What is a successful company?" 3

[jmw]

Some respondants were very concerned aout the negative vibes in the "struggling company" thread so I thought I'd start this thread as a counterbalance and to allow those of you who know what it is to work in a successful comapny to share that with the rest of us.

So please, tell what are the signs of a successful company? What should we look for when we join such a company that we can know we have come home at last? (No dot.coms please)

JMW

http://www.viscoanalyser.com

Eng-Tips: Pro bono publico, by engineers, for engineers.

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips Fora.

 

[profengmen]

Before you join a company, take a look at the annual report and the 10-K finacial statement. Then learn how to read them.


heh heh heh

 

[corus]

A successful company is one that hires the right accountants.

corus

 

[jmw]

Tongue in cheek? or not? a good comment either way.

JMW

http://www.viscoanalyser.com

Eng-Tips: Pro bono publico, by engineers, for engineers.

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips Fora.

 

[PSE]

A successful Company

Listens to its customers
Listens to its employees
Plans
Pays its bills
Meets its commitments
Shares the rewards of success.

Regards,

 

[MadMango]

Performs active market research that is not directly tied to the Sales department.
Has a good credit rating.
Has a happy work force.
Is not affraid to stop production to correct errors.
Follows published proceedures.

Ray Reynolds
"Computers in the future may weigh no more than 1.5 tons."
Popular Mechanics, forecasting the relentless march of science, 1949
Have you read faq731-376 to make the best use of Eng-Tips Forums?

 

[TheTick]

A successful company is one that hires the right accountants.

so....
different accountants could have saved Enron?

 

[corus]

All companies are in debt and the success of a company depends on how they handle that debt, just as a country can be apparently successful while at the same time increasing its national debt. The only determinants on whether or not a company is successful are the banks who can call in the loans, and the acountants who can try and convince them not to.

corus

 

[IRstuff]

different accountants could have saved Enron?

Sure, another accounting firm might have been sufficiently ethical to veto the shenanigans that went on or might have been more competent or might have come up with a better scheme.


TTFN

 

[corus]

A successful company is always one that is about to publish its annual results to the stock market.

On the other hand, an unsuccessful company is one that is about to enter into annual wage negotiations with its staff.

corus

 

[jmw]

In the UK company accounts are submitted by the anniversary date of formation.
That means that for a company set up in September, the accounts on file at companies house at this time could be the 2001-2002 accounts.
A week is a short time in politics, but in industry, Hey! what could have happened since 2001-2002?

Accounting is not an exact science and what you see is not black and white.
What is included or ommitted depends on the accounting rules. There are three main groups: Ethical (Prudence, consistency, relevance, objectivity), Measurement rules and boundary rules. No two accountants will produce identical sets of accounts. Companies have some freedom in how they allow for depreciation, for example, stock right-off and so on.
The SEC is expected to ride herd on accounts and just as an example, asked the firm Aetna to restate its 1998 accounts in a case where it queried what had been declared about operating income.
I sure heard a lot about how bad the Enron accounts were after the evvent but i guess some of you heard about it before anyone else got wise. Same to with Barings bank.

Discounting published accounts as a historical document and Company prospectuses (?) as often akin to double glazing salesman speak, these are not the documents a company uses for its managment. Management accounts are a great deal more sensitive.
Most companies that go bust often seem very good companies but fail through cash flow problems. Companies are not allowed to trade when they have insufficient assets to cover their debts.

Cash flow and profit and loss accounts are a critical indicator we will not gain access to.

However, Management does have access to these accounts and they govern their activities. Hence we are seeking clues to the succes or otherwise of the company based on those actions of management that might be in response to such accounts or might precipitate such a crisis. So the indicators given here and in the other thread are very real (if subjective) omens and, importantly, reflect the current state of affairs and not the historical situation nor the public face the company is trying to project to its investors.

I would add that engineers have their own jobs to do. Traders and brokers, and the people buying and selling shares (fund managers etc)are full time proffesionals aided by sophisticated computer programs and, guess what, even they don't get it right all the time.

JMW

http://www.viscoanalyser.com

Eng-Tips: Pro bono publico, by engineers, for engineers.

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips Fora.

 

[PSE]

Successful Company

Listens to Customers
Listens to Employees
Meets Commitments
Works with Suppliers
Pays Bills
Plans
Celebrates Successes

Regards,

 

[epr]

A successful company is one that is your own, in which you enjoy what you are doing, and you are making a good living.

 

[MintJulep]

MadMango,

For most of the items on you list, its hard to tell if they are cause or effect. Probably not a coincidence. Success breeds success.

Tick and IR,

Enron was successful right up until they got caught. If they had "better" accountants they might not have got caught.

 

[MintJulep]

Produces a product, or provides a service that has quantifiable value.

 

[profengmen]

You know what, I'm changing my answer.

How do you feel?
Feel good? Happy?
Are most of the people around you positive and in a good mood?
Do you feel like you are working well?
Are those around you energized?

If so, then you work for a successful company.