article thumbnail

No One Can Think Outside the Box

Harvard Business Review

A cautious or suspicious few ask due-diligence questions. Did the handy financial-accounting box keep you from noticing that I’d said nothing about the company’s market position, customer preferences, cost struc­ture, and much more? The company is Enron. Reverse the labels.

article thumbnail

My First, Failed Foray into Venture Investing

Harvard Business Review

What I learned from this disastrous magazine venture is that we need to do a thorough SWOT analysis not only on the market opportunity, but also on our partners. As we vet investments for our fund, a key aspect of our due diligence is assessing our partners, particularly learning how they react under stress.