article thumbnail

Entrepreneurship Suffers When Well-Paid Jobs Are Plentiful

The Horizons Tracker

The author believes that while lower costs of capital would certainly help raise the entrepreneurship rate, it would be most beneficial to entrepreneurs with lower skills. of physicians operating as independent owners in 2019, versus 48.5% Positive or negative?

article thumbnail

4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

Another pervasive reason is that senior executives are trained as operators, not innovators. And there’s a fundamental conflict between innovation and optimizing an existing operation. To close the gap, we need to treat innovation differently than we do normal operations. Here are four things leaders can do.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Case for Investing More in People

Harvard Business Review

In The Good Jobs Strategy , Zeynep Ton, a professor at the MIT Sloan School of Management, demonstrates how the best retail companies align their customer value proposition with their operations strategy and their approach to human capital. It’s not money that’s in short supply; it’s good growth ideas.

article thumbnail

What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering. In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies.

CAPM 8
article thumbnail

When "Creative Destruction" Destroys More than It Creates

Harvard Business Review

They can focus and simplify their organizations. Or, as happens all too often, they can pursue complex strategies that beget complex organizations and complex processes until they grind to a halt like a Rube Goldberg machine. real revenue and profit growth and earning their cost of capital has steadily declined.

article thumbnail

6 Digital Strategies, and Why Some Work Better than Others

Harvard Business Review

Based on our recent worldwide survey of 2,000 incumbent companies across all major industries and countries, we estimate that the average return on incumbent digital initiatives is below 10% — barely above the cost of capital.

article thumbnail

Untangling Skill and Luck

Harvard Business Review

We will define skill as "the ability to use one's knowledge effectively and readily in execution or performance" and luck as "events or circumstances that operate for or against an individual." Take, for instance, a group of companies that currently have high returns on invested capital (ROIC). The first is to define the terms.

Skills 15