3 Life Lessons I learned in Managerial Accounting

Learning about managerial accounting was an eye-opening experience. I was lucky to have a passionate professor, Dr. Juan J. Segovia. When I would mention what course I'm taking to fellow students and alumni, I would get the cringe, the sympathies and the "worst course in my MBA" speech. I can't say that I felt encouraged. But what no one mentioned were the life lessons that came with it.

The difference between winners and losers are the conversations that they have with themselves.

The last class, the professor told us what a great and brilliant class we were. Apparently, we were the smartest class he's had, by far. He was happy and sad to see so much potential in one room. Happy because he saw it grow over the last few months. Sad because so many would not take hold of it, trust it and use it to propel them in their careers. His words reminded me of Ms. Sheryl Sandberg's famous TED speech, and how women stopped raising their hands. Upon further reflection, I wondered if my conversation with myself was holding me back or pushing me further. It was holding me back. In fact, realizing that I have full control of how this conversation is going to go has empowered me to ensure that it pushes me further. It's hard to change the conversation, but at some point, it's going to be like driving a manual car. You stop thinking about the gears, and just drive.

I don't care if your numbers are perfect. You'll never get the same numbers as me. I just need you to know how to get the numbers and what to do with the numbers.

Day to day activities matter because they yield the ultimate outcome, however, keeping an eye on the big picture ensures a vision and a drive towards a desired goal. This is the lesson I never thought that I would learn in an accounting class, but here it was. No more searching for the 2-cent difference. My sensitivity analysis didn't have to be identical to the professor's, my ratios didn't have to match to the decimal, but as long as my ultimate recommendation and course of action reflected the numbers I was working with, that would be all that he asked for. It was then that I realized how much I enjoyed getting lost in the details. What an exercise in futility. Unless I was planning on becoming an auditor or financial accountant, this kind of stress would never meet its pay-off. It's enough to know that I can dive that deep into the details, but it's ultimately unnecessary. It was sweet, blessed relief, to be released from the initial contract between myself and accounting - thou must always balance.

Make a decision.

It's easy to talk your way out of a hard question, or dance around the answer without committing to it, or (the professor's favourite answer) ask for more information. Ultimately, a decision must be made and you have to be comfortable making it. Many people are uncomfortable committing to a decision, even if they know what needs to be done. Being in an environment that constantly put me on the spot, asked me commit and defend, allowed me to be more critical, synthesize more, make more educated assumptions and move forward. This was the most invaluable lesson of all because no one likes straddlers. If you have to deliver good news or bad news, you have to know how and support your message adequately.

As an alumn, these three lessons will be with me throughout my business career, and that's the greatest gift any professor can ever give a student.