How Blockchain Is Changing Finance

Harvard Business

They represent content and digital rights management platforms (such as SingularDTV ), distributed venture funds (such as the the DAO , for decentralized autonomous organization), and even new platforms to make investing in ICOs and managing digital assets easy (such as ICONOMI ). The unstoppable force of blockchain technology is barreling down on the infrastructure of modern finance. Our global financial system moves trillions of dollars a day and serves billions of people.

View from the 40th Floor: Change at the Top and Bottom

Decker Communication

As we close out the decade, let’s look at how leadership has become decentralized and team-oriented. ” For the C-suite, decentralization also means it’s critical to communicate a vision that cascades through the organization. Being a leader today is more difficult than ever because it means being excellent at something—communications— that transcends the traditional business skills in finance, marketing, or strategy. (Part 4 of a series by Bert Decker ).

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How Blockchain Applications Will Move Beyond Finance

Harvard Business

While trading and speculation were early use cases of bitcoin, new technologies, such as Ethereum and Zcash, have emerged, with Zcash providing a higher degree of privacy than bitcoin, and Ethereum offering a powerful development platform for smart contracts and decentralized applications, with the power to transform everything from predictive applications to job and energy markets to hedge funds and decentralized cloud services.

The Hidden Costs of Initial Coin Offerings

Harvard Business

More recently, it has gained attention as a way to finance new ventures, through what is known as an Initial Coin Offering (ICO). Less noticed, though, is ICOs appear almost antithetical to the standard approach to financing a risky venture. In this framing, the native tokens issued through the ICO are the means through which users transact between a decentralized network of participants without the need for any central organization or platform. Renee Comet/Getty Images.

How to Seize Opportunity in a World of Disruption

Skip Prichard

and is an expert on risk, strategy, and finance. Its goal is to seamlessly meld centralized vision and planning with empowered decentralized execution – where everyone is encouraged to exercise disciplined initiative, improvise, innovate, and take smart risks in accomplishing a shared goal. Navigate through Change. “Agile organizations treat disruption and adversity as opportunities.” ” -Tilman, Jacoby. Today’s organizations face the unknown on a weekly basis.

The Real Reasons Companies Are So Focused on the Short Term

Harvard Business

In particular, there are three widespread, interrelated structural trends that have fostered short-termism and reduced corporate innovativeness: increased hiring of outside CEOs (particularly from the late 1980s through the 2008 recession); the decentralization of R&D (over a similar time frame); and a focus on the “development” side of R&D rather than the “research” side. Instead of decentralizing R&D, recentralize it. MirageC/Getty Images.

Why the U.S. Is Still Richer Than Every Other Large Country

Harvard Business

has a more developed system of equity finance than the countries of Europe, including angel investors willing to finance startups and a very active venture capital market that helps finance the growth of those firms. We also have a decentralized banking system, including more than 7,000 small banks , that provides loans to entrepreneurs. A decentralized political system in which states compete.

There Is No Invisible Hand

Harvard Business Review

How could decentralized trading move markets to equilibrium if there is only one good? Economy Finance Risk managementOne of the best-kept secrets in economics is that there is no case for the invisible hand. After more than a century trying to prove the opposite, economic theorists investigating the matter finally concluded in the 1970s that there is no reason to believe markets are led, as if by an invisible hand, to an optimal equilibrium — or any equilibrium at all.

Why Bitcoin Entrepreneurs Are Begging for More Regulation

Harvard Business Review

As Bitcoin entrepreneur and Circle founder Jeremy Allaire — whose company this morning announced another $17 million in venture capital financing — explained at a panel I moderated Monday at Harvard Business School, there is an appropriate role for regulators to play in ensuring consumer protection. Finance Government Technology The IRS took a stand yesterday on Bitcoin, declaring that it would treat the digital currency as property, not currency, for tax purposes.

How Regulation Could Help Cryptocurrencies Grow

Harvard Business

Ignorance may be bliss for some, but ask anyone in commerce or finance, and they will make it abundantly clear: Ignorance is risk. In early June the SEC announced the appointment of one of the agency’s veteran attorneys, Valerie Szczepanik, as associate director of the Division of Corporation Finance and senior adviser for Digital Assets and Innovation. Alexander Baumann/The International Photo Co./Getty Getty Images.

Case Study: Is Holacracy for Us?

Harvard Business

But the decentralization debate was different. Rogier knew Derek’s position—but he had gone to an executive training course on holacracy in Las Vegas and had come back so fired up that he was now pushing for self-managed teams at headquarters and complete decentralization at the country level. “He’s calling it ‘holacracy,’” she said, “but that’s still just decentralizing, which we can’t do any further.

‘Upskilling’ a top priority for the decade ahead

HR Digest

A 2016 report from the International Commission on Financing Global Education Opportunity estimates that 30 percent of young adults will not graduate from secondary school with the skills they need to hold most jobs in the digital world. This diverse network of more than 400 organizations is working together to create an open and decentralized public-private data infrastructure connecting a global audience of business, government, education, and technology vendors.

Blockchain Will Help Us Prove Our Identities in a Digital World

Harvard Business

Ninety percent of businesses responding to the International Chamber of Commerce’s 2016 Global Survey on Trade Finance pointed to anti-money laundering as the most significant impediment to trade. MDLs are unalterable registers that allow groups of people to validate, record, and track transactions across a network of decentralized computer systems. “Who are you?” ” may well be the world’s most frequently asked question.

How Companies, Governments, and Nonprofits Can Create Social Change Together

Harvard Business

Manage people effectively through decentralized teams across organizations. Cross-sector partnerships thrive through a network of decentralized leaders and managers who operate independent programs or organizations. In our case study on Central Park, we elaborate on ways she built and maintained her team’s momentum, and we discuss the Park’s current forty-nine team, decentralized zone management system.) Ilka & Franz/Getty Images.

How to Ensure the Success of a Position Your Company Hasn’t Had Before

Harvard Business

Sustainability programs are decentralized, so social and environmental initiatives are not viewed as top-down directives but are embedded in the routine activities of other functions. finance, mineral processing, geology). Francesco Carta fotografo/Getty Images. According to the World Economic Forum’s 2018 “Future of Jobs” report, many current organizational roles are likely to be disappear as early as 2022, only to be replaced by new organizational roles.

What 20 Years as a Remote Organization Has Taught Us About Managing Remote Teams

Harvard Business

We don’t stop at interviewing and choosing good candidates; we give them detailed insight into the company’s finances, strategy, individual consultant performance, and implications on compensation so they can make a fully informed decision about whether to join us. We encourage you to experiment with outcome-based, decentralized models as you seek to get the most out of your remote teams. In his 1974 interview with ABC News , science fiction author Arthur C.

How to Discover Your Company’s DNA

Harvard Business

This became the “HP Way,” one of the first examples of empowering employees, decentralizing the organization, and tying pay to performance. They abandoned the HP Way and replaced decentralized entrepreneurship with centralized control. The term “company DNA” is sometimes used as a shorthand for an organization’s culture and strategy — a metaphor for what makes it unique. But there may be more to the metaphor.

Make It Easier for Happy Customers to Buy More

Harvard Business

Some utilities help customers finance, install and maintain their own systems for generating power and heat through solar roof panels. Others help their commercial and industrial customers maintain small, decentralized generating units. HBR STAFF. You have great loyalty scores and low customer churn. But sales are flat – or worse, falling. What’s going on?

An Entrepreneurial Society Needs an Entrepreneurial State

Harvard Business

In Silicon Valley, what was critical was the decentralized network of intelligent public organizations that facilitated feedback loops throughout the whole innovation chain. This includes basic research, applied research, and downstream patient and strategic long-term finance to companies. And in the energy sector, solar, nuclear, wind, and even shale gas, were primed by public finance.

The 3 Company Crises Boards Should Watch For

Harvard Business

Rather than managing that complexity by delegating and decentralizing, the CEO became even more controlling. The board’s eyes and ears throughout the corporation — principally line management, but assisted by the internal audit, risk, quality, finance, and strategy groups — enact a system designed to surface predictable problems as quickly as possible and deal with them as locally as possible. The finance group scrutinizes capital requests.

You Don’t Need an “India Strategy” — You Need a Strategy for Each State in India

Harvard Business

This decentralized policymaking, as well as differing priorities among state governments—from rural development to improving infrastructure to attracting investment—have resulted in wide variations in the business landscape across Indian states. Companies should measure the operating environment of each state by analyzing indicators related to infrastructure, talent, finance, and the business and tax environment. Linda Coussement/eyeem/Getty Images.

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To Understand the Future of Tesla, Look to the History of GM

Harvard Business

When Sloan became president of GM in 1923, he put in place planning and strategy, measurements, and most importantly, the principles of decentralization.” Sloan kept the corporate staff small and focused on policy making, corporate finance, and planning. He once again took over General Motors, merged Chevrolet into GM, bought Fisher Body and Frigidaire, created GMAC , GM’s financing arm, and threw out the bankers who six years earlier had fired him. HBR Staff.

Marketing Success | N2Growth Blog

N2Growth Blog

Lastly, don’t decentralize marketing…consistent messaging across markets, mediums and constituencies is critical.

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The “Smart Society” of the Future Doesn’t Look Like Science Fiction

Harvard Business

Its priorities on creating an open and decentralized system that links multiple digital applications and services are core to how it accomplished these outcomes. It has historically been the preeminent hub for global finance because of a combination of history, geography, and its strengths in digital technologies. What is a “smart” society?

Companies That Don’t Manage Utilities Strategically Are Throwing Money Away

Harvard Business Review

However, overspending is often the result of decentralized and siloed decision making over the utility budget. For example, the finance department approves what to buy, facilities maintains equipment, HR tells employees how to conserve energy, and marketing manages the company’s corporate sustainability reporting. The U.S. Environmental Protection Agency (EPA) has reported that companies waste 30% of the energy they consume.

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No Company Can Solve a Massive Global Problem on Its Own

Harvard Business Review

A broad and decentralized network of activity can be mobilized under the umbrella of the shared vision. Meeting these goals may require new skills and capacities, as well as new financing models. Business leaders know how to go about transforming their companies to seize opportunities or meet major challenges — even if that’s easier said than done.

New MBAs Should Start Their Careers in Frontier Markets

Harvard Business Review

They reflect a decentralized, de-institutionalized commercial structure that’s now clearly part of the US economy (think of food trucks or Uber). Instead of marching into the marble halls of finance or consulting, some might consider leaping out to the frontiers of business. “Where are the stores?” ” asked the Scandinavian executive.

‘My Years with General Motors’, Fifty Years On

Harvard Business Review

A central office kept track of finances and the allocation of resources. At General Motors, decision-rights were far more decentralized. GM was a behemoth, but its decentralized structure gave divisional leaders like Grant the freedom to direct strategy for their own product lines. For fans of management books, this month marks a big anniversary.

Using Supply Chains to Grow Your Business

Harvard Business Review

One result is that they keep their cards close to their chests about what they are looking for (at first), while expecting you to reveal everything – your finances, pricing, ownership, human resources, production processes, quality assurance, customer service procedures, KPIs, and existing customers.

Creating a Future for (American) Cleantech

Harvard Business Review

These technologies can be screened for their inherent disruptive potential — that is, their ability to transform existing markets or create new ones by radically simplifying, decentralizing, and lowering the cost of existing solutions. Demand response, grid management, solar financing and installation, and electric vehicle infrastructure companies might fit this bill. American efforts to jumpstart the development of a cleantech economy have not been wildly successful to date.

Do Not Split HR – At Least Not Ram Charan’s Way

Harvard Business Review

In HR (or finance or IT), 20% of the professionals are exceptional, adding value that helps organizations move forward, 20% of HR folks are locked into a fixed mindset and lack either competence or commitment to deliver real value, and 60% are in the middle. This approach offers the benefits of centralization (efficiency, economy of scale) and decentralization (effectiveness, local responsiveness). Ram Charan’s recent column “ It’s Time to Split HR ” has created quite a stir.

Global NGOs Spend More on Accounting Than Multinationals

Harvard Business Review

Who, for instance, would have guessed that global NGOs spend nearly 80% more to track their finances and employ nearly twice as many finance staff as comparable for-profit multinationals? Decentralized, program-focused operations also squander precious dollars. Benchmark data isn''t sexy stuff, but occasionally the numbers reveal surprising findings.

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To Fight the Zika Pandemic, Learn from Ebola

Harvard Business Review

Similar to Ebola, Zika diagnosis currently requires polymerase chain reaction (PCR), a laboratory-based test that needs special equipment and personnel and is, therefore, difficult to scale and decentralize. Developing a similar test for Zika should be an immediate priority and proactively coordinated and pushed forward with dedicated financing and a fast-track validation process geared towards evaluating new tests in the field as soon as possible.

ExxonMobil’s Shareholder Vote Is a Tipping Point for Climate Issues

Harvard Business

Similarly, directors of power companies need to understand how advances in energy storage and information technology will accelerate development of micro-grids and the decentralization of the electric grid. Capital expenditures, future acquisitions, research and development expenses, future financing needs, and payout policies, such as dividends and share repurchases, need to be assessed in part based on how they fit into a low-carbon world.

How Chinese Companies Can Develop Global Brands

Harvard Business Review

Since positioning is vital in new markets, today’s boards must include Chief Marketing Officers, not just directors with operations or finance backgrounds. To remedy the knowledge gap and transform their image abroad, successful Chinese brands must seek help from the outside through foreign partnerships, decentralizing and diversifying leadership, and cultivating a new perception of Brand China.

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High Speed Rail Versus Austerity

Harvard Business Review

But these decentralized households can easily travel to the major cities for unique shopping and restaurant options. In this new age of fiscal austerity, public finance arrangements for major urban infrastructure projects will become an important topic for debate. Philadelphia is 101 miles from Manhattan, and the current travel time between the two cities is about 1 hour and 50 minutes.

What’s at Stake in an Economy with Low Oil Prices

Harvard Business Review

It’s very competitive, very decentralized. economy, you’re talking about finance, you’re talking about IT — Apple and Facebook and others. In the past, low oil prices have been seen as a boon, particularly at the gas pump. They’ve been credited with boosting economies and stirring growth. But recently oil prices have dropped so low that warning bells rippled through global markets, and they remain volatile.

The Irish Banking Crisis: A Parable

Harvard Business Review

You might say that a radically decentralized, p2p financial system spontaneously arose. Tags: Economy Finance Global business Once upon a time, there was a country where bankers disappeared. The bankers, fed up with regulation, dissatisfaction, and downright hostility, decided to unleash the planet-destroying superweapon in their arsenal: they went on strike, not once, but three times.

Stop Talking About Social and Do It

Harvard Business Review

"Leadership" has changed when a decentralized group of people can take down a government. Competition" has changed when individuals can create value through a centralized network of resources: for example, designing a product from anywhere, producing it through a 3D factory , financing it through community and distribution from anywhere to anywhere. The Value Chain" has changed when the customer is no longer just the "buyer" but also a co-creator.

Sears Has Come Back from the Brink Before

Harvard Business Review

Concerns that it wouldn’t have enough cash to finance its holiday stock has apparently led to the company to sell real estate, spin off its Lands’ End brand, and raise $625 million in unsecured loans and equity warrants. It’s not been a great year for venerable retailer Sears, which is reputed to be closing 130 retail stores and laying off more than 5,000 employees.

The Irish Banking Crisis: A Parable

Harvard Business Review

You might say that a radically decentralized, p2p financial system spontaneously arose. More on: Economy , Finance , Global business Join the Discussion | Email/Share Previous Making Room for Reflection Is a Strategic Imperative Never miss a new post from your favorite blogger again with the Harvard Business Review Daily Alert email. You might say that a radically decentralized, p2p financial system spontaneously arose.

An Insider’s Account of the Yahoo-Alibaba Deal

Harvard Business Review

content (news, finance, weather) into two Chinese languages, and directory access to 20,000 web sites, an approach that the company had adopted elsewhere. On the finance and deal side, we also felt a strong kinship with Tsai. The most “controlled” approach we took was in our initial build strategy: Yahoo controlled the product and the team and centralized the compliance functions, such as finance and legal.

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