But t’was a famous Victory!

Posted by on Nov 1, 2017 in Leadership, Lessons from the Big End of Town

The truth is in the cash flow

But t’was a famous Victory!

This is an article I wrote about CPA Australia on behalf of the Association of Virtual CFOs, and which was published by Smart Company.

I had watched with horrified fascination as CPA Australia tore itself apart over the last 12 months, egged on the by the Australian Financial Review.

Emotion had clearly over-whelmed reason, and in this article, I wanted to take an impartial look at what was happening.

The conclusions I came to were quite startling.

Financially, on a per member basis (itself a contentious subject) there was very little difference between CPA Australia and its major rival, CAANZ.

Yet, there was so much heat and noise from a dissident group of CPA members about how money was being spent.

And, when the dissident group “won”, they were not prepared. There was no plan, no clear idea as to the changes they wanted.

I think CPA Australia will rue the last 12 months for the next 12 to 24 months.

They will lose existing members, and if it is more than 7,500 then in all likelihood they will make a loss.

Fewer new members will join because of the damage to CPA’s reputation.

It will take time for the new board to take control, appoint a new CEO and in the meantime, the organisation will drift.

So, what are the lessons for business owners from CPA Australia’s implosion. Here are a few:

  1. Make considered, not emotional decisions.
  2. Before embarking on a course of actions have a plan.
  3. In fact, before embarking on a course of action, have several plans – Plan A, Plan B, Plan C etc.
  4. Never take your customer for granted. If you do, you invite disruption, like Uber and Taxis.
  5. Recognise that every threat is an opportunity – sometimes you need imagination to do this.

I hope you enjoy reading this article. It is fair to say that it was the one that received the most feedback and discussion when it was published.

If you think that impartial and thoughtful advice could help you take your business to the next level then please make Contact.

I can help.

T’was a famous Victory!