Bad Ideas: Shareholder Value Never Was Everything

first_imgThe headline in the New York Times reads, “Shareholder Value Is No Longer Everything, Top C.E.O.s Say.“The article goes on to say, “Nearly 200 chief executives, including the leaders of Apple, Pepsi and Walmart, tried on Monday to redefine the role of business in society — and how companies are perceived by an increasingly skeptical public.”“Breaking with decades of long-held corporate orthodoxy, the Business Roundtable issued a statement on “the purpose of a corporation,” arguing that companies should no longer advance only the interests of shareholders. Instead, the group said, they must also invest in their employees, protect the environment and deal fairly and ethically with their suppliers.”“Companies must also invest in their employees, deliver value to their customers and deal fairly and ethically with their suppliers, the group said.”In 2012, I wrote a post titled, “Getting Value Creation in the Right Order,” suggesting that this idea was one of the reasons people are not passionate about business. It puts the ends above the means and focuses on outputs before inputs. In a YouTube video in 2017, I described this idea as “the most” ridiculous idea in business.While these statements may be the result of our post-modern, sensitive-self emerging and producing a “more conscious” capitalism or a public relations campaign, I hope that it is a recognition of the sequence of value creation necessary to have a profitable and ethical enterprise.Short Term Decision-MakingImagine a small restaurant that sells soup. It is well recognized for its fantastic soup. The owner goes public and now has shareholders and institutional investors who are concerned with the business (this is a hypothetical, so go with me). The shareholders want an increase in the value of the enterprise, a higher stock price, and dividends (this is not hypothetical). To achieve these goals, the owner starts fiddling with the business.First, the owner waters down the soup to cut costs and increase the profit. That not being enough to please the shareholders, he reduces the staff in the restaurant and is now understaffed. The Owner mistreats employees, and they subject their customers the same experience. The owner asks for concessions from his food suppliers, and he pays his bills late, and only after being asked for months.The shareholder value is convex; it goes up for some time and then starts its decline as the customers and employees and suppliers all find something better to do with their time, as there is no end of competition. At some point, the owner of the restaurant starts cooking his books.Inputs Before OutputsThe profitability of an enterprise is a byproduct of certain inputs. Drucker said that a business exists to create a customer, and many believe that the customer should come first. There are, however, inputs that you have to take care of before you can take care of customers.Employees: Who exactly is creating value for your customers? A business is made up of a group of people. The more effective a company is at building a place where people are engaged, growing, psychologically safe, and doing good work, the better the result for the customers.Suppliers: No business is an island. To a greater or lesser amount, there are things a business needs to create its products or services. The better and stronger those relationships (call it the supply chain), the better the results. In many businesses, the right partners are as important as good employees.Customers: Referring to Drucker’s statement, this is why you start a business in the first place, to serve customers. The more value you create for customers, the more you will have over time. The more customers you have, the more revenue and profit you generate.If you treat the inputs like a means to an end, you may increase shareholder value and profitability for a short time, but it will be fleeting. If, however, you treat these inputs like they are the end themselves, you are likely to have a good and thriving enterprise.Increasing the Value of the EnterpriseThe value of the enterprise increases when you get the inputs right. Shareholder value increases when the enterprise thrives, when it grows, and when it generates a profit. These things don’t happen when the inputs are not taken care of, and when short-term decisions are made to maximize shareholder value.I have heard leaders and managers touting the need to create value for their shareholders in meetings, that statement being the very first line of their mission statement. On a rare occasion, I have heard an employee parrot those words, maybe without really knowing what they were saying or why.What I have never heard is someone say, “Look, we all have to work hard to make money for people who have a lot of money already, as well as the nameless, faceless investors who are counting on us making them rich.” A statement like this might do something less than inspire individuals to give themselves over to the cause.If you think of business as a form of competition, those who do the best at taking care of employees tend to have a competitive advantage in markets. They tend to create more value for customers. Building great relationships with their suppliers also does a lot to provide certainty and the kind of partnerships that allows for greater value creation over time. Any money that shows up in the company coffers comes from customers who decide for themselves whether you deliver value.Nature has a way of forcing one to obey its laws. Reality doesn’t bend to your wishes or preferences. True shareholder value is the natural byproduct of getting the inputs right.Shareholder value has never been everything. The best leaders have always known and demonstrated they believe otherwise by focusing on the inputs and allowed the outputs to care of themselves. The scoreboard always reflects how well you are playing the game. Anything short of playing well is an attempt to cheat reality. Essential Reading! Get my first book: The Only Sale Guide You’ll Ever Need “The USA Today bestseller by the star sales speaker and author of The Sales Blog that reveals how all salespeople can attain huge sales success through strategies backed by extensive research and experience.” Buy Nowlast_img read more

Golay wins, BJP-SKM alliance sweeps bypoll in Sikkim

first_imgThe BJP-Sikkim Krantikari Morcha alliance has swept the bypolls in Sikkim, winning all the three Assembly seats that went to the polls. Sikkim Chief Minister and SKM candidate P.S. Golay won the Poklok Kamrang seat securing about 84% of the votes. Mr. Golay secured 10,585 votes, while his nearest rival Moses Rai of Sikkim Democratic Front (SDF) secured 1,858. The victory has firmly cemented Mr. Golay as Chief Minister of Sikkim. Mr. Golay could not contest the Assembly polls earlier this year because of conviction in a corruption case. The term of his disqualification to contest polls was subsequently reduced by the Election Commission of India. At Martam Rumtek Assembly seat in East Sikkim, BJP candidate S.T. Venchungpa won by securing 8,010 votes, while N.K. Bhutia of the SDF secured 2,033 votes. BJP candidate Y.T. Lepcha won the Gangtok Assembly seat, securing 2,492 votes. Former Indian football captain and Hamro Sikkim working president Bhaichung Bhutia, who also contested from Gangtok, finished fourth after securing 578 votes. The bypolls were necessitated after the State’s former Chief Minister Pawan Kumar Chamling, D.T. Lepcha and Kunga Nima Lepcha vacated the Poklok Kamrang, Martam Rumtek and Gangtok seats respectively after winning two seats each during the Assembly poll held in April.last_img read more

Sport Programs Coordinator

first_imgTouch Football Australia (TFA) invites applicants to fill the new position of Sport Programs Coordinator in the TFA Adelaide Office.  This is an ideal opportunity for a motivated individual interested in pursuing a career in high performance, sport program delivery or an ongoing career in sport management.The position will coordinate and drive the delivery of various programs associated with the core activities of Touch Football South Australia including:o    Affiliate Service o    Technical Developmento    High Performance/Eliteo    Junior Developmento    Communication o    EventsA Job Description including selection criteria is available at: COB Thursday, 16 October 2008, applicants should email a two page letter of introduction addressing qualifications and experience as they relate to the selection criteria, together with a resume containing contact details of referees to  Employment will be subject to conditions as outlined in the TFA Certified Agreement.Further information: Garry Foran, Commercial Operations Manager (02) 6212 2800 Related Filessport_operations_positions-pdflast_img read more

Over 400000 in illegal drugs from Bimini found

first_img#MagneticMediaNews#illegaldrugsfoundinBimini#bigdrugbustinBimini Facebook Twitter Google+LinkedInPinterestWhatsApp Related Items:#bigdrugbustinBimini, #illegaldrugsfoundinBimini, #magneticmedianewscenter_img Facebook Twitter Google+LinkedInPinterestWhatsAppBahamas, March 21, 2017 – Nassau – Nearly half a million dollars in illicit drugs were seized over the weekend in Bimini.  In one case, 191.5lbs of marijuana was seized, that has a street value of $191,000 say authorities.  A 54 year old man is in custody a raid on Sunday at a house in South Bimini.Also in Bimini but in a separate arrest, 20lbs of cocaine and 10lbs of marijuana were discovered; the cocaine is said to be worth $225,000, while the marijuana is valued at $10,000.  The latter arrest was made on the seas when a vessel was searched; 42 and 43 year old men were taken into custody for the bust.   Some $420,000 in drugs from the tiny twin island of Bimini alone was netted by authorities this past weekend.Photo credit: Jones Communicationlast_img read more

CPH Breaks Ground On Sixth Phase Of The Hospital Expansion Project

first_imgAs part of its long term capital plan, Central Peninsula General Hospital, Inc. has identified a need for a new obstetrics and cardiac catheterization laboratory at the hospital. According to the project plan, the Obstetrics Lab would consist of a building of approximately 30,000 gross square feet that provides obstetric services with a C-section room, five labor/delivery/recovery rooms, and four postpartum rooms. The construction is expected to be complete by November 2019. The Cardiac Catheterization Lab will consist of six pre/post-operative rooms, three new intensive care patient rooms, site improvements to accommodate increased parking, a new heated helipad and improved truck delivery area; and, full or partial remodel and/or replacement of areas impacted by the construction including preoperative clinic, physical rehabilitation, cardiopulmonary, pharmacy, outpatient lab, dietary, and several offices.center_img The CPH expansion project started back in 2003. The next phase will add a new obstetrics center and a cardiac catheterization lab.The project is estimated to cost approximately $32 million dollars. According to the memo to the Borough, funding will be provided by the CPH plant replacement expansion fund, and the issuance of revenue bonds. Facebook0TwitterEmailPrintFriendly分享Central Peninsula Hospital held a groundbreaking ceremony on Friday, June 22, to mark the beginning  of the sixth phase of the CPH expansion project.last_img read more

Newsweek to Cut a Dozen Staffers

first_imgIt may seem like small potatoes compared to the massive rounds of layoffs that have rocked publishing houses like Condé Nast and Time Inc. in recent weeks, but it appears that Newsweek is bracing for another round of job cuts.According to a memo from the magazine’s top editor Jon Meacham, “about a dozen” positions will be eliminated. “As much as we would like it to be otherwise, market conditions mean that we are going to have to do our work with fewer people,” he wrote.A Newsweek spokesperson did not immediately return a request for comment. Late last year, FOLIO: reported that Newsweek was considering a major overhaul, including a dramatic reduction in rate base. In May, the magazine unveiled a redesign and an editorial shift from news to news analysis.Through the first nine months of 2009, Newsweek saw ad pages fall 29.2 percent, according to PIB figures. Through the third quarter, Newsweek parent the Washington Post Co. reported a $29.7 million operating loss for its magazine publishing division (which includes Budget Travel magazine), compared to a loss of $27 million during the same quarter last year.Newsweek reduced its workforce by 44 people during the first quarter as a result of a voluntary retirement incentive the company offered in late 2008.Below is Meacham’s entire memo, via Politico:To the Staff From Jon Meacham This has been a tough day for the magazine. Because the economic climate in publishing has become ever more difficult, we have been compelled by business considerations to eliminate about a dozen positions. We are parting company with colleagues who have done much to serve the magazine and its readers. As much as we would like it to be otherwise, market conditions mean that we are going to have to do our work with fewer people. I have no spin to offer. I will say this, though: our new magazine and website have been well received by readers. The different direction we undertook earlier this year continues to appear promising in terms of building and retaining an engaged audience that we hope will be attractive to advertisers while we, like so many other organizations, seek new sources of revenue in order to fulfill our mission. Our situation is not unique. But we will keep working as hard as we can to find solutions that are. In the meantime, thanks to you all for the work you have done and will do. To those who are leaving, we will miss you, and we wish you the very best.last_img read more

Amazon launches free adsupported music service for Alexa devices

first_img Smart Home Mentioned Above Google Home News • Black Mirror season 5 has three new trailers to stress you out today Preview • For your consideration: Google Home seeks employment as your family’s Rosie the robot Walmart 0 Google Home $69 Crutchfield See It $79 Post a commentcenter_img See It The service is geared toward customers who own Alexa-enabled devices, like the Echo Dot, but aren’t Prime members or subscribers to Amazon Music Unlimited. Ben Fox Rubin/CNET Amazon on Thursday launched a new music service for its Alexa devices that’s free to use but includes ads.The service, available starting today in the US, will provide access to top Amazon Music playlists and thousands of stations. It’s specifically geared for customers who own Alexa-enabled devices but aren’t Prime members or subscribers to Amazon Music Unlimited.Amazon’s Prime membership service, which costs $119 annually, includes access to a library of more than 2 million songs and thousands of stations and playlists. Amazon Music Unlimited, which starts at $7.99 a month, offers over 50 million songs.With music being one of the primary uses for smart speakers, like the Alexa-powered Echo devices, it makes sense for Amazon to offer more ways to give Echo owners access to songs. After starting folks off on the limited library available for free, Amazon could convince some of them to transition over to a paid service, such as Prime or Music Unlimited.Alexa already works with a variety of other free and paid music services, including Spotify, Pandora and Apple Music.To use the new service, non-Prime customers can cue up a station based on a song, artist, era or genre, saying commands like, “Alexa, play ’80s music” or “Alexa, play the playlist Pop Culture.”Google on Thursday launched a similar service for its Google Home smart speakers, letting users access an ad-supported free tier of YouTube Music. Share your voice Review • Google Home is better than ever, but you probably shouldn’t buy it CNET may get a commission from retail offers. $99 How To • Make Google Home get your groceries Tags See it Alexa Amazon Voice recognition Googlelast_img read more

Aliens in skies Pulsating UFOs spotted above England sparks fear

first_imgYouTube: MavixxxMavixxx, a popular conspiracy theory YouTube channel, has been uploading videos featuring UFOs over the past few months. Now, the conspiracy theorist has released very mysterious footage that shows multiple flying objects hovering in the skies of England.In the video, the conspiracy theorist revealed that the strange clip was captured on June 20, 2019. However, the exact location where these UFOs appeared still remain unclear.Interestingly, the objects appeared in the video seems pulsating, and at times, they even tried to align in a formation.As the video uploaded by Mavixxx went viral on YouTube, many of his users argued that these are signs of an imminent alien disclosure. These alien enthusiasts believe that governments all across the world and space agencies like NASA and ESA have been covering up bitter facts about aliens for years, but now, they are all set to disclose the secrets surrounding extraterrestrial life.A section of other conspiracy theorists argued that these glowing UFOs are alien scout ships that usually appear on the earth before an invasion.”The great deception is certainly upon us,” commented HonoredShadow, a YouTube user.”The ships overhead changing patterns, disappearing, are telling of disaster coming to the viewing area. This will be by nature and affect man. anyone see/know something different? Just My speculation from past sightings before the great change,” commented Roxie Early, another YouTuber.However, sceptics are not convinced of these explanations. As per these sceptics, the bizarre objects that appeared in the skies of England are nothing but drones, and there is nothing mysterious about it.”In the age of the drone, all bets are off,” commented Cereberus 7, a sceptic.A few days back, Mavixxx had uploaded another creepy video that showed a seemingly metallic disc-shaped flying object speeding above the skies of Orange County, California. This video had also gone viral on the internet, and many people considered it proof of extraterrestrial existence.last_img read more

Missing schoolgirl found lying grievously injured on road

first_imgKolkata: In yet another horrific display of atrocity on minors, a Class IX student of a school in South Kolkata was found unconscious at Golf Garden area on Friday morning with injury marks on various parts of her body. She has been fighting for life at MR Bangur Hospital. She had gone missing while going to school on Thursday.Her school uniform was found torn and there were blood stains on her clothes. According to the circumstantial evidence, police suspect that the teenager might have been raped and also beaten up by the assailants. Also Read – Heavy rain hits traffic, flightsA woman, who was passing through a narrow lane near BD Memorial School on Friday morning to deliver newspapers, spotted the girl lying on the road. Her school bag was also found next to her, containing some clothes. The woman immediately drew the attention of the local residents, who rushed to the spot and took the victim to MR Bangur Hospital where she has been fighting for life. The doctors are examining to ascertain whether the girl was raped before she was thrashed and dumped on the road. Also Read – Speeding Jaguar crashes into Merc, 2 B’deshi bystanders killedPolice said that the narrow lane where the girl was found connects two residential apartments in the area and it often remains desolate. Police are also investigating to know when the assailants had dumped her on the lane.Local people alleged that she had been raped before being dumped on the lane. Police have recovered a locket and a chain from the place.Police were unable to record her statements as her condition has been stated to be serious. According to the police, the victim is a resident of Jadavpur and studies in a school in Tollygunge. She did not return home from school on Thursday afternoon. She was supposed to go to a private tuition class at Kalabagan area after returning. As she did not come home, her family members believed that she had gone to the tuition class directly from the school. As the victim did not return in the evening, her family members started a search operation. After failing to get any trace of her, they registered a complaint at the local police station at around 11 pm on Thursday.The family members told police that she had stepped out of the house at around 10 am on Thursday, for going to school. According to the preliminary investigation, police came to know that the victim did not go to school on Thursday. The investigators believe that she might have been abducted while going to school.Police are going through the CCTV footages in the nearby areas to identify the culprits. They suspect that she was dumped in the area in the wee hours of Friday. There were several injuries on her forehead and other parts. Police said that the girl used to live with her grandparents. The investigators are waiting for the medical report of the victim.last_img read more

Citi Emirates boost partnership

first_imgCiti Group and Emirates Airlines have boosted their credit card partnership and have launched the new Emirates Citibank World MasterCard.The MasterCard confers many Emirates benefits including a chauffeur driven ride per year to and from the airport and two complimentary lounge passes per year for any Emirates Lounge in Australia (when travelling in economy) as well as MasterCard benefits including hotel and car rental upgrades and on-call concierge service.Citi’s head of cards, Alan Machet said the bank was happy to expand their partnership with Emirates.“Citi’s partnership with Emirates brought Australian travellers the first co-branded credit card launched by an overseas-based airline,” Mr Machet said.“Since its launch in 2008, our clients have earned Skywards Miles equivalent to thousands of overseas trips with Emirates, and enjoyed a range of premium travel and lifestyle benefits.”The Emirates Citibank World MasterCard features uncapped Emirates Skywards Miles earning and competitive earning rates.New cardholders receive 15,000 bonus points Skywards Miles on their first spend, plus 25,000 Skywards Miles if they spend AUD $6000 in the first 3 months from account approval.Source = ETB News: Tom Nealelast_img read more