The newest academic paper on Ben Edelman’s website is a 61-pager called “Price Coherence and Adverse Intermediation”. It is fair to say it has not attracted as much attention as the 3,500-word blogpost “The Darker Side of Blinkx” he posted on January 28. Two days later, shares in the UK-listed online video search company fell by a third.
New Microsoft CEO Satya Nadella has produced an opening memo to employees that is rich in repetitive rhetoric but short on substance. Here is what he really meant.
From: Satya Nadella
To: All Employees
Date: Feb. 4, 2014
Subject: RE: Satya Nadella – Microsoft’s New CEO
Today is a very humbling day for me.
“Humility” is the appropriate tone for CEOs these days, but, believe me, when I got the nod I was punching the air like Steve Ballmer on an adrenaline high. Read more
The eulogies last week for Justin King, outgoing chief executive of J Sainsbury, make clear he won his crown as Britain’s most successful grocer by reconnecting with his loyal subjects – the shoppers – after years of neglect. But his abdication as chief executive of the country’s second-largest supermarket chain, after a decade in charge, is a good moment to ask whether customer loyalty really matters any more.
Million-dollar endorsement: Honus Wagner teaches lessons to modern celebrities (Source: Metropolitan Museum of Art via Bloomberg)
In the strange world of celebrity endorsements, it is usually the brand that dumps the celebrity – as happened, say, when Nike dropped cycling cheat Lance Armstrong in 2012 – rather than vice versa. So it stood out last week when Bollywood star Amitabh Bachchan revealed he stopped endorsing Pepsi some years ago, after a young girl asked him why he was advertising a drink her teacher said was “poisonous”.
“The Big B’s” declaration, during a talk with Indian business school students, coincided with a controversy that took the more predictable route. Actress Scarlett Johansson maintained her endorsement of SodaStream, the Israeli fizzy drinks company, and severed ties with Oxfam, the charity for which she had been a long-standing (and, people in the NGO world tell me, interested and involved) goodwill ambassador.
But his wider comments shed light on the other side of such endorsements and how celebrities can limit the risk of cross-contamination. Read more
Paul Flowers: tests put the board off the scent
The idea that Paul Flowers – the disgraced former chairman of the UK’s Co-operative Bank – might have got the job largely because he aced a set of psychometric tests is, on the face of it, astonishing. As we now know, the Methodist minister had little previous banking experience and is being investigated for allegedly buying illegal drugs.
But unfortunately it is increasingly easy for executives to allow the apparent certainty of test data to overrule more subtle and more serious concerns visible to mere human beings. Read more
When Ellen Kullman, chief executive of DuPont, asked a contract worker on the production line making Kevlar, the fibre used in bulletproof vests, what he was doing, she got an unexpected response: “We’re saving lives.”
In the dreary annals of presentations about corporate values, ABN Amro chairman Gerrit Zalm’s recent performance for the bank’s annual cabaret as his brothel-keeping “sister” Priscilla will take some beating.
Global business and political leaders like to talk about the long term, but persistently focus on what’s in front of their faces. That is one conclusion you can draw from the World Economic Forum’s Global Risks 2014 report, for nearly 10 years the doomy trailer to the main feature next week in Davos.
The pressing preoccupations of business, government, academic, non-governmental leaders – the “risks” that combine “high impact and high likelihood” – are: extreme weather events, failure of climate change mitigation and adaptation, water crises, severe income disparity, high unemployment, and fiscal crises in key economies. But if I were a bookmaker, I would have long since closed the betting on whether these events will occur – because almost all of them already have.
Well-spotted: the biggest and most likely "risks" are in the top right (source: WEF)