How to Treat Customers Right: Winning the Channels Challenge

The proper care and feeding of customers is a hot topic these days. Whether the discussion goes under the name customer satisfaction, zero defections, loyalty or intimacy, the customer issue has pushed its way to the top of the agenda for a growing number of C.E.O.’s.Yet despite all that attention, surprisingly little is said about a core problem many a chief executive faces: how do … [ Read more ]

Along the Infobahn: Data Warehouses

“What sets a data warehouse apart from other databases is that the information it contains is not used for operational purposes, but for analytical tasks – everything from identifying new market segments to corporate brainstorming.” If this sounds incredibly obvious to you, you probably won’t get any value from this overview of data warehouses, data marts, data minining, etc. If you are new … [ Read more ]

Toward a New Business Model

Authors contend that the current business model, which arose in the mills of Britain more than a century ago and has evolved ever since, is no longer sufficient for these times. They claim to propose a “new” business model (see comments).

Whither Germany? Whither Europe? An Interview with Prof. Norbert Walter

This piece is a little dated (1996) but it discusses some general issues regarding the German economy and culture that will be of interest to those with little background. Norbert Walter is (was?) Chief Economist with Deutsche Bank Group.

Dynamic Competitive Simulation: Wargaming as a Strategic Tool

Drawing on military wargames to simulate battlefield conditions, commercial wargaming simulates a set of business conditions and challenges executives to design successful strategies that are able to evolve with the changing nature of the environment. In a corporate war game, senior managers play their own company, a select group of their competitors and the marketplace. A control team plays all other entities that affect the … [ Read more ]

Defining Moments: When Managers Must Choose Between Right And Right

Thoughtful managers sometimes face business problems that raise difficult questions. Sometimes these questions are matters of right versus right, not right versus wrong. There are three basic types of right-versus-right problems: those that raise questions about personal integrity and moral identity; conflicts between responsibilities for others and important personal values; and, perhaps the most challenging, those involving responsibilities that a company shares with … [ Read more ]

Toward a New Theory of Growth

Dismissing the conventional wisdom linking revenue growth and shareholder value as only partially accurate and potentially misleading, the authors advance preliminary ideas on a new theory of growth – part of an ongoing research effort at Booz-Allen & Hamilton. In fact, they identify two fundamentally different paradigms, calling them Managed-Growth and Innovative-Growth.

The Added-Value Theory of Business

Authors offer a theory of business – creating value that can be captured is the essence of business. The basis of this concept is the idea of added value, a term derived from game theory.

The Next Wave: Re-engineering for Growth

This is a detailed examination, with a case study, of how “re-engineering for growth” should work now that classic business process re-engineering (B.P.R.) has run its course. The first wave of re-engineering emphasized cost. The next wave focuses on creating value and repositioning companies to capture future opportunities.

The authors cite three basic principles for the post-B.P.R. organizational and operational approaches:
1) Enhance … [ Read more ]

Why Community Relations Is a Strategic Imperative

Authors, from the Center for Corporate Community Relations at Boston College, argue that in addition to becoming the investment of choice, a company must become the supplier of choice, the employer of choice and a “neighbor of choice.” Included is an 11-step best-practices blueprint for implementing the neighbor-of-choice strategy

Stan Shih

founder and chairman of the Acer Group

Getting the Compensation Structure Right in the Mutual Fund Industry

Authors take a look at how money managers get compensated and whether these compensation schemes provide managers with the incentive to act in the investors’ best interests. Their research concludes that certain money managers, due to the generally accepted method of compensation in the mutual fund industry, are likely to increase their portfolio’s risk level in an effort to improve their chances of receiving … [ Read more ]

Stock-Based Compensation and the Cost of Capital

Article discusses the controversy of whether companies should estimate the present value of employee stock options, when granted, and then account for them as a current expense. Though the article is a little dated (referring to an old FASB proposal), the issues addressed continue to be relevant.

Balanced Purchasing

Short article centers on a traditional 2×2 consulting matrix for purchasing, with the price as the x-axis and cooperation as the y-axis. This high-level analysis is interesting in that it was published in early 1996 before the huge SCM craze.

Editor’s Note: This is part 1 of a 3-part series.
Part 2: “Systems, Modules or Components? New Light on Purchasing”
Part 3, “Setting Supplier … [ Read more ]