Georgia Supply Chain Security | Atlanta Investigative Services
A Tale of Two Managers
A number of years ago I worked with a group of logistics facilities across the country. These are statements and philosophies of two real-life managers. Manager 1 “We’re larger than other centers so we’ll naturally have more losses.” “We’ve had turnover in key positions.” “Our new auditor takes points away from us that the old auditor wouldn’t have.” “You’ll never stop employee theft.” Manager 2 “Whenever a location tells me I shorted them, I go right to my documentation. They call me back and tell me they found it.” “We’re lucky we’ve had the same staff in place for quite sometime.” “Our new auditor is definitely tougher than our old one. We’ll just adapt to it.” “I don’t tolerate theft in my facility.” Manager 1 changed positions (laterally) twice within the next few years and had 7X’s more losses than Manager 2. Manager 2 was later promoted. It’s easy to see by this short comparison, which was more engaged and ultimately successful. Yes, I was the auditor who received those flattering comments. The accepted viewpoints of Manager 1 and the organizations which embrace them easily exist. The economic climate has resulted in more financial pressure and with it, the rationalization for fraudulent behavior. 5% of gross revenues are estimated to be lost due to occupational fraud. I like the response from my colleague, Will DeBouver, CFE, CrFA, CPA. When we run into the Manager 1’s of the world; Will says, “We’ll see about that.” Be a Manager 2 and don’t tolerate theft. Accepting losses doesn’t have to be the cost of doing business.
Zane Kinney, CFE, PI
Your points are well taken Mr. Kinney. Fraud and losses do not and should not have to be accepted. Clearly there is a mindset difference between Manager 1 and Manager 2 which can make all the difference in the world.