Based on what I see in the field, there are a lot of professionals that...truth be told...are working on liquidations. To me, doing this work is kind of like doing the work of an undertaker. Work that is important to our society, but hardly is a part of shaping the better future we all so need.
There are also a lot of professionals working on forensic analysis. Where did all those billions go...and not just from the Madoff style out-and-out fraudsters? This work kind of reminds me of the work of coroners. Work that is important because by learning how and why the patient died, society hopefully learns the mistakes to avoid in the future. These lessons can have value. And, so too can recoveries from the wrongdoers (although I believe these will generally be for a net recovery of pennies on the dollar in our current downturn). Society certainly benefits more than just shoveling dirt over the body.
And, then there are a relatively smaller group of professionals who are making serious efforts to transform companies and industries. Kind of reminds me of the work of brain surgeons. Tough, tough stuff! One wrong move and the patient can die. (Coroners and undertakers are not known to kill patients). One or two right moves and the patient not only lives, but hopefully becomes a productive part of our future. The benefit to society is significant.
Just between you and me,
what is your practice really about? Is your current role the best use of your talent? Is your current firm the best platform from which to practice your craft?
Oh...for those readers who like to be well paid for the vocational effort they expend, any idea who makes the best money of these three vocations; the brain surgeon, the coroner, or the undertaker?
In thinking through that question relative to the Restructuring profession, don't forget that the true transformational advisor...whether legal, operational, or financial...is creating a potential long term client.
The law of supply & demand, and the fundamentals of value creation have brain surgeons and transformational restructuring professionals pulling down the big bucks, having the most rewarding careers, etc.
These times are so interesting!
PS One of the most dangerous career moves, in any line of work, is to put yourself in a vocation at which you are not really good. Much better to be a top coroner than an incompetent brain surgeon! And, a top coroner...or even a top undertaker...who knows how to leverage himself (or herself) with "juniors" can certainly make some very nice money.
2 comments:
I was attracted by the title of this article. Sometimes I describe my own business as a cross between being emergency room physicians and funeral directors (we take over troubled Venture and Private Equity Funds www.sema4usa.com ).
The author appropriately recognizes that those who are not afraid of blood get the chance to pump new life into failing entities. It is difficult work, based often on an ability to move with lightening speed and trusting instinct while operating within the bounds of responsible practices. Often those efforts are not tried and true best practices…just yet — those will be debated and given an imprimatur of acceptability after this economic debacle of opportunity abates into normalcy. In the meantime the service providers who actually acted affirmatively will have done their clients a good turn while enhancing their own reputations and pocketbooks.
One thing I slightly disagree with Carpenter about is that while coroners don’t “kill” their clients when they don’t do their jobs well as, if they do not act professionally, they will not get future opportunity to serve new clients. Point being two: 1,)Always respect your clients best interests and 2,)if you fail, do so honorably-and learn something from it - and you will yet be rewarded.
As a Certified Turnaround Professional and former banker, I totally agree with the segmentation. Having said that however, I am hard pressed to find many "brain surgeons" with successful surgury. Most prevalent are the "slice and dice" professionals trying to get the most for the bank rather than the client.
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