417 Posts found for Source: Ivey Business Journal

The first negative [for intangible assets] is what economists call “partial excludability.” With physical and financial assets, you can completely exclude others from enjoying these assets. If I own a car and there is an effective police force, I can prevent anybody from using my car. But let’s say that I have an employee who is brilliant and that I have invested in his or … [ Read more ]

Content: Quotation | Source: Ivey Business Journal | Subject: Intellectual Property

In the era of CRM and customer-centric business models, Porter’s approaches do not serve the company adequately, because they do not talk to the issue of competitive advantage that comes from one-to-one relationships.

Content: Quotation | Source: Ivey Business Journal | Subjects: Customer Related, Strategy

Hiring an outsider masks the hard truth that a company has not developed a pipeline of leaders from among its ranks who can step in and manage the bigger challenges of the day.

Content: Quotation | Source: Ivey Business Journal | Subjects: Human Resources, Succession Planning

Strategy must be understood and executed by everyone. The organization must be aligned around its strategy, and performance management systems help create that alignment. Herein lies one of the major causes of poor strategic management. Most performance management systems are designed around the annual budget and operating plan. They promote short-term, incremental, tactical behavior. While this is a necessary part of management, it is not … [ Read more ]

Content: Quotation | Source: Ivey Business Journal | Subjects: Management, Strategy

Examine a business situation gone bad and there is a good chance you will find, somewhere in the chain of failure, an executive who did not listen. The executive was told but never heard.

Content: Quotation | Source: Ivey Business Journal | Subject: Communication

If it’s not if you win but how you play the game, then playing – or working – with humour and an upbeat, positive attitude is surely the right way to play. Besides, these are the teams that usually win.

Content: Article | Author: Robert I. Sutton | Source: Ivey Business Journal | Subject: Innovation

Profit is an incomplete measure that ignores capital and is inappropriate for making the many business decisions that trade off between income statement and balance sheet. Tied to incentive compensation, this can lead to dysfunctional behaviour among managers.

Content: Quotation | Source: Ivey Business Journal | Subject: Finance

We often find that improper costing of fixed costs and capital, such as the cost of capacity, creates misleading signals of performance and value in a business’s portfolio. First, traditional costing systems today ignore the cost of capital. Second, the treatment of excess capacity is often incorrectly treated as a unit cost, instead of the period expense that it truly is.

Indirect overhead costs are often … [ Read more ]

Content: Quotation | Source: Ivey Business Journal | Subjects: Accounting, Finance

Strategically, intrinsic value is not maximized solely by the maximization of Current Operations Value (COV), but by the simultaneous maximization of the sum of its two components–COV and Future Growth Value (FGV), including the value of real options. Ultimately, this requires business leaders to address, in the context of value-based strategy, both the renewal of future growth value through investments in intangibles and the future, … [ Read more ]

Content: Quotation | Source: Ivey Business Journal | Subjects: Finance, Strategy

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When we went and studied the process of innovation, we found that innovators shared not so much a common set of personal traits, but a common way of looking at the world. Number one, they were contrarians. And by definition the way you create a strategy differentiation means that you violate industry norms. Number two, we found these people were “novelty addicts,” people who loved … [ Read more ]

Content: Quotation | Source: Ivey Business Journal | Subject: Innovation

Silicon Valley isn’t based on resource allocation, it’s based on resource attraction, where somebody throws out an idea into this kind of marketplace for ideas. Either that idea attracts capital and talent or it doesn’t. But there’s no giant CEO brain making allocational decisions in Silicon Valley. There are many, many people making those decisions – It’s very distributed. If one venture capitalist doesn’t like … [ Read more ]

Content: Quotation | Source: Ivey Business Journal | Subjects: Entrepreneurship, Innovation

A company today is made up of six kinds of capital. There’s the financial capital, the structural capital and the intellectual capital, all of which we understand pretty well. Yet I don’t believe those things by themselves create wealth. Those are actually almost inanimate. And it’s a complete mistake to say that knowledge is the most critical resource in the New Economy. Knowledge today is … [ Read more ]

Content: Quotation | Source: Ivey Business Journal | Subject: Organizational Behavior

There are at least a dozen major design variables in a business. How you go to market, which competencies you use, how you put together your value web, what is your core mission, where do you look for differentiation, and so on. And most people Don’t see those as design variables after a while. They just start accepting them for what they are. …I’m trying … [ Read more ]

Content: Quotation | Source: Ivey Business Journal | Subjects: Business Plans, Business Rules

It is now generally acknowledged that most boards need more directors who are truly independent. But the very fact that new directors are independent implies that they are, unwittingly and to a certain extent, uninformed about the company and its business. Which is why the quality of the information they get from the company must be very high.

Content: Article | Authors: Barry Reiter, Nicole Rosenberg | Source: Ivey Business Journal | Subject: Corporate Governance

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Bold strokes and a powerful personality are the defining qualities of a heroic leader. But shunning the spotlight, the quiet leader works, circumspect and practical, to transform, inspire – and win.

Content: Article | Author: Joseph L. Badaracco Jr. | Source: Ivey Business Journal | Subject: Leadership

Return on capital measures the productivity of capital investments. How useful is this measure for businesses in which capital investments tend to be small and returns of more than 50 percent are common? For people-intensive businesses, it is more important to know about employee productivity than capital productivity.

Content: Quotation | Source: Ivey Business Journal | Subjects: Accounting, Finance

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brand relationships are useful because they help reduce the risk associated with purchasing decisions and help us create and communicate our identities to others.

Content: Quotation | Source: Ivey Business Journal | Subject: Brand