Read more about the article Video & Slides | Does Your Incentive Plan Really Drive Superior Results?
Does Your Incentive Plan Really Drive Superior Results?

Video & Slides | Does Your Incentive Plan Really Drive Superior Results?

Can we develop an incentive plan to drive superior performance? You can be pretty sure that's the question someone was trying to address when your key incentive program was created. At the time, the answer may have been yes. Since then? The chances are that question has never been asked…

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The Most Powerful Leadership Lesson You Can Learn from Detroit’s Bankruptcy

NOW is the time for tough decisions?“Now is the time for tough decisions,” said Michigan’s governor, Rick Snyder, on the occasion of Detroit’s bankruptcy filing.Did he say “NOW is the time for tough decisions”?Maybe for the weak-kneed, lily-livered city fathers who’ve been putting lipstick on this pig for years, but…

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Leadership Insight | What are we doing to help you?

“There is nothing more exhilarating than to be shot at without result.

Winston Churchill

Why do you have your own business?

Winston Churchill could have been an entrepreneur to have so eloquently dramatized the thrill associated with building a business.

Whether you own it yourself or share it with partners, it’s yours to build, to mold according to your dreams and values.

You may be building it from scratch or seeking new opportunities to jumpstart a mature company. In either case, I hope this will help you on your journey.

Want to build your own boat?

Why do you have your own business?

Independence, many will say, the chance to run my own show?

Be my own boss?

Do things my way – maybe because you’ve seen them done the wrong way and you can do better? (more…)

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Leadership | Innovation & Growth | Congratulations to 2 North Bay Leaders

This week, two North Bay organizations deserve a round of applause!Amy's Kitchen opens an on-site health care clinicFirst, congratulations to Amy's kitchen for its innovative approach to employee health care. They recently opened a primary health care clinic at their Santa Rosa production facility.[pullquote]From time to time, we offer a round…

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Business Finance | Pick a card … any card ….

New metrics to Define Financial Performance?

In the tumult surrounding the 3D maelstrom (Debt Ceiling, Downgrading and Deficit) of several weeks ago, you may have missed another chilling corporate finance update on the relentless pursuit of performance metrics that extol the sunshine while you’re in the heart of darkness. Yes, there may be some economic value for certain of these metrics, but they’re dangerous barometers of realizable value and highly misleading as to future achievements of tangible operating profits and free cash flow.

Another Sign of the Apocalypse?

Most of us recall the “eyeball counting” that preceded the Dot-Com-Bomb and those certain “Signs of the Apocalypse”, as when your cab driver is telling you what stocks you should buy. (more…)

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Leadership Lessons | Are Incentives the Cornerstone of Life?

Does your incentive program REALLY drive performance?

You probably know someone, don’t you, who is a star performer who believes that her achievements go unrewarded?
If so, you probably also know an underachiever who gets more than he deserves.I
s there any greater disincentive to the high performer than knowing that under-performance seems to be equally rewarded?

Should there be a moratorium on bonuses?

I’ve talked about the value of incentives before, but it keeps coming to mind as I talk to senior executives who don’t seem to have spent any time at all considering whether their incentive plans are working as intended … or whether they need to be revised.
In some ways, it reminds me of the comment that Bloomberg attributed to Barney Frank, chairman of the House Financial Services Committee, during the $20 billion bonus scandals during the 2008-2009 financial meltdown.
According to Bloomberg, this was his comment … (more…)

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Business Finance | Warren Buffett | Should We Depreciate Our People?

A Weekly Business Finance series for Non-Finance Executives!

“Financial Adrenaline” is a term we love around here because it reflects our commitment to help you turbocharge your business with practical tips and techniques to improve free cash flow, the lifeblood of business. As a further extension of our Financial Adrenaline program, we’re going to share a new Business Finance Tidbit every Wednesday specifically for those business executives who don’t have a finance background.

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Depreciation = Cash? Why do we care?

We’ve kinda been on a Warren Buffett tear lately, and last week I encouraged you to read his recent 2010 Annual Report to Berkshire Hathaway shareholders.

I want to plant another seed this week about an often misunderstood concept: [kastooltip msg=”DEPRECIATION” tooltip=”In accounting, an expense recorded to allocate a tangible asset’s cost over its useful life. Because depreciation is a non-cash expense, it increases free cash flow while decreasing reported earning. It is used in accounting to try to match the expense of an asset to the income that the asset helps the company earn. For example, if a company buys a piece of equipment for $1 million and expects it to have a useful life of 10 years, it will be depreciated over 10 years. Every accounting year, the company will expense $100,000 (assuming straight-line depreciation), which will be matched with the money that the equipment helps to make each year.”]. (You can see the definition by placing your cursor over the term.)

How is Depreciation Relevant to EBITDA?

Today, let’s just think about it in terms of EBITDA. In Does EBITDA Bury Its Own Dead?, I wrote about the perils of treating EBITDA as a placeholder for cash flow, and Buffett couldn’t agree more.

In his Annual Letter to Shareholders, 2002, Buffet describes (more…)

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Business Finance | Why you should read Warren Buffett’s Letter

A Weekly Business Finance series for Non-Finance Executives!

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Read Warren Buffett’s Letter to Berkshire Hathaway Shareholders

So, why not  jump into the deep end right now by reading Business Finance is about much more than finance

I’ve said before that leaders don’t have the luxury of confining their interests to just a few things

(more…)

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