When I first saw the headline ‘Death by Accountancy‘ I assumed this would be an item for my blog containing accountant jokes and fun. But I’m afraid it’s a further lesson that Accountancy is about more than just numbers.

Yesterday I revisited a related subject that I haven’t written about on this blog for some time. That is the importance of soft skills. I’ve previously noted that Strong technical skills are not enough, and identified the options available When you need more than just technical skills.

The article headed ‘Death by Accountancy‘ isn’t so much about accountants’ own soft skills but about why accountants shouldn’t ignore such matters when advising on restructuring plans.

The article looks at the recent failure of MFI and suggests that:

it wasn’t the recession that killed MFI. It’s death warrant was signed by its own executives in a restructure some five years earlier. Like thousands of other companies, it has been killed by the absurd pretence, cemented in MBA orthodoxy, that a company consists of little more than costs and resources, and that people and skills represent the ‘soft stuff’.

Continuing in a similar vein:

In truth, the company was destroyed by a cost-reduction programme that took no account of staff skills and customer service.

I wonder if the common experience of accountants in practice (whereby all the emphasis is typically on technical competency) has an impact on how they view businesses in the commercial sector? And if so, are there any lessons that can be learned?

What do you think?