China’s New Development Bank Is a Wake-Up Call for Washington

Harvard Business Review

But in past weeks, it seems that the movie in Asia has been on fast-forward around global development and financing. It’s stated mission is to “focus on the development of infrastructure and other productive sectors in Asia.” billion of subscribed capital).

Unique & Creative Employee Incentives You Could Be Offering

Strategy Driven

Everyone who is a part of a business expects to work for a company who cares. There is an increasingly competitive marketplace for top talent out there and companies are desperate to recruit people who have charisma, brains and talent for the role that they work in. Flexible Working.

The Ten Commandments of Business Success

Women on Business

Capitalize on your Assets — Don’t assume your assets are money. For Harper, it was deciding to franchise her business as a practical way to expand, when she could not get working capital, plus be assured of an ownership base that would strictly follow her dictates. Develop Win-Win strategies to Benefit All– Harper needed to expand, but had limited capital and the banks were not rushing to lend to her (like today). Guest Post by Jane Plitt.

Leadership Matters

N2Growth Blog

In 1973/4 I participated in an Overseas Fellowship at General Motors Institute (now Kettering University) in a work/study cooperative programme in Flint, Michigan, which was the birthplace of GM. A CEO, however, works through her or his team, in my case, it was 55,000 employees.

How To Manage Your Organization’s Growth

Michael VanBruaene

This also includes the working capital you need for your daily operations. Nevertheless, you should develop a long term perspective. You need to develop some guidelines for identifying and resolving these problems. Growth, particularly when it’s steep and occurs quickly, can substantially strain your organization; and negatively impact customers, finances, business processes and employee effectiveness and morale.

Recommended Resources – An Interview with Paul Leinwand and Cesare Mainardi, authors of The Essential Advantage

Strategy Driven

Further, they need to limit their focus to, at most, six capabilities, and make those capabilities work together as a mutually reinforcing system that perpetuates competitive advantage. SD : It sounds logical to develop strategy by starting with one’s capabilities.

Why Adding More Products Isn’t Always the Best Way to Grow

Harvard Business Review

They had to work in sequence, meaning they had to streamline the operation first — before they could launch their new growth effort. The underlying trouble had been McDonald’s working from an inside-out perspective: what fit with its current infrastructure and operations.

The Rise of FinTech in Supply Chains

Harvard Business Review

They enable both the buyer and supplier to improve their working capital by making it possible for the former to extend its payables and at the same time accelerate payment to the latter. The buying firm benefits through longer payables, which positively impact its working capital.

Artisans Must Balance the Books

Harvard Business Review

As more people depended on him, he spent his working capital, and the business failed. When I founded the nonprofit African Institution of Technology , I initially focused on helping African entrepreneurs or artisans, especially those with only primary education, develop new skills and market opportunities. Organizations that move into developing nations to help small technical businesses, must help those businesses manage their finances.

Creating Michelin-star Quality for the Masses

Harvard Business Review

It's a common assumption that offering more features or developing high-quality products and services is expensive, and that the products of these labors can command premiums. But it's this set of beliefs that explains why Western companies fail to succeed in emerging markets where middle class consumers demand good quality at low prices, and why these companies struggle to develop value-for-money products for their home markets during slow growth times like these.

Your Whole Company Needs to Be Distinctive, Not Just Your Product

Harvard Business Review

The heart of differentiation therefore is your company’s ability to develop and promote distinctive products, services, and branded experiences on a consistent basis. It became easier and easier for small enterprises to gain customer reach and awareness (along with working capital).

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Artisans Must Balance the Books

Harvard Business Review

As more people depended on him, he spent his working capital, and the business failed. When I founded the nonprofit African Institution of Technology , I initially focused on helping African entrepreneurs or artisans, especially those with only primary education, develop new skills and market opportunities. Organizations that move into developing nations to help small technical businesses, must help those businesses manage their finances.

How Banks Should Finance the Social Sector

Harvard Business Review

Financial markets are not working for charities and social enterprises today. As a result, charities and social enterprises do not have the cushion of external financing to manage their various capital requirements. When you make an investment using your philanthropic capital, ie.

Britain's Banking Reforms Are So Old Economy

Harvard Business Review

The principal recommendations are: Retail banking should be ring-fenced inside separate subsidiaries; All banks (retail or otherwise) should have an equity or other loss-absorbing capital capacity of 17-20% of their assets; Depositors would rank higher than other creditors in the event of insolvency; Make sure that a sale of 600 odd branches of Lloyd's bank produces a viable new U.K.

What to Know Before You Sign a Payment-by-Results Contract

Harvard Business Review

The concept is fairly straightforward: The parties define the result up front, agree on a baseline, work out how confident the organization is in delivering the result, and then specify the expectation and payment in the contract. The UK’s Department for International Development uses “results-based” aid to improve the educational outcomes of young girls in Africa and Asia. When PbR Doesn’t Work. Making PbR Work. Samuel Castro.

Social Impact Investing Will Be the New Venture Capital

Harvard Business Review

They have virtually no access to capital markets and little flexibility to experiment at various stages of growth. There are $700 billion of foundation assets, and 10 million people working for non-profits. Yet there are massive inefficiencies in capital allocation.

Entrepreneurship: A Working Definition

Harvard Business Review

For some, it refers to venture capital-backed startups and their kin; for others, to any small business. At a new venture's outset, its founders control only their own human, social, and financial capital. Entrepreneurship Venture capitalWhat is entrepreneurship?

A Tool to Map Your Next Digital Initiative

Harvard Business Review

We know that when IT projects fail, it is usually not because the technology didn’t work (although this can sometimes be the case), but because the changes required at an organizational and employee level weren’t managed effectively.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

The third category is of the most interest because it concerns factors that the divested business’s (new) management and new owners do control: the quality of the business strategy and operational decisions after divestment, as well as the capital made available for follow-on investments.

Best Buy Can't Match Amazon's Prices, and Shouldn't Try

Harvard Business Review

In this month's HBR, Professor Clayton Christensen and I have an article that describes how to develop core business strategy in the face of disruption. That 5% margin might come not from scale, but from the absence of stores, retail employees, and reduced working capital requirements.

Don’t Turn Your Sales Team Loose Without a Strategy

Harvard Business Review

To borrow a telecom industry metaphor, a deal with a customer is the “last mile” in connecting any strategy with business development efforts and marketplace results. Financing needs are driven by the cash on hand and the working capital required to conduct and grow the business.

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VC Stereotypes About Men and Women Aren’t Supported by Performance Data

Harvard Business Review

Male entrepreneurs are the beneficiaries of the overwhelming majority of venture capital investments. Typical statements portraying men as growth-ambitious and in need of financing include: “ His major problem is to find enough financial capital for the investments to grow. ” This notion is also evident in statements about women’s lack of personal financial capital: “She doesn’t even have any savings to use for investments.”

China's Stubbornly High Food Prices

Harvard Business Review

China's National Development Reform Commission estimates that since 2004, the cost of growing cereals in the country has risen by as much as 10% per annum. Such farmers will be able to invest in mechanized methods of production, and to generate working capital to use better seeds and other inputs Trouble is, the consolidation of land holdings could take a generation, or more, to happen since many families will be reluctant to trade away their land use rights.

How One CEO Grows Her Business with Feeling

Harvard Business Review

What do you think causes millions of people to miss work and school in developing economies? private-sector development division of the World Bank — studying how small and medium-sized businesses can play a role in developing economies — Scharpf, now a 34 year-old graduate of Harvard's graduate schools of business and government, happened to overhear a local colleague complaining that her employees often missed work because they were menstruating.

A Playbook for Making America More Entrepreneurial

Harvard Business Review

But the economic toolbox that works for big companies isn’t the same one that works for small ones. In the past, economic development has prioritized big businesses. In fact, we know a lot about what works from observing this recent experimentation.

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

Among the firms we identified as focused on the long term, average revenue and earnings growth were 47% and 36% higher, respectively, by 2014, and market capitalization grew faster as well. and historic lows in new capital investment. Ambitious work has even attempted to quantify economic growth foregone due to cuts in R&D expenditure driven by short-termism, putting it in the range of about 0.1% It started with developing a proprietary Corporate Horizon Index.

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New Research: If You Want To Scale Impact, Put Financial Results First

Harvard Business Review

Their fast-growing companies work in almost every industry, from online retail to manufacturing to professional services, and together they have created more than 200,000 jobs and generated revenues of more than $5B in 2011.