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A Four-wheel-drive Diamond in the Rough Leadership Model

Great Leadership By Dan

We may or may not be good at strategic thinking, and we may or may not have developed a story which we can convey to others in the hopes of leading them in a particular direction. If we have, however, done our homework and have developed a story about where we think we should be going, then one can say that the northeast axis has “formed.”

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business Review

Contrast Walmart’ $160 billion of hard assets for its $300 billion valuation against Facebook’s $9 billion dollars of hard assets for its $500 billion valuation. The economic purpose of these intangible investments is no different than that of an industrial company’s factories and buildings.

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How to Navigate a Digital Transformation

Harvard Business Review

Meanwhile, the laggards continue to spend their time and money on assets that do not scale so easily — physical goods (such as manufacturing plants or inventory) and human capital (such as highly trained employees that deliver services).

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The Answer to Short-Termism Isn’t Asking Investors to Be Patient

Harvard Business Review

Too many companies prioritize quarterly earnings over long-term innovation, human capital investment, and brand development, and many people believe short-term shareholders are to blame. Gathering information on a firm’s intangible assets is costly, and so not worth doing if you own only a tiny bit of stock in a company.

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Why We Shouldn’t Worry About the Declining Number of Public Companies

Harvard Business Review

In a parallel development, the number of companies listed on U.S. stock exchanges has declined by almost 50% from its peak in 1996, despite dramatic increase in aggregate market capitalization. Emerging digital firms compete with knowledge, strategy, and expert human capital, attacking even the largest established firms.

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