My first economics professor in grad school, a native of Austria with a beautiful accent, said, "Running a business is an art, not a science." He meant so much of running a business is about understanding people and the real-time circumstances. Other technical things, accounting and engineering for example, are less important. Today, all automobile companies have CPA's, MBA's and engineers. Yet some are prospering and others in trouble. The difference has to be in the art of business.
When we moved into Summit House a retired accountant was obsessed with hair-splitting accounting issues. I heard he wanted the manager to count the nails and screws. For a tiny place like Summit House, accounting obsessions like this are ridiculous. We simply need the dues collected, bills paid and our money safe. The level of accounting sophistication needs to meet the requirements of owners, our bank, our insurance company and mortgage lenders. The simplest of accounting methods meets these requirements. Higher levels are a waste of our money.
Our fine volunteer Treasurer, Amy, will retire at the end of this fiscal year. We thank her. I watched Board meetings where she was ordered to do hair splitting and accounting tasks that are neither needed nor required.
A prominent consulting firm which advises small places like Summit House said recently, ADOPT POLICIES YOU CAN REALISTICALLY MAINTAIN GIVEN THE ORGANIZATION'S RESOURCES. This is the art of management my professor was taking about.
Our next Treasurer, like those for the past 20 years, needs to be an owner here in our building. At the last Board meeting it was suggested an expensive outside firm be hired. The passions of individuals or Board members in our building that are not relevant and unsustainable should not be allowed to overrule the interests of we who are owners. Let's select someone from right here in our building as our next Treasurer.
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