Had two interviews today, for my personal assistants and the first girl was actually great and I quite liked her and then the second one was actually waiting for me in my office while I was finishing up with the first one and very interesting just on the very first moment, the blink moment, she couldn’t even understand that I was asking her to go to the conference room. So right there I told E…. just not to bother and that was done. So, blink moment, I listened to it, didn’t waste time and the same with the blink moment with the other girl. So hopefully, I will have a PA soon, if not, it was still nice to see that there is some possibilities out there that could fit my profile and my needs. Besides that, I spent most the day focusing on the accounting things with C… and yeah, basically, we’ve both come to realize is that we didn’t really have any accounting as such, what we had was cash-flow management, but no accounting. Basically, Chinese accounting was right, but nothing trully else.
C….and I got together and started looking over, actually I started answering C…’s questions and the conclusion is basically that we don’t have a comprehensive accounting system, not a mystery. That basically cash flow based management so far, again not a mystery. So that’s a huge relief that most of the financial stuff is now understood. Now we’re just getting into the nitty gritty. Our plan is to have the four eye rule that any transaction that’s going to go through the accounts or whoever controls the accounts should have four eyes on it and I think initially it’ll be me with one pair and then C…. with the other as we get everything set up and set up all the security procedures.
We’ll move into the place where C… is going to be one pair and then some kind of accounting clerk or somebody else will be the second and then hopefully that will allow me to get out of the financial side Then in terms of I think for me to control it, then what I will do is have independent auditors check on the work that’s being done by C… and then what that’s going to give me is basically six pair of eyes without me having to be inside the daily transactions of things. So I think that’s good. I’ll also have to talk to C… about this over next weeks.
So what I’m really excited about is the fact that we will be now gaining visibility into the financial things. We’ll have monthly P&Ls. We’ll have balance sheets. All of the sudden the whole world is going to open up in terms of decision making because we’ll be able to see what our cash projections are, where our P&Ls are, how things look so in this way it will allow me to much better make tactical decisions and also make some strategic plays. So for example, let’s say that I know in this year that our cash flow is going to be good, that allows me to hire two more people to fuel the growth. If for example I know that cash flow’s tight then that will be the time to go in and source some funding to fuel the growth. So all of these things are just fantastic and they’re going to give me a real nice sense of, I guess, control but without having to micromanage every piece.
In addition to it, the other benefit I see from this is that we’re going to be able to tie people’s performance into P&Ls and having the P&L responsibility and having budgets and having accountability within the team is again huge empowerment for the team so I think in two or three months we’re going to transform how we work and how we think and I’m going to push out so much more responsibility on to the people on the floor and away from the financial office and yeah, it’s going to be a bit of a risk. It’s going to be a bit of a risk but I think it’s necessary. Otherwise, finance is going to bottleneck and nobody can control it. A different style of management is coming and for that the financial system is key. So when I’m looking at strategy, that is what I’m going to be looking at. Is how to push responsibility out.
This message was dictated by voice using the Voxie iPhone application, and transcribed into text by Quicktate.com.