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How to Know If a Spin-Off Will Succeed

Harvard Business Review

A 2010 meta-analysis detailed many of the different issues that make divestiture so hard to evaluate consistently. The diverging fortunes of two recent spin-offs in the energy industry illustrate how financial markets value autonomy from the parent. and the competitive intensity of its industry.

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You Can’t Engage Employees by Copying How Other Companies Do It

Harvard Business Review

Lacking a product or service that inspires, Essendant , a distributer of office and industrial supplies, made its selfless purpose to help their partners succeed. These practices have allowed Southwest Airlines to develop high employee commitment, to be admired for their customer service, and to outperform the industry.