© The Financial Times Ltd 2015 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
Monthly Archives: July 2014
In the 1970s you could buy a hippy-ish poster of a bird flying towards a lurid sunset, with the maxim: “If you love something, set it free: if it comes back to you, it’s yours; if it doesn’t, it was never meant to be.” I assumed the slogan had expired along with a taste for joss sticks and tie-dye T-shirts. I am amazed to find it has instead become a formal human resources policy.
My first reaction to the $73bn bid from 21st Century Fox for Time Warner, which this week settled in for a prolonged fight as Time Warner blocked Fox from mounting a rapid assault on its board of directors, was to ask: what problem is Rupert Murdoch trying to solve?
Shortly after Philip Clarke made his surprising – and, it turns out, prescient –admission at a conference in March that his days as Tesco chief executive were probably numbered, the boss of another blue-chip British company asked me, worriedly: “Does it sometimes take two CEOs to turn a company round?”
There is no longer much call for poetry at Microsoft’s devices division, the bulk of which consists of Nokia’s old handset business.
Stephen Elop, former Nokia chief executive, now heads the Microsoft unit and on Thursday had the task of announcing 12,500 job cuts (out of 18,000 in total). The axe will fall on many former Nokians who remember the flights of fancy in Mr Elop’s 2011 “burning platform” memo, in which he urged them to make a leap into the unknown to help turn the company around: Read more
The longest line at the Farnborough International Airshow this week was for a model aircraft. In the absence of the F-35 Lightning, the colossally expensive and accident-prone stealth fighter that was scheduled to be the show’s highlight before an engine failed on a test aircraft, Lockheed Martin brought a replica.
Rupert Murdoch is not exactly putting his money where his mouth is with 21st Century Fox’s unsolicited $80bn offer for Time Warner. By offering non-voting Fox shares as part of the cash-and-stock bid he has made clear that he will not risk his voting grip on his family-controlled company. Read more
Madeleine Albright, former US secretary of state, famously said there was “a special place in hell” for women who don’t help other women. But new research suggests that women leaders – and managers from ethnic minorities – will also be damned if they go out of their way to advance people who look like them.
A paper to be presented at next month’s Academy of Management annual meeting says women and non-white leaders who value diversity – and show it through their actions – are “systematically penalised with lower performance ratings” by their bosses. By contrast, valuing diversity earns white men higher ratings for both warmth and performance. The net effect, however, is that the “glass ceiling” is reinforced. Read more
When the lucrative business of advising on mergers and acquisitions was in the doldrums, consultants spread the idea that crisis management was “the new M&A”. They wielded news stories such as BP’s Gulf of Mexico oil spill, Rolls-Royce’s disintegrating Qantas engine, and Toyota’s jammed accelerator pedals to frighten clients into contracts aimed at helping them cope with such disasters.
It always pays to scrutinise the small print in grand pronouncements about the future, especially those about the BBC. So I listened intently this morning to Tony Hall, the BBC’s director general, as he set out his plans for more competition in UK television and radio production.
Lord Hall was at City University in London to explain the BBC’s offer to allow independent producers and commercial companies to produce more of its output, in return for letting the BBC’s production arm make programmes for others. Read more
The other day, a business in New York mailed a dollar cheque to me across the Atlantic. It was a pretty thing – multicoloured, with an anti-fraud foil hologram – and I admired it for a while before putting it into another envelope and posting it back to a friend in New York to walk up the block and deposit. After a round trip of 7,000 miles, it reached my account three weeks late.
While waiting in a big Manhattan hospital about 15 years ago, I glimpsed the chairman of one of the world’s biggest banks in a consulting room. I never found out why he was there. If he was ill, his employer never said and the man is now enjoying a long and apparently healthy retirement.
As boards gradually move towards better balance by gender, what is the next frontier?
Alan Mak, a 30-year-old non-executive director of Havas Worldwide (UK), thinks boards should make it a priority to take on more young directors. He and I have gone head-to-head on the issue in print and we took the debate onto Twitter on Thursday to test the mood. Read more
The problems erupting over Google’s implementation of the EU’s new “right to be forgotten” rule were predictable. And I say that because I, among many others, predicted them in May after the European Court of Justice delivered its ruling:
A line will soon form to knock out revealing photographs, bits of tawdry gossip, legal orders, past convictions and anything that anyone finds an embarrassment. Before long, people’s search results will start to resemble official biographies, recording only the facts that they want other people to know, and not the remainder of reality . . . Read more
There is an argument that the latest Facebook scandal is a lot of fuss about nothing. A week-long psychological experiment on 690,000 users in 2012 that did no damage and had a barely noticeable effect hardly registers on the scale of research abuses over the years.
What puzzles me about Sports Direct’s campaign to pay founder Mike Ashley a bonus – which finally succeeded on Wednesday, despite shareholder opposition – is that it focuses City attention on the weak spots in the sports retailer’s make-up: its governance and its dependence on Mr Ashley himself. Read more
Having written about the obsolescence of the Fleet Street tabloids in my column last week, I was intrigued to attend a dress rehearsal on Saturday of Great Britain, the new Richard Bean farce about phone hacking and corruption in the British establishment.
One difficulty was expressed by my wife, who leaned across halfway through the first half and whispered: “When is this set?” That was a good question, for it appeared to be taking place at various times in the past three decades. Read more
When I sat down with colleagues this year to review a “longlist” of applicants for the Financial Times’ editorial trainee scheme, we agreed on one thing: any of the 50 candidates left in the running would be a worthy recruit. Yet following months of due diligence by FT staff, including writing tests and, for some, interviews, 48 were bound to receive a rejection letter.