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July's Leadership Carnival

Michael Lee Stallard

Alice Snell presents Public Sector Hiring Reform posted at Taleo Blog – Talent Management Solutions. Art Petty presents Leadership Caffeine: Prepare Your Mind to Conquer Presentation Anxiety posted at Management Excellence. Grossman presents Valuing meaningful work always plays better to the bottom line.

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Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business Review

When Patrick Collison, CEO of electronic payments company Stripe, helped kick off our second-year strategy course at the Stanford Graduate School of Business this year, he observed that this has created one of the most profound differences in decision criteria between leaders in industrial-era and internet-era companies. So is Facebook.

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Match Your Innovation Process to the Results You Want

Harvard Business Review

It tends to be short-term, uses familiar (traditional) metrics and development systems like Stage Gate. When forced to present familiar metrics for truly out-of-the-box "beginning" ideas, work teams develop what our friend Jay Paap calls "Imaginary Numbers." So let's talk about incremental. The risks-rewards are relatively low.

Process 15
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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource.

Report 8
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The Secrets to Building a Lucky Network

Harvard Business Review

I was just in Las Vegas spending time at the Downtown Project backed by Zappos CEO Tony Hsieh (who self-professes that Luck serves as a core factor in his success). And they develop great relationships, less through obsequies and architected targeting, but by naturally, authentically, and generously giving and caring about people.

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Warren Buffett's 2010 Shareholder Letter: What to Expect

Harvard Business Review

But why compare apples (book value) to oranges (share price and dividends)? Buffett explains that book value is the best proxy for "intrinsic value," the net present value of all estimated future cash flows. Consider that since 1965, Berkshire's book value grew 434,057% and the S&P index grew only 5,430%.

Letter 14
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Beware of Short-term Management, Not the Short-term Investor

Harvard Business Review

This blog post is part of the HBR Online Forum The CEO's Role in Fixing the System. The short-term investor does not reduce the firm's long-term competitiveness and value;short-term management does. A firm's long-term value should correspond to the present value of future expected cash flows.