We need backers who watch and wait; I admire those entrepreneurs who have the indefatigable energy to stick with a radical project through thick and thin. They must possess both a sense of urgency and superhuman persistence

February 18, 2014 3:50 pm

We need backers who watch and wait

By Luke Johnson

Lots of young founders expect lightning progress and startling pay-offs within a short timeframe

Anyone who knows me is aware that I’m an impatient fellow. But the odd thing is that I’ve chosen a career where patience is essential.

I buy part of a company, nurture it and wait. At heart, capitalism is essentially the deferral of rewards. Instead of working and receiving a monthly salary, investors in private companies risk their funds and hope for a capital gain, perhaps half a decade hence. Usually such companies are expanding and need to reinvest their earnings. They cannot even pay an income to the owners in the meantime. Read more of this post

Attempts to count a nation’s assets date back to the Bible. But the Enlightenment saw the first efforts to do so in a precise way

Book Review: ‘The Leading Indicators,’ by Zachary Karabell

Attempts to count a nation’s assets date back to the Bible. But the Enlightenment saw the first efforts to do so in a precise way.

JOSEPH STERNBERG

Feb. 18, 2014 6:45 p.m. ET

China is in an economic swoon at the moment, if you believe some recent readings suggesting that industrial activity is slowing. Investors in Japan were spooked last month by a record trade deficit in 2013. Closer to home, economists debate quarterly GDP numbers in the U.S. to determine how the current recovery compares with those in the past. Read more of this post

Strategy and the Strategist: How it Matters Who Develops the Strategy

Strategy and the Strategist: How it Matters Who Develops the Strategy

Eric Van den Steen 

Harvard Business School – Competition & Strategy Unit
December 14, 2013
Harvard Business School Strategy Unit Working Paper No. 14-057

Abstract: 
This paper studies how strategy – formally defined as ‘the smallest set of (core) choices to optimally guide the other choices’ – relates to the strategist, for example, whether an optimal strategy should depend on who is CEO. The paper first studies why different people may systematically consider different decisions ‘strategic’ – with marketing people developing a marketing-centric strategy and favoring the marketing side of business – and derives two rational mechanisms for this outcome, one confidence-based and the other implementation-based. It then studies why it matters that it is the CEO and important decision makers (rather than an outsider) who formulate the strategy and shows that outsider-strategists often face a tradeoff between the quality of a strategy and its likelihood of implementation, whereas the CEO’s involvement helps implementation because it generates commitment, thus linking strategy formulation and implementation. In some sense, the paper thus explains why strategy is the quintessential responsibility of the CEO. Moreover, it shows that the optimal strategy should depend on who is CEO. It then turns that question around and studies strategy as a tool for exerting leadership, asking when the set of strategic decisions are exactly the decisions a CEO should control to give effective guidance. It finally shows how a CEO’s vision, in the sense of a strong belief, about strategic decisions makes it more likely that the CEO will propose a strategy and that that strategy will be implemented. But strong vision about the wrong decisions, such as subordinate or others’ decisions, may be detrimental to strategy and its implementation.

The Other Factor that Makes an Idea Spread

The Other Factor that Makes an Idea Spread

by Julianne Wurm  |   11:00 AM February 17, 2014

How do ideas spread? Previous research has focused on what happens to the sharers of an idea: what emotions they feel, what types of content inspire them to share (practical, funny, “sticky” and so on). And it is true that from memetics to mirror neurons to social contagion, it is likely that for any given idea, multiple factors are involved.  And yet the role of content seems to get all of the focus.  There are scores of books written about how to make your content “go viral” or “become contagious” and take on a life of its own. We seem to overlook — or at least undervalue — the role of the person delivering the idea: the carrier. Read more of this post

32 American Presidents Share Their Best Life Advice

32 American Presidents Share Their Best Life Advice

LYDIA DALLETT STRATEGY  FEB. 17, 2014, 11:25 AM

Some of them hated it. Some of them loved it. All of them learned from it.

Since George Washington’s inauguration, 44 men have occupied the White House to perform one of the most difficult jobs in the world. Some defined their terms with great accomplishments or grave misjudgments; others barely made a mark on history. Yet all strove to fulfill their mandate to the best of their abilities and live up to the incredible expectations placed upon them. Read more of this post

An investment banker at JP Morgan jumped to his death from the roof of the bank’s headquarters in HK’s Central yesterday

Investment banker jumps to death from JP Morgan’s headquarters in Central

Tuesday, 18 February, 2014, 4:49pm

George Chen, Clifford Lo and Jeanny Yu

An investment banker at JP Morgan jumped to his death from the roof of the bank’s headquarters in Central yesterday.

Witnesses said the man went to the roof of the 30-storey Chater House in the heart of Hong Kong’s central business district and, despite attempts to talk him down, jumped to his death.

Out of respect for those involved, we cannot yet comment further. Our thoughts and sympathy are with the family that’s involved at this difficult time Read more of this post

Lee Hsien Loong on What Singapore Can – and Can’t – Teach China; Prime minister discusses the city-state’s efforts to fight graft, build institutions and set economic policy – and the ways it is and isn’t an example for China

02.17.2014 14:57

Lee Hsien Loong on What Singapore Can – and Can’t – Teach China

Prime minister discusses the city-state’s efforts to fight graft, build institutions and set economic policy – and the ways it is and isn’t an example for China

By staff reporters Hu Shuli and Zhang Hong

(Singapore) – As one of the Four Asian Tigers, Singapore is known for its strong economy and orderly society. The city-state, with its population of 5.3 million people, is listed by the World Bank as No. 4 in the world in terms of per capita income. As a regional business hub, it is lauded for its sound business reputation and the transparency of its government. Read more of this post

Do you have the “good” kind of perfectionism? The right kind of perfectionism drives you toward success; the wrong kind shackles you with self-doubt. To spot the difference, we’ll need to investigate the blemishes in both

DO YOU HAVE THE “GOOD” KIND OF PERFECTIONISM?

THE RIGHT KIND OF PERFECTIONISM DRIVES YOU TOWARD SUCCESS; THE WRONG KIND SHACKLES YOU WITH SELF-DOUBT. HERE’S HOW TO SPOT THE DIFFERENCE.

BY DRAKE BAER

The right kind of perfectionism drives you toward success; the wrong kind shackles you with self-doubt. To spot the difference, we’ll need to investigate the blemishes in both.

Psychologists call the productivity-stifling kind of perfectionism evaluative concern perfectionism: it has self-consciousness at its center, marked by a profound concern for how others see you. As psych writer Alex Fradera reports, this leads to high levels of hassle and distress in people’s lives–and the use of avoidance as a way of dealing with problems. Because the evaluative perfectionist is so concerned with making mistakes in someone else’s eyes, they put off any tasks that might make those mistakes possible. Read more of this post

The Critical Few: Components of a Truly Effective Culture; Forget the monolithic change management programs and focus on the elements of your culture that drive performance

February 11, 2014 / Spring 2014 / Issue 74

The Critical Few: Components of a Truly Effective Culture

Forget the monolithic change management programs and focus on the elements of your culture that drive performance.

by Jon Katzenbach, Rutger von Post, and James Thomas

Sometimes corporate culture manifests itself in a make-your-own-taco party in the office kitchenette. Sometimes you can see it when an outdated phone bank is converted into an on-site ice cream shop. And sometimes it’s on display when senior leaders pick up paintbrushes to turn formerly bland office walls into electric blue work spaces. These are examples of the “Culture Blitz” at work at Southwest Airlines Company, where a 40-year culture is still going strong and is further invigorated by traveling teams who volunteer every year to visit hundreds of employees to show their appreciation. And it’s infectious. Read more of this post