Business Leadership Skills 01 (Jul 09 - Feb 13)

[winston]

"If your goal is anything but profitability -- if it's to be big, or to grow fast, or to become a technology leader -- you'll hit problems."

Michael Porter

[kennynah]

if a corporation's goal is not ultimately profitability, then what is?

[winston]

if a corporation's goal is not ultimately profitability, then what is?

You are assuming that buinesses are always run in a business-like manner..

In big corporations, there's alot of BS ...

Some of those that I have heard includes:-
1) misuse of corporate jet
2) misuse of entertainment expenses
3) mini-vacations at resorts disguised as "brainstorming sessions" or "strategic meetings"
4) unnecessary consultant fees ( and later on, you hear of kick-backs )
5) learning a new culture and language on an expat contract ( 1 case even exceeded > 10 years )
etc.

And these happened in some of the largest companies in the world

[kennynah]

yeah...those abuses happen now and then...whether a business is operated in a efficient and productive manner is besides the point that their ultimate goal is always to make profits for the shareholders... no ?

if so, how can this statement make any sense?

"If your goal is anything but profitability -- if it's to be big, or to grow fast, or to become a technology leader -- you'll hit problems."

[winston]

Yes, their ultimate goal is to make SOME money for the shareholders. That does not mean that the guys running the corporations ALWAYS have shareholder's interest at heart and that all their decisions are business like..

Some other BS:-
1) stacking the board of directors with friends so that they would not object to the CEO's obscene compensation
2) manipulating the stock price just before the granting of stock options
3) backdating of stock options
4) using the corporation to further their personal interests
etc.

[iam802]

Enduring Ideas: The three horizons of growth

https://www.mckinseyquarterly.com/ghost ... rowth_2485

As companies mature, they often face declining growth as innovation gives way to inertia. In order to achieve consistent levels of growth throughout their corporate lifetimes, companies must attend to existing businesses while still considering areas they can grow in the future. The three horizons framework—featured in The Alchemy of Growth,1 —provides a structure for companies to assess potential opportunities for growth without neglecting performance in the present.

Horizon one represents those core businesses most readily identified with the company name and those that provide the greatest profits and cash flow. Here the focus is on improving performance to maximize the remaining value.

Horizon two encompasses emerging opportunities, including rising entrepreneurial ventures likely to generate substantial profits in the future but that could require considerable investment.

Horizon three contains ideas for profitable growth down the road—for instance, small ventures such as research projects, pilot programs, or minority stakes in new businesses.

....


The framework continues to be useful, especially in uncertain times. The immediacy of concerns around horizon-one businesses can easily overwhelm other efforts important to the future of a company. C-suite leaders can use the three horizons model as a blueprint for balancing attention to and investments in both current performance and opportunities for growth.

[kennynah]

Horizon one represents those core businesses most readily identified with the company name and those that provide the greatest profits and cash flow. Here the focus is on improving performance to maximize the remaining value.

Horizon two encompasses emerging opportunities, including rising entrepreneurial ventures likely to generate substantial profits in the future but that could require considerable investment.

Horizon three contains ideas for profitable growth down the road—for instance, small ventures such as research projects, pilot programs, or minority stakes in new businesses.


this is really the same as BCG...and BCG is this above...in a nutshell..

i like these "consulting" firms... say same things, charge different fees

[millionairemind]

Horizon one represents those core businesses most readily identified with the company name and those that provide the greatest profits and cash flow. Here the focus is on improving performance to maximize the remaining value.

Horizon two encompasses emerging opportunities, including rising entrepreneurial ventures likely to generate substantial profits in the future but that could require considerable investment.

Horizon three contains ideas for profitable growth down the road—for instance, small ventures such as research projects, pilot programs, or minority stakes in new businesses.


this is really the same as BCG...and BCG is this above...in a nutshell..

i like these "consulting" firms... say same things, charge different fees

haha.. How else then, to charge USD1500/day???

[winston]

haha.. How else then, to charge USD1500/day???

I think they charge US$400 per hour

[kennynah]

impressive charges....

just as impressive with your new title

Millionaire Boss = Winston