A few years ago I began seeing the word ‘scalable’. It generally referred to whether typeface could be enlarged. But today ‘scalable’ means a great deal more than just that.
Scalability is the capability of a system, network, or process to handle a growing amount of work, or its potential to be enlarged in order to accommodate that growth. For example, it can refer to the capability of a system to increase its total output under an increased load when resources (typically hardware) are added. An analogous meaning is implied when the word is used in an economic context, where scalability of a company implies that the underlying business model offers the potential for economic growth within the company.
We talk about businesses and how they handle growth. Some businesses prosper in a growth mode and others self-destruct under the weight of too much business. For example, you opened a store on ETSY. You sell just one thing, crocheted dolls. It takes you one day to make each doll. Your opening inventory is 25. Day One you receive orders for a 1000. You don’t have enough money to buy the yarn for 975 dolls or the time to make them and customers won’t be charged until you ship. This is the most basic definition of ‘scalable’ (or not) in a business sense.
Recently on a Linked In Group (FSN) that I love participating in, someone wrote in about how to develop a program of study for a new role he was assuming at his company (a very large and well known one). He is obviously intelligent and recognizes the need for learning all there is to his new role. He is on the right track.
If you are a CPA you’re required to earn 40 CPE hours a year (at least in my state). If you attend classes (in person or online) are you just going through the motions or are you selecting classes that will enhance your knowledge?
The entire point of this dissertation is to get you to look at yourself and ask ‘Am I still relevant’? Warren Buffet is in his eighties but no one thinks of him as less than relevant. This is not about your age, but your abilities. Who wouldn’t want a seasoned professional on their team if they bring a lot of experience and forward thinking to the table.
Below are ten questions you need to ask yourself to determine your scalability. We all should know what a passing grade is.
- How many newsletters, journals, magazines related to Controllership, Management Accounting, Finance and other related subject do you subscribe to?
- Do you attend CPE classes or other classes even if you don’t have to?
- Are you working on a designation such as CPA (Certified Public Accountant) or CMA (Certified Management Accountant)?
- Do you have a Linked In account and, if so, do you belong to groups of accounting and finance professionals?
- If they are close enough, do you belong to any accounting Chapters?
- Do you spend time improving your Excel skills?
- How many accounting related books have you purchased in the last year? Whether you or your company paid for it.
- Are you a member of AICPA or IMA ?
- Do you welcome new challenges in your position as Controller?
- Are you passionate about accounting?
Let’s create another scenario. Lately at the office there have been a lot of closed doors and whispering coming from the CEO and CFO’s offices. They seem to be gone more than ever or always tied up on conference calls. Something is going on but they may choose not to bring you into the loop until further down the road. Fast forward…..It’s Monday morning and you’re getting that first cup of coffee. The CFO passes you in the hall and says ‘I need to talk to you, bring your coffee’. What he tells you is that the company has made a commitment to acquire 25 locations, thus doubling the company’s size overnight. Are you scared? Excited? Angry? How you react is going to determine your future. If the CFO views you as weak or not up for the challenge, he and the CEO are probably already putting out feelers to replace you. If that’s the case, it is almost too late. Do not kid yourself. You better start thinking about how you are viewed in the C-Suite.
Make no mistake…………..this is a serious issue. It is the difference between surviving or failing at a company with a bright future. As a consultant who has seen the demise of more than one controller, I can tell you that there is definitely a common thread between them. Next week, I’ll write about those in my ‘THE TOP TEN MISTAKES THAT WILL GET A CONTROLLER FIRED!”. Stay Tuned!