Aaron Gilcreast and Larry Jones

Total shareholder return is typically analyzed as the sum of price appreciation and dividend payouts over a given time period. But this analysis is problematic, because both of these component metrics represent the allocation, not the source, of created business value. They don’t explain what created the value that drove the share price higher or generated the cash needed to pay a dividend.

The actual drivers … [ Read more ]

Aaron Gilcreast and Larry Jones

Intrinsic value is a forward-looking measure of the fundamental worth of a business. Defined as the present value of future cash flows generated by assets, it is a truer reflection than shareholder returns of the value of your strategies and your ability to execute them. When you use intrinsic value instead of TSR to guide decision making, you are less likely to worry about the … [ Read more ]

Aaron Gilcreast and Larry Jones

Share price matters, as do your shareholders. But your share price is, by its nature, an output: a complex, rolled-up reflection of company performance, conjecture, fickle asset-class preferences, risk appetite, ownership mix, supply–demand equilibriums, and fluid expectations held by millions of shareholders who can change their minds in a millisecond. Good luck trying to manage that.

Moreover, your share price is subject to a more fundamental … [ Read more ]

Ryan Patrick Hanley

We should fear … “men of system,” as [Adam Smith] calls them, who insist they have all the answers and are ready to run roughshod over the self-interests of the other individuals in a company — or in society.

If Cash Is King, Why Doesn’t It Rule?

With tax rules changing and interest rates set to rise globally, companies need to organize their operations around a new value equation.

How Fearless Organizations Succeed

Amy Edmondson describes three steps leaders can take to create psychological safety, the prerequisite for greater innovation and growth.

The Bionic Company

Businesses need to develop their behavior, cognitive, and network capital so they can create and capture value that competitors can’t erode.

When Cultural Values Lead to Groupthink, the Company Loses

As a business shapes its public reputation, hidden conflicts can undermine its effectiveness.

The Four X Factors of Exceptional Leaders

Understanding what differentiates a great leader from a good leader will help companies make the right choices for the top jobs.

How to Build a Stronger Economy

Jim Clifton, chief executive of Gallup Inc., has a robust theory about entrepreneurialism and economic recovery.

How Women Can Succeed by Rethinking Old Habits

Everyone has self-limiting behaviors; this is simply part of being human. But our combined six decades of professional experience coaching and working with women in virtually every sector have taught us that even women at the highest levels can undermine themselves with specific self-sabotaging behaviors that are different from those that most frequently undermine men.

Expertise, connections, and personal authority are all non-positional kinds of power … [ Read more ]

How Your Hiring Process Could Predict Unethical Behavior

Carnegie Mellon professor Taya Cohen explains the connection between moral character and workplace performance

The Leadership Maker Movement

Rarely a day goes by without news about the maker movement — the DIY culture of hackers and traditional crafters that, with advances in 3D printing, is producing a dizzying range of items. An analogous revolution is also underway in how we adapt organizations for the fast-changing contexts in which they must operate. I call it the leadership maker movement.

After observing companies and speaking with … [ Read more ]

The Real Value of Your Company

When your company establishes a credible long-term strategy — including a way to play in the market and the capabilities to deliver — it sets up a high level of certainty. In valuation terms, your market value (your shareholders’ expectations) will more closely reflect your intrinsic value (the profits you consistently create). This is a tremendous source of strength, but it also triggers the paradox … [ Read more ]

Duff McDonald

Each year, scores of management books claim significant new scientific findings in the pursuit of an unchanging goal: how to perform better, both individually and in groups. But most of those so-called findings are neither scientific nor new. The majority of management writers simply offer up freshly tossed word salads in hopes of coining that year’s business buzzword.

How to Banish Bad Habits from Your Company

Freek Vermeulen explains why unhelpful practices go unnoticed and suggests how rooting them out can help innovation.

Sally Helgesen

The design of defaults is thus of great importance. And that importance is only magnified by the flawed nature of human decision making. Although lawmakers, economists, and providers of healthcare and social services used to assume that people based decisions on their own rational self-interest, seven decades of behavioral data have demonstrated that this is rarely true. In reality, people are influenced by random factors … [ Read more ]

Jeremy Rifkin

Aggregate efficiency is the ratio of potential work to the actual useful work that gets embedded into a product or service. The higher the aggregate efficiency of a good or service, the less waste is produced in every single conversion in its journey across the value chain.

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Traditional economics says you increase productivity by investing more capital in better machines and by providing better-performing workers, all … [ Read more ]

Jeremy Rifkin

Let’s step back for a moment and consider how the great economic transformations in history occur. There have been a number of them in world history, and they all have a common denominator. At a single historic moment, the same three defining technologies emerge and converge to create a new general-purpose technology infrastructure. They fundamentally change the way society manages, powers, and moves economic activity. … [ Read more ]

How to Find and Engage Authentic Informal Leaders

Authentic informal leaders (AILs) are not people in your organization who have been endowed with formal authority by title or by memo. Rather, they possess and exhibit certain leadership strengths such as the ability to do something important well and showing others how to do it (exemplars), or they demonstrate the skill of connecting people across the organization (networkers). Some AILs influence behavior by being … [ Read more ]