Thank Heavens For Finance
On a recent night out with some friends our conversation turned to the real effects the newly renamed recession is having on their companies. Over several glasses of wine, we each poured out our individual woes. Whilst all of us could identify with increased workloads, grumpy colleagues and a niggling sense of concern over the future it was interesting to see in the wake of the constant bad press exactly what is causing stress and outrage within the 30 something working population.
No-one can deny the impact of redundancy. A few had lost their jobs as their organisations moved their roles abroad in order to benefit from cheaper staff costs, others had bonuses and benefits removed and still others had been asked to work fewer hours, bring holidays forward or even take a pay cut. It must be said these were in the minority. It was also interesting to hear that it was excess in everyday practices in many of these companies that was the true source of outrage rather than the actual job cuts they were being asked to make. No-one disagreed where the company actually couldn’t afford to keep people on – their gripe was with managers that didn’t adequately understand the hidden costs of their business. For example one lady, recently made redundant from a large media organisation had, prior to being given notice, been moved to a swanky new building which could hold up to 50 staff, despite being part of a department of 4, with no intention of growth or expansion. Her outrage was not that she had been made redundant ( on reflection she feels it will force her into a well over-due change of career ) but more at the total waste of time and money spent on re-locating and then closing the building, equal to more than 4 salaries for 1 year.
For the more fortunate life is ambling on. We may have swapped our dinners out for meals at home and downgraded our personal holidays and purchases but we have also found a new found focus on what is important to our organisations and ourselves. Initial concern and fear of the increased reporting we are being asked to do has been replaced with a real sense of focus and achievement that can only be gained through accurate measurement of individual and departmental contribution. Wariness over cancellation of traditional activities and events – replaced with a truly innovative and resourceful approach to getting better results. Even the endless budget and forecast updates have assumed an air of personal challenge. Through good and effective communication we are all united on a common goal – getting through the recession as successfully as possible and many say they understand their company goal more now than they have before – perhaps because it has been boiled down to one simple and clear thing – survive.
It was interesting then, given this surge in spirit to hear the way in which the finance teams are becoming more integrated into the business. Many of the current initiatives we discussed from car sharing and video conferencing to reduce travel costs, to double sided printing and asking people to work from home came about as a result of a simple report, issued to the managers to draw their attention to areas where cost has crept up. By understanding and benchmarking these detailed costs it is easy to think of simple and cost-effective solutions that don’t involve losing staff, allowing managers to stay in control of the way their departments are run.
So from those of us still gainfully employed in progressive organisations – we’d like to say – thank you finance – your time and attention ( to detail ) is much appreciated.
Tags: finance, night out, recession, redundancy, survival