Rethink the Value of Each Customer for Efficient Growth

Women on Business

Typically, companies calculate the CLV of a customer merely by looking at their projected direct revenue. When you create incentives or loyalty programs, choose social channels or implement other marketing tactics, think of the channels that will effectively reach your most valuable customers.

Neuro-Wifi: Power of Mutual Empathy

Michael Lee Stallard

A colleague at work does a fantastic job on a project. How’s that for an incentive? #4-Feel Others’ Emotions - Mutual empathy is a powerful connector that is made possible by the mirror-neurons in our brains. These neurons act like an emotional wifi system.

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10 Practices That Drive Innovation

LDRLB

The jury is still deliberating the influence of incentives on creativity, but their use in organizations sends a signal that innovation is valued. Fund Outside Projects. Innovation means more than just new products or services.

Why Sleepy Leaders Are Bad Leaders

LDRLB

Inside the laboratory, the results were replicated with an intriguing twist: the researchers provided students with an incentive to steal answers to a test they took. It’s a tempting thought: the more we work, the more productive we are. For those in senior leadership, it can be irresistible.

Why Your Employees Count as Much as Your Clients

Strategy Driven

For example, in a climate of fear and micromanagement, a sales person might focus on the projected revenue of a prospective client, the anticipated results and closing date that were promised to the boss. Success in business begins with your people.

The Psychology Of A Company Leader

Tim Milburn

Successful business leaders know how to keep moral high during the daily and sometimes mundane essential work that needs to be done to reach goals and finish projects efficiently and effectively. The following is a guest post by Scott McGinty.

What makes high performance teams?

Mike Cardus

Whether you are teaming , project focused , developing corps ( people with specialized skills sets brought together short term, with clear accountability and authority, to complete a task ) these 4 things will make a difference.

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StrategyDriven Editorial Perspective – Panic of 1907 vs Great Recession of 2008

Strategy Driven

This year, 2013, marks the 100th anniversary of the Federal Reserve System, and central bankers are taking a historical perspective. A July 2013 Congressional research report articulates a challenge for today’s central bankers.

Retain Your Top Performers

Marshall Goldsmith

Many downsizing packages give all employees with similar experience the same incentive to leave. Young leaders engage in an “action learning” project in which they work on real-life problems facing the firm. Leaders are debating the changing nature of work and the perceived decline in job security (the lifelong career at a benevolent company is a fading memory) and the erosion of corporate loyalty.

The Best of September 2013

Harvard Business Review

Such problems need solutions designed and led by people who can bridge the vastly different cultures, incentives, and jargon separating the three sectors — what Kennedy School professor Joseph Nye has called “tri-sector athletes.â€? It’s not that qualified women are being passed over for promotion so much as that they’re not being assigned the high-profile projects they need to hone their leadership qualifications in the first place.

Health Insurance Exchanges Fulfill Both Liberal and Conservative Goals

Harvard Business Review

They can advertise such information to help consumers make informed choices or, more aggressively, require plans to offer incentives for people to use high-quality, low-cost health care services and providers. in the September 26, 2013 New England Journal of Medicine.).

Research: Middle Managers Have an Outsized Impact on Innovation

Harvard Business Review

Are incentives effective? And of all the individuals, the choice of who is middle manager on vital projects goes the furthest in explaining why some firms do better than others. Why do project managers have such a large impact? Another at resurrecting supposedly doomed projects?

Research: Middle Managers Have an Outsized Impact on Innovation

Harvard Business Review

Are incentives effective? And of all the individuals, the choice of who is middle manager on vital projects goes the furthest in explaining why some firms do better than others. Why do project managers have such a large impact? Another at resurrecting supposedly doomed projects?

How Corporate Venture Capital Helps Firms Explore New Territory

Harvard Business Review

The glamorous projects inevitably get the bulk of the funding, while more experimental, more complex, and more pedestrian projects lose out. A good idea faces so many obstacles en route to market today that it''s a wonder we have any innovative products at all.

A Role for Specialists in Resuscitating Accountable Care Organizations

Harvard Business Review

A lesson learned in the 1990s, but apparently now forgotten, is that specialist incentives and behavior play a much larger role in care redesign than is currently accounted for by most ACOs. Among the current remedies for U.S.

How to Have the IT Risk Conversation

Harvard Business Review

It''s easy to think it''s an incentive problem. But when projects move too slowly or you don''t have a unified view of your customers, you may feel more pain than them. But this incentive answer is only partially correct, if at all.

Making Decisions Together (When You Don’t Agree on What’s Important)

Harvard Business Review

Why do so many conflicts arise when people from different functions or units work together on a project? Who will pay for what in a joint project? Will new projects be given priority over existing ones? What project gets the top talent?

The Reality of What Makes Silicon Valley Tick

Harvard Business Review

You can see them most evenings at Noisebridge (pictured below) — a collective space for learning and doing projects together whose members'' main guiding principle is to "be excellent to each other.". Noisebridge photo by Dylan Hendricks, 2013.

Fixing the World's Infrastructure Problems

Harvard Business Review

We need to make better choices about the projects we''re investing in. Projects need to be clearly linked to broader economic and social development, rather than being vanity exercises. This could save up to $400 billion a year and accelerate the timeline for the completion of projects.

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Five New Year’s Resolutions Every Leader Should Make

Harvard Business Review

Given the increased productivity and lower turnover rates of “out” worker s , companies have a bottom-line incentive to create a workplace where LGBT workers feel accepted, valued, and comfortable being who they are.

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What SpaceX Can Teach Us About Cost Innovation

Harvard Business Review

Contractors paid based on their costs, with little incentive to save, increased them even more. With SpaceX''s cost savings in an era of declining government budgets , reduced costs make the investment in space exploration and big science projects more viable, such as a mission to Mars.

How an Auction Can Identify Your Best Talent

Harvard Business Review

In reflecting on the teacher silent auction, I began to wonder why we don’t deliberately create markets within our corporations to set the conditions or incent the best service from corporate functions. My children go to public school in New York City.

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How to Design a Bundled Payment Around Value

Harvard Business Review

The team has been meeting every two weeks over the past four months to design a BP model for a pilot project. The key elements of the project are the following: Defining the Bundle.

Why Europe's Carbon Woes Matter to the Whole World

Harvard Business Review

This has drastically reduced the incentives for them to invest in or deploy clean-energy technologies or to modernize their energy-infrastructure assets. And it will be much harder to attract private capital to infrastructure projects through public-private partnerships.

The Politics of China’s Economic Adjustment

Harvard Business Review

When a country’s governance is structured in such a way that incentives for the political elite are aligned with the economic interests of the country, the country is likely to grow rapidly and in a healthy way, and with minimal political disruption.

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Can Crowdfunding Solve the Startup Capital Gap?

Harvard Business Review

Made popular by KickStarter, crowdfunding primarily works on a ''donation'' model, whereby the ''crowd'' of investors funds projects, including causes like liberating Egypt.

An Obstacle to Patient-Centered Care: Poor Supply Systems

Harvard Business Review

These dynamics suggest that resolving the problem will require senior managers to get involved in redesigning organizational structures, aligning incentives, and overseeing supply processes that flow across multiple departments.

Look Beyond Your "Social Media Presence"

Harvard Business Review

That's a legitimate concern, but don't let a skunkworks social-media project get so far outside the mainstream that it can't make effective use of common platforms and other resources.

Making the Most of Webinars

Harvard Business Review

In the California Civic Innovation Project' s (CCIP) recent survey of city managers and county administrators in California, we found that webinars attempting to provide information about innovation in local government are not as effective as many other techniques.

Rehiring Retirees as Consultants Is Bad Business

Harvard Business Review

The retiree satisfied financial and personal goals while the organization reinserted someone with unrivaled knowledge and expertise into a project and took its time sourcing replacement talent. For one thing, at GEGRC, internal analysis predicted a potential tsunami of retirements hitting the two top technical levels between 2008 and 2013. Worse, the rehiring agreements were structured only to provide project continuity, not to retain or transfer knowledge.

To Serve the Poorest Clients, Earned Income Isn't Enough

Harvard Business Review

The concept seems appealing — incremental investment enters the "social impact" market in the form of below-market loans or equity, incenting mission-driven organizations to become self-sustaining.

What Wall Street Wants to See From Twitter’s Executives (and Why It’s Wrong)

Harvard Business Review

Incentive: Similarly, investors will want to see that Costolo is incentivized to see Twitter succeed. Incentives: Just as with the CEO, investors will be looking at the S-1 to see what kind of compensation packages senior executives have; the data suggest that incentives like stock options “positively influence IPO performance.” All eyes are on Twitter, with last night’s announcement that it has filed an S-1 in order to go public.

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The GOP Needs a New Product, Not a New Brand

Harvard Business Review

The latest example is the 100-page Growth and Opportunity Project (GOP, get it?)

Why the World Needs Tri-Sector Leaders

Harvard Business Review

Our research at Tri-Sector Forum shows that these leaders often have prior experiences in each sector and a unique ability to navigate different cultures, align incentives and draw on the particular strengths of a wide range of actors to solve large-scale problems.

Emerging Market Firms Need a Diaspora Strategy

Harvard Business Review

In their October 2013 HBR article on diaspora marketing, Nirmalya Kumar and Jan-Benedict E.M. If long-term infrastructure buildout is key, the focus could be on diaspora participation in these projects. The pre-eminence of social and emotional factors in the “jobs” the diaspora are trying to do hints that most of their incentives should be non-monetary, e.g. national recognition or status.

Don't Hire Entrepreneurs; Hire Entrepreneurial Spirit

Harvard Business Review

I've worked with a wide range of clients as a consultant and have seen too many companies hire employees they thought were top talent, only to watch them spend company time on personal passions and then walk out the door when their side projects were ready to launch. They're interested in gaining experience in general, rather than in gaining access to specific tools they can use as stepping stones to the realization of their own pet projects.

Sustainable Business Initiatives Will Fail Unless Leaders Change Their Mindset

Harvard Business Review

To see why the integrated mindset works better, consider the particular case of a global corporation evaluating the sustainability of major projects in developing countries. While these contextual factors are harder to measure and model, they are nonetheless crucial to engaging effectively with local communities in project design and implementation. The opposition by these local groups led to the abandonment of the project.

How Corporate Venture Capital Helps Firms Explore New Territory

Harvard Business Review

The glamorous projects inevitably get the bulk of the funding, while more experimental, more complex, and more pedestrian projects lose out. And it’s true that if companies aren’t careful, their internal venture capitalists can become entangled in the agendas of various corporate stakeholders or demotivated by inadequate or poorly designed financial incentives.

The Bias Undermining Your People Analytics

Harvard Business Review

This bias also explains why a CFO may be perceived as cheap by disposition or why a team might attribute its internal conflicts to incompatible personalities instead of resulting from organizational incentives to compete rather than collaborate with one another. If products are not selling, it may be very appealing to initiate an analytics project to look at salespeople’s attributes instead of getting customer feedback about the company’s products.

Avoiding the Soft "Yes"

Harvard Business Review

The project team had spent the past six months designing a new strategy to accelerate growth in a critical emerging market for a multibillion-dollar multinational. The project leader believed the modest request would translate into an easy yes. It was undoubtedly a high-quality piece of work. The summary document had that rare combination: a compelling long-term vision and a credible set of near-term actions addressing critical strategic unknowns.

Leading Health Care Innovation: Editors’ Welcome

Harvard Business Review

To produce the best health outcomes at the lowest cost, virtually every aspect of the delivery system must be revamped — from leadership, organizational structures and culture, and processes, to teamwork, and incentives. As the pilot project progresses, we encourage you participate by adding your comments to the discussion thread and to propose articles by e-mailing us at healtheditors@hbr.org.

Why Executive Teams Shouldn't Write "Culture Decks"

Harvard Business Review

Culture is a rich term, used historically to describe civilizations and people, but in the business context it''s often reduced to "org structure," "mission statements," and "employee incentives." They''re in tune with corporate goals and how the company should ideally be projected to evoke success to investors and customers alike. However, this also contributes to the elements of culture being focused on mission statements, organizational structure, and top-line incentives.

Setting Up a Crowdsourcing Effort? Read This First.

Harvard Business Review

Will your crowd compete in single-winner contests vs. multi-winner projects? Are the projects one-off contests or recurring in nature? What incentives can be put in place to ensure engagement and success from the community? Do you think your clients would be happy with a new team for every project? Since Jeff Howe first coined the term in a 2006 Wired article , "crowdsourcing" has garnered extensive media buzz and investment dollars.