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Leading by Cause

Lead Change Blog

A recent conversation with a community bank CEO focused on his vision for the company. With depth of affirmation around cause preceding effect, why do business leaders focus so heavily on analyzing their numbers, or, focus on the effect instead of the cause?

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A Refresher on Return on Assets and Return on Equity

Harvard Business Review

Banks, Knight says, tend to have low ROAs around 1%. What is Return on Equity (ROE)? Banks, for example, get as many deposits as they can and then loan them out at a higher return. Unlike ROA, you want the ROE to be as high as possible, but there are limitations. ” How do companies use ROA and ROE?

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

Then a new CFO joined the company: Masashi Oka, a financial industry veteran who had played a key role in transforming Mitsubishi UFJ Financial Group-owned Union Bank in the US. Oka had found feedback from US regulators very helpful in his efforts to revive Union Bank and saw an opportunity to do something similar at Nikon.

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Idle Funds are the Devil's Playground

Harvard Business Review

Soros was by then known as "the man who broke the Bank of England" because he had reputedly made more than a billion dollars speculating against the pound in 1992. But in general, prior to the development of a sophisticated banking system, capital was invested in illiquid assets, meaning tangible, productive ones. dollar deposits."

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End the Religion of ROE

Harvard Business Review

corporation than "what's the ROE on that?" ROE justifies the means. To an extent not widely recognized, it was an equation in the first place that gave ROE the power to dominate not just investment decisions, but an entire business culture. Then banking regulations were imposed. Social media spending? Wellness checkups?

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