Book Review: The Real-Life MBA and The CEO and Board Members Survival Guide

Book Review: The Real-Life MBA and The CEO and Board Members Survival Guide

THE REAL-LIFE MBA / YOU NO-BS GUIDE TO WINNING THE GAME, BUILDING A TEAM, AND GROWING YOUR CAREER BY JACK & SUZY WELCH

Jack Welch was one of the most successful CEOs and Suzy was editor of the Harvard Business Review and the author of an excellent book I’ve recommended (10-10-10), so their recent book got my attention. I decided to review it here along with Bill Kraut’s book because they are similar in that they were not written for CPAs but for leaders and managers and provide a wealth of information to make running businesses and not-for-profit organizations easier and more effective. I believe it is necessary for us as advisors to be current on the latest thinking and strategy, which these books certainly provide.

The Real-Life MBA provides a mini-course on operating a business and managing a career. The brief chapters are written in a no-nonsense style with easy-to-grasp points. Grasping points is not the end-product but a method to arm your arsenal with tools enabling performance at a high level. The takeaways in each chapter show you how to adopt their ideas to create action, growth and teamwork – hallmarks of a successful leader.

The authors begin by stating that business is the ultimate team sport. It is not a “me” but a “we” thing. It involves collaboration of many people with varying backgrounds, disciplines and skills. To earn an MBA you need to show proficiency with many processes and concepts. Each of the dozen skills they cover are essential to being successful when applying for your MBA degree. In a business environment, having these skills provides a leap over the heap toward success.

When I read the book, I attached too many notes and placed too many bookmarks to be able to discuss them all in what has to be a short review, so I will discuss just three things covered in the book. To get the others and substantially more, you will have to read the entire book yourself.

They begin the book by telling how important it is to have fun. Very important! I give a speech on having more fun and want to tell you that without fun you’ve created a drudgery of time clock punchers instead of a team of active participants wanting themselves and their organization to excel.

  1. You need to be a growth company – sales, profits and staff all need regular steady growth. Without this the company will stagnate and its people will feel less secure precipitating an exodus of the better people.
  2. Cash management is essential for success. For many small businesses cash is the whole ball game. Balance sheet analysis is important, but keeping a close watch on cash flow helps understand and control your destiny. Many accountants spend considerable time guiding clients on understanding the balance sheet short changing charting the cash flow.
  3. Marketing should not be overlooked – it is an area many accountants do not get involved in, but is important for our clients; and being knowledgeable here permits us to be a better advisor. Marketing is about positioning the company, presenting its culture, assuring the right product placement and growing sales. We also need these skills for our own businesses.

Other areas include alignment; getting “whacked;” globalization; crisis management; leadership; team building; managing complicated types of employees; managing your career and moving forward.

The treasures in this book will help you become more effective advisors to your clients and make you continue to be the first person they turn to when they are confronted with changes.

THE CEO AND BOARD MEMBER’S SURVIVAL GUIDE / STRATEGIC GOVERNANCE FOR SMALL TO MID-CAP ENTREPRENEURIAL ORGANIZATIONS THAT CAPITALIZES ON OPPORTUNITIES AND MINIMIZES RISK BY WILLIAM KRAUT, CPA, MBA, CITP

This is a how-to book for small to mid-cap company board members. It covers every area independent board members need to be aware of. This is also a good book for accountants that act as consultants to their clients. While the focus is not directed to consultants, it provides the type of practical advice and information that is needed to be effective advisors.

This book provides guidance for those wearing multiple hats that need a range of experience. The broad areas are strategy development, information technology and talent governance. The book doesn’t teach these but provides insights into how organizations can better utilize the tools at their disposal.

Some of the processes covered are mentoring the CEO, or in our case the client; discerning the differences between vision, strategy and tactics and guiding our clients in the most appropriate direction; being clear about value propositions; assisting in developing, managing and retaining senior management and the leadership team; the importance of the owner being and acting as the proper role model; evaluating merger or acquisition candidates and integration afterwards; understanding cyber risk and being prepared should it occur; and helping to see that the most current technology is being utilized fully and properly. We do not need to be experts in any of these areas to be able to advise on the effectiveness of how they are performing. Advising and evaluating is not the same as doing. When accountants step away from our specific duties, we become very effective as big-picture advisors who are strategically helping clients do what they do better and firmly guiding them in the directions they want to move toward.

We are good at this, and in a large degree, independent accountants are mini-boards of directors to their clients. We do not have the title, pay status and regular meeting schedule, but we are always there when crucial decisions need to be made – providing the information, being a sounding board, and offering comments, suggestions and insights that can make the difference in the initial steps and success of the project.

And, this book is also very useful for those servicing on boards of directors.

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