Shareholder value has nothing to do with the share market

Why a lot of executive packages are outrageous and stupid

A loyal executive of 20 years reaches the rank of CFO. He’s smart, thorough and committed. He does a great job, earning options that convert at $10 a share. No one begrudges his package. He’s put in the yards and delivered the results.

The share price rises to $15. He plans to retire at 65, exercising his options and using the profit of $5 per share to finance his remaining years.

Then the stock markets tanks. The price falls to $5, his options expire worthless and after 20 years contributing to shareholder value, he retires with zip.

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Make sustainability pay

Real changes don’t just sound good.

Unsustainable green initiatives make no sense. To be embedded in a business model, they need to impact on two things: cost and volume. Either they save money, or they produce more by using less.

It sounds simple, but sustainability is a tricky subject at any level.

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The Collaborative Cockpit

Good managers are neither ideologues nor cynics

Before the acronym CRM was hijacked by Customer Relationship Management, it stood for Cockpit Resource Management. Developed by NASA in the 1970s, it was a collaborative practice aimed at curbing disasters due to human error.

This original CRM was adopted by commercial airlines and is still a key part of aircrew training. It’s credited with a two-decade fall in the number of aircraft mishaps caused by people rather than malfunction.

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Silent solutions: how keeping quiet can help

Ever tried to manage a problem by not offering a solution?

A lot of us automatically give advice. It’s not just a Mars and Venus thing.  Men and women both do it. Sometimes it is the right thing to do; sometimes it’s not.

We are not all natural listeners. For most of my life, I did not think listening was an action. I thought only the people talking were actually doing something. My wife has often pointed out the error in this.

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Staying simple in complex times

Does rapid change call for big shifts in strategy?

It’s all going quicker. Product cycles are shorter. So is time to market. And, so the logic goes, marketing strategies and selling propositions need to change as well. Is that right?

On the contrary, refocusing on your core message can guide you through the complexity and overthink that characterizes rapid change. It keeps the business grounded and the firm’s identity intact.

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