The Accountant Sep-Oct-2016

GOVERNANCE
As Warren Buffet states, “Somebody once
said that in looking for people to hire,
you look for three qualities: integrity,
intelligence, and energy. And if you don’t
have the first, the other two will kill you.”
By Dr. Victor S Mutindah, vinivini48@yahoo.com
FORECASTING &
PROPER PLANNING
As Entrepreneurs ponder over
priorities for the rapidly
rolling year, this may involve
umpteen meetings with
decision makers to lobby for
buy-in and consensus, but any targeted
and to be successful’ goals would need a
good plan.
Growth and success would mean
different things to different Enterprises.
Your plans could be as grand as multimillion-dollar
turnover in the next three
years, or looking to expand across different
market segments.
Most entrepreneurs’ goals are backed
by incomplete or intrinsic cues, rather than
linking to company strategy – inclusive of
vision, governance and financial forecasts.
A case sample would be a growing
enterprise in the ICT sector seeking
to craft a business strategy. At first, the
management may remark and think about
compensation and incentive structure. The
marketing and product strategy would
also come into play, as well as the Board
/ Directors having to chip in for emphasis
on vital financial targets.
I am not saying these are skewed
priorities. However, having many goals
without linking them to strategy and
taking into account the enterprises’
performance, will result in a cocktail
approach. It’s important that you choose
the right goals for your enterprise, more so
built on solid research, with a clear plan of
the tactics you will use to achieve them.
As the Guru of Management (Peter
Drucker) remarks, “Unless commitment is
made, there are only promises and hopes;
but no plans.”
So, what’s the panacea? Here’s an areawide
checklist to refer to whilst building
your “365-Day Action Plan”:
1. Succession Planning
The transition from one CEO to another
is monumental in an enterprises’ lifespan.
A smooth transition is critical to maintain
confidence of investors, partners, customer
and employees. In turn, this enables an
incoming CEO with a sound platform
from which to move the company forward.
Specifically, I notice owner-managers
having an aura of “feeling irreplaceable.”
This phenomenon threatens the entity’s
vision and long-term ambition. By the
time a succession plan is required, it is far
too late to start building one.
For enterprises that have a clearcut
succession plan, it must be linked to
the strategic plan to ensure consistency
and longevity. The Board / director’s in
conjunction with senior HR management,
40 SEPTEMBER - OCTOBER 2016