Picture this: You're on a flight, and the person beside you starts a conversation. They find out you're an accountant and ask, "Hey, don't you think an accountant should be running Boeing? Who better to whip that company into shape than someone who knows their way around a balance sheet?"
You could be sitting next to Michael O'Leary, the CEO of Ryanair. O'Leary, a former KPMG accountant, says that Boeing's recent struggles can be traced back to a lack of focus on the nuts and bolts of running a business efficiently. In his view, the company needs a leader who understands the importance of delivering products on time and within budget - and that leader should be an accountant.
This topic came up during a recent episode of The Accounting Podcast, where my co-host David Leary and I were discussing the challenges facing Boeing. Boeing has been going through some severe turbulence lately, with quality control issues and a shift towards cost-cutting that many argue has compromised safety.
O'Leary, whose airline is basically the Spirit Airlines of Europe, but even cheaper, thinks that Boeing's problems stem from a lack of focus on the day-to-day operations. He believes engineers get too bogged down in the details, while pilots want to buy more planes without considering the bottom line.
As an accountant, I find the idea of more of us in leadership roles appealing. We're detail-oriented, understand the importance of financial discipline, and know how to keep things running smoothly. But here's the thing - and I hate to say it - I'm not sure that putting an accountant in charge is the best solution.
Sometimes, focusing on financial results can come at the expense of long-term success. Look at what happened at Southwest when the bean counters started calling the shots. The failure to invest in updated technology came back to bite them when a massive winter storm overwhelmed their antiquated scheduling system.
The problem with running a business solely from an accounting perspective is that many crucial aspects of a company are difficult, if not impossible, to quantify. Things like product quality, employee morale, customer satisfaction, and brand reputation don't show up on a balance sheet. Still, they can have a huge impact on a company's long-term success. If leaders only invest in what's easily measurable, they risk neglecting these intangible assets and creating hidden liabilities that can come back to haunt them. Just like Boeing.
So, while I'm all for accountants taking on leadership roles and bringing our skills to the table, it's important to strike a balance. We need to be able to see the big picture and make decisions that prioritize long-term success, even if it means investing in things that don't have an immediate payoff.
At the end of the day, the best leaders are the ones who can combine financial savvy with a deep understanding of their industry and a commitment to doing what's best for their customers and employees. And if that leader happens to be an accountant, great - but let's not assume that we're the only ones who can get the job done.
