishing

Encino, CA – October 10, 2014: Rose, Snyder & Jacobs is proud to announce the publishing of “Five Eyes on the Fence: RSJ Five Eyes on the Fence_WEBProtecting the Five Core Capitals of your Business” by founding partner and author Tony A. Rose. The book debunks the myth that a business’s health is judged by its bottom line alone (by its financial capital). Rose demonstrates the importance of the five core capitals of a business functioning together – Financial, Human, Intellectual, Social and Structural – with a mix of case studies and exercises. “Five Eyes on the Fence” has already been selected to be featured on the Harvard Business Publishing website, and Rose will be sharing his thoughts behind the book at the Russell Bedford International conference in London on Saturday, October 11, 2014. Rose, Snyder & Jacobs is a member firm of Russell Bedford International, a Global Network of Professional Services.

“This is the culmination and synthesis of a bunch of things I have discovered about businesses and the people that own them as I travel around the country talking to smart people who are knowledgeable,” says Rose. “Each one of my capitals has been written and commented about, but I have never before seen it all put together into one place. I have talked to college students and successful businesspersons, and all of them seem to welcome a look at their lives from these five perspectives. This book is for people, families and businesses. They all can use these concepts.”

In Rose’s first book “Say Hello to the Elephants” he presented a four-part, client-tested process for reaching clarity for a business, turning obstacles into opportunities, and crossing the finish line. In “Five Eyes on the Fence” he proves that financial capital is a by-product of four other capitals: (1) human capital; (2) intellectual capital; (3) social capital; and (4) structural capital. By exploring both positive and negative case studies, readers learn to consider these five capitals as an intricate web, making decisions according to the interplay between each of the capitals rather than focusing all of their energies on the cold, hard and logic-driven financial statement.

At Rose, Snyder & Jacobs, the firm is more mindful than ever before that its clients want a comprehensive take on their businesses. The accounting, tax and management teams are sensitive to how that advice influences each of the five capitals.

Rose,Tony“In short, all of us need to be keeping our eyes on that fence,” adds Rose.

“Five Eyes on the Fence” is published by Business Expert Press and is available on Amazon (affiliate link), Kindle, Apple, B&N.com and other retail outlets.

About Rose, Snyder & Jacobs:
Rose, Snyder & Jacobs, LLP (RSJ) is a Certified Public Accounting firm founded in 1976 and located in Encino, California. RSJ is dedicated to serving a diverse client group including closely held companies, high net worth multi-generational families, non-profit organizations, private equity companies and public companies. RSJ serves clients across many industries, in both domestic and international capacities. Rose, Snyder & Jacobs is a member firm of Russell Bedford International, a Global Network of Professional Services Firms. www.rsjcpa.comv

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Media Contacts:

Clara Mayer
Rose, Snyder & Jacobs
818-461-0600
cmayer@rsjcpa.com

Angela Moore
Starfish Public Relations
310-429-8868
angela@starfish-pr.com