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STRATEGY
IN THE AGE OF
SUPERABUNDANT
CAPITAL
MONEY IS NO LONGER A SCARCE RESOURCE.
THAT CHANGES EVERYTHING.
BY MICHAEL MANKINS, KAREN HARRIS,
AND DAVID HARDING
66 HARVARD BUSINESS REVIEW MARCH–APRIL 2017
most of the past 50 years, business leaders viewed fi-
nancial capital as their most precious resource. They
worked hard to ensure that every penny went to fund-
ing only the most promising projects. A generation
of executives was taught to apply hurdle rates that
reflected the high capital costs prevalent for most
of the 1980s and 1990s. And companies like General
Electric and Berkshire Hathaway were lauded for the
discipline with which they invested.
Today financial capital is no longer a scarce
resource—it is abundant and cheap. Bain’s Macro
Trends Group estimates that global financial capital
has more than tripled over the past three decades and
now stands at roughly 10 times global GDP. As capital
has grown more plentiful, its price has plummeted.
For many large companies, the after-tax cost of bor-
rowing is close to the rate of inflation, meaning that
real borrowing costs hover near zero. Any reasonably
profitable large enterprise can readily obtain the capi-
tal it needs to buy new equipment, fund new product
development, enter new markets, and even acquire
new businesses. To be sure, leadership teams still need
to manage their money carefully—after all, waste is
waste. But the skillful allocation of financial capital is
no longer a source of sustained competitive advantage.
The assets that are in short supply at most compa-
nies are the skills and capabilities required to translate
good growth ideas into successful new products, ser-
vices, and businesses—and the traditional financially
driven approach to strategic investment has only com-
pounded this paucity. Indeed, the standard method
for prioritizing strategic investments strives to limit
the field of potential projects and encourages compa-
nies to invest in a few “sure bets” that clear high hur-
dle rates. At a time when most companies are desper-
ate for growth, this approach unnecessarily forecloses
too many options. And it encourages executives to
remain committed to investments long after it’s clear
that they’re not paying off. Finally, it leaves companies
with piles of cash for which executives often find no
better use than to buy back stock.
Strategy in the new age of capital superabundance
demands a fundamentally different approach from the
traditional models anchored in long-term planning
and continual improvement. Companies must lower
hurdle rates and relax the other constraints that reflect
a bygone era of scarce capital. They should move away
from making a few big bets over the course of many
years and start making numerous small and varied
investments, knowing that not all will pan out. They
must learn to quickly spot—and get out of—losing
ventures, while ag ...
So how do you value the share price of stock for a given company? In other words, what is the intrinsic value of a given stock? Generally speaking, a stock is valued based on the company’s current financial state and what the market believes the company’s future financial state will look like. https://carnick.com/
Outlook Summary
Global growth trends remain higher as world experiences synchronized recovery
Maturing earnings growth cycle could increase focus on excessive valuations
Global central banks attempting to thread the needle on policy normalization
Mid-term elections heat up as cyclical bull market approaches maturity
Stock market volatility likely to rise in 2018 and test ability of investors to look past the noise. S&P 500 expected to consolidate gains of the past two years, trading in wide range and finishing the year near where it begins
Bond yields likely to move higher, with the 10-year T-Note yield reaching 3.0%
Five years after the worst economic crisis of our lifetimes, we are still feeling the after-shocks around the world.
Our recent financial past seems to herald one certainty for our collective
financial future: The investment world we grew up with has changed utterly.
Conventional wisdoms shaped by decades of high-return investing — first in equities from 1982 to 2000, then in fixed income markets over most of this century — need to be reexamined, revised, or even scrapped.
Millions of people being relocated from cities, fewer jobs, greater centralization, and more movie blockbusters are just some of the author’s predictions for the year.
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Dow Jones VentureSource, Dow Jones LP Source, CB Insights, PitchBook, and Cambridge Associates.
Through all the market traumas of recent years, the crises in Greece, slowdown scares in China, US political gridlock, the collapse in oil prices, the wars and the migrant flows, investors prepared to weather short-term volatility have seen handsome returns on developed-economy equities since the depths of the financial crisis in 2008, with EUR and USD investors seeing only one modestly down year in 2011. There has also been good performance from high yield and investment grade corporate bonds, the laggards (since 2011) being investments connected to commodities and emerging markets.
Our analysis, set out in this Outlook, suggests that 2016 may deliver a fairly similar pattern. Temporary traumas could emanate from Federal Reserve tightening, reduced bond liquidity, renewed growth scares in China or geopolitics, but behind these is an underlying picture of ongoing expansion. The global economy is neither pushed up against capacity limits nor facing severe slack (except for commodities and energy), banking systems are healthy and debt levels seem more amber than red. Rapid growth seems unlikely, given aging populations (bar Africa and India) and sharing economy technologies that do not generate much Gross Domestic Product, but sensibly-priced assets do not need a booming economy to generate reasonable returns. At the time of writing (in late 2015), high yield and investment grade credits have spreads just above their quarter-century averages, giving them scope to weather gradual Fed tightening. Developed equities have valuations somewhat above historic norms on a price-earnings basis, but not on a price-book basis, and operational leverage (especially in the Eurozone) and consolidating oil prices should allow earnings growth to move from last year's negatives into the mid- to high-single digits. In short, we think developed equities and credits are well placed for another year of reasonable returns, with the dollar likely to be strong again as the Fed leads the monetary cycle. As for emerging markets, and the commodities on which many depend, a convincing general recovery looks some time away, but there is scope for some to move ahead of the pack, as discussed in a special article.
Of course there can always be risks that are not visible and Fed tightening has a habit of teasing these out, although usually not within its first year. But, equally, there could be upside surprises, if the USA finally moves toward solutions on taxing repatriated corporate cash and infrastructure spending or, more simply, the signals of rising confidence already visible in US and European consumer surveys translate into faster spending. We trust our readers will find the Investment Outlook 2016 to be of considerable interest for the coming year.
Chapter 1 Overview of geneticsQUESTIONS FOR RESEARCH AND DISCUSSMaximaSheffield592
Chapter 1 Overview of genetics
QUESTIONS FOR RESEARCH AND DISCUSSION
7. What criteria would you use to determine whether synesthesia is a disorder or a variation of normal sensation and perception?
8. Why do you think that synesthesia is more common today than it was 20 years ago?
9. Why might it be possible for infants to have synesthesia, but the ability is gradually lost?
10. Would you want to take a genetic test for synesthesia? Cite a reason for your answer.
11. Do you think that synesthesia should be regarded as a learning disability, an advantage, or neither?
Chapter 2 Cells
10. Historical references as well as current anecdotal reports suggest that under very unusual circumstances, males can breastfeed. The Talmud, a book of Jewish law, discusses a man whose wife died and who had no money to pay a wet nurse (a woman who breastfeeds another woman’s child). He was able to nourish the child with his own body. The writings of other religions report similar tales. In agriculture, male goats can receive hormonal treatments and make milk. Do you think that it is possible for a human male to breastfeed, and if so, what conditions must be provided to coax his body to produce and secrete milk?
12. Compare the roles of mitosis and apoptosis in remodeling Sheila’s breast from a fatty sac to an active milk gland.
You are to prepare 16 slides PowerPoints of health care system in Cuba. Rubric includes: type of Government Demographics Population, type of health care system currently in place, History of the health care system, including changes and recent developments, How is the delivery system organized and financed? Who is covered and how is insurance financed? What is covered? What is the role of government? What are the key entities for health system governance? World Health Organization rankings in major indices of health (infant mortality, life expectancy, etc.). Strengths and weaknesses of the system. Popularity of system among citizens. (5-6) reputable and current sources (within 5 years).
CHAPTER 1 Overview of Genetics
Senses Working Overtime Eighteen-year-old Sean Maxwell has always perceived the world in an unusual way. To most people, color is a characteristic of an object—a cherry is red; a hippo, gray. To Sean, colors are much more. When he plays a note on his guitar, or hears it from another instrument, a distinctively colored shape pops into his mind. His brain, while perceiving the note as an E flat or a C sharp, creates an overwhelming feeling of iridescent orange-yellow diamonds, or a single, shimmering sky blue crescent. Soaring crescendos of sound become detailed landscapes, peppered with alternating black and white imagery that parallels the staccato notes. These images flash by his consciousness in such rapid succession that he is barely aware of them, yet they seem to burst through his fingers in the patterns of notes that he plays. Sean has experienced these peculiar specific sound-color-shape associations for as ...
So how do you value the share price of stock for a given company? In other words, what is the intrinsic value of a given stock? Generally speaking, a stock is valued based on the company’s current financial state and what the market believes the company’s future financial state will look like. https://carnick.com/
Outlook Summary
Global growth trends remain higher as world experiences synchronized recovery
Maturing earnings growth cycle could increase focus on excessive valuations
Global central banks attempting to thread the needle on policy normalization
Mid-term elections heat up as cyclical bull market approaches maturity
Stock market volatility likely to rise in 2018 and test ability of investors to look past the noise. S&P 500 expected to consolidate gains of the past two years, trading in wide range and finishing the year near where it begins
Bond yields likely to move higher, with the 10-year T-Note yield reaching 3.0%
Five years after the worst economic crisis of our lifetimes, we are still feeling the after-shocks around the world.
Our recent financial past seems to herald one certainty for our collective
financial future: The investment world we grew up with has changed utterly.
Conventional wisdoms shaped by decades of high-return investing — first in equities from 1982 to 2000, then in fixed income markets over most of this century — need to be reexamined, revised, or even scrapped.
Millions of people being relocated from cities, fewer jobs, greater centralization, and more movie blockbusters are just some of the author’s predictions for the year.
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Dow Jones VentureSource, Dow Jones LP Source, CB Insights, PitchBook, and Cambridge Associates.
Through all the market traumas of recent years, the crises in Greece, slowdown scares in China, US political gridlock, the collapse in oil prices, the wars and the migrant flows, investors prepared to weather short-term volatility have seen handsome returns on developed-economy equities since the depths of the financial crisis in 2008, with EUR and USD investors seeing only one modestly down year in 2011. There has also been good performance from high yield and investment grade corporate bonds, the laggards (since 2011) being investments connected to commodities and emerging markets.
Our analysis, set out in this Outlook, suggests that 2016 may deliver a fairly similar pattern. Temporary traumas could emanate from Federal Reserve tightening, reduced bond liquidity, renewed growth scares in China or geopolitics, but behind these is an underlying picture of ongoing expansion. The global economy is neither pushed up against capacity limits nor facing severe slack (except for commodities and energy), banking systems are healthy and debt levels seem more amber than red. Rapid growth seems unlikely, given aging populations (bar Africa and India) and sharing economy technologies that do not generate much Gross Domestic Product, but sensibly-priced assets do not need a booming economy to generate reasonable returns. At the time of writing (in late 2015), high yield and investment grade credits have spreads just above their quarter-century averages, giving them scope to weather gradual Fed tightening. Developed equities have valuations somewhat above historic norms on a price-earnings basis, but not on a price-book basis, and operational leverage (especially in the Eurozone) and consolidating oil prices should allow earnings growth to move from last year's negatives into the mid- to high-single digits. In short, we think developed equities and credits are well placed for another year of reasonable returns, with the dollar likely to be strong again as the Fed leads the monetary cycle. As for emerging markets, and the commodities on which many depend, a convincing general recovery looks some time away, but there is scope for some to move ahead of the pack, as discussed in a special article.
Of course there can always be risks that are not visible and Fed tightening has a habit of teasing these out, although usually not within its first year. But, equally, there could be upside surprises, if the USA finally moves toward solutions on taxing repatriated corporate cash and infrastructure spending or, more simply, the signals of rising confidence already visible in US and European consumer surveys translate into faster spending. We trust our readers will find the Investment Outlook 2016 to be of considerable interest for the coming year.
Chapter 1 Overview of geneticsQUESTIONS FOR RESEARCH AND DISCUSSMaximaSheffield592
Chapter 1 Overview of genetics
QUESTIONS FOR RESEARCH AND DISCUSSION
7. What criteria would you use to determine whether synesthesia is a disorder or a variation of normal sensation and perception?
8. Why do you think that synesthesia is more common today than it was 20 years ago?
9. Why might it be possible for infants to have synesthesia, but the ability is gradually lost?
10. Would you want to take a genetic test for synesthesia? Cite a reason for your answer.
11. Do you think that synesthesia should be regarded as a learning disability, an advantage, or neither?
Chapter 2 Cells
10. Historical references as well as current anecdotal reports suggest that under very unusual circumstances, males can breastfeed. The Talmud, a book of Jewish law, discusses a man whose wife died and who had no money to pay a wet nurse (a woman who breastfeeds another woman’s child). He was able to nourish the child with his own body. The writings of other religions report similar tales. In agriculture, male goats can receive hormonal treatments and make milk. Do you think that it is possible for a human male to breastfeed, and if so, what conditions must be provided to coax his body to produce and secrete milk?
12. Compare the roles of mitosis and apoptosis in remodeling Sheila’s breast from a fatty sac to an active milk gland.
You are to prepare 16 slides PowerPoints of health care system in Cuba. Rubric includes: type of Government Demographics Population, type of health care system currently in place, History of the health care system, including changes and recent developments, How is the delivery system organized and financed? Who is covered and how is insurance financed? What is covered? What is the role of government? What are the key entities for health system governance? World Health Organization rankings in major indices of health (infant mortality, life expectancy, etc.). Strengths and weaknesses of the system. Popularity of system among citizens. (5-6) reputable and current sources (within 5 years).
CHAPTER 1 Overview of Genetics
Senses Working Overtime Eighteen-year-old Sean Maxwell has always perceived the world in an unusual way. To most people, color is a characteristic of an object—a cherry is red; a hippo, gray. To Sean, colors are much more. When he plays a note on his guitar, or hears it from another instrument, a distinctively colored shape pops into his mind. His brain, while perceiving the note as an E flat or a C sharp, creates an overwhelming feeling of iridescent orange-yellow diamonds, or a single, shimmering sky blue crescent. Soaring crescendos of sound become detailed landscapes, peppered with alternating black and white imagery that parallels the staccato notes. These images flash by his consciousness in such rapid succession that he is barely aware of them, yet they seem to burst through his fingers in the patterns of notes that he plays. Sean has experienced these peculiar specific sound-color-shape associations for as ...
Chapter 1 OutlineI. Thinking About DevelopmentA. What Is HumMaximaSheffield592
Chapter 1 Outline
I. Thinking About Development
A. What Is Human Development?
1. Human development is the multidisciplinary study of how people change and how they remain the same over time.
2. The science of human development (1) reflects the complexity and uniqueness of each person and their experiences, (2) seeks to understand commonalities and patterns across people, (3) is firmly grounded in theory, and (4) seeks to understand human behavior.
B. Recurring Issues in Human Development: Three fundamental issues dominate the study of human development.
1. Nature Versus Nurture is the degree to which genetic influences (nature) or experiential/environmental influences (nurture) determine the kind of person you are. Despite the ongoing debate as to which influence is greater, theorists and researchers recognize that development is always shaped by both—nature and nurture are mutually interactive influences.
2. Continuity Versus Discontinuity focuses on whether a particular developmental phenomenon represents a smooth progression throughout the life span (continuity) or a series of abrupt shifts (discontinuity).
3. Universal Versus Context-Specific Development focuses on whether there is just one path of development or several. In other words, does development follow the same general path in all people, or is it fundamentally different, depending on the sociocultural context?
C. Basic Forces in Human Development: The Biopsychosocial Framework. This framework emphasizes that these four forces are mutually interactive and that development cannot be understood by examining them in isolation. By combining the four developmental forces, we have a view of human development that encompasses the life span, yet appreciates the unique aspects of each phase of life.
1. Biological forces include genetic and health-related factors that affect development. Some biological forces, such as puberty and menopause, are universal and affect people across generations, whereas others, such as diet or disease, affect people in specific generations or occur in a small number of people.
2. Psychological forces include all internal perceptual, cognitive, emotional, and personality factors that affect development. Psychological forces are the ones used most often to describe the characteristics of a person and have received the most attention.
3. Sociocultural forces include interpersonal, societal, cultural, and ethnic factors that affect development. Culture refers to the knowledge, attitudes, and behaviors associated with a group of people. Overall, sociocultural forces provide the context or backdrop for development. Consequently, there is a need for research on different cultural groups. Another practical problem is how to describe racial and ethnic groups.
4. Life-cycle forces reflect differences in how the same event affects people of different ages. The influence of life-cycle forces reflects the influences of biological, psychological, and sociocultural force ...
Chapter 1 Juvenile Justice Myths and RealitiesMyths and RealiMaximaSheffield592
Chapter 1 Juvenile Justice: Myths and RealitiesMyths and Realities
It’s only me.” These were the tragic words spoken by Charles “Andy” Williams as the San Diego Sheriff’s Department SWAT team closed in
on the frail high school sophomore who had just turned 15 years old. Williams had just shot a number of his classmates at Santana High
School, killing two and wounding 13. This was another in a series of school shootings that shocked the nation; however, the young Mr.
Williams did not fit the stereotype of the “superpredator” that has had an undue influence on juvenile justice policy for decades. There have
been other very high-profile cases involving children and teens that have generated a vigorous international debate on needed changes in the
system of justice as applied to young people.
In Birmingham, Alabama, an 8-year-old boy was charged with “viciously” attacking a toddler, Kelci Lewis, and murdering her (Binder, 2015).
The law enforcement officials announced their intent to prosecute the boy as an adult. The accused perpetrator would be among the youngest
criminal court victims in U.S. history. The 8-year-old became angry and violent, and beat the toddler because she would not stop crying. Kelci
suffered severe head trauma and injuries to major internal organs. The victim’s mother, Katerra Lewis, left the two children alone so that she
could attend a local nightclub. There were six other children under the age of 8 also left alone in the house. Within days, the mother was
arrested and charged with manslaughter and released on a $15,000 bond after being in custody for less than 90 minutes. The 8-year-old was
held by the Alabama Department of Human Services pending his adjudication.
A very disturbing video showed a Richland County, South Carolina, deputy sheriff grab a 16-year-old African American teen by her hair,
flipping her out her chair and tossing her across the classroom. The officer wrapped his forearm around her neck and then handcuffed her. It is
alleged that the teen refused to surrender her phone to the deputy. She received multiple injuries from the encounter. The classroom teacher and
a vice principal said that they believed the police response was “appropriate.” The deputy was suspended and subsequently fired after the
Richland County Sheriff reviewed the video. There is a civil suit against the school district and the sheriff’s department for the injuries that
were sustained (Strehike, 2015).
One of the highest profile cases involving juvenile offenders was known as the New York Central Park jogger case (Burns, 2011; Gray, 2013).
In 1989 a young female investment banker was raped, attacked, and left in a coma. The horrendous crime captured worldwide attention.
Initially, 11 young people were arrested and five confessed to the crimes. These five juvenile males, four African American and one Latino,
were convicted for a range of crimes including assault, robbery, rape, and attempted murder. There were two separate jury t ...
CHAPTER 1 Philosophy as a Basis for Curriculum DecisioMaximaSheffield592
CHAPTER
1
Philosophy as a Basis for
Curriculum Decisions
ALLAN C. ORNSTEIN
FOCUSING QUESTIONS . . d implementation of curriculum?
hil h uide the orgaruzation an
1. How does p osop y g 1 d that shape a person's philosophy of
2. What are the sources of know e ge
curriculum? d that shape your philosophical view of 1
What are the sources of know e ge3.
curriculum? · diff
. d ends of education er.
?
4. How do the auns, means, an_ . at must be determined before we can
What is the major philosop~cal is~ue th
5. define a philosophy of curncul~- hil hies that have influenced curriculum
What are the four major educational p osop .6.
in the United States?
7. What is your philosophy of curriculum?
P
d still do have an impact on schools and
hilosophic issues always h~ve had ~ hools are changing fundamental~y and
society. Contemporary society ~d its :cThere is a special urgency that dictate~
rapidly, much more so th~ m e ~a:oie of schools, and calls for a philosophy o
continuous appraisal and reappraisal of th directionless in the whats and hows of
education. Without philosophy, educators a~ing to achieve. In short, our philo~~phy
organizing and implementing what we ar~ t determines, our educational decisions,
of education influences, and to a large ex en
choices, and alternatives.
PHILOSOPHY AND CURRICULUM . 1· ts with a framework for
. 11 curriculum specia is , h
Philosophy provides educators, espect i{e1 s them answer questions about what t e
organizing schools and classrooms. t f 1 how students learn, and what methods
school's purpose is, what subjects are: va;~ with a framework for broad issues and
and materials to use. Philosophy provi es e
CHAPTER ONE Philosophy as a Basis for Curriculum Decisions 3
tasks, such as determining the goals of edu and activities, and dealing with verbal traps
cation, subject content and its organization, (what we see versus what is read). Curricu
the process of teaching and learning, and, in lum theorists, they point out, often fail to rec
general, what experiences and activities to ognize both how important philosophy is to
stress in schools and classrooms. It also pro developing curriculum and how it influences
vides educators with a basis for making such aspects of curriculum.
decisions as what workbooks, textbooks, or
other cognitive and noncognitive activities to
Philosophy and the Curriculum Sp
utilize and how to utilize them, what and
how much homework to assign, how to test The philosophy of curriculum sp
students and how to use the test results, and reflects their life experiences, comma
what courses or subject matter to emphasize. social and economic background, ed
The importance of philosophy in deter and general beliefs about people. f._•• .....u
mining curriculum decisions is expressed vidual's philosophy evolves and continues
well by the classic statement of Thomas to evolve as long as there is personal growth,
Hopkins (1941): "Philosop ...
Chapter 1 Introduction Criterion• Introduction – states general MaximaSheffield592
Chapter 1 Introduction Criterion
• Introduction – states general nature of problem
• Identifies project as quality or leadership focused project
• Background – briefly describes general context of the topic
• Statement of the problem – ‘Therefore the problem/topic addressed in this study is…’
• Purpose of the study – describes specific objectives of the study, related to the problem described above.
• Rationale – Ties together the identified problem, the purpose/goal of the study, and identifies how the writer intends the results will be used to accomplish identified goals.
• Research questions – lists 2-4 specific research questions/objectives for the study.
• Nature of the study – identifies method of study to be used (descriptive, relational, causal, exploratory, or predictive}
• Significance of the study – personal, professional, and/or research.
• Definition of terms
• Assumptions and Limitations
Writing the Personal Statement
The personal statement is an important document in your application packet. Admissions committees not only read them, they remember the memorable ones! A strong personal statement can be make-or-break for your application process.
What is it? It’s a combination of things:
· It is a business document: you are selling yourself, and need to know how to do so persuasively.
· It is an argument: you are showing the reader that they need and want you in their
program, but rather than convince with reasons, you are often arguing using narrative.
· It is an assignment, and your target audience is looking for you to show them that you know how to give what is asked for.
Consider your audience. Beware of Web sites and other sources that simply tell you to “tell your story.” Which story will you choose and for which purpose?
Medical and Law Schools
Science Programs
Humanities MA Programs
Humanities PhD Programs
Diplomatic
Service Scholarships
Want to know
Want to know
Want to see that
Want to know
Want to know
you as a person
your work as a
you are
how you will
you as a person
researcher and
interested in
succeed both in
your work ethic
further study and
and beyond the
know your long-
program
term goals
Remember that your resume tells them that you can do good undergraduate or graduate work. Now they need to know that they are choosing a winner, one who can perform at a higher level and will finish!
Five Standard Topics:
1. your motivation for your career
2. the influence of your family or early experiences
3. the influence of extracurricular, work, or volunteer experiences
4. your long-term goals
5. your personal philosophy
Activity One:
Below is a list of attributes that applicants to professional programs highlight in their personal statements. On the right is a list of indications of the attribute. Read through the list and
· Check off those attributes you want to highlight.
· List possible stories you can tell about yourself, your family, your extracurricular activities, your goals, or your personal ph ...
Chapter 1 IntroductionThis research paper seeks to examine the reMaximaSheffield592
Chapter 1: Introduction
This research paper seeks to examine the relationship between strategic performance and appraisal systems in contemporary organizations. Strategic management in organizations refers to setting goals, procedures, and objectives to gain a competitive advantage. The strategies aim at making businesses distinct from their competitors while attracting consumers to the market. Stakeholders in business entities use strategic management approaches to execute short- and long-term organizational projects. Some strategies include innovation, product segmentation, and corporate social responsibility. On the other hand, a performance appraisal system refers to identifying, evaluating, and developing the work performance of employees to aid in the process of achieving the organization's goals and processes. The organization has to track the performance progress of each employee to keep them accountable for their roles at the workplace.
The definition of the appraisal system and strategic management incorporates objectives and goals. Consequently, the purpose of both strategic management and performance appraisal is to deliver the existing objectives and stay ahead of competitors. The performance appraisal system denotes the type of assessment used by an organization to measure performance. There are different assessment methods. One of the evaluation techniques is straight ranking appraisal where employees are ranked from the best performers to poor performers. Another assessment criterion is grading where employees are assigned specific grades for their performance in different areas. There is also the management-by-objective method of review. The employees and managers set goals under the approach and measure them at the end of the agreed time. Organizations may also assess their employees based on their behaviors and conduct at the workplace. Lastly, organizations can adopt a 360-degree assessment method where employees and managers are assessed. Organizations use one or a combination of the frameworks to evaluate the employees with a view of improving performance.
The purpose of this study is to examine the relationship between strategic management and performance appraisal systems. The study will evaluate whether managers consider their strategies when selecting the appraisal system or consider other factors. Also, the study will assess the implications of selecting an appraisal system based on the existing strategies in different organizations and the impacts of ignoring organizational strategies when deciding on the performance of the appraisal system. The findings will be crucial in the organizational and human resource management field setting the stage for further research.
Statement of Problem
A brief literature review reveals that there is little to no information on balancing between appraisal systems and organizational strategies. Most researchers in the field tend to focus on how appraisal systems boost organizatio ...
Chapter 1 Introduction to Career Development in the Global EconoMaximaSheffield592
Chapter 1: Introduction to Career Development in the Global Economy and Its Role in Social Justice
Things to Remember
· The reality of the global economy and its implications for employment in the United States
· Why the need for career development services may be at its highest level in half a century
· The language of career development The reasons that careers and career development are important in the fight for social justice
· The major events in the history of career development
History of Vocational Guidance and Career Development
As will be discussed later in this chapter, there are currently calls for the adoption of a new paradigm for the theory and practice of career counseling and career development services that focuses on both individuals and the social contexts in which they function. These ideas are not new, but throughout much of the twentieth century they were neglected. The call for understanding the individual and how he or she is influenced by his or her context is a century-old echo of the voices of the social reformers who founded the vocational guidance movement in education, business, industry, and elsewhere. Reformers in Boston, Massachusetts; San Francisco, California; and Grand Rapids, Michigan, focused on immigrants from Europe who came to the United States by the tens of thousands; high school dropouts who were unprepared for the changing workplace; oppression in the workplace; substandard public schools; and the need to apply scientific principles to career planning and vocational education. It is the latter idea, the focus on scientific principles that has received the most criticism, along with the failure to adequately address multicultural issues. Currently, some career development specialists are urging practitioners to abandon theories and strategies rooted in modern philosophies in favor of those rooted in postmodernism.
Looking backward to 1913 and earlier, it is worth noting that social reformers formed the National Society for the Promotion of Industrial Education (NSPIE) in 1906, which became the parent organization of the National Vocational Guidance Association (NVGA) in 1913. These reformers were advocates for vocational education, and they carried their fight to state legislators, to the National Education Association, and beyond. One of NSPIE’s achievements was drafting and successfully lobbying for the passage of the Smith–Hughes act in 1917, legislation that laid the foundation for land grant universities and vocational education in public schools (Stephens, 1970).
These earlier reformers were advocates. One mechanism they used to initiate local reforms was the settlement house, which was a place in a working-class neighborhood that housed researchers who studied people’s lives and problems in that neighborhood. In 1901, Frank Parsons founded the Civic Service House in Boston’s North End, and in 1908, the Vocation Bureau, an adjunct of the Boston Civic Service House, was opened. Leader ...
Chapter 1 Goals and Governance of the CorporationChapter 1 LeMaximaSheffield592
Chapter 1: Goals and Governance of the Corporation
Chapter 1 Learning Objectives
1. Give examples of the investment and financing decisions that financial managers make.
2. Distinguish between real and financial assets.
3. Cite some of the advantages and disadvantages of organizing a business as a corporation.
4. Describe the responsibilities of the CFO, treasurer, and controller.
5. Explain why maximizing market value is the logical financial goal of the corporation.
6. Explain why value maximization is not inconsistent with ethical behavior.
7. Explain how corporations mitigate conflicts and encourage cooperative behavior.
Goals and Governance of the Corporation
This chapter introduces the corporation, its goals, and the roles of financial managers.
Chapter 1 Outline
· Investment and Financing Decisions
· The Corporation
· The Financial Managers
· Goals of the Corporation
· Value Maximization
· Corporate Governance
Note: What are the primary differences among the various legal forms of business?
Investment and Financing Decisions
· The Investment Decision
· Real Assets
· The Financial Assets
· Financial Assets
The Investment Decision– Decision to invest in tangible or intangible assets.
Also known as the “capital budgeting” or “CAPEX” decision.
The Financing Decision– The form and amount of financing of a firm’s investments.
Real Assets– Assets used to produce goods and services.
Financial Assets– Financial claims to the income generated by the firm’s real assets.
Are the following capital budgeting or financing decisions?
· Apple decides to spend $500 million to develop a new iPhone.
· GE borrows $400 million from bond investors.
· Microsoft issues 100 million shares to buy a small technology company.
· When Apple spends $500 million to develop a new iPhone it is investing in real assets and is making a capital budgeting decision.
· When GE borrows $400 million from bond investors it is investing in financial assets and is making a financing decision.
· When Microsoft issues 100 million shares to buy a smaller company it is investing in both financial and real assets. It is making both a capital budgeting and financing decision.
What is a Corporation?
· Corporation-A business organized as a separate legal entity owned by stockholders.
· Types of Corporations:
· Public Corporations
· Private Corporations
Corporation – A business organized as a separate legal entity owned by stockholders.
Public Company – A corporation whose shares are traded in public markets such as the New York Stock Exchange or NASDAQ.
Private Corporation – A corporation whose shares are not traded publicly.
Benefits of the Corporation
· Limited liability
· Infinite lifespan
· Ease of raising capital
Limited Liability – The owners of a corporation are not personally liable for its obligation.
Drawbacks of the Corporation
· Corporation face the problem of double taxation
· Improper corporate structures may lead to “Agency Problem”
Double Taxation– Corpor ...
Chapter 1 Adjusting to Modern Life EXERCISE 1.1 Self-AssessmMaximaSheffield592
Chapter 1 Adjusting to Modern Life
EXERCISE 1.1 Self-Assessment: Narcissistic Personality Inventory
Instructions
Read each pair of statements below and place an "X" by the one that comes closest to describing your
feelings and beliefs about yourself. You may feel that neither statement describes you well, but pick the
one that comes closest. Please complete all pairs.
The Scale
1. _A. I have a natural talent for influencing people.
_B. I am not good at influencing people.
2. _A. Modesty doesn't become me.
_B. I am essentially a modest person.
3. _A. I would do almost anything on a dare.
_B. I tend to be a fairly cautious person.
4. _A. When people compliment me I sometimes get
embarrassed.
B. I know that I am good because everybody keeps telling
me so.
5. _A. The thought of ruling the world frightens the hell out
of me.
_B. If I ruled the world it would be a better place.
6. A. I can usually talk my way out of anything.
_B. I try to accept the consequences of my behavior.
7. A. I prefer to blend in with the crowd.
B. I like to be the center of attention.
8. A. I will be a success.
B. I am not too concerned about success.
9. A. I am no better or worse than most people.
_B. I think I am a special person.
10. A. I am not sure if I would make a good leader.
B. I see myself as a good leader.
11. A. I am assertive.
B. I wish I were more assertive.
12. _A. I like to have authority over other people.
_B. I don't mind following orders.
13. _A. I find it easy to manipulate people.
B. I don't like it when I find myself manipulating people.
14. _A. I insist upon getting the respect that is due me.
_B. I usually get the respect that I deserve.
15. _A. I don't particularly like to show off my body.
_B. I like to show off my body.
16. _A. I can read people like a book.
_B. People are sometimes hard to understand.
17. _A. If I feel competent I am willing to take responsibility for
making decisions.
_B. I like to take responsibility for making decisions.
18. _A. I just want to be reasonably happy.
_B. I want to amount to something in the eyes of the world.
19. _A. My body is nothing special.
_B. I like to look at my body.
20. _A. I try not to be a show off.
_B. I will usually show off if I get the chance.
21. _A. I always know what I am doing.
_B. Sometimes I am not sure of what I am doing.
22. _A. I sometimes depend on people to get things done.
B. I rarely depend on anyone else to get things done.
23. _A. Sometimes I tell good stories.
_B. Everybody likes to hear my stories.
24. _A. I expect a great deal from other people.
B. I like to do things for other people.
25. A. I will never be satisfied until I get all that I deserve.
_B. I take my satisfactions as they come.
26. _A. Compliments embarrass me.
_B. I like to be complimented.
27. _A. I have a strong will to power.
B. Power for its own sake doesn't interest me.
28. A. I don't care about new fads and fashion ...
Chapter 1 The Americas, Europe, and Africa Before 1492 MaximaSheffield592
Chapter 1 | The Americas, Europe, and Africa Before 1492
CHAPTER 1
The Americas, Europe, and Africa Before 1492
Chapter Outline
1.1 The Americas
1.2 Europe on the Brink of Change
1.3 West Africa and the Role of Slavery
Introduction
Globalization, the ever-increasing interconnectedness of the world, is not a new phenomenon,
but it accelerated when western Europeans discovered the riches of the East. During the
Crusades (1095–1291), Europeans developed an appetite for spices, silk, porcelain, sugar, and
other luxury items from the East, for which they traded fur, timber, and Slavic people they
captured and sold (hence the word slave). But when the Silk Road, the long overland trading
route from China to the Mediterranean, became costlier and more dangerous to travel, Europeans
searched for a more efficient and inexpensive trade route over water, initiating the development
of what we now call the Atlantic World.
In pursuit of commerce in Asia, fifteenth-century traders unexpectedly encountered a “New
World” populated by millions and home to sophisticated and numerous peoples. Mistakenly
believing they had reached the East Indies, these early explorers called its inhabitants Indians.
West Africa, a diverse and culturally rich area, soon entered the stage as other nations exploited
its slave trade and brought its peoples to the New World in chains. Although Europeans would
come to dominate the New World, they could not have done so without Africans and native
peoples.
1.1 The Americas
By the end of this section, you will be able to:
● Locate on a map the major American civilizations before the arrival of the Spanish
● Discuss the cultural achievements of these civilizations
● Discuss the differences and similarities between lifestyles, religious practices, and
customs among the native peoples
Chapter 1 | The Americas, Europe, and Africa Before 1492
Between nine and fifteen thousand years ago, some scholars believe that a land bridge existed
between Asia and North America that we now call Beringia . The first inhabitants of what would
be named the Americas migrated across this bridge in search of food. When the glaciers melted,
water engulfed Beringia, and the Bering Strait was formed. Later settlers came by boat across the
narrow strait. (The fact that Asians and American Indians share genetic markers on a Y
chromosome lends credibility to this migration theory.) Continually moving southward, the
settlers eventually populated both North and South America, creating unique cultures that ranged
from the highly complex and urban Aztec civilization in what is now Mexico City to the
woodland tribes of eastern North America. Recent research along the west coast of South
America suggests that migrant populations may have traveled down this coast by water as well
as by land.
Researchers believe that about ten thousand years ago, humans also began the domestication of
plants and animals, a ...
Chapter 1 - Overview Gang Growth and Migration Studies v AMaximaSheffield592
Chapter 1 - Overview
Gang Growth and Migration Studies
v A
Now we will examine the problems and issues of not having a nationally accepted definition for a street gang. We will also examine mechanisms that influence gang migration and growth. After reading this section you will also understand that there are sub-populations within the general gang population.
Two of the most frequently asked questions about the gang sub-culture are: Why do gangs grow? Why do gangs migrate? Some law enforcement officials, politicians, educators and parents might suggest and believe that youth in their city are only “imitating” tougher L.A. street gangs or that the gang problem in their jurisdiction is result of migrating gang members from Los Angeles or Chicago. You will hear the terms “wanna be” or “street comer groups” or “misguided youth” used to describe the groups and you can be given a number of reasons why the groups in these areas are not gangs. You might also hear comments suggesting that gang imitation and migration are the reasons why street gangs have now been reported in all 50 states.
Gang Definition
There is another issue here that has to be addressed before the questions can be asked. It is accepting a standard to measure gang growth and migration. That standard is the definition of a street gang. Developing and then using a nationally accepted definition for a street gang becomes the fundamental basis to build examination of growth and migration. Having a standard definition becomes the fundamental building block to answer the two questions.
Studying gang growth is a little more complicated than just surveying cities for data. Without a standard gang definition to identify a gang, any official findings could be biased and misleading. Any responding jurisdiction could potentially use a different definition to identify the gangs in their area. Often, law enforcers, the public, educators and politicians use a penal code gang based definitions of a criminal street gang as a general working definition for a street gang. If the gang does fit within this legal definition used for penalty enhancement only, then the group is not reported as a gang according to this philosophy. The jurisdiction has no gangs. You can clearly see the issue here.
This will certainly lead to under reporting the number and types of street gangs present. Using a legal based definition of a street gang is appropriate from a prosecutor’s point of view. Unfortunately, too many communities, politicians, educators, parents and law enforcement officials use this philosophy. This way of thinking will only reinforce denial and delay the identification and treatment of the gang-community issue.
Many states now have gang enhancement laws similar to California Penal Code Section 186.22. In California this law is commonly known as the STEP Act. It outlines a legal definition for a violent criminal street gang. That definition is used to qualify a defendant(s) for sentencing
46
...
Chapter 06 Video Case - Theo Chocolate CompanyVideo TranscriptMaximaSheffield592
Chapter 06: Video Case - Theo Chocolate Company
Video Transcript:
>> It's rich, it's velvety, it's almost sinful. But creating the perfect bar at this Seattle chocolate factory is about more than just the ingredients on the wrapper.
>> I feel that everybody in the whole supply chain, all he way back to the farmers, should be better off as a result of this delicious food that we use to share with the people we love.
>> So these are these are the beans.
>> These are the beans; this is cacao.
>> At Theo Chocolate, owner Joe Whinney pays farmers two to three times more than the going rate to buy this cacao from the Democratic Republic of Congo, or DRC.
>> Where does cocoa come from? It's coming from farmers in Africa, and in Indonesia, and in Central and South America.
>> Whinney believes that Americans will be willing to pay more for chocolate if they know that, in turn, impoverished farmers will earn more.
>> Of all places, why Congo
>> Why Congo? Well, it was really Ben Affleck's fault.
>> Yes. That Ben Affleck.
>> Like this?
>> Like -- yeah. See that's really well fermented, this isn't.
>> Earlier this year, we joined Ben Affleck and Joe Whinney on a trip to the DRC. Cacao can only grow within a narrow climate zone close to the equator. In 2009, Affleck started a charity called Eastern Congo Initiative to spur economic development in this war-torn region. Five million people have died here due to decades of conflict.
>> As I was reading and I just sort of stumbled upon some of the statistics, and I was struck not only by the numbers, but by the fact that, you know, I hadn't heard about it.
>> So Affleck decided to use his celebrity as a sort of currency to attract investment. He led a small group of philanthropists, protected by armed guards, through jungles where cacao trees thrived and farmers struggled.
>> The cocoa industry here has potential if the value can be increased.
>> For the last two years, Affleck's Eastern Congo Initiative has worked with Whinney and local groups to train farmers to improve the crop. Cacao grows in these greenish-yellow pods that are cracked open to harvest. It's quite slimy, huh?
>> It is. But when you suck on it, it's absolutely delicious.
>> It doesn't taste like chocolate at all.
>> Not at all, does it.
>> It tastes like passion fruit or something.
>> Theo Chocolate has now committed to buy 340 tons of cacao from the DRC --
>> This is really good quality.
>> -- creating a dependable export market.
>> We have brought these people together. They're selling to a chocolate company in the United States. Those markets had been completely closed off to them in the past. And it's not just aid, it's investment.
>> We have security guards around us. There have been attacks recently. This is a tough place to do business.
>> It is, but that's also a place that really needs this kind of business.
>> Business in Seattle is a little sweeter these days. Theo is raising money for charity with its $5 Congo ...
Chapter 08 Motor Behavior
8
Motor Behavior
Katherine T. Thomas and Jerry R. Thomas
C H A P T E R
What Is Motor Behavior?The study of how motor skills are learned, controlled, and developed across the lifespan. Applications often focus on what, how, and how much to practice.Motor behavior guides us in providing better situations for learning and practice, including the selection of effective of cues and feedback.
(continued)
(continued)
What Is Motor Behavior? (continued)Valuable to performers and those who teach motor skills (e.g. physical education teachers, adapted physical educators, gerontologists, physical therapists and coaches)
Figure 8.1
Chapter 8 - Hoffman (2005)
*
What Does a Motor Behaviorist Do?Colleges or universitiesTeachingResearchService
Other research facilities: hospitals, industrial, militaryResearch with applications related to settingGrant writing
Chapter 8 - Hoffman (2005)
*
Goals of Motor BehaviorTo understand how motor skills are learnedTo understand how motor skills are controlledTo understand how the learning and control of motor skills change across the life spanThree subdisciplinesMotor learningMotor controlMotor development
Chapter 8 - Hoffman (2005)
*
Three Subdisciplines of Motor BehaviorMotor LearningMotor ControlMotor Development
Goals of Motor LearningTo explain how processes such as feedback and practice improve the learning and performance of motor skillsTo explain how response selection and response execution become more efficient and effective
Chapter 8 - Hoffman (2005)
*
Goals of Motor ControlTo analyze how the mechanisms in response selection and response execution control the body’s movementTo explain how environmental and individual factors affect the mechanisms of response selection and response execution
Chapter 8 - Hoffman (2005)
*
To explain how motor learning and control improve during childhood and adolescenceTo explain how motor learning and control deteriorate with aging
Goals of Motor Development
Chapter 8 - Hoffman (2005)
*
Motor Movements Studied Beyond SportBabies learning to use a fork and spoonDentists learning to control the drill while looking in a mirrorSurgeons controlling a scalpel; microsurgeons using a laser Children learning to ride a bicycle or to roller skate
(continued)
Chapter 8 - Hoffman (2005)
*
Motor Movements Studied Beyond Sport (continued)Teenagers learning to driveDancers performing choreographed movementsPilots learning to control an airplaneYoung children learning to control a pencil when writing or learning to type on a computer
Chapter 8 - Hoffman (2005)
*
History of Motor Behavior
Five themes have persisted over the years in motor behavior research
Knowledge of results (feedback)
Distribution of practice
Transfer of training
Retention
Individual differences
(continued)
Chapter 8 - Hoffman (2005)
*
Late 1800s and early 1900s: Motor skills to understand cognition and neura ...
Changes in APA Writing Style 6th Edition (2006) to 7th Edition OMaximaSheffield592
Changes in APA Writing Style 6th Edition (2006) to 7th Edition OCT 2019 according to Streefkerk, 2019.
References and in-text citations in APA Style
When it comes to citing sources, more guidelines have been added that make citing online sources easier and clearer. The biggest changes in the 7th edition are:
1. The publisher location is no longer included in the reference.
Covey, S. R. (2013). The 7 habits of highly effective people: Powerful lessons in personal change. New York, NY: Simon & Schuster.
Covey, S. R. (2013). The 7 habits of highly effective people: Powerful lessons in personal change. Simon & Schuster.
2. The in-text citation for works with three or more authors is now shortened right from the first citation. You only include the first author’s name and “et al.”.
(Taylor, Kotler, Johnson, & Parker, 2018)
(Taylor et al., 2018)
3. Surnames and initials for up to 20 authors (instead of 7) should be provided in the reference list.
Miller, T. C., Brown, M. J., Wilson, G. L., Evans, B. B., Kelly, R. S., Turner, S. T., … Lee, L. H. (2018).
Miller, T. C., Brown, M. J., Wilson, G. L., Evans, B. B., Kelly, R. S., Turner, S. T., Lewis, F., Lee, L. H., Cox, G., Harris, H. L., Martin, P., Gonzalez, W. L., Hughes, W., Carter, D., Campbell, C., Baker, A. B., Flores, T., Gray, W. E., Green, G., … Nelson, T. P. (2018).
4. DOIs are formatted the same as URLs. The label “DOI:” is no longer necessary.
doi: 10.1080/02626667.2018.1560449
https://doi.org/10.1080/02626667.2018.1560449
5. URLs are no longer preceded by “Retrieved from,” unless a retrieval date is needed. The website name is included (unless it’s the same as the author), and web page titles are italicized.
Walker, A. (2019, November 14). Germany avoids recession but growth remains weak. Retrieved from https://www.bbc.com/news/business-50419127
Walker, A. (2019, November 14). Germany avoids recession but growth remains weak. BBC News. https://www.bbc.com/news/business-50419127
6. For ebooks, the format, platform, or device (e.g. Kindle) is no longer included in the reference, and the publisher is included.
Brück, M. (2009). Women in early British and Irish astronomy: Stars and satellites [Kindle version]. https:/doi.org/10.1007/978-90-481-2473-2
Brück, M. (2009). Women in early British and Irish astronomy: Stars and satellites. Springer Nature. https:/doi.org/10.1007/978-90-481-2473-2
7. Clear guidelines are provided for including contributors other than authors and editors. For example, when citing a podcast episode, the host of the episode should be included; for a TV series episode, the writer and director of that episode are cited.
8. Dozens of examples are included for online source types such as podcast episodes, social media posts, and YouTube videos. The use of emojis and hashtags is also explained.
Inclusive and bias-free language
Writing inclusively and without bias is the new standard, and APA’s new publication manual contains a separate chapter on this topi ...
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
2. 66 HARVARD BUSINESS REVIEW MARCH–APRIL 2017
most of the past 50 years, business leaders viewed fi -
nancial capital as their most precious resource. They
worked hard to ensure that every penny went to fund-
ing only the most promising projects. A generation
of executives was taught to apply hurdle rates that
reflected the high capital costs prevalent for most
of the 1980s and 1990s. And companies like General
Electric and Berkshire Hathaway were lauded for the
discipline with which they invested.
Today financial capital is no longer a scarce
resource—it is abundant and cheap. Bain’s Macro
Trends Group estimates that global financial capital
has more than tripled over the past three decades and
now stands at roughly 10 times global GDP. As capital
has grown more plentiful, its price has plummeted.
For many large companies, the after-tax cost of bor-
rowing is close to the rate of inflation, meaning that
real borrowing costs hover near zero. Any reasonably
profitable large enterprise can readily obtain the capi -
tal it needs to buy new equipment, fund new product
development, enter new markets, and even acquire
new businesses. To be sure, leadership teams still need
to manage their money carefully—after all, waste is
waste. But the skillful allocation of financial capital is
no longer a source of sustained competitive advantage.
The assets that are in short supply at most compa-
3. nies are the skills and capabilities required to translate
good growth ideas into successful new products, ser-
vices, and businesses—and the traditional financially
driven approach to strategic investment has only com-
pounded this paucity. Indeed, the standard method
for prioritizing strategic investments strives to limit
the field of potential projects and encourages compa-
nies to invest in a few “sure bets” that clear high hur-
dle rates. At a time when most companies are desper-
ate for growth, this approach unnecessarily forecloses
too many options. And it encourages executives to
remain committed to investments long after it’s clear
that they’re not paying off. Finally, it leaves companies
with piles of cash for which executives often find no
better use than to buy back stock.
Strategy in the new age of capital superabundance
demands a fundamentally different approach from the
traditional models anchored in long-term planning
and continual improvement. Companies must lower
hurdle rates and relax the other constraints that reflect
a bygone era of scarce capital. They should move away
from making a few big bets over the course of many
years and start making numerous small and varied
investments, knowing that not all will pan out. They
must learn to quickly spot—and get out of—losing
ventures, while aggressively supporting the winners,
nurturing them into successful new businesses. This
is the path already taken by firms innovating in rap-
idly evolving markets, but in an era of cheap capital, it
will become the dominant model across the business
economy. Companies that practice this strategy will
have the edge so long as capital remains superabun-
dant—and according to our analysis, that could be the
case for the next 20 years or more. In this article, we
outline what it takes to produce great results in this
4. new world. We begin by taking a closer look at the data.
A WORLD AWASH IN MONEY
Many of today’s business leaders cut their teeth in a
period of relative capital scarcity and high borrowing
costs. In the early 1980s, double-digit federal-funds
rates prevailed, and corporate debt and equity securi -
ties traded at high premiums. Although the required
rate of return on stocks and bonds returned to more
“normal” levels by the end of the decade, capital
IN BRIEF
WHAT’S CHANGED?
For most of the past 50
years, business leaders
viewed financial capital
as their most precious
resource. But today it is
abundant and cheap.
WHAT DOES IT MEAN?
The skillful allocation
of financial capital is
no longer a source of
sustained competitive
advantage. More
important is a workforce
that can generate good
ideas and translate them
into successful new
products, services, and
businesses.
WHAT SHOULD FIRMS DO?
Companies should
5. lower hurdle rates,
make numerous small
investments in growth
opportunities, and
pay more attention to
managing their human
capital well.
FOR
C
A
SP
A
R
B
EN
SO
N
/G
ET
TY
IM
A
G
ES
68 HARVARD BUSINESS REVIEW MARCH–APRIL 2017
6. FEATURE STRATEGY IN THE AGE OF SUPERABUNDANT
CAPITAL
costs remained high. Our research suggests that for
most large public companies, the weighted average
cost of capital, or WACC, exceeded 10% for most of
the 1980s and 1990s.
But the world changed following the financial
collapse in late 2008. Central bank interventions
pushed interest rates in many countries to historic
lows, where they remain nearly a decade later, owing
to tepid economic growth. Many executives believe
that the current interest rate environment is tempo-
rary and that more-familiar capital market conditions
will reassert themselves soon. Our research, however,
leads to the opposite conclusion.
Using public data and proprietary economic mod-
els, Bain’s Macro Trends Group examined how the
quantity and scale of assets on the world balance sheet
have evolved over time. We found that global finan-
cial assets (which more or less represent the supply of
capital invested or available for investment in the real
economy) grew at an increasingly rapid pace—from
$220 trillion in 1990 (about 6.5 times global GDP) to
some $600 trillion in 2010 (9.5 times global GDP). We
pro ject that by 2020 the number will have expanded
by half again—to about $900 trillion (measured in
2010 prices and exchange rates), or more than 10 times
projected global GDP (see the exhibit “Growth in the
Global Balance Sheet”). At this rate, by 2025 global
financial assets could easily surpass a quadrillion
dollars. We see two factors principally accounting for
7. the continuing trend:
• Growing financial markets in emerging econo-
mies. Although prospects for growth in advanced
economies are relatively weak, the financial mar-
kets in China, India, and other emerging economies
have only started to develop. Our analysis indicates
that these nations will account for more than 40%
of the increase in global financial assets from 2010
to 2020. And the data suggests that emerging econ-
omies will continue fueling growth in financial
capital well beyond 2020.
• An expanding number of “peak savers.” There
are important demographic factors at work that
will reinforce the superabundance of financial cap-
ital. Specifically, the population of 45- to 59-year-
olds is critical in determining the level of savings
(versus consumption) in the global economy.
People in this age bracket have moved past their
prime spending years and make a higher contri-
bution to savings and capital formation than any
other age group. These “peak savers” will represent
a large and growing percentage of the global popu-
lation until 2040, when their numbers will slowly
begin to decline.
The combination of these factors leads us to con-
clude that through 2030 (at least), markets will con-
tinue to grapple with capital superabundance. Too
much capital will be chasing too few good investment
ideas for many years.
Moreover, as the supply of financial capital has
increased, its price has fallen precipitously. In 2008
the cost of borrowing began to decline in response
8. to central bank intervention. Today, facing a dearth
of attractive investment opportunities, large banks
have been forced to accept riskier proj ects as invest-
ment grade. Even high-yield “junk” bonds are trad-
ing at historic lows. All told, the marginal cost of debt
for many large companies is now as low as 3%. This
means that the after-tax cost of borrowing is at (or be-
low) the rate of inflation—implying that in real terms,
debt is essentially free.
Not only are interest rates low across all classes
of debt, but the cost of equity is lower as well.
Immediately following the global financial crisis, eq-
uity risk premiums—that is, the premium relative to
risk-free assets, such as government bonds, that inves-
tors demand in order to buy stocks—shot up dramati-
cally. We estimate that in 2007, before the crisis really
hit, the equity risk premium was around 3% (versus
10-year government bonds). By 2009, following the
SOURCE BAIN MACRO TRENDS GROUP. NOTE ASSETS
AND MULTIPLES OF GLOBAL GDP WERE CALCULATED
USING 2010
PRICES AND EXCHANGE RATES. DATA IS ESTIMATED
FOR 2015 AND PROJECTED FOR 2020.
GROWTH IN THE GLOBAL BALANCE SHEET
Worldwide financial assets keep building up—faster than global
GDP.
6.5x
8.2x
9.5x
GLOBAL GDP
10. R
IL
LI
O
N
S)
1990 1995 2000 2005 2010 2015 2020
MARCH–APRIL 2017 HARVARD BUSINESS REVIEW 69
financial collapse, investors demanded a premium
of more than 7% to hold equities. As the economy
rebounded, equity risk premiums dropped back to
more-normal levels (averaging 4% to 5%). That de-
cline, combined with lower rates of return on risk-free
assets, reduced the cost of equity: We estimate that for
U.S. corporations, the average cost is currently around
8%, compared with more than 12% during much of the
1980s and 1990s.
The combination of historically low debt and low
equity costs (along with the buildup of cash on many
balance sheets) has produced very low capital costs
for most corporations. We estimate that for the 1,600-
plus companies that constitute the Value Line Index,
the weighted average cost of capital currently ranges
from 5% to 6%. That compares with 10% or more in
the 1980s and early 1990s (see the exhibit “How the
Cost of Capital Has Evolved”).
11. THE NEW RULES OF STRATEGY
When capital is both plentiful and cheap, many of the
unspoken assumptions about what drives business
success must be challenged and a new playbook de-
veloped. In our work with clients, we have seen a few
companies that are already incorporating capital su-
perabundance into the way they think about strategy
and organization. The changes they are making—and
deriving benefits from—accord with three new rules:
Reduce hurdle rates. Virtually every large com-
pany sets explicit or implicit hurdle rates on new capi -
tal investments. A hurdle rate is the minimal projected
rate of return that a planned investment must yield.
Exceed this rate and the investment is a “go”; fall short
and it will be scuttled. Ideally, the hurdle rate should
reflect a company’s WACC (adjusted, as needed, for
differential risk).
For too many companies, however, hurdle rates
remain high relative to actual capital costs. Research
by Iwan Meier and Vefa Tarhan pegged average hurdle
rates at 14.1% in 2003. Since then, hurdle rates have
changed very little. When the Manufacturers Alliance
for Productivity and Innovation (MAPI) surveyed mem-
bers of its CFO and Financial Councils, it found that
the average rate was 13.7% in 2011 and 12.5% in 2016.
And roughly half the survey respondents noted that
hurdle rates at their companies had stayed constant
during that five-year period. Research conducted in
2013 by the Federal Reserve found that companies are
extremely reluctant to change hurdle rates even when
interest rates fluctuate dramatically. This research
dovetails with our own experience as consultants: Most
companies that engage with us have not adjusted their
hurdle rates significantly in the past two decades.
12. HOW THE COST OF CAPITAL HAS EVOLVED
The cost of capital for most large U.S. companies is at its
lowest level in decades.
SOURCE BAIN & COMPANY. NOTE DATA IS FOR
COMPANIES IN THE VALUE LINE INDEX.
SOURCE BAIN & COMPANY
WEIGHTED AVERAGE COST OF CAPITAL
C
H
A
N
G
E
IN
F
IR
M
’S
IN
TR
IN
SI
C
13. V
A
LU
E
CHOOSING A STRATEGY: PROFITABILITY OR GROWTH?
The value of pursuing growth is highly sensitive to changes in
the weighted average
cost of capital (WACC), while the value of improving operating
margins is stable.
At a WACC of 6%, the return on growth investments is
extraordinarily high: A 1%
improvement in a company’s long-term growth rate will
increase a firm’s value by a
staggering 27%, whereas a sustained improvement in operating
margins of 1% will
boost value by only 6%.
20%
15
10
5
0
30%
25
20
15
14. 10
5
0
1980 1985 1990 1995 2000 2005 2010 2015
70 HARVARD BUSINESS REVIEW MARCH–APRIL 2017
FEATURE STRATEGY IN THE AGE OF SUPERABUNDANT
CAPITAL
WEIGHTED AVERAGE COST OF CAPITAL
COST OF EQUITY
COST OF DEBT
16.4%
12.2%
10.9%
7.9%
9.1%
8.1% 8.2%
5.3%
6%
27%
6%
15. 7%
6%
1%
6%
–1%
1% INCREASE IN OPERATING MARGIN
1% INCREASE IN GROWTH
6% 9% 12% 15%
We estimate, on the basis of
the MAPI survey data, that the gap
between hurdle rates and the actual
cost of capital for most companies is
650 to 750 basis points. The result: Too
many investment opportunities are being rejected,
cash is building up on corporate balance sheets, and
more and more companies are choosing to buy back
common stock rather than pursue investments in
productivity and growth. Reuters studied 3,297 pub-
licly traded U.S. nonfinancial companies in 2016 and
found that 60% bought back shares between 2010 and
2015. And for companies with stock repurchase plans,
spending on buybacks and dividends exceeded not
just investments in research and development but
also total capital spending.
It is important to point out that share buybacks
create value for the acquirer only if a company’s com-
16. mon stock is significantly undervalued in the market.
Under those conditions, share repurchases are akin to
“buying low” with the prospect of “selling high” later.
However, although executives frequently maintain
that their companies’ shares are undervalued, our re-
search suggests otherwise. And even when a buyback
makes financial sense, the act of repurchasing shares
can signal to investors that management has run out
of attractive investment ideas—it’s the economic
equivalent of throwing up your hands and asking
shareholders to find good investments on their own.
In the new era, leaders should have a strong bias
toward reinvesting earnings in new products, technol-
ogies, and businesses. It is the only way for the com-
panies that have bought back shares to grow into their
new multiples and for all companies to fuel innova-
tion and accelerate profitable growth. With expected
equity returns in the single digits, it shouldn’t be diffi-
cult for management to identify strategic investments
with the potential to generate more-attractive returns
for investors. To qualify, opportunities need only be
capable of generating a return on equity higher than
shareholders’ cost of equity capital, which we estimate
is a mere 8% for most large companies.
Focus on growth. A lingering artifact from the age
of capital scarcity is a bias toward tweaking the perfor -
mance of existing operations, rather than trying to build
new businesses and capabilities. When capital was ex-
pensive, investments to improve profitability trumped
investments to increase growth. Accordingly, over the
past several decades, most companies have employed
process reengineering, Six Sigma, the “spans and lay-
ers” methodology, and other tools to remove waste and
increase efficiency. At the same time, however, the rate
17. of innovation has declined, according to research con-
ducted by the OECD, and since 2010, top-line growth
has been flat (or negative) for nearly one-third of the
nonfinancial companies in the S&P 500.
Success in the new era demands that leaders
focus as much (or more) on identifying new growth
opportunities as on optimizing the current business—
because when capital costs are as low as they are to-
day, the payoff from increasing growth is much higher
than what can be gained by improving profitabil-
ity. Take a look at the exhibit “Choosing a Strategy:
Profitability or Growth?” It shows that the benefits of
investing to accelerate growth (rather than improve
profitability) depend a lot on the cost of capital. But
at today’s WACC of less than 6%, a growth approach
clearly trumps an emphasis on profitability (as mea-
sured by the average pretax operating margin for the
Value Line Index companies). Improving margins by
1% would increase the average company’s value by
only 6%. By contrast, increasing the long-term growth
rate by 1% would drive up value by 27%—four and a
half times as much bang for the buck invested.
FOR TOO MANY COMPANIES,
HURDLE RATES REMAIN
HIGH RELATIVE TO
ACTUAL CAPITAL
COSTS. THE RESULT:
TOO MANY INVESTMENT
OPPORTUNITIES ARE
BEING REJECTED.
MARCH–APRIL 2017 HARVARD BUSINESS REVIEW 71
18. industrial adhesives to Post-it notes—and consistent
top-line growth, year after year.
Making continual expansion part of a company’s
DNA is not easy, and companies have traditionally suf-
fered from losing focus and overdiversifying. But that is
not an argument for ducking the challenge. Investment
in real growth has always been risky, and executives
must learn to accept and even embrace failure. As Bill
Harris, the former CEO of Intuit and PayPal once said:
“Rewarding success is easy, but we think that reward-
ing intelligent failure is more important.” Leaders in
the new era should judge their team members not just
by the home runs they hit but also by the learning that
comes out of their failures. This implies the need for
new performance-appraisal processes and an effort by
senior managers to consider how their organizations
are gaining knowledge by exploring new avenues of
growth—whether those pan out or not.
Invest in experiments. When capital was scarce,
companies attempted to pick winners. Executives
Shifting to a growth focus requires reevaluating the
organizational model, as the case of WPP, the world’s
largest advertising and marketing services company,
illustrates. In addition to optimizing its existing
business, WPP has looked for growth opportunities
by making dozens of investments and acquisitions
outside traditional geographic markets and capabil-
ities. As a result, the company’s revenues rose from
$16.1 billion in 2011 to $19 billion in 2015, and operating
profits rose from $1.9 billion to $2.5 billion.
19. A significant part of WPP’s success has been an ap-
proach to organization that CEO Martin Sorrell calls
“horizontality.” In the traditional industry model,
single agencies compete for a client’s global business.
By contrast, WPP offers clients an internal market in
which they can choose from a wide range of market-
ing services businesses that are under the WPP um-
brella. These businesses then work together in dedi-
cated client teams. Currently there are about 50 such
teams, which involve some 40,000 people and ac-
count for one-third of the company’s revenues. Each
team is directed by one of the firm’s client leaders,
which puts WPP in a position to coordinate the work.
That gives clients the benefits of having a partner
with a full picture of the business while also giving
them the advantages of choice. This approach has
allowed each agency to focus on doing what it does
best, whether that’s digital advertising, public re-
lations, marketing analytics, or something else.
Top managers at WPP also have room to de-
velop bold strategies to expand in digital mar-
kets, fast-growth geographies, and new fields
such as data investment management.
In addition to setting up formal struc-
tures that encourage new business ideas,
companies can adopt informal processes
to reward continuous expansion. 3M is
the classic example. For years it has
permitted its 8,000-plus research-
20. ers to devote 15% of their time to
projects that require no formal
approval from supervisors. The
company also pursues tradi-
tional product development
efforts in which business
managers and researchers
work together to create
new offerings and im-
prove existing ones. This
multipronged innova-
tion process has en-
abled 3M to gener-
ate countless new
products—from
MAKING CONTINUAL
EXPANSION PART OF
A COMPANY’S DNA IS
NOT EASY. INVESTMENT
IN REAL GROWTH HAS
ALWAYS BEEN RISKY,
AND EXECUTIVES MUST
ACCEPT AND EVEN
EMBRACE FAILURE.
FEATURE STRATEGY IN THE AGE OF SUPERABUNDANT
CAPITAL
21. SCALE, SCOPE, AND THE FUTURE OF M&A
Abundant capital is rocket fuel for M&A. Low-cost capital
has recently facilitated rec ord levels of acquisitions and
some of the largest transactions in corporate history.
Most of the largest debt-fueled transactions are scale
deals—usually some form of industry consolidation.
Examples are plentiful in pharmaceuticals, technology,
telecommunications, and energy.
Given the low borrowing costs and the opportunity for
postmerger
synergies—which typically range as high as 5% of combined
revenue—scale
deals seem like safe bets. And the combined companies
typically do hit
predicted earnings targets for one, two, or three years after the
deal. But over
the longer term, their performance is less impressive.
Bain & Company has been tracking deal returns for more than
15 years, and
the single most consistent finding is that scale consolidations
underperform
the market. Almost any other M&A strategy is better than these
“big bet”
deals, which generate only 4.4% annual total shareholder
returns. In fact,
doing no deals is better than doing scale ones (sticking to the
status quo
generates annual returns of 5.7%). So although the required
capital may be
sitting there available—like the chocolate fountain at the all-
you-can-eat
buffet—it is not necessarily a good idea to indulge.
22. But this does not mean M&A is doomed. There’s an alternative
to scale deals:
scope deals, which move companies into adjacent businesses,
related services,
or new markets and geographies. Our research finds that scope
deals generally
lead to higher returns, and the more of them a company does,
the better the
returns. Companies that expand via frequent, smaller deals over
many years
generate between 8.2% and 9.3% total annual shareholder
returns.
Why do scope deals outperform scale deals in the new era? In a
word:
growth. A move into an adjacency is almost always a move into
a higher-
growth business, with greater option values. While scope deals
may feel
expensive and risky compared with scale deals, which quickly
generate returns
through synergies, scope deals create more value over time,
particularly when
capital is cheap. And the more deals you do, the better you get
at finding and
closing the best ones.
MARCH–APRIL 2017 HARVARD BUSINESS REVIEW 73
A
N
D
R
23. EA
A
N
TU
N
ES
1/
IS
TO
C
K
needed to be very sure that a new technology or new
product was worthwhile before investing precious
capital. The consequences of getting it wrong could
be dire for careers as well as for strategy. With super-
abundant capital, leaders have the opportunity to take
more chances, double down on the investments that
perform well, and cut their losses on the rest. To put
it another way, when the price of keys is low, it pays
to unlock a lot of doors before deciding which one to
walk through.
To win in the new era, executives need to get over
the notion that every investment is a long-term com-
mitment. They have to stop trying to prove to them-
selves (and their colleagues) that they can predict the
future accurately and know how a business will per-
form five or 10 years out. Instead, executives should
24. focus on whether putting money into something could
be valuable as an experiment. If the experiment goes
south, they can (and should) adjust. Treating invest-
ments as experiments frees companies to place more
bets and allows them to move faster than competitors,
particularly in rapidly changing markets.
Take Alphabet, the parent company of Google.
Since 2005, Alphabet has invested in countless new
ventures. Some have been highly publicized, such
as YouTube, Nest, Google Glass, Motorola phones,
Google Fiber, and self-driving cars. Others are less
well-known (grocery delivery, photo sharing, an on-
line car-insurance comparison service). While many
of Alphabet’s investments have succeeded, a few
have not. But rather than stick with those losers, CEO
Larry Page and his team have shed them quickly. This
has enabled the company to move on, test other in-
vestment ideas, and redouble its efforts in promising
new businesses. In the past three years, Alphabet has
closed the smart-home company Revolv, shut down
Google Compare (the car insurance site), “paused”
Google Fiber, and sold Motorola Mobility to Lenovo.
During the same period, the company has increased
its stake in cloud services and various new undertak-
ings managed by the company’s X lab group—including
electronic contact lenses and a network of stratospheric
balloons intended to provide high-speed cellular inter-
net access in rural areas. Not every investment will pay
off, but the “noble experiments” mindset has allowed
the company to explore many innovative ideas and
create new platforms for profitable growth.
To be sure, Alphabet does have more money than
25. most corporations and is operating in the “new econ-
omy,” where exciting ideas constantly bubble up. But
there is plenty of scope to apply the same approach
in traditional sectors. Consumer foods and beverages
are a case in point. Every March, aspiring entrepre-
neurs in the natural and organic foods industry con-
verge on Anaheim, California, for Expo West, a giant
trade show. In the past, the kind of small entrepre-
neur who set up a booth there might have started a
business with funding from angel investors or from
family and friends. If the company had some success,
it might grow large enough to attract venture money
or private equity. But large food companies stayed
away. They knew the success rate of new products
was low, and they funded innovation internally,
rather than risk expensive capital on start-ups.
Today those large companies are flocking to Expo
West and taking advantage of low-cost capital to form
their own investment groups that build portfolios of
early-stage food companies. Kellogg has Eighteen94
Capital, General Mills has 301 INC, and Campbell in-
vests through Acre Venture Partners. The companies
use these in-house units to fund small start-ups, nur-
ture them, and then cull the flock. When a new prod-
uct takes off, they buy out the founders and bring the
operation in-house. In effect, superabundant capital
has made “outsourced innovation” possible for food
giants, allowing them to tap into the dynamics of the
entrepreneurial economy to solve their biggest strategic
issue: growth.
HUMAN CAPITAL: WHERE THE POWER LIES
The economist Paul Krugman famously noted,
“Productivity isn’t everything, but in the long run it
is almost everything.” Today productivity requires
26. 74 HARVARD BUSINESS REVIEW MARCH–APRIL 2017
FEATURE STRATEGY IN THE AGE OF SUPERABUNDANT
CAPITAL
working smarter rather than the traditional working
harder. Companies increase output by identifying bet-
ter ways to combine inputs, implementing technolog-
ical innovations, and adopting new business models.
But all these productivity-enhancing measures
require talented people who can bring them to life. In
the new era, therefore, human capital—the time, tal-
ent, and energy of a company’s people, along with the
ideas they generate and execute—is the foundation of
superior performance. A single great idea, after all, can
put a company on top for many years. Think of Apple’s
iPhone, Continental Resources’ introduction of hori-
zontal drilling for oil and natural gas, and IKEA’s re-
imagination of home goods. Lots of smaller, everyday
good ideas can enable a company to pull away from
competitors too.
But great ideas don’t just materialize. They come
from individuals and teams with the time to work pro-
ductively, the skills to make a difference, and creativ-
ity and enthusiasm for their jobs. As long as companies
continue to focus too much attention on managing
financial capital, they will devote far too little to en-
suring that the organization’s truly scarce resources—
time, talent, and energy—are put to their best use. In
fact, most companies lose nearly a quarter of their
productive power because they have structures, pro-
27. cesses, and practices that waste time and undermine
performance. Firms counteract only a small portion
of this lost output by making good hires and keeping
their workforces engaged.
In other words, human capital has become the
fundamental source of competitive advantage, and
companies that manage it as carefully and rigorously
as financial capital perform far better than the rest. In
their book Time, Talent, Energy, Michael Mankins (an
author of this article) and Eric Garton find that com-
panies that apply real discipline in their management
of human capital are on average 40% more produc-
tive than the rest. These companies lose far less to
organizational drag. They attract, deploy, and lead
talent more effectively—taking full advantage of the
unique skills and capabilities their people bring to the
workplace. Finally, they unleash far more of their em-
ployees’ discretionary energy through inspirational
leadership and a mission-led culture. The resulting
productivity difference is a huge advantage for the
best companies, producing operating margins that
are 30% to 50% higher than industry averages. And
every year, as this difference is compounded, the gap
in value between the best and the rest grows bigger.
MOST OF TODAY’S leaders were taught strategy—either in
school or on the job—by the old rules, in a time when
capital was scarce and expensive. Not surprisingly,
most large companies still treat financial capital as the
firm’s most precious resource and seek to carefully
control how it is deployed. Those practices are out of
step with what is required to win in the new age. The
few “old dogs” that have learned the “new tricks” of
strategy—and understand that ideas and the people
28. who bring them to life are a company’s most valuable
asset—are building an impressive lead. Their peers
who don’t learn these lessons may find themselves
irrecoverably behind in the years to come.
HBR Reprint R1702C
MICHAEL MANKINS is a partner in Bain & Company’s San
Francisco office and a leader in the firm’s Organization
practice. He is a coauthor of Time, Talent, Energy: Overcome
Organizational Drag and Unleash Your Team’s Productive
Power (Harvard Business Review Press, 2017). KAREN
HARRIS
is the managing director of Bain’s Macro Trends Group and
is based in New York. DAVID HARDING is an advisory partner
in Bain’s Boston office and the former leader of the Global
Mergers & Acquisitions practice. He is a coauthor of Mastering
the Merger: Four Critical Decisions That Make or Break the
Deal
(Harvard Business School Press, 2004).
AS LONG AS COMPANIES
FOCUS TOO MUCH ATTENTION
ON MANAGING FINANCIAL
CAPITAL, THEY WILL DEVOTE
FAR TOO LITTLE TO ENSURING
THE BEST USE OF TRULY
SCARCE RESOURCES—TIME,
TALENT, AND ENERGY.
MARCH–APRIL 2017 HARVARD BUSINESS REVIEW 75
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please visit hbsp.harvard.edu.
November 20, 2014
Memorandum
To: Teacher of Building Blocks Learning Center
From: Director
Date: June 7th
Re: Faculty Newsletter for Upcoming School Year
Building Blocks Learning Center (BBLC) will host a kick-off
meeting to usher in our new school year. The purpose of this
meeting is to welcome back our staff and faculty, and to address
challenges and opportunities that BBLC will face in the coming
year—and for years to come.
As one of our most valued teachers, I am writing to ask for your
help. I would like to develop a faculty newsletter with articles
written by members of our staff. The articles in this newsletter
will serve as an introduction to several of the issues that affect
early childhood learning centers. Since this is our first
newsletter, and you are a more-experienced member of our
staff, I am asking you to create four (4) articles to include in
our newsletter. These articles will inform our faculty and help
BBLC prepare for the upcoming year and meet our expected
challenges.
30. In the newsletter, we would like you to write four articles about
the following issues and trends in the field, and their impact on
BBLC:
· Changing demographics
· Poverty and its impact on child development
· Brain research and child development
· Effective uses of technology in the classroom
At BBLC, our goal is to promote the healthy development and
learning of every child. This newsletter is the first step in
spreading awareness about the critical issues and trends that
impact children, families, and our profession. Your help and
guidance are greatly appreciated for this task.
Sincerely,
Shana J. Roche
Building Blocks Learning Center Director
0
2
Data and Statistics for Hansvale County, Minnesota
Hansvale County is located in central Minnesota. The following
information provides a glimpse into the demographics of the
county. The county demographics and trends should represent
likely students and families of Building Blocks Learning
Center. Consider the following information while accounting for
strategies that Building Blocks Learning Center will incorporate
to accommodate the Hansvale County community.
Figure 1. Hansvale County population
31. Figure 2. Diversity in a sample elementary school in Hansvale
County
Overall Percentage
Handicapped
ELL Kindergarten
Kindergarten
1st grade
2nd Grade
3rd Grade
4th Grade
5th Grade
6th Grade
Am. Indian
0.2
1
1
Asian
19.6
2
19
15
20
18
26
33. Figure 3. Percentage of Hansvale County students who speak a
language other than English at home
Figure 4. Household income distribution by income bracket
Figure 5. Trends in the rates of uninsurance in Hansvale County
and Minnesota
Trends in the rate of uninsurance in Minnesota and Hansvale
County
Year
Minnesota
Hansvale County
2004
7.00%
7.50%
2007
7.25%
9.35%
2009
8.75%
9.50%
2011
8.50%
9.25%
2013
8.25%
9.20%
Figure 6. High-speed Internet adoption by income group in
Hansvale County
Figure 7. Preferred devices used to connect to the Internet at