Business

Andrew Hill

Clayton Christensen (Peter Foley/Bloomberg)

Clay Christensen is a gentle man, of devout Mormon faith, prone to sentimentality and beloved by many – not least for his lessons to students on how to find fulfilment, which he turned into an unexpected bestseller, How Will You Measure Your Life?

But the avuncular Harvard Business School star is hot under the collar about this week’s New Yorker attack on the book (The Innovator’s Dilemma) and theory (disruptive innovation) for which he is best known.

What seems to have made him particularly angry is the fact that the author, Jill Lepore, who is also a Harvard academic, did not drop by to chat to him about her detailed allegations that his theory does not stand up. Read more

John Gapper

No-one emerges well from the legal battle between Goldman Sachs and Deeb Salem, its former mortgage trader who claims that his $8.25m bonus for 2010 amounted to severe underpayment. It is no wonder that Goldman tried to seal the documents in what it calls an “utterly ridiculous” case.

The problem for Goldman and other Wall Street firms is that they have encouraged that sense of entitlement among employees – one that strikes almost everyone outside Wall Street as delusional. Mr Salem’s claim is merely an extreme example of a much wider problem.

 Read more

They tell you not to fix a meeting before 11am at the Lions advertising festival in Cannes because the guests will either have been up so late toasting their own creativity, or are so jet-lagged after flying in from Los Angeles, that they will not show up. I should have listened.

Andrew Hill

Isis infographic detailing attacks by type (Institute for the Study of War)

Chilling though it is to read how the Islamic State of Iraq and the Levant (Isis) records its military and terrorist successes in a sort of company report, it is hardly surprising.

Isis, for all its brutality, is an organisation. Organisations need managing, and – in the words of management writer Peter Drucker – “what gets measured, gets managed”.

The Institute for the Study of War, the US-based group that analysed the Isis annual reports, actually headlined its briefing “Isis Annual Reports Reveal a Metrics-Driven Military Command”.

As interpreted by the institute, Isis’s metrics serve a similar purpose to those of a company. Read more

I met Carey Eaton only once, at a conference five weeks ago in Switzerland, far from Kenya, where he grew up, lived and built a thriving internet business. He was engaging, upbeat and generous with his time and knowledge.

When China’s Communist leaders under Deng Xiaoping launched their assault on the Tiananmen Square protesters in 25 years ago, they were supposedly following the socialist road and Marxist principles of proletarian rule. “Workers of all lands, unite!” declared Karl Marx and Friedrich Engels in the 1848 Communist Manifesto.

Emma Jacobs

So concludes a new research paper that used data collected from tests compiled by the Swedish military on men born between 1952 and 1978, who were entering compulsory military service. It then tracked these men’s income, education and service as CEO of any Swedish company – both public and private, small and large. The sample included 1.3m men of whom about 41,000 served as a chief executives.

The findings will add fire to the debate over high compensation for chief executives. Read more

Inefficiency is not a quality usually associated with Amazon but Jeff Bezos’s company is behaving as if it is a small, disorganised bookstore that cannot quite control its stock. “You want that book, do you? Very sorry but we have run out. We can order you another copy but they are taking a long time to arrive at the moment. How about buying another title instead?”

Emma Jacobs

An artist's impression of the revamped bunks with en suite shower Photo: Transport Scotland/PA Wire

The revamp of the Caledonian Sleeper train service between Scotland and London looks like good news for the business travellers who account for half the traffic on that route.

Serco, the outsourcing group that has just snagged the franchise from FirstGroup, said more than £100m would be invested in new rolling stock that would come into service in 2018, with taxpayers footing much of the bill.

It already offers luxury sleeper services in Australia, including double beds at the very top end. The new Caledonian Sleeper carriages will feature berths for one or two travellers with an en suite toilet and shower, a safe, larger “hotel quality” towels and Shetland wool blankets (or duvets for the unpatriotic). Read more

When tycoons and world leaders meet – as they will at a conference today on inclusive capitalism in London, featuring the Prince of Wales, Bill Clinton and Christine Lagarde – you never see them exchange cards. If they do, I doubt they hang on to them. At the end of an international gathering a couple of years ago, someone went to check a billionaire speaker’s room in case he had left anything behind. The guest had tidied it himself – bed made, furniture neatly arranged. The only evidence of his stay was in the bin: business cards from dozens of hopeful high-level networkers.

John Gapper

Stephen Immelt, brother of Jeff Immelt, chairman and chief executive of General Electric, has become the second Immelt to lead a multinational organisation – in his case the law firm Hogan Lovells.

Jeff Immelt has given his brother some advice on how to do so. In an interview with The Lawyer magazine, Steve says Jeff has a rule of three-to-five for managing GE: Read more

John Gapper

The Chinese backlash against the US decision to charge five Chinese military officers with cyber-espionage has started. Of the US companies likely to be affected, Cisco is the most obvious.

The New York Times, quoting Caixin magazine and the Xinhua news agency, says China plans to make security assessments of foreign equipment entering the country to ensure that it cannot be used for espionage: Read more

Presumably, although he denies it, Brady Dougan considered resigning as chief executive of Credit Suisse this week when it became the first global financial institution since Crédit Lyonnais in 2003 to plead guilty to criminal felony in the US. In any case, he stayed.

Adam Jones

Is it worth uprooting family to move to a new city for a job? Peter Cappelli, a management professor at Wharton school at the University of Pennsylvania, is not convinced.

Assessing the broad decline in internal migration that the US has suffered in recent years, Prof Cappelli argues that the trend for people to stay put may well reflect the fact that so many jobs are transient these days. Read more

Self-castration was such a popular path to a high-flying advisory career in China’s imperial court that the Ming dynasty ended up having to employ lots of eunuchs it could not afford.