Thinking in Systems
by Donella H. Meadows (1941-2001)
Systems thinking helps to understand how things work in so many contexts, including ecological, economic, and social. This book explains the elements and dynamics of systems and points out some of the common traps in trying to manage them.
Continue reading “Thinking in Systems”An interview with D.B. Dowd, author of Stick Figures: Drawing as a Human Practice
August 25, 2020 — 64 minutes — Book Review — Amazon
An Interview with D.B. Dowd, author of Stick Figures: Drawing as a Human Practice. The discussion topics are primarily from chapters 5-7 of the book.
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Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value
by Bill George
Former Medtronic chairman and CEO Bill George wrote this book following a series of corporate scandals, including Enron, Sunbeam, Tyco, and Worldcom—just to name a few. These companies imploded because management was fixated on maximizing short-term shareholder value.
To paraphrase my favorite line in the book: you are running a business, not a stock. That said, the compound annual growth rate of Medtronic split-adjusted stock price was 28.5% during George’s 12-year tenure, according to my calculations. Not too shabby!
The first part of the book deals with the character, values, and sense of purpose required to inspire employees. George also shares his wisdom and personal experiences regarding customers, quality, market share, growth, innovation, acquisitions, FDA approval delays, Wall Street analysts, and corporate governance.
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Statistical Questions from the Classroom
by J. Michael Shaughnessy and Beth Chance
I was talking with a mathematically-astute friend of mine and told him I lacked confidence in my grasp of statistics. (Insert clever joke about confidence intervals here.) So he recommended this 88-page book published by the National Council of Teachers of Mathematics as a good refresher on some basic concepts. The book consists of 11 chapters, each one addressing a question frequently asked by statistics students.
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Marketing and the Bottom Line
by Tim Ambler
Tim Ambler (now retired) was a professor at the London Business School. He was unique in that he was a marketing professor who was also a Chartered Accountant. Ambler contends that boards of directors should devote more attention to marketing. He puts a particular emphasis on brand equity and innovation.
“The point is simple: if you want to know what your future cash flow will look like, investigate where it comes from—the market… Survival depends on basic wealth creation. And wealth creation depends on how healthy the marketing is… Securing customer preference opens up the main cash flow for every business.”
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The Art of Being Indispensable at Work
by Bruce Tulgan
Becoming a go-to person is the key to real influence at work. But it presents challenges like the risk of overcommitment, endless meetings, and trying to get things done across ambiguous lines of authority. When do you say yes? How do you say no? Bruce Tulgan breaks it down.
Continue reading “The Art of Being Indispensable at Work”After posting more than 250 book reviews, I decided to try something new: an author interview on YouTube. I am grateful to Alastair Thomson for graciously sharing his wisdom on managing small and medium-sized businesses. Alastair has an accounting background, but this conversation is not about debits and credits. It’s about improving your business from the perspective of an experienced CEO and CFO. We cover cash flow, profit, customer experience, metrics, business ethics, marketing, quality, continuous improvement, front-line employees, growth, margins, inventory, and receivables.
An interview with Alastair Thomson, author of Cash Flow Surge
July 16, 2020 – 1 hour – Book Review – Amazon
Transcript
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Cash Flow Surge: 101 No-Cost and Low-Cost Fast-Action Strategies to Boost Your Business Cash Flow
by Alastair Thomson (interview)
In college I took a course called Small Business Finance. The main thing I remember from this course is the emphasis on “cash flow, cash flow, cash flow.” Alastair Thomson is an accountant who has been a CFO and CEO of several businesses in the U.K., across variety of industries. He wrote this book for owners of small and medium-size businesses. While cash flow and profit are not the same thing, many of the ideas in the book can improve both.
The 101 chapters cover suppliers and expenses, customers and revenue, staffing and procedures, communication, insurance, logistics, contracts, and technology. Here are some snippets:
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The Shareholder Value Myth: How putting shareholders first harms investors, corporations, and the public
by Lynn Stout (1957-2018)
Business schools and law schools teach that the purpose of a corporation is to maximize shareholder wealth. “Shareholder wealth, in turn, is typically measured by share price—meaning share price today, not share price next year or next decade.” Lynn Stout (1957-2018), who was a business law professor at Cornell, makes the case that this is both untrue and harmful.
“United States corporate law does not, and never has, required directors of public corporations to maximize either share price or shareholder wealth… State statutes similarly refuse to mandate shareholder primacy… As long as boards do not use their power to enrich themselves, the [business judgment rule] gives them a wide range of discretion to run public corporations with other goals in mind, including growing the firm, creating quality products, protecting employees, and serving the public interest. Chasing shareholder value is a managerial choice, not a legal requirement.”
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Life Is Tremendous
by Charlie “Tremendous” Jones
The Corona virus shutdown has been mentally taxing. Daily news reports chronicle the number of new cases and deaths. Many sectors of the economy have come to a screeching halt. 30 million people have applied for unemployment benefits. In that context I wanted to read something light and positive. This 100-page booklet was published in 1968 and has sold more than a million copies.
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The Key Point 