Leadership & Political Correctness | N2Growth Blog

N2Growth Blog

OXYMORON …Great leaders are not politically correct, but they are politically savvy – there is a difference. Putting political agendas and peer pressure aside (as great leaders do), leaders should not make their choices based upon public opinion. I don’t know about you, but it’s almost as if we have raised a generation of leaders who feel they have a moral and ethical obligation to be politically correct – WRONG.

Public Pension Funds Perform Better When They Keep Politics at Bay

Harvard Business

For those in the public sector, this includes being shielded from governmental politics. From my advisory work, research, and private discussions with executives and board members of pension funds, pension funds that succeed in keeping politics at bay combine strong governance with deft, often pre-emptive, management of issues that could spark a political backlash. Another way to keep politics at bay is to ensure there is a counterweight to check elected officials.

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Drinking the Talent Kool-Aid | N2Growth Blog

N2Growth Blog

He was constantly cautioning about short-term hires, and believed that you shouldn’t hire anyone whom you couldn’t keep and develop over the long haul.

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Should CEOs Get Involved in Politics?

Harvard Business Review

Should business leaders be political? Let me rephrase — should business leaders be involved in politics? And yet business leaders are finding themselves drawn into the political process — oddly enough, to try and depoliticize it. And he sees little reason to expect Congress to pass a long-term solution to the fiscal cliff; instead, he thinks an "irresponsible," short-term "band-aid" solution. Leadership Politics

How Multinationals Can Adapt to a Political Mood That Doesn’t Care for Them at All

Harvard Business

Political sentiment has turned against globalization and the political and economic policies that promoted it. Brexit, the election of Donald Trump, and the rise of nationalist parties across Europe are signs of this new political mood. Lean cost models that make use of globally centralized control functions (finance, compliance, legal, risk) will no longer be deemed sufficient. This heightened political risk entails higher hurdle rates for investment.

2020 Top CHRO List – The People Leaders To Watch

N2Growth Blog

We find ourselves amidst the challenges of living and working in a triple-threat world of a global pandemic, economic instability, and political unrest.

The Fastest-Growing Cause for Shareholders Is Sustainability

Harvard Business

Political spending, climate change, diversity, and human rights are now some of the most frequent resolutions that investors file. The high percentage of proposals on immaterial issues is further evidence that investors aren’t only motivated by short-term profit. Financial markets Finance & Accounting Social responsibility Sustainability Digital ArticlePaul Garbett for HBR.

Saving Face: How to Preserve Dignity and Build Trust

Skip Prichard

When the term ‘It’s not about the money’ is used, the real issue is often about face.” Saving face is a universal concept that enables one to connect with people, break down barriers, and build trust and long-term relationships. Develop Your Ability to Influence.

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Should CEOs Have Term Limits? | N2Growth Blog

N2Growth Blog

Posted on July 7th, 2010 by admin in Leadership , Operations & Strategy , Rants By Mike Myatt , Chief Strategy Officer, N2growth I have read some interesting articles and blog posts of late on the subject of CEO term limits, and felt this topic worthy of discussion. You should know from the outset that I fundamentally disagree with the concept of CEO term limits, and quite frankly I cannot really come up with a valid reason for supporting such a regressive concept.

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Grown-ups Should Make Sure That They Have

Chris Brady

These include selfishness, possessiveness, emotional immaturity, short-term focus, and a lack of taking responsibility for their actions. Included in this list is our physical bodies and health, our finances, our relationships, and the world in which we live.    In short, while we can learn a lot from our children about the bright side of humanity, we can probably learn just as much about the darker side.

Brand Exposure

N2Growth Blog

While you might not detect brand taints associated with overexposure in the short-term, this principle holds true across most genres over time. Let me offer just a few examples to help connect the dots: Recording artists that release too many CDs over too short of a time period hurt their own appeal.

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The Euro Crisis: Italy's Turn

Harvard Business Review

So far the crisis has claimed a lot of political scalps in the severely indebted countries, most notably and recently that of Silvio Berlusconi. It's a sign of some of the (potentially dangerous) strain that the crisis is having on the political systems in these countries. Assume that the German government knows as well as anyone that if the Euro is to survive: (a) The ECB will have to intervene in the short term. (b) Crisis management Finance Global business

What Executives Really Need to Know About the “Emerging Markets Crisis”

Harvard Business Review

Yes, there are real reasons for MNCs to be concerned about political instability in Turkey and Ukraine, and economic policies in Argentina and China – all of which have occupied front pages recently. Last fall my research team at Frontier Strategy Group designated Ukraine, Turkey, and Argentina as most vulnerable to a liquidity crisis because of their high levels of short-term external debt. Economy Finance Global business

Stock Buybacks Aren’t Hurting Innovation

Harvard Business Review

Not only has business investment in R&D been outpacing economic growth in recent years (2012 is the most recent year available), but it’s also outpacing longer term trends. While R&D spending is an imperfect proxy for innovation investment, this data should give us pause when we hear claims that American innovation is in crisis because corporate investors are unwilling to invest in the future, or because activist investors demand short-term results.

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The Wall Street Book Everyone Should Read

Harvard Business Review

Along with explaining in clear if caustic terms how financial markets work, the book prefigures almost every criticism of the financial system that's been levied since the crisis of 2008. I also started thinking that, with a little updating, Wall Street would make for a great introductory finance textbook. But the fact that Henwood approaches his topic from a distinct perspective shouldn't keep anyone, whatever their political bent, from appreciating and learning from his work.

The Last Days of the Dollar Era

Harvard Business Review

You might say that, except for the fact that, short term, there is no solvency problem. Our current deficits are mostly the product of the economic downturn, we can easily finance them, and, when the economic recovery gains stronger footing (as it might have by now if it weren't for the impasse in Washington), they will shrink. Without some major course corrections, the country is eventually headed for a real — not politically induced — debt crisis.

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Democracy's Debt Dilemma

Harvard Business Review

Europe is suffering what is being widely termed a "debt crisis," and as a recent IMF report notes (PDF) , "overall public and external debt levels of the euro area are lower than those of the United States and Japan.". This issue is often positioned as a crisis of leadership , and indeed, political leadership is relevant to any question of public policy. Economy Finance Leadership PDFIs every democracy destined for the problems of Greece?

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Fighting Inflation, Ruining Economies

Harvard Business Review

Finance Minister Domingo Cavallo (himself a Harvard economics Ph.D.) By the end of the year, the government owed $29 billion in short-term dollar debt, banks owed $25 billion in foreign CDs, on top of other foreign debt — and there weren't remotely enough dollars in Mexico to go around. The EU hoped the euro would solidify political union, but southern Europe's real economic motive for abandoning its currencies was to stop inflation. Why can the U.S.

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What Alan Greenspan Has Learned Since 2008

Harvard Business Review

I tried to get Greenspan to talk me for my November HBR article on economics and finance since the crisis , but he said he’d promised his publisher to keep mum until the book was out, which was too late for my purposes. Every day for most of the period from let’s say late 1980s basically through the end of my term, I would get almost every week people predicting that the world was coming to an end. So there’s a huge political, regulatory asymmetry.

France's Existential Euro Crisis

Harvard Business Review

Given that, I wonder whether there isn't a third option being secretly dusted off inside France's Finance Ministry. Sure, it would be extremely painful for Germany to actually do this, but it could be quite popular in the short-term, so the threat that a German government might do it is quite credible. Politically, resurrecting the Franc could perhaps be sold on chauvinistic grounds. Economy Finance Global business

Hiring and Managing in Turbulent Times

Harvard Business

In each country, following recent elections and referendums, they are facing political, social, and economic uncertainties we would never have imagined just a year ago. His horizon was exceedingly long-term. The second World War had left business slow and finances strained. A natural reaction would have been to obey the short-term signals and retrench and, indeed, that’s what most of our competitors did, dismissing up to 50% of their staffs.

America Is Bankrupt (But Not the Way You Think)

Harvard Business Review

Worse, she won't hear of taking out of her own retirement account to finance it. To be sure, nations aren't like households, because countries can raise taxes and devalue their currencies — and I'm not suggesting that a household's finance's perfectly mirror a nation's. The Jones' family isn't impoverished (yet), but it is bankrupt in a deeper way: in terms of how it conceives of prosperity, wealth, and the common good. Economy Politics

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This Pharma Company Stays Innovative by Doing Two Things

Harvard Business

Year-on-year price increases for existing therapies have allowed the industry to maintain profitability, but those short-term fixes have come at a heavy cost: decreased public satisfaction with the industry and increased political scrutiny. One industry publication has termed Roivant’s team of scientists “a Justice League of pharma veterans [assembled] to upend the industry.”

The 6 Ways Business Leaders Talk About Sustainability

Harvard Business

Political analyst George Lakoff, notably in his book Don’t Think of an Elephant! , ” A critical first step is to understand the different mental and political frames currently in play. This point was underscored by Unilever CEO Paul Polman when he courageously told short-term investors who did not support sustainability efforts not to buy his company’s shares. Neasden Control Centre for HBR.

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Why Is Ukraine’s Economy Such a Mess?

Harvard Business Review

Instead, Ukraine was deeply in debt and looking for bailouts from West and East when an uprising ousted president Viktor Yanukovych in February, then a Russian invasion of the Crimean peninsula made the country the focus of global political attention. She spent last week in Ukraine, and wrote an essay on the political situation there for last Sunday’s New York Times. And some important reforms of state finances haven’t happened. Economy Global business Politics

Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

With political upheaval roiling the streets of Cairo, the first concern of top management in many multinationals is to get their employees and their families out of Egypt safely. In both places, we know the instability will worsen macroeconomic performance in the short term. If that is the case, and the faster growth generates higher profits for them over the long term, that might well compensate for any short-term losses from the disruption.

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

Harvard Business

Another problem we’ve seen is that some providers, seeking to fit in to a payment cycle, focus on short-term results, losing sight of the end goals. Finally, some companies have struggled to finance their activities without payment while they work on delivering the results, limiting their ability to innovate too. There’s trust between the parties and the outcome is not “political.” Samuel Castro. Paying for results is in vogue.

Why We Fail to Report Sexual Harassment

Harvard Business

For example, Megan, a woman we spoke to who works in finance, explained that after being harassed by a colleague, she went to HR and asked to move to a different position. She remembers thinking, “It would be political suicide if I complained about him.” Last month, Fox News agreed to pay Gretchen Carlson $20 million to settle her sexual harassment lawsuit against Roger Ailes, the network’s former Chairman and CEO, who resigned in the summer.

StrategyDriven Editorial Perspective – Panic of 1907 vs Great Recession of 2008

Strategy Driven

Trusts, however, were financed by consumer deposits, while the toxic asset of 2008 were securities contracts held by investment banks.). households are generally not directly at risk in short-term wholesale funding arrangements.” Cara Wick writes about American financial and political history at www.bankersnotes.com. Trusts, however, were financed by consumer deposits, while the toxic asset of 2008 were securities contracts held by investment banks.)

What CEOs Get Wrong About Activist Investors

Harvard Business

We still believe the executives at Tejon Ranch made some mistakes, as did we, but our biggest collective mistake was thinking in terms of threats rather than opportunities. We have written extensively on shareholder activism , and one of us coauthored a study in the Journal of Finance showing that, on average, activists produce value for targeted companies. One popular view of activists is that they are short-term, cut-and-run operators who are looking for a quick profit.

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Corporations Need a Better Approach to Public Policy

Harvard Business Review

But many don’t have one, instead adopting only defensive, short-term, or narrowly self-interested “government relations” tactics. Myriad potential public policy-related risks and opportunities for companies arise across a broad spectrum of political and economic systems — from the state capitalism of former Communist states to the “ mixed economies ” in traditional “liberal” democracies, from developed to developing markets.

If Greece Embraces Uncertainty, Innovation Will Follow

Harvard Business Review

These countries have excellent research systems with a high number of influential scientific publications, relatively high levels of government and business R&D expenditure and venture capital financing, strong public-private collaborations, and a wealth of intellectual assets in patent applications and community trademarks. This suggests that in addition to short-term policy changes, Greece needs a longer-term cultural shift.

Is the Next Karl Marx a Management Consultant?

Harvard Business Review

Globalization need be seen not as an inexorable fact of life but rather as a challenge and an opportunity that must be carefully controlled politically. There are other, more political, aspects of this ideology that Fukuyama goes into (and for those who have already clicked through to the article and found most of it to be behind a foreignaffairs.com wall, you can get through the wall just by registering; you don't have to pay).

Performance-Based Pay for Executives Still Works

Harvard Business Review

And while it’s true, as they write, that “large bonuses and stock options have been held responsible for overly risky behavior and short-term strategies,” I know of no peer-reviewed evidence that the crisis was actually due to poor incentives, and their article cites none. ” Cable and Vermeulen are correct that executives may “cook the books” in the short-run – but the effects of such transgressions will be felt in the long-run.

Entrepreneurs' Biggest Sales Mistakes

Harvard Business Review

When an entrepreneur decides to start a business, there are typically several important tasks at the top of his or her To-Do list, such as writing a business plan, choosing a name, and obtaining financing. In particular, we found companies that received venture capital financing often faced pressure from VCs to achieve a first sale as a milestone, and were encouraged to offer discounts to achieve it.

Entrepreneurs' Biggest Sales Mistakes

Harvard Business Review

When an entrepreneur decides to start a business, there are typically several important tasks at the top of his or her To-Do list, such as writing a business plan, choosing a name, and obtaining financing. In particular, we found companies that received venture capital financing often faced pressure from VCs to achieve a first sale as a milestone, and were encouraged to offer discounts to achieve it.

3 Emerging Market Risks Companies Should Watch for in 2018

Harvard Business

When it comes to risk in Mexico, companies are paying attention to the fraught NAFTA negotiations, but not the domestic politics that could damage business plans far sooner than any NAFTA changes. The cost of doing business — and especially the cost of local production — would go up, and budget-busting government spending increases would erode long-term business confidence despite short-term stimulus. miragec/Getty Images.

Why Europe Will Negotiate a Greek Default

Harvard Business Review

The share of the package borne by the public sector in Germany and other strong Euro countries will presumably have some impact on their public finances. This is not an attractive option for anyone except maybe in the very short term for Greece. As another Euro summit takes place today , with another bailout package for Greece on the table, it's important to realize that what we're talking about is not whether to "rescue" Greece.

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The Microfinance Contagion Scenario

Harvard Business Review

In a recent paper, Jonathan Morduch and Jonathan Conning explain the role of debt and equity financing in the microfinance industry. In microfinance, just as in corporate finance, one of the key ratios driving investors is the debt-to-equity ratio. But in a market spooked by default and a new appreciation of political risk based on events in AP, Bangladesh, and Nicaragua, that seems unlikely even for the few MFIs in a position to take equity investment.

What Greece Has to Do Now: Fix Its Economy

Harvard Business Review

A few verbal tweaks (such as renaming the “Troika” — which consists of the EU, the IMF, and the ECB — the “Institutions”) were given as a political concession to the newly elected government, which had created high expectations with its electorate. So, clemency on loan terms might make procedural sense. It looks like “politics as usual,” and what will make or break this (or the next) government is moving beyond that.

One Out of Every Two Managers Is Terrible at Accountability

Harvard Business Review

Zaleznik chronicled how he saw American managers, influenced by the rising popularity of the human relations school, turn increasingly from the substantive work of organizations — creating products and services, cultivating markets, pleasing customers, cutting costs, and getting stuff done — to what he termed "psychopolitics." But the interesting finding in all of this is that the person who does the punishing actually pays a personal price in terms of lost social support.

Greece’s Problem Is More Complicated than Austerity

Harvard Business Review

This has certainly been the picture painted by Syriza, the left-wing political party of Greek Prime Minister Alexis Tsipras, and by many friends of Greece and progressive economists. Besides the short-term costs of such a move, history shows us that Greece has never managed to benefit from currency devaluations. Although former finance minister Yanis Varoufakis made eloquent appeals about the need to rethink macro, he said very little about changing how the economy is run.

Doing Business in a Post-Fidel Cuba

Harvard Business

Perhaps more important for an analysis of near-term Cuba policy, this non-event took place in the context of an expanding fiscal crisis for the Cuban government. In the case of the former, Cuba could continue down the path of slow but steady liberalization, and in the case of the latter, it would likely be pushed to retrench while seeking alternate sources of finance. With these factors in play, the short-term outlook for Cuba is highly uncertain.