BroadPeak Executive Forum

Chicago Urban League ProjectNEXT - The Next Big Thing for Minority Entrepreneurs

Earlier this week, in my capacity as Vice President of Marketing for BroadPeak Collaborative, I attended the kick-off luncheon for the Chicago Urban League's forward- thinking new project called ProjectNEXT. The last time I felt that much energy and anticipation in a room was when I kicked off Money Smart Week at the Federal Reserve Bank of Chicago - and it felt great!

Under the high-energy and progressive leadership of CEO Cheryle Jackson, the Chicago Urban League is shifting from a social services provider model to an economic development model which, I think, is a stroke of genius on the part of Ms. Jackson. Project NEXT is a unique program in which minority entrepreneurs are mentored and given resources that will jump-start the growth of their companies. The program is highly competitive - 150 entrepreneurs applied for 16 spots in the program. And the program is only in its first year. I wonder how many business owners will apply next year or the year after? Seems to me that there is a huge demand for this program and I would guess that applications will increase exponentially over time.

A few professional service firms, including BroadPeak, have been selected by the Urban League to offer accounting, finance, analytics, management training/coaching, and other key services to the selected business owners. We are extremely honored and excited to have been chosen to participate in this program and we anticipate that the success in Chicago will lead to a nation-wide rollout.

Back to the luncheon.  I got to sit next to John Rogers, CEO of Ariel Mutual Funds and a member of the Board of the Chicago Urban League, a man I have admired for years. In addition to founding a hugely successful business John created the Ariel Community Academy in Chicago which is teaching kids about investing, thus developing hundreds of young minds who think that financial smarts are cool. (In contrast to popular singers, actors, and rappers whose conspicuous consumption can be enticing to youngsters.) Needless to say I was excited to get to talk to Mr. Rogers, in fact I was a little star struck. He didn't disappoint - he was modest, intelligent, and thoughtful in his remarks and he is clearly passionate about his work. It's always exciting to meet someone you idolize and, somehow, I managed not to spill food on myself or say anything stupid during lunch.

The keynote speaker for the event was Jim Reynolds, founder and CEO of Loop Capital, a Chicago-based investment bank. Mr. Reynolds was a dynamic, funny, and interesting speaker who managed to share some valuable advice about how to start a successful company. The difference, he said, between entrepreneurs who want to be successful (who doesn't?) and those who really "get it" is twofold: vision and focus. Vision and focus are the essential ingredients to success when starting your own business.

Mr. Reynolds discussed the fact that successful entrepreneurs, no matter what they are doing, are always promoting their businesses. His point was that as a successful entrepreneur you should always be thinking about your business and selling yourself. If you meet someone new, join a club, or speak at an event, you should always be ready to talk about your business, sell a product, or promote yourself, if only by behaving with class and dignity.

I learned a lot from Mr. Reynolds comments at lunch but it also occurred to me that as he described what it takes to succeed in business he was also describing Cheryle Jackson. Ms. Jackson has been at the helm of the Chicago Urban League for only a year but in that short time she has completely reshaped the vision of the organization, energized a talented staff, and has maintained an intense focus on the new mission that she set. She is a successful entrepreneur within an established organization. Like I said at the start of this post, it has been a long time since I have felt that much energy in a room and since I have been that impressed with a program.

I am thrilled that BroadPeak is part of ProjectNEXT but I am also excited that a project like NEXT has been born. It's rare that a not-for-profit can attract a leader who really understands how to create lasting and meaningful changes in the community. Too often organizations take the easy and non-controversial path of offering bland and impactless programs that don't offend, don't take risks, and don't have an impact.

Ms. Jackson and her team have put their reputations on the line with Project NEXT - if it were to fail then the naysayers in the world would be happy to armchair quarterback her mistakes and to say things like, "We never should have strayed from our original mission". ProjectNEXT won't fail, of that I am sure, but my point is that it takes a lot of guts to change the direction of an organization and to create programs with metrics and deliverables and the possibility of truly creating positive change in the world.

If you haven't heard of ProjectNEXT, the Chicago Urban League, or Cheryle Jackson click here to check out the Urban League website.

10 Excel Shortcuts You Should Know

Saving, Printing, Opening. If you spend a lot of time opening, closing, and printing spreadsheets – and who doesn’t – the F12 key could become your best friend. On its own, the F12 key will open up the "Save As" dialog box. But add the Shift key to it, and Excel will automatically save the current sheet. Type "Control" and F12 together and Excel will provide a fresh spreadsheet.

Formulas, the Easy Way. It may not sound like much help. But whenever you type an equal sign in an Excel cell, it will start a new calculation in the formula bar. If you create or modify a lot of spreadsheets, it’s a real time-saver. If you’re having second thoughts about the formula, just hit the ESC button or "Control" and "Z" to start over.

Adding It All Up. Think of the F9 key as a power tool for Excel jockeys whose spreadsheets are chock full of interlocking formulas. On its own, the F9 will execute every calculation in the file. Adding the shift key will restrict the calculations to just the open sheet.

Hide-and-Seek Cells. One technique for making a complicated sheet easier to handle is to hide non-critical cells, rows, and columns. They’re still there and work, they just don’t get in the way. It can be tedious to manually make them disappear and reappear individually. Use "Control" and the number 9 key to hide something. Don’t worry about losing what you've hidden: to bring it back, type "Control" and 9, followed by "(."

Moving between Workbooks. With nested Workbooks, although Excel can perform incredibly complicated tasks while keeping a firm’s financial data organized, it can be a confusing chore to get to the right sheet. Any time you want to go to another open page, just hit "Control" and "Tab" to cycle through the open pages. If you’ve gone too far and missed the sheet you want, try typing "Control" and "Shift" and then "Tab" to go back a page.

Next Cell, No Waiting. Need to copy a cell’s contents to a new cell? It can be time-consuming and awkward to highlight the cell, go to the "Edit" menu at the top of the screen, select "Copy," point the cursor at the new position, and use the "Edit" menu to paste it in place. Fortunately, Excel can quickly copy content. After highlighting the cell you want to copy, carefully move the pointer to the small black square at the cell’s lower right-hand corner. It’s called the "fill handle," and you can drag it anywhere. The cell’s contents will go with it.

Creating Charts. While it’s easy to use Excel’s charting wizard to format, produce, and customize a variety of graphs, its step-by-step process is tedious. This is particularly the case if you create the same charts over and over again. By hitting F11, you can instantly turn any highlighted numerical sequence into a chart.

Cut, Copy, and Paste. The "Edit" menu selection in Excel can be used to copy, cut, and paste any cell on a sheet. Better yet, there’s a series of keys that can do it without touching the mouse. Control-C copies the cell’s contents, while Control-X cuts it. After figuring out where it should go, type Control-V and the cell's contents are automatically pasted into the new spot. The best part is that these keyboard shortcuts work in any Microsoft Office application and are the most used.

Selecting Cells. To grab a bunch of Excel cells, you can run the mouse over an entire region to highlight them. But that takes time, and with large spreadsheets, it’s hard to do. Let the program do the heavy work by highlighting the first cell, typing Control-Shift, and then typing the down arrow to fill in the column, or the right or left arrows to fill in rows.

Formatting for Fun and Profit. Like other Microsoft Office products, Excel lets you specify how each character will look in minute detail. The quickest and easiest way to do this is to type Control-1 to open the formatting box or Alt-' to get to the style box. You’re sure to find what you’re looking for in one of them. Another cool trick is to use a border to add emphasis to or highlight a section of a spreadsheet by hitting Control-Shift and "&"; "Control-Shift _" will get rid of a border. A big favorite for financial types is typing Control-Shift and "$" to automatically turn a cell or highlighted row or column into a dollars-and-cents format.

Thanks to Brian Nadel of CFO.com for these helpful tips.

Suit Reversal Clarifies 401(k) "Participant"

An appeals court has revived an ERISA lawsuit, giving the plaintiff the right to sue his former employer for alleged mismanagement of its 401(k) plan even though he had cashed out.

Sarah Johnson, CFO.com

August 06, 2007

Executives at Conexant Systems accused of breaching their fiduciary duty in guarding the company's 401(k) plan likely breathed a sigh of relief when the case was thrown out last year. But an appeals court has given it new life by affirming that even if a former employee has cashed out of a plan, he can still be considered a participant under the Employee Retirement Income Security Act (ERISA).

The case involves Howard Graden, a Conexant employee who cashed out his 401(k) plan in October 2004, when the semiconductor manufacturer's stock — which made up the bulk of the retirement plan — was at $1.70 a share. Graden, who had left the company two years before, in 2002, blamed the low stock price — which was significantly lower than March 2004's 52-week high of $7.42 — on a risky merger. He claims Conexant, its officers, and the plan's administrators breached their fiduciary duty by offering a Conexant stock fund even though it wasn't prudent, and making false and misleading statements about the merger that led him to invest in the fund. In 2004 Conexant merged with GlobespanVirata in a deal that didn't turn out to be profitable for the company.

Three judges for the U.S. Court of Appeals for the Third Circuit hinged their unanimous decision on whether Graden asserted that his payout was deficient based on the plan's terms as mandated by ERISA. By agreeing that that was indeed the case, the appeals court vacated a March 2006 decision to dismiss Graden's lawsuit, which was handed down by the U.S. District Court of New Jersey.

The higher court's ruling clarifies that a participant is entitled to a benefit that "encompasses both miscalculations of a person's entitlement and reductions traceable to fiduciary malfeasance." To be sure, the judges did not opine on whether Conexant and its employees did anything wrong: the opinion merely bolsters Graden's case to move forward. For its part, Conexant has said the case is without merit. The company did not respond to CFO.com's request for comment on this latest development.

Read the entire article at CFO.com

Identity Crisis

As the line blurs between hedge funds and banks, a bit of mystique goes missing.

  Economist Staff, The Economist

July 05, 2007

People have trouble defining the term hedge fund. For some it simply conveys an aura of big money tinged with a dashing hint of menace. But within a few years the term may be even more meaningless than it is now, because hedge funds are rapidly becoming indistinguishable from the rest of the financial-services industry.

D.E. Shaw, an American group, is a case in point. It started as a "quantitative" manager, using sophisticated computer models to pick stocks and, with $26 billion under management at the end of 2006, was ranked as one of the four largest fund groups in the world.

But hedge funds were only the beginning; there is barely a financial activity in which D.E. Shaw is not now involved. In early June it announced a bid for James River, an insurance firm. The group already has an arm, Laminar Direct Capital, that makes direct loans to firms. It has considered moving into private equity and owns FAO Schwarz, a big toy store. As well as running hedge funds, it operates a “long-only” business, which buys assets in the hope they rise in price.

As hedge funds like D.E. Shaw move in one direction, investment banks and conventional fund managers are shifting in the other. Many have bought hedge-fund groups outright (such as JPMorgan Chase's purchase of Highbridge Capital Management) or have taken minority stakes in them (Lehman Brothers bought 20% of D.E. Shaw in March). Others either operate funds-of-hedge-funds (Goldman Sachs) or have set up separate hedge-fund arms (Gartmore and—less successfully of late—Bear Stearns).

Read the entire article at CFO.com

CFO Turnover Slows, But Remains High

Promotion rates for controllers soar, while treasurers are passed over.

Laura DeMars, CFO.com

May 15, 2007

The musical chairs game among CFOs has slowed down, according to a new study by Russell Reynolds Associates. Turnover among Fortune 500 CFOs decreased by 32 percent in 2006, compared to a 19 percent increase in 2005. The slow down is largely due to a 68 percent decline in the rate of promotions in a year when only 13 percent of Fortune 500 companies changed CFOs (compared to 19 percent in 2005.)

Chris Langhoff, an executive recruiter in the Russell Reynolds Associates' Financial Officers Practice, says the decrease can be attributed to the fact that CFOs are getting more comfortable with the new regulatory procedures of the Sarbanes-Oxley Act (Sarbox). Nevertheless, he says turnover rates are relatively high among finance professionals. "If you ask any CFOs if 13 percent turnover is acceptable they would say no," he adds. "It actually surprised me that the rate decreased because it doesn't feel like the market is slowing."

The study also found that the number of CFO resignations increased by 41 percent from 2005. Langhoff says the number includes CFOs that were fired, which can be ascribed to the rash of backdating scandals, poor corporate performance, and merger and acquisition activity that occurred last year.

The CFO realm is also being affected by a rise in private equity firm activity. One of the first things that happens when a private equity firm takes control of a company is to appoint a new CFO, notes Langhoff. He says private equity owners usually prefer to work with someone they know and trust. In addition, the firms tend to offer very lucrative deals to attract CFOs who have experience dealing with tough regulatory issues. "[CFOs] can get away from some of the [Sarbox] 404 stuff and be more results focused, true business partners," says Langhoff, of finance chiefs that make the move to private equity.

Read the entire article at CFO.com

The Chicago Fed Hosts 43rd Annual Bank Structure Conference

On May 16–18, 2007, the Federal Reserve Bank of Chicago will hold its 43rd annual Conference on Bank Structure and Competition at the Westin Hotel in Chicago. Since its inception, the conference has encouraged an ongoing dialogue and debate on current public policy issues affecting the financial services industry. Each year, the conference brings together several hundred financial institution executives, regulators, and academics to examine current policy issues.

The 2007 conference will address a number of issues including Basel II capital regulation, payday lending activity, the changing real estate markets, risk management, financial stability, banking industry structure, and government-sponsored enterprises. However, a number of sessions will be dedicated to the conference theme: The Mixing of Banking and Commerce.

Highlights of the conference will include:

• Opening keynote address by Federal Reserve Board Chairman Ben Bernanke.
• A special luncheon presentation by FDIC Chairman Sheila Bair.
• A special luncheon presentation by Securities and Exchange Commission Chairman Christopher Cox.
• A panel discussion of the conference theme. What are the benefits? Costs? Regulatory and supervisory issues associated with the mixing of banking and commerce?
• A special presentation by The Honorable James A. Leach, Former Chairman of the House Committee on Banking and Financial Services, U.S. Congress.

As usual, the Wednesday sessions (May 16) will showcase more technical research that is of primary interest to research economists in academia and research agencies. The Thursday and Friday sessions are designed to address the interests of a broader audience.

If you are not currently on the Chicago Fed's mailing list or have changed your address and would like to receive an invitation and registration forms for the conference, please contact:

Ms. Blanca Sepulveda
Conference on Bank Structure and Competition
Research Department
Federal Reserve Bank of Chicago
230 South LaSalle Street
Chicago, Illinois 60604-1413
Telephone: 312-322-8340
email: bsepulve@frbchi.org

SAP to Acquire OutlookSoft - How Will This Affect You?

With so many independent corporate performance software providers consolidating what tools are left for small to middle market companies?  BroadPeak has partnered with Adaptive Planning to offer one of the best financial tools available at an annual subscription price that is reasonable for small to middle market companies.  The Adaptive Planning suite of tools offers a high performance alternative to Microsoft Excel with some of the advanced functionality of systems like SAP or Peoplesoft.  We like the Adaptive Planning tool because it takes less time to update/make changes, reduces errors, and saves  users money. Contact BroadPeak about a free demo, for more information, or for pricing. 

Download BroadpeakandAdaptivepressrelease_4_07_final.doc

OutlookSoft is the latest independent corporate performance software provider to be snatched up by an industry giant.

Tim Reason, CFO.com

May 09, 2007

In a move that further consolidates the performance management software industry, German software giant SAP announced Tuesday that it would acquire Stamford, Connecticut-based OutlookSoft, a provider of budgeting, forecasting, and consolidation software.

"OutlookSoft completes another key component of our multi-year strategy to build, partner and acquire unique offerings for CFOs," said Doug Merritt, head of business user development for SAP.

The move is an unusual one for SAP, long known for favoring internal development over acquisitions. But it is also an indicator of the frenzied competition in the so-called corporate performance management space. In April, Business Objects announced it was acquiring Cartesis for $300 million. That acquisition was dwarfed a month earlier by the March acquisition by Oracle of Hyperion Solutions for $3.3 billion.

Competition between SAP and Oracle for the attention of the corporate finance department has been particularly fierce for some time, and their rivalry has led to name-calling and lawsuits .

The move also left some of the remaining independent players sniping at the larger firms. In an unusually confrontational statement sent to CFO.com today, Mychelle Mollot, VP of market strategy and strategic communications for Ottawa, Canada-based Cognos argued that the shrinking number of independent providers strengthened her company's market position, adding "We believe that this acquisition is an acknowledgement by SAP that their current CPM vision and solutions do not meet the requirements of the marketplace after nearly 10 years of promises."

Employers Hit for Misclassifying Workers

House members hear complaints about workers being misclassified as independent contractors, enabling some businesses to inappropriately scrimp on taxes.

Sarah Johnson, CFO.com

May 09, 2007

A growing number of larger companies are incorrectly calling some of their employees "independent contractors" and saving as much as 30 percent in payroll costs by doing so, according to employee advocates testifying at a House Ways and Means Committee hearing on Tuesday.

Misclassifying some of the more than 10 million independent contractors in the U.S. in this way leaves small businesses that follow the rules at a competitive disadvantage, the advocates said. It also allows companies that purposely — or mistakenly — fail to follow the rules to take advantage of low-level workers unaware of the labor-law protections that they're entitles to.

While the issue has garnered lawmakers' attention, some House members said they're unsure how to penalize companies that intentionally misclassify workers without harming businesses that are simply confused about the current rules. Much of the confusion stems from the abundance of differing rules, which vary widely by state and among federal agencies.

More and more companies are apparently finding that tapping into a person's expertise temporarily or on a contract basis is useful. The number of independent contractors in the U.S. workforce grew from 6.7 percent in 1995 to 7.4 percent of the workforce in 2005, according to the Government Accountability Office.

Read the entire article at CFO.com

U.S. GAAP: Riding Off into the Sunset? - CFO.com Article

Announcements by the Securities and Exchange Commission ''represent critical steps toward a future regulatory framework in which IFRS may be used on a stand-alone basis by foreign private issuers and possibly also by U.S. issuers.''

Dave Cook and Stephen Taub, CFO.com

April 26, 2007

By summer, the Securities and Exchange Commission will issue a proposal allowing foreign private issuers to file financial reports using either international financial reporting standards (IFRS) or U.S. generally accepted accounting principles (U.S. GAAP).

U.S. issuers may soon have the same option.

Only last month, several panelists at an SEC roundtable asked that if foreign companies could report using IFRS, why shouldn't U.S. companies be allowed to do the same? Tuesday's announcement of a "concept release" — occasionally floated by the commission "to solicit the public's views on securities issues so that we can better evaluate the need for future rulemaking" — is a small step in that direction.

"The actions announced today represent critical steps toward a future regulatory framework in which IFRS may be used on a stand-alone basis by foreign private issuers and possibly also by U.S. issuers," said John White, director of the SEC's Division of Corporation Finance, in a statement. "The staff will continue our work relating to IFRS so that we are in a position to make a recommendation to the commission with respect to the elimination of the U.S. GAAP reconciliation requirement in time for the annual reports filed by calendar year foreign private issuers in 2009."

Read the entire article at CFO.com

Tips For Writing the Ultimate Resume

Last night I was fortunate to be able to present a webcast to students at Cardean University & Ellis College on the topic of resume writing. Based, in part, on my presentation, and based in part in the questions that the students asked last night I thought I would write a list of 10 tips for writing a great resume. This is not an exclusive list but it will get you started in the right direction if you need to write or update your resume.

1. Remember that your resume tells a story - think of it like a product brochure for the product "You, Inc."

2. Organize the document in a way that it is easy to navigate.  Put company names, your titles for each job, and dates in the same location for each job so that a casual reader can easily see where you have been and what you have been doing during your career.

3. Include a little bit (a couple of sentences) to describe each employer for whom you have worked. By doing this, you don't have to wonder if recruiters will have heard of that great start-up you worked for two years ago. Include ticker symbols and, if available, web addresses.

4. Focus on your accomplishments. Use bullets to emphasize your accomplishments in each job you have held. The best accomplishments are those that are quantifiable but any will do. Your accomplishments are what will get you hired.

5. Include some (but not a lot of) background about each job you have held. For your accomplishments to mean anything you need to include a short overview of your job duties when describing each job you have held. Put the background in paragraph form and include information like size of budget you managed, how many people reported to you, and a couple of sentences that describe what you were responsible for doing all day.

6. Include information about volunteer or civic organizations with which you are affiliated. Board memberships and leadership roles are always good to mention. Include dates of your involvement too.

7. Include, but be selective about, your technical skills. Generally, you don't need to mention that you are "proficient with Microsoft Word" because it is generally assumed that anyone hired into a professional environment these days knows the basics of the Microsoft Office suite. However, if you are a JAVA programmer or are an expert in a specialized software relevant to your field such as SAP or JD Edwards make sure to include that.

8. Include separate sections for for notable accomplishments such as patents that you hold, awards, media appearances, publications, or books you have written.  Big accomplishments deserve their own sections.

9. You don't have to include an "Objective" or "Summary" section at the top of your resume and if you do make sure it says something meaningful. Generic language that says something about your desire to work for "an industry leader" is meaningless and just takes up space on the page that you could be using to describe what a star you are in your field.

10. Proofread!! Use Spellcheck, check for grammar, punctuation, and readability. Grammatical and spelling errors will probably disqualify you from any job immediately. If the resume is hard to navigate or difficult to understand, a recruiter or hiring manager may just skip your resume in favor of one that is easier to read.

If you follow those 10 tips you will be on your way to having a resume that will help you to land the job of your dreams!  If you would like help in writing your resume contact Liz at either www.ultimate-resumes.com or lhandlin@broadpeak.us