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Collaboration as an Intangible Asset

Harvard Business Review

Interestingly, intangible assets are all the rage these days on Wall Street. Investors grapple daily in an effort to figure out how to value companies whose accounting assets — things like land, capital, products, and licenses — don't adequately express their true market value.

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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 Leaders Are Still So Hesitant to Invest in New Business Models

Harvard Business Review

Consider the dramatic shift in the types of assets that create market value. According to Ocean Tomo, a consulting firm focused on intellectual capital, physical assets (plant, property, and equipment) made up more than 80% of the market value of the S&P 500 in 1975. How much is changing?

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What VW Didn’t Understand About Trust

Harvard Business Review

Though the story is still developing, there are a few big, interconnected lessons to be drawn from what we know so far. Decades ago, a company’s market value was nearly equivalent to its tangible assets—buildings, machinery, materials, financial capital, and so on. Being clean and green has real, bottom-line value.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business Review

In the 2016 book The End of Accounting , NYU Stern Professor Baruch Lev claimed that over the last 100 years or so, financial reports have become less useful in capital market decisions. The economic purpose of these intangible investments is no different than that of an industrial company’s factories and buildings.

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A Novel Idea for Putting Sidelined Cash to Work

Harvard Business Review

With interest rates at historic lows, market volatility, political uncertainty, the European crisis, severe commodity price fluctuations, and other unpredictable market conditions, corporate brands and executives have been understandably inclined to sit on the sidelines. But history shows that cash cannot sit idle indefinitely.

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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. Critically, short-term selling by shareholders need not entail short-term behavior by managers. So how can we ensure the latter?