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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. ” Managers pay a big price for failing to engage hearts.

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Health Systems Need to Completely Reassess How They Manage Costs

Harvard Business Review

The sheer sprawl of these outsourced services is bewildering, even at medium-size organizations: housekeeping, food services, materials management, IT, and clinical staffing, including temporary nursing and also physician coverage for the ER, ICU and hospitalists. Eliminating layers of management. As the U.S.

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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. 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. Be Prepared to React.

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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

The latest nuclear reactor designs, promising higher safety, longer operating life, and lower operating costs, cost up to $25 billion after factoring in the huge budget overruns. This all presents CEOs with a tough dilemma. Model 3: Joint venture of similar assets. Dual asymmetrical joint venture.

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What the Nonprofit Sector Needs to Reach Its Full Potential

Harvard Business Review

It has InsideNGO, which works to improve the operational and management capacity of organizations in the global NGO community. Imagine eliminating all of the redundancies in fixed costs. It has the evaluating agencies that do their best to give the public information on various charities.

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China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

During an economic crisis, the exaggerated decline in orders can be especially damaging to upstream suppliers that have high fixed costs tied to production assets. Ford CEO Alan Mulally tried to mitigate the impending bullwhip during the 2008 financial crisis by imploring the U.S.

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Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

In response, the management team made a counterintuitive move: It outsourced network installation, maintenance, and service to Ericsson, Nokia, and Siemens, and chose IBM to build and manage its IT systems. The vendors for telecom network management were paid only for the capacity utilized by Bharti Airtel, not for the equipment.