After connecting with the oldest son in a family business, I presented him with DCI’s offer to increase cash flow.
However, his “CFO”, a bookkeeper with a 20-year old tenure, convinced him to decline.
Years later, the company’s CPA told me that the younger brother of the erstwhile President had turned the family business around.
This was followed with, “And you know about the bookkeeper, right?? She was considered a friend of the family and had embezzled hundred of thousands!”
Embezzling is criminal, deplorable, and demoralizing, but I challenge you to look at this from a financial perspective, and ask, “Who was doing worse damage to the company?”
When presented with a uniquely superior value prop that substantially increases cash flow and equity value with zero risk, the business owner who leaves this kind of decision to a department head is succumbing to a form of mental laziness.
Worse yet, they are making the exact same costly mistake as the aforementioned older brother.
Working well-worn routines can make us look physically industrious on the outside, even if we are intellectually indolent on the inside.
Let’s keep our minds and behavior ethically energized and seek relationships with clients who do the same.