Profit First: Reverse Engineer Your Way To Financial Success

Terry Starbucker

What’s wrong with the traditional “GAAP” accounting formula. Leadership More Human Podcast “Profit is not an event, it’s a habit. Profit happens through small wins, strung together.” – Mike Michalowicz. My guest on the latest edition of the More Human Podcast is Mike Michalowicz. By his 35th birthday Mike had founded and sold two multi-million dollar companies. Confident that he had the formula to success, he became an angel investor… and proceeded to lose his entire fortune.

Giving Executives 40% of Revenue is Insane

Curious Cat

When you read about non-GAAP earnings, often one of the big costs they are excluding is the massive stock giveaways to executives. Respect Systems thinking commentary executive pay leadership Management overpaid executives respect for peopleI have previous written on my belief that excessive executive compensation had reached the level of a deadly disease of western management (building on the W. Edwards Deming’s list of 7 deadly diseases ).

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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business

When multiple players compete for the same space, revenues indicate the progress towards achieving market leadership that creates the dominant protocol for industry partners, suppliers, and customers. (In In a market like social media, a firm’s success can depend on the winner-take-all profits that come from market leadership.). Because investors consider these non-GAAP numbers to be value-relevant, we propose a more direct way for them to be calculated.

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Calculating the Market Value of Leadership

Harvard Business Review

GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined. We believe that a next step for investors is to analyze the predictors and drivers of these intangible factors, which means focusing on leadership. Wise, long term investors recognize that leadership affects firm performance. But too often, assessments of leadership are haphazard and narrow.

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Why Leaders Are Still So Hesitant to Invest in New Business Models

Harvard Business

Outdated beliefs about the world can linger for decades in a leadership team. Finally, Generally Accepted Accounting Principles (GAAP) used to manage businesses and report to investors often ignore intangible assets or miscategorize them as expenses. You can take our online leadership investment style assessment).

How B2B Software Vendors Can Help Their Customers Benchmark

Harvard Business

Imagine if all manufacturers had, for example, a supply chain efficiency score, or all companies had a leadership development score. The appeal of widespread nonfinancial performance measures for assessing companies has been discussed for several decades, but never achieved—despite continuing growth in assets and priorities poorly measured by GAAP accounting. Gillian Blease/Getty Images.