Green Bonds Benefit Companies, Investors, and the Planet

Harvard Business

The past five years have seen explosive growth in “corporate green bonds” issued to finance climate-friendly projects. While investors bought just $3 billion of these bonds in 2013, they scooped up $49 billion worth in 2017, bringing the total sold since 2013 to $113 billion at an average of $308 million per offering. Despite this boom , little is known about the impact of these bonds. Green bond offerings are also associated with a 2.4%

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How Blockchain Is Changing Finance

Harvard Business

But the solution to this innovation logjam has emerged: blockchain. Money, equities, bonds, titles, deeds, contracts, and virtually all other kinds of assets can be moved and stored securely, privately, and from peer to peer, because trust is established not by powerful intermediaries like banks and governments, but by network consensus, cryptography, collaboration, and clever code. Our global financial system moves trillions of dollars a day and serves billions of people.

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One Way to Finance Tech Startups Outside of Superstar Cities

Harvard Business

Local innovation bonds could help fund ventures in new areas. Economy Entrepreneurship Innovation Digital Article

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The Social Impact Bond as Ironclad Arrangement

Harvard Business Review

If you care about social innovation and haven't already heard about social impact bonds, let us be the ones to tell you about them. In fact, we've written about them before, and they've been well described by others , so we'll keep this description brief: The social impact bond is a new financing approach that lets societies benefit from risk-taking on new ideas for social programs, without asking their governments to foot the bills for experiments that don't pan out.

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The Future of Cities Depends on Innovative Financing

Harvard Business Review

In traditional financing models, it’s just not possible for investors to see their way to a financial return based on some abstract added value of the integrated whole. Innovation in Cities. This is where a new financial product, social impact bonds (also known as pay-for-success contracts), can play a role. Social impact bonds were conceived to tackle social problems that can be objectively measured, such as recidivism.

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How the Insurance Industry Can Push Us to Prepare for Climate Change

Harvard Business

But the emerging challenge of reducing risk exposure for coastal residents creates new opportunities for firms that can innovate and provide new solutions. Innovations in spatial sciences, combined with big data, raise the possibility of the insurance industry introducing innovative pricing strategies that induce private real estate owners and local governments to take efforts that together yield a more resilient real estate capital stock.

How to Invest and Make Money Daily: 9 Key Ideas & Strategies

Strategy Driven

Micro investing apps automize personal finance investing daily. Invest in Bonds. Interest rates on bonds are not striking, but investing in bonds is the safest way to invest money and get a long-term regular return.

Will Wall Street Be Able to Earn the Trust of Younger Investors?

Harvard Business

First, they created a combination of breakthrough product innovation and breakthrough business model innovation— the definition of category creation. Meanwhile, new investment exchanges and IRA accounts are emerging that provide alternative investments versus traditional stocks, bonds and mutual funds, that have similar liquidity but greater transparency, and were previously only available to the ultra-wealthy. Disruptive innovation Digital Article

Workplace Gossip | N2Growth Blog

N2Growth Blog

People who participate in gossip often times view their activity as being politically savvy when in fact gossip is the tool of insecure, rank amateurs… I’ve written often on the importance of building solid relationships through displaying a consistency of character, creating a bond of trust, making good decisions, and striving to help others succeed.

Blog 329

How Amazon Trained Its Investors to Behave

Harvard Business Review

The Barron's article mentioned that a 690 million euro convertible bond sale in February had bought Amazon some more time (the list was based on 1999 year-end data) — but that the company would still run out of cash in 21 months. Well, he's a hedge fund veteran who has always taken a skeptical view of Wall Street, treating it more as a loopy rich uncle than the efficient information processor of standard finance theory. billion in bonds the year before).

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Love and Leadership | N2Growth Blog

N2Growth Blog

Leaders need to understand that compassion humanizes them, allows them to build stronger trust bonds, and engenders confidence and loyalty from peers and subordinates alike.

Blog 329

Humility and Leadership | N2Growth Blog

N2Growth Blog

Leaders need to understand that being authentically humble humanizes them, allows them to build stronger trust bonds, and engenders confidence & loyalty from peers and subordinates alike.

Blog 329

Leadership – No Talent Required | N2Growth Blog

N2Growth Blog

A leader who fails to understand this will never create the trust bond necessary to lead effectively.

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Leading Those Who Don't Want To Follow | N2Growth Blog

N2Growth Blog

Accepting a person where they are, creates an bond of trust. In fact, most differences don’t require intervention as they actually contribute to a dynamic, creative, innovative culture.

Blog 329

Help – It's not a dirty Word! | N2Growth Blog

N2Growth Blog

link] mikemyatt Great insights Una – I not only agree that business is personal, but leaders who don't personalize business will never establish the trust bonds necessary for effective leadership.

Blog 326

You Can Get Some Big Things Done When It’s Not All About You

Harvard Business Review

It has done this by popularizing one of the two or three really important financial innovations of the past 50 years, the index fund. In finance, that’s a pretty hard case to make. Bogle pushed through the creation of the all-stock Windsor Fund (the Wellington Fund’s big selling point had been that it conservatively mixed stocks and bonds), then a merger with an aggressive upstart money management firm. Finance Leadership Motivation

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Why Those Guys Won the Economics Nobels

Harvard Business Review

He got his PhD at Yale under Shiller’s supervision in 1984, but since then he has also done a lot of work expanding on Fama’s ideas about risk and return, some of it co-authored with Fama’s son-in-law and University of Chicago finance colleague, John Cochrane. A mini-glossary: beta is the amount that an individual stock fluctuates relative to the overall stock market, and the equity premium is the difference in expected return between stocks and a “riskless” asset such as Treasury bonds.].

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Why Consensus Kills Team Building | N2Growth Blog

N2Growth Blog

Great leaders intrinsically understand that team building catalyzes collaboration, creates both disruptive and incremental innovation, facilitates a certainty of execution, and is one of the key foundational elements associated with creating a dynamic corporate culture. However CEOs that implement a well thought out and clearly articulated vision, create a sense of stability and a bond of trust amongst the ranks.

Social Media Influence | N2Growth Blog

N2Growth Blog

Don’t breach trust - you work far too hard to create a trust bond with your followers, so don’t blow it by not following through on your commitments.

Sustainability in Financial Services Is Not About Being Green

Harvard Business Review

In our recent HBR article " The Performance Frontier: Innovating for a Sustainable Strategy ," we argue that typically there are tradeoffs between financial and nonfinancial (e.g., This will put pressure on financial institutions to better manage nonfinancial ESG performance through innovation in new products, processes, and business models that will enable them to do this and improve on financial performance at the same time. Finance Sustainability SASB

StrategyDriven Editorial Perspective – Good Intentions, Bad Results: Learning from the Panic of 1826

Strategy Driven

“The judge the lawyer the doctor the clergy the widow the trustee of orphans all fell into the common vortex of investing in these bonds,” Life and Fire Insurance Company director Jacob Barker wrote in a letter in 1827. Both were defined by financial innovations that seemed to defy the natural law of risk and reward, by promising a high yield and low risk. They say the road to hell is paved with good intentions.

What to Know Before You Sign a Payment-by-Results Contract

Harvard Business

And providers want the flexibility to deliver outcomes in the best, most innovative, and most efficient way possible without being micromanaged by the customer. Finally, some companies have struggled to finance their activities without payment while they work on delivering the results, limiting their ability to innovate too. As a result, some governments and private foundations have introduced social impact bonds to provide the necessary working capital. Samuel Castro.

Collaboration Is a Team Sport, and You Need to Warm Up

Harvard Business Review

The main reason is that the problems we have to solve — whether deciding company strategy or bringing an innovative offering to market — are more complex than they have ever been. Bringing an innovation to market especially needs a mix of left- and right-brain people — visionaries and ditch-diggers, stubborn idealists and open-minded pragmatists. True trust and empathy starts to happen when there is the even a slight emotional bond, not just a professional one.

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What Apple Should Do with Its Massive Piles of Money

Harvard Business Review

In 1993, Apple distributed $273 million in buybacks and $56 million in dividends, even as profits plunged from $530 million to $87 million, compelling the company to do a $297 million long-term bond issue in 1994. With losses at $816 million in 1996, Apple was forced to issue $646 million in junk bonds, supplemented in 1997 by a $150 million private issue of preference shares to Microsoft. Social innovation. Apple Economy Innovation

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Fixing the Euro Zone and Reducing Inequality, Without Fleecing the Rich

Harvard Business Review

Interest rates of zero meant that central banks took to targeting asset prices – stocks and bonds – to boost spending. So one solution suggested by a growing number of economists in Europe is for central banks to “helicopter drop” money , and directly finance private sector spending. For example, the European central bank, which by law is prohibited from financing government spending, could simply credit the bank accounts of all tax-paying euro zone citizens.

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You Can Be a Great Leader and Also Have a Life

Harvard Business

“It’s enabled me to have a bond with my daughter now that’s really amazing,” he said. “The culture in the bank’s accounting and finance team has changed totally since I got here,” she said. So perhaps, if we are to change, what we need are fewer breathless articles about inhuman and insane CEO schedules that ignore the costs to health, families, and ultimately, innovation and business productivity. Dimitri Otis/Getty Images.

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Social Impact Investing Will Be the New Venture Capital

Harvard Business Review

Social entrepreneurs are stultified by traditional forms of financing. Donations and grants don't allow them to innovate and grow. This organizational innovation drew investment capital from institutional players like pension funds and endowments and allowed for appropriate time horizons. We're already beginning to see innovation. Australia, Canada and Israel at the national, state, or even county levels have begun exploring the potential of social impact bonds.

What Investors Need to Know About Zimbabwe After Mugabe

Harvard Business

Even before announcing his new cabinet, Mnangagwa installed a key reformist, Patrick Chinamasa, as acting finance minister, tasked with tackling corruption and re-engaging with international institutions to unlock funds to ease liquidity shortages. Recently introduced reforms to give agricultural firms better access to finance aim to help farmers buy and import equipment to increase their output – and this could be a boon to global manufacturers. ALEXANDER JOE/Getty Images.

How the Next Generation Is Approaching Society’s Biggest Problems

Harvard Business Review

Finally, innovation in the financial markets are funding novel approaches to address these problems. How did Sal Khan finance his venture? First, Sal Khan could have continued in finance and made far more money than he does in a nonprofit. A relatively new instrument called a social impact bond is a powerful example of how this might be done. Cohen and his colleagues created a bond, backed by private investors.

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The Global Rise of Female Entrepreneurs

Harvard Business Review

Innovation : When defining innovation as "offering products that are new to some or all customers" in some regions — including the U.S. and developed Europe — women entrepreneurs have higher levels of innovation than their male counterparts. On the other end of the growth spectrum, analysis of a dataset from 350 micro finance institutions across 70 countries indicated lending to more women was associated with lower write-offs and lower portfolio-at-risk.

Build Your Team Like an Executive

Harvard Business Review

In a pragmatic way such executives see their teams as extensions of themselves, and use them to free up bandwidth for critical executive-level activities — for example, setting strategy, managing relationships with customers and other external stakeholders, influencing peers to endorse new initiatives, and identifying and driving the next major innovation to improve performance dramatically. Virtually all leaders espouse the benefits of a strong management team.

Bringing an Entrepreneurial Mindset to the World’s Failing Systems

Harvard Business Review

This is not a surreal scene painted by Salvador Dali, but rather a workshop convened by The Finance Innovation Lab (which Rachel co-founded). Another example is the Finance Innovation Lab, which hosted the meeting of unusual suspects mentioned above. They are notorious for their hours spent thoughtfully connecting people by email and know that the secret is to nudge business partners to become friends, encouraging bonds to form in a deeply human way.

11 Books Every Young Leader Must Read

Harvard Business Review

One of the first books I read upon graduating college, Liar's Poker is acclaimed author Michael Lewis' first book — a captivating story about his short-lived postcollegiate career as a bond salesman in the 1980s. Richard Tedlow, Giants of Enterprise: Seven Business Innovators and the Empires They Built. It's an essential primer on the history and current state of finance. Christensen, The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail.

11 Books Every Young Leader Must Read

Harvard Business Review

One of the first books I read upon graduating college, Liar's Poker is acclaimed author Michael Lewis' first book — a captivating story about his short-lived postcollegiate career as a bond salesman in the 1980s. Richard Tedlow, Giants of Enterprise: Seven Business Innovators and the Empires They Built. It's an essential primer on the history and current state of finance. Christensen, The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail.

What Good Is Impact Investing?

Harvard Business Review

Or you could participate in projects financed in part by conventional investors and in part by non-profits. With something like the Riker’s Island social impact bond (which finances behavioral therapy for 16-to-18-year-old jail inmates in New York), the fact that Bloomberg Philanthropies provides a guarantee to that bond is very, very smart because it does two things. Impact investing is on the rise. But, um, what is it?

Your Calendar Needs an Upgrade

Harvard Business Review

There’s no reason it can’t be better and more innovative — all the technical ingredients are there. But barely a handful broke the bonds of a calendar format to map time and effort. A couple of finance people converted Excel spreadsheets into calendars that let them chart time spent and deadlines in genuinely intriguing ways. A little data-driven self-knowledge can be a wonderful thing.

Stop Paying Executives for Performance

Harvard Business Review

Particularly in business schools, various Finance and Accounting professors have argued for including more long-term incentives, and for replacing variable pay packages that largely consist of stock options with a mix of bonds and stocks. However, for people working on creative tasks — where innovative, non-standard solutions are needed – results showed that a large percentage of variable pay hurt performance.

Understanding the Drivers of the Patient Experience

Harvard Business Review

Below, we review briefly some of the innovative approaches to better understand patient needs that have been tried in various organizations, including the UCLA Medical Center in Los Angeles, Methodist Hospital in Houston, St. Two, leadership rounds are an important means of exposing non-medical leaders in finance, operations, and other areas of the hospitals to the front lines of patient care. Follow the Leading Health Care Innovation insight center on Twitter @HBRhealth.

The 10 Most Important Sustainable Business Stories from 2014

Harvard Business Review

Both in response and pre-emptively, the world’s leading companies continued to aggressively pivot their businesses toward more sustainable and innovative ways of operating. And investors are noticing: in May, Barclays bank downgraded the bonds of the entire U.S. This kind of innovation around food waste is part of the larger discussion going on in many sectors, from apparel to electronics and metals, about how we can build a more circular economy with zero waste.

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Are You Working Over the Thanksgiving Holiday?

Harvard Business Review

Those who are at work on Thanksgiving — even if it is virtual work online — can make special bonds with each other. Those who are at work on Thanksgiving — even if it is virtual work online — can make special bonds with each other.

Scaling Up is a Problem of Both More and Less

Harvard Business Review

When an organization is small enough that each member can have a personal relationship with every other, or at least recognize their faces and names, gathering everyone for regular meetings strengthens social bonds and bolsters the feeling that “we are one company.” My colleague Andy Hargadon noted this when he did an ethnography of the renowned innovation firm IDEO in the 1990s.

The Rebirth of the CMO

Harvard Business Review

This diversity reflects not only a deepening understanding of the connection between growth and customer satisfaction, but a much greater awareness of what marketing can do to help forge that bond. The CMO also worked with the finance office and product managers to link pricing and benchmark data into the RFP process, which improved quality and response times. That bonding role extends to other aspects of the business as well, such as delivering on products and services.

Culture Trumps Strategy – Not | N2Growth Blog

N2Growth Blog

Every vibrant, healthy, inspiring, innovative, and positive corporate culture I’ve witnessed has occurred not because culture has been placed ahead of strategy, but because it has been a key driver of the corporate strategy. When a bond of trust is established across the enterprise it makes achieving alignment between the values & vision and the strategy & tactics easier to achieve.