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We Tracked Every Dollar 235 U.S. Households Spent for a Year, and Found Widespread Financial Vulnerability

Harvard Business

The lack of access to stable, predictable cash flows is the hard-to-see source of much of today’s economic insecurity. Financial Diaries (USFD), an unprecedented study to collect detailed cash flow data for U.S. And employers and government do less to buffer individual families from the resulting ups and downs.

Cash Flow 136
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Economies of Scope - Tom Spencer consulting blog

Tom Spencer

Economies of scope exist where a firm can produce two products at a lower per unit cost than would be possible if it produced only the one. With the Euro-zone at the brink of collapse, governments and business leaders may be well advised to revisit basic concepts like ‘economies of scope’. Importance. Economies of Scope.

Cash Flow 117
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China Faces "Minsky Moment" on Ponzi Financing

MishTalk

Gross Domestic Product (GDP) growth to 5.0% There is evidence that this debt growth has become excessive and non-productive. After the massive stimulus and more than doubling of new bank loans in 2009, the government attempted to stabilize credit growth, but the growth of the shadow banking system exploded instead.

Finance 75
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Is Corporate Short-Termism Really a Problem? The Jury’s Still Out

Harvard Business

If they do, as many CEOs believe, this is a serious indictment of current corporate governance arrangements and has important policy implications. McKinsey has a new study out on an important topic — the question of whether corporations systematically take too short a view and do not invest enough for the long term.

McKinsey 118
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Navigating a Downturn: Strategies for Business Resilience

Tom Spencer

Although it is fairly common for a successful business to generate 80% of its profits from 20% of its products, relying heavily on a small number of products, services, or markets exposes a business to significant risk. Diversify Revenue Streams One fundamental strategy for business resilience is to diversify revenue streams.

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How Incentives for Long-Term Management Backfire

Harvard Business

But one other big factor has been hiding in plain sight: The efforts of corporate-governance activists and proxy advisers, empowered by the “Say on Pay” votes mandated by Dodd-Frank reforms, to stress transparency and pay for performance. One milestone might include completion of prototype-level next-generation digital products.

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How Well Do Your Policies Create Desired Outcomes and Trust?

Johanna Rothman

If you don't manage your cash flow, a lack of cash will kill your business. And, because I needed the signoffs as part of our governance, I wasted a day getting people to sign. Ask these questions about your current policies: How much value does this policy add to the products and services we sell?