Technology has its eyes on banking. Apple is expected this week to launch Apple Pay, its touchless payment system for iPhones; venture capital funds are pouring money into “fintech” start-ups; and Marc Andreessen, the technology entrepreneur, talks of “a chance to rebuild the system. Financial transactions are just numbers; it’s just information.”
Corporate perks are tricky. One employee’s free healthy meal at Google’s canteen is another’s misery – yet another reason never to leave the office.
And so what to make of Facebook’s and Apple’s offer to employees that they will cover the cost of freezing their eggs? Read more
When Bill McDermott addressed SAP America’s annual sales meeting for the first time as their boss in 2003, the audience “reeked of doubt”. But he aimed “to plough through their doubt with my agenda and with certainty . . . At no point in my career have I been so intent, or felt such urgency, to change people’s minds, and their behaviours.”
Mark Carney © Photo by Chris Watt – WPA Pool /Getty Images
Mark Carney, governor of the Bank of England, would not win a popularity contest among directors of banks at the moment. Yet he and the Bank are taking a stance on individual responsibility that most people think is long overdue. Read more
Microsoft CEO Satya Nadella © Getty Images
What was Satya Nadella thinking? On Thursday, the Microsoft chief executive made a monumental gaffe on the topic of women’s pay. Not asking for a pay increase, he said, was “good karma” and might be “one of the additional superpowers” for women. In the long term, “it’ll come back because someone’s going to know that that’s the kind of person I can trust,” he said. As the Twitter storm pointed out: karma does not pay the bills. Women have traditionally suffered under the illusion that being conscientious, likeable and patient is the key to getting a salary hike, only to see their mal e peers swagger into the corner office and demand to be paid their worth (and sometimes more than they are worth). His advice is contrary to that of Facebook chief operating officer Sheryl Sandberg. In her book Lean In, she wroteof her idiocy of being patient. Read more
Star fund managers are very valuable people, but not as valuable as they think they are. In a world of precise calculations and spotting the arbitrage opportunities between prices, this is one gap they fail to notice.
Codejam-filled Doughnut – GCHQ head office in Cheltenham (Crown Copyright)
GCHQ – the UK government electronic eavesdropping agency – could be the most innovative employer in Britain. But short of a management-obsessed successor to Edward Snowden daring to leak its org charts, it would normally be hard for anyone to find out.
Its press officers will not reveal their last names, its automated welcome message warns that calls “may be recorded for lawful purposes” (immediately reminding callers of the grey area between lawful and unlawful phone-tapping), and it will say only that it employs roughly 5,000 staff. GCHQ is, however, said to be building a happier workplace for those staff. In fact, its innovative change programme has won a prize. Read more
If I were the new chief executive of Tesco and had just learnt my profits were overstated by £250m, that the regulator was investigating and that I had lost the confidence of the world’s best-known investor, my first instinct would be to nail my accountants, shareholder-relations staff and PR people to their desks until they had sorted it out. I would not be urging them to don a smock or a hairnet and head for the front line.
Je m'excuse: Andy Street © Bloomberg
France is economically doomed and no place for an entrepreneur. “Nothing works and worse, nobody cares about it.” If this is what Andy Street is like at a public engagement, just imagine how dreary he’d be on a home counties golf course. It’s like being bashed around the head with a ringbinder full of Economist back issues.
Piqued by a bad Eurostar journey, the managing director of the leading UK retailer John Lewis morphed into John Bull at an awards event for start-ups in London on Wednesday. Such events can have an aphrodisiac effect on middle-aged executives running staid businesses. But what has John Lewis done recently to give it the right to appropriate the rock star smugness exhibited by many modern entrepreneurs? Read more
Every so often, a company announces that it is considering its “strategic options” for one of its businesses, which means that it wants to ditch it as soon as possible. This would be a good time for technology companies to consider their strategic options for their global tax arrangements.
If I ever rise to become chief executive of anything and I’m looking for yes-men to people my boardroom table, I shall make sure I employ a bunch of merger and acquisition bankers.
At the end of every quarter, to coincide with the publication of M&A rankings that they yearn to top (while professing indifference), these bankers boast about the fullness of their pipelines, the strong prospect for strategic deals, and, implicitly, the promise of more fees. As the illustration below shows, their outlook is at its rosiest-tinted just before a downturn.
In spring 2001, for instance, as deal volume plummeted, the esteemed Simon Robey, then co-head of M&A at Morgan Stanley, pointed out that “the fundamentals of the business have not changed, so when markets stabilise, we should see announcements of deals that are currently in the pipeline”. A truism, of course, but deals did not recover their 2000 peak until 2006. (A partial hall of shame of retrospectively regrettable M&A banker quotes appears at the bottom of this post.)
Most people can identify their top priority at work. Generally, it will be the part of the job that is most productive for their employer: for a merger and acquisitions banker, it could be landing a big deal for a client; for a lorry driver, the punctual delivery of an important consignment; for a hospital doctor or nurse, giving vital treatment to a patient.
Sir Richard Branson’s “non-policy” on holidays is the latest attempt by a company to tackle the “work-life balance” conundrum. The news that he is allowing 170 staff in his head office to take holiday whenever they like, without seeking prior permission, so long as it does not damage the business has been greeted with great enthusiasm by commenters on his blog.
One summed up the Branson cheerleading: “As always, leading the way for Generation Y. I hope someday, before my time is done – that most can enjoy more freedom through work, not enslaved by hours and limits but set free to make a difference whilst living out some dreams. Good start to this movement Richard.” Read more