Your mission must fit on a T-shirt – Peter Drucker

I happen to read this saying on an article printed in the Harvard Business Review Dec 2009 (PRC edition).  It is so easy to understand that there is nothing elaboration required.  But what matters is lot of people do not understand it, let alone internalize it.

Actually, this saying could also apply to principles or mantra or business slogan.  When I was working in Fellowes, I first come across with simple is beauty.  The company promote the values of the company as “Initiative, Integrity, Passion & Teamwork”.

Lexmark stated that “Make it happen” and “We are always working”

When I was working in ECI China, I create “Concentration enables Proficiency, Empowerment enables Growth”.

My conviction in working is “Detail + Logic enables Flexibility” which appears in my blog as “D + L => f”

All of the above can fit on a T-shirt.  I am glad that I can do the same as the management guru advocates.  However, when I look at the desktop of my laptop.  I wonder if the executives who force to standardize all the company laptop’ desktop have ever read Peter Drucker.  It is too long and not easy to memorize!  Anyway, I get paid to do what the company requires me to do and I will work on it, at worst, in my mouth.  And I will definitely take this as a lesson.  One day, When I am so lucky again in other company to do it again, I will remind myself the saying of Peter Drucker.

Self-esteem vs. confidence

Recently, I read a book “You can read anyone” written by David J. Lieberman. It mentioned the difference between self-esteem vs. confidence. It reads:

“Self-esteem is often confused with confidence, but the two are quite different. The distinction is very important. Confidence is how effective a person feels within a specific area or situation, while self-esteem is defined by how much a person ‘likes’ himself and how worthy he feels of receiving good things in life. Simply, a person can feel good about himself yet not feel positive about his chances under certain circumstances, and vice-versa.”

Definitely, we know confidence is good since it is derived from knowledge and experience. But is self-esteem good or bad? Sometimes and somewhere. In a new situation, without greater self-esteem, it is hard to deal with. But the most interesting is we need to differentiate self-esteem from confidence when we are going to select the right person for a particular situation. Person with confidence can focus on the objective while self-esteem is less likely. But can we both possess self-esteem and confidence? Positive. By refraining complacence, we can concentrate and will not downplay the environmental factors as well as the human factors (the non-cooperativeness of our colleagues). Excessive self-esteem means non-confidence. Without any self-esteem, it means no confidence at all. There is no excessive confidence; indeed, it only has self-esteem. For people without any self-esteem and any confidence, it will not be our interest! For people without any confidence but self-esteem, it is same as just mentioned – not our concern!

Peter Principle – it never stops taking effect

Wikipedia writes: The Peter Principle is the principle that “In a Hierarchy Every Employee tends to rise to his level of incompetence”. It was formulated by Dr. Laurence J. Peter and Raymond Hull.

Of course, it may not be true always to everybody in the particular level. However, it really takes effect at least when a supervisor is just elevated to a new hierarchy or a person just move to a new environment because of their success in the previous environment. What they need is voice out the support they require on the one hand. On the other hand, the person who triggers off the elevation may need to provide support to them. Or the incumbents need to be aware of the weakness and eager to find a way for improvement. Unless the need is mutually understood among them or it is tackled by the incumbents, Peter Principle would take effect definitely.

I come across with Peter Principle many times. Sometimes it happens with me; sometimes it happens with my colleagues. When the persons were previously working in big MNC and got some success, they may not be competent to take the same or senior positions in other companies that need to undergo change towards a MNC scale. All they need is support and self-examination if they desire to overcome the demanding situation. I am not saying not to take up career opportunity, rather, we need to be cautious of complacence and treat every opportunity or elevation as an adventure upon which there is certain degree of uncertainty. With this psychological preparation, we will be a little bit back off and take careful steps.

Skill of Back to Basic

In my blog, I stress the paramount of back to basic. But I happen to know that I did not address the skill set of going back to basic. Thus, in this post, I would like to list out my preference of basic skill set so that one can equip itself with the necessity of going back to basic. Of course, this is only my recommendation as a professional accountant in the manufacturing environment; the read can add your preference.

i. Elementary accounting principles – when we are going to communicate with our counterparties, we need to use debit and credit while debit is always bad and credit is always good. If you do not agree, why don’t you comment on it?

ii. Basic formula of inventory: Opening Balance + In/Purchase – Out/Cost of Goods Sold = Closing Balance. It is not only applied to overall inventory balance but also the individual item of inventory. I employ this concept in all forecasting model including Material Requirement Planning. Thanks for this basic concept, I lead the supply chain department in my previous company.

iii. Do not rely on doing provision to generate the correct financial statement, but do focus on mobilizing your peers to book all the entries at the right time

iv. Microsoft Excel – It will be funny if an accountant is not proficient in it. But you should make sure you know how to use the functions of the following:
a. min, max, index, indirect, sumproduct, sumif (vlookup is of course the basic of basic skill)
b. how to add $ in your formula and how to use & operator
c. how to name a range and apply in your function construction
d. interplay of various functions

v. SQL (Structured Query Language) – It may be demanding to an accountant. But to be honest, I learn it 20 years ago and I still use it in my daily jobs. At best, I get the applause from my peers, especially my IT colleagues. With this skill, I can handle huge volume of data

vi. VBA (visual basic for application in Excel) – If you still have time; you should try to learn it. You will come to realize the magic power of it. The secret is: An accountant knowing accountant is nothing special, just like an IT guy knows programming. But an accountant knows programming and application, just like an IT guy knows accounting will generate the same terrifying effect to your peers.

If you are youngsters and you are not working on auditing, I strongly advise you to check out the list and set your own schedule of learning journey.