No Accountability


financial2

A new CEO is hired to lead a large corporation.

On their first day they call the finance team into their private conference room and tell them that they need a report of all funds that are available within the organization and expect them on their desk by the end of the week.

After receiving the information from the finance team the CEO scans through all the numbers and finds every available dollar that the organization has at its disposal.  After adding up all the numbers they find that their new organization has roughly $10 million budgeted across various divisions.

Not concerned that the other divisions have budgeted those funds for specific use, the CEO takes the large total and informs the head of finance to move those funds around so they can hire more people to work directly for for them.

The finance team, being worried that they would get fired for speaking up, decide not to alert the CEO that this is a bad idea and begin moving the money around so the CEO can hire more people for their division; however, finance also doesn’t inform the other divisions that this is happening, letting the other division heads believe that they still have the same budget that they had at the beginning of the fiscal year.

The reason finance doesn’t inform the other division heads is because finance believes they can cover up the financial rearrangement by moving money around later to cover any purchases made by the other divisions.

As the new CEO and having all these newly acquired funds at their disposal, they hire a new Special Assistant and a new Adviser to the CEO.  Both positions pay well over $100,000 with awesome benefits.

The CEO also informs their newly appointed Adviser and Assistant that they have the approval to purchase all the electronic equipment they may or may not need along with hiring administrative assistants for themselves with starting salaries of $80,000 each.  After all, since they work for the Administration of the company, they should hire the best of the best, and everyone knows that the more you pay the more qualified the candidates are.  (hack…hack…cough…cough .  .  .  Sorry, a little pathetic got caught in my throat.)

Consequently, having the finance team move the money around so the CEO could hire more people to make themselves look more pathetic has caused a shortage in funding for other divisions.  However, the division heads, still believing they have the same budgeted money, are sending in requests to purchase items related to projects that they had budgeted for at the beginning of the fiscal year.

Finance, trying desperately to move money around to cover the spending by the other divisions, falls behind rather quickly and in a matter of months has to inform the other divisions that they no longer have the funds and need to put a halt on all spending.  No exceptions!

This leads to the division leaders scratching their heads and asking where all their money went, only to find out from finance that the new CEO had all the funds reassigned to Administration only to hire more staff for their team.

The projects are put on hold.  Customers are angry.  The company looses revenue.  Stock prices plummet.  People lose jobs. 

Welcome to my pathetic world.  

And you wonder why I’m angry and frustrated all the time?

financial1

Advertisements

2 thoughts on “No Accountability

Herd Mooings

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s