101 Things I Learned in Business School

Leading Blog

B USINESS is not a discipline, but an endeavor made up of disciplines such as accounting, communications, economics, finance, leadership, management, marketing, operations, psychology, sociology, and strategy. Lesson: A profitable company may be chronically short of cash.

Blog 318

Put a Little Air in the Balloon

Great Leadership By Dan

I heard the following simple but powerful little lesson from a Fortune 500 executive last week: As a leader, if you want to create a culture of innovation, you need to create an environment where all employees feel encouraged to bring new ideas forward. Imagine that new idea as a balloon, about half full of air. Instead of pulling out our pins in the form of “yeah buts”, we add air to the idea in the form of “yes, ands”, and “what ifs”?

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How to Invest and Make Money Daily: 9 Key Ideas & Strategies

Strategy Driven

You will discover: The principles of smart and effective investing. The best practices of investing today. They will help you form the productive habits of a successful investor. Early investment is better because of the so-called snowball effect.

Volatile, Uncertain, Complex and Ambiguous (VUCA) Business

Coaching Tip

New research from DDI and The Conference Board, titled The Global Leadership Forecast (GLF) 2014 | 2015, Ready-Now Leaders: Meeting Tomorrow’s Business Challenges , examines the relationship between leadership practices and financial performance in this environment and identifies the seven specific leadership best practices most unique to organizations in the top 20 percent of financial performance. . Those in the bottom 20 percent counted only 19 percent of their leaders as women.

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Will Wall Street Be Able to Earn the Trust of Younger Investors?

Harvard Business

First, they created a combination of breakthrough product innovation and breakthrough business model innovation— the definition of category creation. Higher-fee, actively managed funds lost $500 billion in assets since 2015, with much of it flowing to much lower cost passive funds (e.g. But total net inflows of money into all mutual funds and exchange traded funds is at its lowest levels since 2014. Disruptive innovation Digital Article

The Reason Air Travel Is Terrible and So Few Airlines Are Profitable

Harvard Business

There is an answer, and it has to do with the dynamics of disruption. One of the most powerful corporate growth mechanisms – and at the heart of disruption theory — is moving upmarket. Instead of getting into a price war or squabbling over a shrinking market, both disruptors and incumbents find new ways to create value. They were very successful and profitable for some time, then stagnated, and today are subsidiaries of other companies.

Most Industries Are Nowhere Close to Realizing the Potential of Analytics

Harvard Business

Back in 2011, the McKinsey Global Institute published a report on the transformational potential of big data—and it would take a supercomputer to process all of the articles that have appeared since then urging companies to get on board before some digital disruptor renders them obsolete. And yet for all the hype, most industries have still not come close to realizing the full potential of data and analytics.

The Disruption of Venture Capital

Harvard Business Review

An organization's capabilities become its disabilities when disruption is afoot." – Clayton Christensen, The Innovator's Solution. It had been over five years since the Nasdaq peaked in March 2000, and it was becoming apparent that VC firms were having trouble deploying the tens of billions of dollars they raised during the boom years. Over the years, venture capitalists have been some of the most ardent students of disruptive innovation.

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The Comprehensive Business Case for Sustainability

Harvard Business

Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. Hoping to alleviate their concerns, this article also provides concrete examples of how sustainability benefits the bottom line. Traditional business models aim to create value for shareholders, often at the expense of other stakeholders. Climate change, water scarcity, and poor labor conditions in much of the world increase the risk.

Venture Capitalists Get Paid Well to Lose Money

Harvard Business Review

2013 had all the signs of being a comeback year for venture capital. The industry realized its highest returns since the Internet boom. The industry’s persistent inability to outperform public equities is a disappointment to investors, and a very real threat to the sustainability of the VC industry as we know it. The ongoing poor performance of venture capital firms should be an obvious problem for institutional investors. What is the optimum level of VC commit?

Morning Advantage: Can Markets Cure Cancer?

Harvard Business Review

Most of the money tied to cancer research comes from the federal government via the National Institutes of Health, and like many programs facing financial scrutiny, the NIH’s budget is on the verge of being trimmed. One cancer trial costs about $200 million and has fairly low odds of success. But if you do lots of research and conduct many trials at the same time, your odds of success are greater. SUGAR AND SPICE AND DISRUPTIVE INNOVATION.

Should Companies Retain "Strategic" Cash?

Harvard Business Review

To enhance financial flexibility, companies have been retaining unprecedented amounts of cash on their balance sheets, calling it "strategic" cash to distinguish it from the "operating" cash that is needed to run the business. This raises the question of whether retaining strategic cash makes economic sense and should be viewed as a legitimate corporate finance tool in today's environment. Much of the strategic cash is typically held outside the United States.

Even for Companies, the U.S. Is Split Between Haves and Have-Nots

Harvard Business Review

The worldwide trend of rising economic inequality applies not only to individuals. Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. The comparison is imprecise, of course, but nevertheless suggestive. An increasing number of U.S.

Capitalism’s Future Is Already Here

Harvard Business Review

On September 13, 1970, The New York Times published an article by Milton Friedman castigating any managers of businesses who were “spending someone else’s money for a general social interest” – in other words, requiring customers to pay more, employees to be paid less, or owners to accept smaller profits so that the firm could exhibit some amount of social responsibility beyond the requirements of the law. Very quickly, shareholder value became the gospel of capitalism.

How the Next Generation Is Approaching Society’s Biggest Problems

Harvard Business Review

First, private citizens, particularly younger people, are choosing different types of career paths. Second, changes in technology have dramatically lowered the cost of experimentation and create unprecedented transparency into problems, solutions, and results. Finally, innovation in the financial markets are funding novel approaches to address these problems. Take the story of Salman Khan and the eponymous Khan Academy. The same is true of everyone on his team.

Two Forces Moving Business Closer to Climate Action

Harvard Business Review

At the same time, the cost of renewable energy has dropped very far, very fast. It’s a perfect storm bringing us to two important tipping points: one of belief and commitment to action, and one of economics. First, though, a few of the highlights from the business community: In June, former U.S. One exciting offshoot of We Mean Business, called RE100 launched as well, with Swiss Re, Mars, IKEA, and others making the bold commitment to use 100% renewable energy.

IRR 8

Sacrifice Is Overrated

Harvard Business Review

My role models for serving the greater good are not the people who walk around in sack cloth and ashes but industrialists like Gustavus Swift, who developed the refrigerated boxcar, which dramatically reduced life-threatening food-borne illness; the drug companies that continue to innovate new forms of protease inhibitors that keep my HIV-positive friends alive; and my friend who's risking his savings to start an ice cream business, which will employ a dozen people.

What to Measure If You’re Mission Driven

Harvard Business Review

Most of what an organization chooses to measure, and to do, must hinge on this question. I recently had the opportunity to learn from what, in design-speak, we might call an “edge case” of this: the question of what measures should guide the management of a church. Typically, membership is one of the three top-line metrics used to assess a church’s health (along with worship attendance and fundraising levels).

When Business Models Trump Technology

Harvard Business Review

helped to develop the principle of shifting from low-frequency, high-volume irrigation to high-frequency, low-volume irrigation", the system known as drip irrigation. Irrigation is a big deal in many countries: in just the last 50 years, the world population has doubled and irrigation water is increasingly becoming a critical constraint in many parts of the world. Netafim now controls over one-third of the market for this seemingly commoditized micro-irrigation equipment market.