BLOG OF ADAM HARTUNG
Yes AMR, Bankruptcy is failure
No business can save its way to prosperity – not even an airline. To the contrary, constant cost cutting has driven AMR into bankruptcy. Unless its leadership focuses on innovation and better service, AMR will not survive.
Leadership Matters – Ballmer vs. Bezos
Leaders that fixate on defending and extending past successes, like Steve Ballmer at Microsoft, actually harm the company’s ability to grow and create value. Leaders that fixate on market shifts and how to participate in new markets and invest in game changers, like Jeff Bezos at Amazon, do grow and create value. Too few companies recognize this, and too few leaders are behaving effectively.
Why Occupy Wall Street deserves more attention than the Tea Party
It is easy to discount the Occupy Wall Street Movement. Even to accuse participants of vagrancy and trespass. But there are serious issueshehre worth discussing, and by taking parallels with the Tea Party perhpaps we can start to see the implications. If we don’t create economic growth, America will not thrive.
Do you think you can fix that? – Filene’s, Syms, Home Depot, Sears, Wal-Mart
Most management teams are loath to attempt “fixing” a poorly performing business. In fact, most such efforts fail. However, great returns go to those who do succeed – such as Apple and IBM. The trick is to ignore efforts to operate the old business better, faster, cheaper and instead focus on fulfilling emerging needs in new markets.
How “Best Practices” kill productivity, innovation and growth – Start using Facebook, Twitter, Linked-in!
“Best Practices” mostly serve to limit behavior in efforts to improve throughput. However, in a rapidly changing, dynamic global marketplace productivity is closely tied to adaptability. That means management needs to rethink its approach to adopting new tools, and give employees far greater access to modern IT products
Better, faster, cheaper is not innovation – Kodak and Microsoft
There is no correlation between R&D spending and innovation. Or spending on innovation and rates of return. Companies over-spend trying to defend old businesses with unnecessary extensions, while underspending on new innovations that can drive organic growth.
Avoid the 3 card monte – Sell Abbott
Abbott’s split-up into 2 companies is an obfuscation intended to hide the horrible performance of the CEO for 10 years. Abbott has an organic growth stall, and has overpaid for its acquisitions. It is unlikely to gain any growth, and will continue to be a poor investment.
Gladiators get killed. Dump Wal-Mart; Buy Amazon
Wal-Mart is the world’s #1 retailer, but same stores sales have declined for over 2 years. Wal-Mart is under attack from myriad traditional competitors beating it from different directions. Simultaneously the retail market is shifting on-line, threatening all brick-and-mortar retailers, and putting a cap on Wal-Mart growth. The big winner is Amazon, that has shown a terrific ability to recognize big trends and capitalize on them with new products driving double digit growth.
The Case for Buying Netflix. Really.
Netflix and its CEO are hated now. But the actions taken position the company for greatest likelihood of success. Despite the recent bad news, and perhaps because of the dramatic valuation decline, investors should give Netflix strong consideration.
Will Meg Whitman be more like Steve Jobs, or Carol Bartz?
The media has enjoyed a field day last week amidst the ouster of Leo Apotheker as Hewlett Packard's CEO and appointments of former Oracle executive Ray Lane as Executive Chairman and former eBay CEO Meg Whitman as CEO. There have been plenty of jabs at the...
Where Bartz Blew It, and What Yahoo! Needs To Do Now
Carol Bartz was unceremoniously fired as CEO by Yahoo's Board last week. Fearing their decision might leak, the Chairman called Ms. Bartz and fired her over the phone. Expeditious, but not too tactful. Ms. Bartz then informed the company employees of...
Where did all the jobs go? 9 recommendations for Mr. Obama!
Why a Bad CEO is a Company Killer – Sell Hewlett Packard
"You've got to be kidding me" was the line tennis great John McEnroe made famous. He would yell it at officials when he thought they made a bad decision. I can't think of a better line to yell at Leo Apotheker after last week's announcements to shut down...
From the Frying Pan into the Fire – Google’s Motorola Problem
The business world was surprised this week when Google announced it was acquiring Motorola Mobility for $12.5B - a 63% premium to its trading price (Crain's Chicago Business). Surprised for 3 reasons: because few software companies move into hardware effectively...
Baffle ’em with Bulls**t – Forget Kraft
"If you can't dazzle 'em with brilliance - Baffle 'em with Bulls**t" - W. C. Fields Just 18 months ago Kraft CEO Irene Rosenfeld was working very hard to convince investors she needed to grow Kraft with a $19B acquisition of Cadbury. This...
Are You More Like Rupert Murdoch Than You Think?
Bernie Ebbers (of WorldCom) and Jeff Skilling (of Enron) went to prison. Less well known is Conrad Black - the CEO of Sun Times Group - who also went to the pokey. What do they have in common with Rupert Murdoch - besides CEO titles? The famous...
Grow like (the) Amazon to Succeed – Invest outside your “core”
"It's easier to succeed in the Amazon than on the polar tundra" Bruce Henderson, famed founder of The Boston Consulting Group, once told me. "In the arctic resources are few, and there aren't many ways to compete. You are constantly depleting resources in...
Invest in Trends, Cannibalize to Grow – Sell Yahoo, Buy Apple
"Buy Low, Sell High" was an industrial era investor expression. Before we shifted into an information economy, investors were admonished to invest along with economic cycles, buying during recessions, selling during booms. In today's information economy it's not...
Avoid Gladiator Wars – Invest in David, Make Money Like Apple
When you go after competitors, does it more resemble a gladiator war - or a David vs. Goliath battle? The answer will likely determine your profitability. As a company, and as an investor. After they achieve some success, most companies fall into a success...
How Harry Potter predicts Success for AOL
Evolution doesn't happen like we think. It's not slow and gradual (like line A, below.) Things don't go from one level of performance slowly to the next level in a nice continuous way. Rather, evolutionary change happens brutally fast. Usually...
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