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During this Crisis, Don’t Expect Business as Usual from the Family Enterprise

Strategy Driven

In the last half-century, the pace of change and the many innovations that have reorganized our behavior in no way compare with the unanticipated situation we now face from the coronavirus pandemic. This is a time to share the challenges regarding fixed costs, debt, obligations and the cost of doing business.

Crisis 70
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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

Similarly, considering greater accruals (which represent the difference between reported income and operating cash flows) to measure short-term orientation has its difficulties. McKinsey’s margin growth measure classified firms that report higher earnings growth than revenue growth as myopic. Corporate culture.

EPS 8
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Constraints on Health Care Budgets Can Drive Quality

Harvard Business Review

From my experience heading Scotland’s National Health Service from 2010 until last August (and before as its director of health care policy and strategy), I know that such constraints can unleash innovations that will lead to better care — and better health — for communities. Working under a fixed-cost ceiling was, of course, difficult.

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Why Tesco’s Strengths Are No Longer Good Enough

Harvard Business Review

So with such a track record of strategic innovation, why has Tesco been blindsided by the hard discounters like Germany’s Aldi and Lidl? Hard discounters aim for twice the volume with the same fixed costs so they can make the same returns at half the gross margin. The answer is simple – selling more.

Retail 10
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Aligning Your Organization with an Agile Workforce

Harvard Business Review

And in a particularly interesting study, Freelancers Union , a US-based organization, reported that a quarter of the US workforce were project-based independents working for more than one organization. Innovative companies are leading the way, applying a broader palette of talent options and relying on more varied types of relationships.

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The Real Reason Superstar Firms Are Pulling Ahead

Harvard Business Review

They’re also more profitable, more innovative, and they pay better. Erik Brynjolfsson and Andrew McAfee reported a link between IT adoption and industry concentration in HBR in 2008 ; since then, multiple analyses have linked increased use of digital technology to higher profitability at both the industry and company level.

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The End of Traditional Ad Agencies

Harvard Business Review

The radical democratization of business over the last decade created by open innovation, crowdsourcing, and co-creation is transforming how advertising organizations work. Meanwhile, V&S tracked the brief, moderated the entries, collected fan data, and reported it back to Harley.