In a few weeks, Mary Day will begin reducing her workload with the goal of fully retiring in the not-too-distant future. But before she gets distracted by future adventures, we sat down with Mary to capture what she’s learned during her tenure with Fairlead.
A Decade as a Consulting Controller—Key Takeaways for Investors
Before delving into a decade’s worth of insights, it’s essential to spotlight the person behind these observations: Mary Day. A CPA (expired) and Senior Consultant at Fairlead Advisors with an illustrious background, Mary has carved a niche in the financial landscape. Her tenure in accounting included large companies (e.g., Honeywell and NRG Energy), private equity (e.g., Wayzata Partners), and a wide range of P.E. and V.C.-backed companies while with Fairlead Advisors. Mary’s role as a Consulting Controller transcends traditional consultancy. She combines “outside expert” expertise in best practices with a focus on hands-on implementation, subject to real-world budget and human resource constraints. It is from this deep well of experience and knowledge that she draws upon as she shares her journey.
Observations from Ten Years as Fairlead’s Consulting Controller
As I approach the close of a fulfilling decade with Fairlead Advisors and reflect on my many client-specific challenges, some common themes and patterns emerge. Serving as Fairlead’s Consulting Controller placed me at the heart of financial transformations and taught me that every company is unique: no “one-size-fits-all” solution exists. But many challenges repeat, or at least rhyme with each other.
Overcoming the Fear of Disruption
Even when an accounting group continuously fails to deliver timely and meaningful financial reporting, companies wait far too long to make a change. This hesitancy arises from two related and logical concerns. First, the company must invoice customers, process bills, and make payroll. Any change to the people or processes doing this work threatens operations.
Second, the incumbent controller will have substantial knowledge of the company’s systems and financial records, and the company often worries that engaging Fairlead will provoke the controller to quit.
Paradoxically, in our experience, delaying action increases the risk that the incumbent controller will leave without supporting the transition. A poorly performing controller knows they are underperforming and will start looking for another job. Once found, their motivation to help with the transition plummets. In contrast, when the company engages Fairlead sooner, the existing controller often appreciates our hands-on and collaborative work ethic and seizes on the opportunity to improve their performance.
If the controller needs to be replaced, they support the transition to protect their professional reputation while looking for a new job.
The Power of Real-Time Reporting
Effective financial reporting is not just about generating numbers; it’s about having real-time processes that enable teams to produce regular and on-the-fly business reports. This agility in reporting allows the company to adapt to evolving and unanticipated business challenges.
Harness New and Improved Reporting Software
New and inexpensive reporting tools can often deliver quality reporting formerly dependent on high-priced ERP systems. By staying current with new tools and improvements to lower-cost ERP, we were able to create step-change improvements in financial reporting while reducing cost.
Raise Expectations
Companies with underperforming accounting groups start by searching for what’s good enough and forget to ask for what’s possible. Spend time with the CEO and other executives to learn what additional business reporting will help them.
Every Situation is Different
Every time a new engagement came my way, signaling a new challenge, it wasn’t just about applying prior experience to a new company. It was about delving into a new story, understanding the unique fabric of that company, and finding the best solutions for them. While I’ve seen many problems repeatedly, I started each engagement with the humility that every company is different. I enjoyed the personal growth that came from every new engagement, and our team was able to combine Fairlead’s background knowledge with company-specific variables to exceed client expectations.
Never Underestimate the Human Element
Behind every tool, process, and report are people. Empower them with the knowledge, systems, and confidence to succeed in their jobs, and weak performers can become strong.
Retrospective
Looking back at a decade of challenges, transformations, and successes, I’m grateful and fulfilled for my time at Fairlead. Every company, every challenge, and every number told a unique story, and I am honored to have been a part of so many. As I spend more time with my friends, family, and scuba-diving adventures, my colleagues and successor at Fairlead will continue the journey.