Relative success in FAMILY FIRMS There are important lessons to be learnt from the surprising resilience of family firms
The proportion of Fortune 500 companies that can be described as family companies increased from 15% in 2005 to 19% today. That is largely because of the rise of emerging economies, in which family firms are more common. But even in the rich world family companies are these days holding their own.
Family firms’ strengths, meanwhile, are just as important today as they were in the early days of capitalism. They solve the “agency problem” that Adam Smith put his finger on in “The Wealth of Nations” when he argued that hired managers would never have the same “anxious vigilance” in running companies as the owners. Family managers are often parsimonious: companies such as Walmart, Koch Industries and Mars & Co are famous for running a tight ship with humble headquarters, lean management and an obsession with operational efficiency.
The remarkable record of the best family firms should remind millions of business owners that, in the corporate world at least, you do not have to surrender family control in order to prosper.
The country’s economy once again holds promise. To make the most of it, companies must identify growth opportunities at a granular level.
Understanding India’s economic geography
To get the most from this granular approach, companies need to develop customized strategies for each geographic sliver. To do so, they must map priority geographic segments to product categories and extensions.
Switzerland has the highest board fees in the world, the high fees are justified if you want to get the best people. If you pay peanuts you get monkeys.”
Partly due to the mighty franc, and partly a function of the nation’s extremely high salaries in general, the median compensation for board directors, which includes board fees, payment in shares, as well as bonuses and pensions for executive board members, is about 58 percent higher for Swiss companies than in the rest of Europe
The expectations of a board member have increased dramatically over the last decade, the world has changed, director jobs in Switzerland extending beyond supervising to leadership and strategy. The tasks of Swiss boards, especially at financial companies, are time intensive
With a average pay of $1.2 million per director, UBS’s board gets the highest pay of any company in the the Stoxx Europe 50.
Up until now, Swiss boards have had sole discretion over their own pay setting — that will all change
Microsoft has launched its first wearable called the “Microsoft Band”.
The wrist-worn device can track pulse rate, steps taken, calories burned and sleep quality.
The band will be available in the U.S. starting today for $199, and will work on iPhones and Android smartphones, as well as its own Windows Phone.
The device will connect with a new app called “Microsoft Health”, which will include a cloud service for users to store and combine health and fitness data.
Keep in mind how earnings estimates are created.
Both company executives and brokerage analysts are doing their best to create conservative estimates that the company should easily beat. And when they fall short of those watered down estimates, then it points to one of two serious problems.
• Industry conditions have deteriorated and thus they missed their forecasts. This problem will most likely not correct itself in the near-term, leading to further disappointment.
• Company leaders are incompetent. Meaning that they are no good at estimating their own earnings. Or that their strategies for growth are ineffective.
QE ended; the world did not.
As expected, the US central bank concluded its quantitative easing bond-purchasing program (The jury is still out on whether QE helped the recovery). The Fed also made Wall Street queasy by signalling that it might hike rates sooner than expected, but the damage was minor
“Our research suggests that when unemployment falls below 6 percent and then declines from there, that’s when you get wage gains. If we see wages pick up I think we’ll see the Federal Reserve move further, toward the hawkish side. I don’t think the bond market is priced for what the Fed is going to do next year.”
NEW PEOPLE DIGITAL ECONOMY TIME OVER, future smart companies have to do this
The current model of talent management is recruit, train, manage, retain and evaluate the performance of employees. In the future smart companies won’t do any of this
1. Don’t Recruit: Initiate Relationships and Engage The Best Talent.
2. Don’t Train: Create Work-Learning Environments.
3. Don’t Manage: Collaborate.
4. Don’t Retain: Evolve Lasting Relationships.
5. Don’t Do Annual Reviews: Improve Performance Real-time