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Why Accounting in Business is Important

Strategy Driven

Liquid assets are cash, securities, receivables, and other financial assets that can be converted into cash within a short period, like a day or two. Intangible assets, such as buildings or equipment, are less liquid and can take longer to convert into cash. Taxes Taxes are levied on goods and services by governments.

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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

Today, the majority of market value is made up of intangible assets (networks, platforms, intellectual property, customer relationships, big data) more than physical assets. In fact, it’s not even close: intangible assets make up over 80% of the S&P 500’s market value — a complete reversal from 1975.

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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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What It Will Take to Fix HR

Harvard Business Review

In the July/August issue of HBR , Ram Charan argues that the Chief Human Resources Officer (CHRO) role should be eliminated, with HR responsibilities funneled in two separate directions — administration , led by traditional HR-types, reporting to the CFO; and talent strategy , led by high-potential line managers, reporting to the corner office.

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How to Navigate a Digital Transformation

Harvard Business Review

That includes identifying your current mix of assets and the business model that your asset portfolio creates. For example, do you make and sell things, hire skilled employees and provide services, develop and new IP like software or pharmaceuticals, or build and manage digital networks, be they transactional, informational, or social?

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Investors Today Prefer Companies with Fewer Physical Assets

Harvard Business Review

The health technology and technology services industries are creating highly scalable, and highly desirable, intangible assets. In the future many more companies will go the way of Uber and Airbnb, leveraging a network’s assets: our cars, homes, insights, skills, and relationships. Reallocate capital.