What Every CFO Needs to Know About the Math Running Their Business

I was recently re-reading "The Obstacle is the Way" by Ryan Holiday and was reminded of the infamous Steve Jobs iPhone glass story. If you're not familiar with it, it's the large-scale manufacture of the innovative 'Gorilla' glass Apple decided to use for its first iPhone. He needed it within 6 months – an incomprehensible timeframe considering the glass existed in concept and formula only. He was told this was 'impossible'. Jobs wouldn't have it. He pushed and he pushed. He received protest and pushback - his couldn't possibly be done. Lo and behold, somehow they went from zero to hero in under six months - and by launch day, they'd produced enough glass to cover seven football fields.

I remember reading about his leadership approach in his autobiography, Steve Jobs, and feeling really conflicted as I turned every page. I couldn't deny his positive impact to the world, but there was a little voice in the back of my head that kept asking 'but is this right?'. And I imagine there's a part of you reading this that is saying "that would never work for us".

And you're right.

However, I have come to appreciate there is no 'one size fits all' for business success. And that Jobs' approach is 100% fine – because the point of this story isn't the intensity of which he pushed his team to create the impossible. It's the intentionality of his approach.

This was his style, his way. He designed and owned Apple's company math. And it was successful.

"Company math — the operating logic that drives every decision in your business — isn't something most leaders design. They inherit it."

The tension that I see repeatedly is that most companies don't design their company math. Maybe at first they did. But over time, as the company grows and evolves, it drifts. As new leaders come into the business, they inherit the prevailing company math and assume that's 'how it's done' and often don't question 'how it should be done'.

The danger here is not choosing the wrong company math. It's not choosing at all. When company math operates by default – not design - it's usually not fit for purpose. It doesn't represent the values of the company and doesn't produce the results it's supposed to. Performance is inconsistent, effort is disproportionate to results and so people leave.

I've had clients that choose to operate in a similar manner as Steve Jobs. Their philosophy is, we work hard and fast, and the pressure is high. And if that's you – great – we'll reward you, and if that's not you – also great – we will show you the door. It sounds chaotic but for the right people it's perfect. And if that's not you, it's okay to get off 'the bus'.

By now you might be wondering if your company math is serving you. If your gut is telling you that it might be operating by default, that's what next week is about.

For now, I invite you to consider the following question:

Did you design your company math, or is it running by default?

Love to hear your thoughts....

Grab your copy of Alena's CFO of the Future!

Grab your copy of Alena's Meaning Matters!