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Winning Now, Winning Later: Playing the Infinite Game

Leading Blog

W HEN David Cote became CEO of Honeywell in February of 2002, the company was a train wreck. Grow while keeping fixed costs constant. He inherited unhealthy accounting practices, unresolved environmental liabilities, and a board and staff that were denying reality. When he took over, Honeywell was plagued by short-termism.

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Love Them and Lead Them

The Practical Leader

In his book, Lovemarks: The Future Beyond Brands , Kevin Roberts, CEO of the global advertising agency, Saatchi & Saatchi, explains that fads attract, but without love, it’s a passing infatuation. Airline revenues collapsed while fixed costs stayed high. That’s particularly true in the airline industry.

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Close to 2,500 Carvana Employees Get Laid Off Over Zoom

HR Digest

In an email to employees, CEO Ernie Garcia informed Carvana employees that the company has experienced less-than-expected growth. This eventually led to higher fixed costs and lesser profits. For starters, it will move away from Euclid, OH IRC, and other logistics hubs. billion to purchase Adesa, the car auction site.

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How to Prepare Your Supply Chain for the Unthinkable

Harvard Business Review

CEOs can take several measures to tackle the Black Swans that may affect their supply chains. Variabilizing costs. Companies can lower their fixed costs and increase those that fluctuate with the market. Many vendors, who apportion fixed costs among different companies, charge on a per unit basis.

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Don’t Compare Virtual Reality to the Smartphone

Harvard Business Review

While Facebook is still working diligently on mobile applications, CEO Mark Zuckerberg went so far as to hint that the acquisition places the company on the cutting edge for the next pervasive platform: virtual reality. This was the justification for Facebook’s massive purchase of Oculus, makers of the Rift virtual reality headset.

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Health Systems Need to Completely Reassess How They Manage Costs

Harvard Business Review

Investor-owned hospitals rarely have more than three or four layers of supervision between the nurse that touches patients and the CEO. In larger facilities, there is often an astonishing proliferation of special care units, ICUs, and quasi-ICUs that are expensive to staff and have high fixed cost profiles.

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What the Nonprofit Sector Needs to Reach Its Full Potential

Harvard Business Review

Imagine eliminating all of the redundancies in fixed costs. It would fight for the common denominator issues that we all agree on, particularly the need for the donating public to start paying serious attention to impact instead of charity CEO salaries and overhead ratios. Consolidating databases and information and talent.