Great post from one of my colleagues in Verasage – Greg Kyte. He is incredibly unusual – an accountant who also works in comedy (there are some lines there that I won’t use!) – have a read and see how silly both people and tax officers can be. Note that this is from the US of A.
Have a read of the post here.
Received the following from Remo Greco at Canbrea & Co this morning. Worth a read:
The Origins of Money, and Saving the Euro
It is really hard to see where the euro is going. Spanish yields are at record high levels, meaning Madrid’s debt looks less and less sustainable. Yet there is still no clear plan for the euro, new ideas seem to have run out, and there is a lack of progress on old ideas. What is going to happen?
One way to think about the euro’s future is to look at its past, and to go back to the origins of money. There are two leading schools of thought about this. The first was set out 120 years ago in a paper by Austrian economist Karl Menger. In Menger’s theory buyers and sellers agree on a common commodity to use as the medium of exchange. Something small, valuable and divisible is best. It helps if it doesn’t rot. Gold and spices are all good examples. This money is highly “saleable” so everyone accepts it, and this means that traders don’t face the costs associated with barter. There is no role for government here.
The second theory places great emphasis on the role of government, as Charles Goodhart explains in a 1998 paper. This group—the Cartalists, who Mr Goodhart refers to as the “C team”—argue that currencies become money due to the active involvement of the state. Examples include setting up a mint to produce coins, demanding taxes are paid in state money, and stamping notes with the head of state’s image. This C-theory has much stronger evidence based in anthropology and history.
Why is this relevant for the euro? Here is Mr Goodhart writing in 1998, on the eve of the euro project.
The key relationship in the C team model is the centrality of the link between political sovereignty and fiscal authority on the one hand and money creation, the mint and the central bank on the other. A key fact in the proposed Euro system is that the link is to be weakened to a degree rarely, if ever, known before. … There is to be an unprecedented divorce between the main monetary and fiscal authorities … the C team analysts worry whether the divorce may not have some unforeseen side effects.
The logical conclusion from this is not a new idea: the euro area needs greater fiscal integration. But the reason is different. It is not because Greece and Spain spoiled a perfect plan with their profligacy. It is because the euro enshrines the divorce of fiscal and monetary power. If you are a member of Mr Goodhart’s C team this never made sense in the first place.
[Source: R.D., The Economist, July 25 2012]
I recently had an article posted on the Verasage Institute website which tries to draw an analogy between the consultants to the accounting/legal professions and the “50 Shades” trilogy of books which has been taking the world by storm.
If you’re interested in having a read, the post can be found here.
There is a fair bit of “doom and gloom” out there in the economy at the moment – and I can understand why.
Every day you read the paper or listen to/watch the news and there are stories about businesses closing and the stress that family budgets are under. There is very little good news out there (that gets reported anyway!) for us to reset our focus onto when things look this grim.
I must admit, the ecconomy is not looking that great at the moment and the new imposts that will be introduced later this year will only serve to increase the financial burden on a lot of businesses and households. The carbon tax in particular is going to have a significant impact on a wide range of businesses and the level of this impact is yet to be fully understood.
However, I must admit that, being the eternal optimist, it is times like these that create massive opportunities for those businesses and people that look to take advantage of the situation. Many businesses will be looking at ways to cut costs and reduce their expenses – they won’t replace staff that leave, they’ll reduce their advertising, they’ll look to find cheaper suppliers for the things they do need and they will generally contract to try and protect themselves.
Whilst this may initially seem an attractive option, let’s think it through a bit further (not an exhaustive list):
Having been through a few economic cycles now, it is really amazing to reflect on those businesses that took the opportunity created by adverse economic conditions to grow their operations. I’ve seen it so often and the approach (with proper planning and implementation) can yield substantially improved business performance along with increased wealth and satisfaction for the owners of the business.
It all depends on your viewpoint – is the glass half full or half empty? Is it a time of adversity or is it a time of great opportunity (in camouflage?)….
A couple of weeks ago I was at a function and heard some interesting feedback from a great friend of mine regarding the behaviour of a couple of people there (admitedly – after I had left!)
The people concerned were “socially excited” and proceeded to belittle and laugh at my friend who was trying to be gracious and friendly to them. They hung it on them about where they went to school, about where their kids went to school, about the house they lived in and even had a go at their “hotshot” father – who was dying of cancer!
I find this type of behaviour obnoxious and offensive and it serves as a very unflattering measure of the people “dishing it out”. The people concerned are well known in the Ballarat community – given the fact that people tend to behave as they really are when they’ve had a few drinks, the insight obtained into their conceit and arrogance was illuminating!
The fact that some people think they’re better than others and then proceed to belittle them is just objectionable.
By their rudeness, they show their ignorance.
Terrific article in McKinsey Quarterly in January this year. It discusses how senior management can destroy the engagement of their people by not paying attention to their “inner work life” which revolves in no small part around job satisfaction, alignment with strategy and corporate vision, understanding of autonomy etc.
In many respects, it has some resonance with Patrick Lenceoni’s “Five Dysfunctions of a Team”:
For a diagrammatic representation of this model, look here.
The level of freedom that can be provided by senior managers to staff is critical in enabling them to not only get engaged but stay passionate about what they are doing – this then evolves in to a healthy “inner work life” that ensures that the business is working at its optimum level. Part of this is “Leader as Servant” and part is a focus on the issues from the Five Dysfunctions of a Team.
I recommend you have a read of the McKinsey Article which can be found here.
This month’s edition of “Charter” magazine includes an article written by yours truly on the issue of getting rid of timesheets. I expect a number of my colleagues around Australia will be tightening the bows and sharpening the arrows!
If you are interested, you can have a read here.
Had some interesting experiences in recent times associated with a range of people which have caused me to think about different approaches to life and what you receive as a consequence of the approach you take.
There are people who get great satisfaction from giving – be they people who work in charities, social support, education, healthcare and the like. There are people who give in other ways too – I know we help out a number of our customers who are going through hard times in many ways – we’ll do their work “pro-bono”, we’ll help them deal with their banks and customers and we’ll also work with the owners, managers and staff to develop strategies to assist them get through the rough times they find themselves in. I am aware of a number of our colleagues in the legal profession who do this.
The giving of time, service and care is a great gift that I know I gain a great deal of satisfaction from.
There are also those who take. These people have an approach whereby they are always seeking to get things for nothing or at big discounts. They’re always seeking out opportunities to “get a bit ahead” by getting something for nothing. I’ve seen examples of this type of behaviour often over my life (both persoanlly and professionally).
Having observed this over many years, there seems to be some rough sort of pattern in the behaviours that are exhibited. These people are always ready to be at the front of the queue, they’re notionally supportive when people do well, but they position themselves to take advantage of what has been achieved. I know that I’ve helped people like this numerous times over the past and it has always come back and “bitten me on the bum”. They rationalise their behaviour on the basis that they’re entitled to geet this help, support and the like because they are who they are.
That’s all fine and I am not preaching on how people should run their lives – far from it – each to their own. Having been bitten numerous times, I am not going to change the way I do things or the approach I take. I will however be far more circumspect in the future as to my behaviour in dealing with people like this. It is sad, but in this environment where a lot of people have an unjustified sense of “entitlement”, I think we all need to be prepared to consider what the motivators of people are. If they’re the “needy and greedy” – let them stuff someone else around – there are too many people out there who WILL appreciate what you do for them.
I will always give rather than get. I’ll just be a lot more careful whom I do it for from here on in.
UPDATE
Following from posting this, I received an email from Russell Wylie of Becoming Better (www.becomingbetter.com.au) who wrote:
I just read your latest blog posting, Matt. Well written!
The Moody Blues had an introduction to a song on one of their albums
that went something like this “… Face miles and miles of trials with
smiles, for it riles them to believe, that you perceive the web they
weave”Generosity and contribution are incredible strengths to be able to
operate from.You’ve got those things and may they continue to reward you … as I’m
sure they will.The mean-spiritedness of others is its own karma.
People who operate from that point of view never really get to
understand or appreciate the truth and beauty in things.And they are always, in some way or another, operating from a state of
tension, pain and disturbance. What an incredibly miserable way to have
to live a life?The trick is to never let those “takers” have a diminishing, or
restrictive effect upon your life, or your style of going about doing
the things that you do. In a sense they begin to “win” when you react
that way. The chipping away at belief and faith will have begun – in a
very subtle manner.Rather than becoming more circumspect in your approach to generosity and
goodwill, I would actually recommend you become more generous and even
more of a contributor.Why?
Because I believe will serve you far far more richly than the initial
alternative, annoy the crap out of the takers (… and it will help to
make sense of the aforementioned Moody Blues line). Your style is about
expression and creating things, not repression and restriction.Life is far too serious to be taken seriously … And the world is
definitely a better place with a “constantly adding-value Matthew Tol” -
no doubt in mind whatsoever!
As we charge through life being all enthusiastic and focussed on goals, we often forget the liberation that can be had from being vulnerable.
People perceive vulnerability as a bad thing with connotations of not being “up to it” or being somewhat incapable. I must admit to having a different perspective on it.
Allowing people (not everyone!) around you know that you’re vulnerable in certain circumstances has a couple of very positive outcomes:
I have seen the benefits that vulnerability provides in relationships over the years. There have been many occasions when customers of our business have come in to discuss issues and have made themselves vulnerable to us. The response to their offering this has always been very positive and supportive – the outcomes we have helped them achieve through this process have in all cases been outstanding.
You can be vulnerable with your family, close friends and close work colleagues. The combination of honesty and trust that comes from the admission of your vulnerablity is truly wonderful.
So, in amongst the mad rush through life and the focus on achievement, remember to be a bit vulnerable – you’ll be surprised at just how empowering it can be!
Much has been written and pontificated about regarding the entry of Gen Y into the workforce. For those of us in the “professions”, this poses a real challenge. These guys have grown up “connected” like no generation before them. They are far more flexible and open to things than our generation and don’t necessrily do some of the “traditional” things well. This is one of the reasons businesses such as Google do so well – they allow their people to have time to be creative and explore things.
One interesting thing about the Gen Y’s is that many of them have grown up playing computer games. Whilst this might not have done much with regard to their ability to climb trees, it has taught them, from an early age, things like strategy and considered approaches. Their modus operandi seems to be that they’ll source out the process to get to Level “x” on the internet and then start challenging themselves. There is some thought that this may be an issue in that they haven’t learned the process themselves – I’m not sure whether this is the case – they have learned how to “short circuit” the approach.
Anyway, the issue then becomes one where they hit the workforce and some rusty old guy with grey hair tells them they have to account for every 6 minutes of the day and this will be the basis on which their performance will be assessed. Given their more relaxed approach to things, this doesn’t sit well – they’ll be needing some flexibility to attend to their mobile phone, their facebook, their twitter and the various other social networking sites they inhabit. An employer who tries to stifle this will face challenges.
I had an interesting experience with one of my young guys the other week – we visited a “traditional” accounting firm to do some due diligence work on a business one of our customers is looking at acquiring. They had the timesheets and they had the workpaper files (about 6 inches thick). He’d never seen this stuff (came to us from Uni) and could not get over the fact that people worked like this in todays’ environment. Our discussions afterwards were quite enlightening!
I have found that Gen Y people are (usually) creative and flexible. A timesheet will make sure that this creativity and flexibility gets killed stone dead in the name of “productivity”. Removing the obligation for them to record their life in increments will create the opportunity for them to do what their computer games have trained their minds to do – learn, strategise and work out the best approach. Isn’t this more useful and effective in a “professional” office enviroment than being able to climb a tree?
.png)
.png)
