Lehman Brothers’ did not Walk to Talk of its Mission Statement

BRW reports:  “Lehman Brothers’ mission statement nodded in all the right directions. It told employees and investors that

We are one firm, defined by our unwavering commitment to our clients, our shareholders, and each other. Our mission is to build unrivalled partnerships with, and value for, our clients, through knowledge, creativity, and dedication of our people, leading to superior returns to our shareholders.

However, the investment bank did exactly the opposite, gorging on low-quality mortgages and nearly felling the global financial system. Rather than ‘set and forget’,  [mission statements] should be part of a conversation between staff and management.”

(BRW August 26-October 6, 2010, p. 78)

Posted on Aug 29, 10

Dramatic Challenge to Barnes & Nobles Business Model

This one of the most vivid examples of challenges to the existing business model of a firm. The Wall Street Journal reports:

After nearly 17 years of consistent growth, Barnes & Noble is stumbling. Revenue fell 3% to $5.12 billion for the fiscal year ended Jan. 31, 2009, while earnings dropped about 45% to $76 million.

When it launched the iPad last month, Apple championed a new approach to e-book pricing. Earlier this year, most large publishers agreed to establish a so-called agency model, where the publisher receives 70% of the digital price while e-book sellers act as agents and receive 30%. While some best sellers remain at $9.99, many major authors are priced at $12.99 or $14.99.

More...

Posted on May 21, 10

Google’s New Search Homepage: Integrating Quantitative and Qualitative Data as well as Intuitions

Posted on May 07, 10

Excellent Overview of the Philosophy of Social Sciences

Daniel Little’s article for the Cambridge Encyclopedia of Philosophy provides an excellent overview of the key issues in the philosophy of social sciences. You can read it here.

Posted on May 02, 10

Logical Incrementalism in Product Development

This little exerpt from the NY Times explains well the concept of logical incrementalism in management.

Mr. Schmidt didn’t stop there. He acknowledged that “Google might not get it right the first time,” and said that Apple probably wouldn’t either, briefly alluding to some better features coming with the second generation of the iPad. But he said both companies would have “the next two to three years to figure it out.”

Posted on Apr 12, 10