In 2012, the Institute on Aging, a US non-profit organization that served seniors in San Francisco, appointed a new chief executive officer (CEO). His mission was to salvage the organization, which was close to bankruptcy. His strategy was to consolidate services and pursue geographic expansion. Through these efforts, net income rose steadily and gross revenue increased from US$28.7 million in 2012 to US$45.2 million in 2017. However, not every outcome was positive. Morale among the line staff had suffered, and the senior leadership raised questions about the long-term business model that the organization should adopt. What more could the CEO do to help the Institute on Aging, an organization that straddled the public and private sectors?
In June 2018, the co-founder of a work-integration social enterprise in Calgary, Alberta, called CMNGD (Commongood) Linens, took stock of the impact her venture had on helping homeless people get back on their feet and into meaningful employment. Her ambition was to expand into other Canadian cities, but she was worried that scaling CMNGD might place so much strain on the venture that its viability could be thrown into question and its core mission put at risk. She knew that a lot was at stake, not only financially, but also for the vulnerable people she was trying to help. She and her husband had to carefully weigh the options and decide on the best way forward.
In 2012, the Institute on Aging, a US non-profit organization that served seniors in San Francisco, appointed a new chief executive officer (CEO). His mission was to salvage the organization, which was close to bankruptcy. His strategy was to consolidate services and pursue geographic expansion. Through these efforts, net income rose steadily and gross revenue increased from US$28.7 million in 2012 to US$45.2 million in 2017. However, not every outcome was positive. Morale among the line staff had suffered, and the senior leadership raised questions about the long-term business model that the organization should adopt. What more could the CEO do to help the Institute on Aging, an organization that straddled the public and private sectors?
In January 2017, Ontario, Canada launched its cap-and-trade program in an effort to curb greenhouse gas (GHG) emissions. Ontario took a progressive position on combatting climate change that included shutting down coal-burning power plants, investing heavily in renewable power, and setting aggressive emissions-reduction targets across all sectors. Its targets included reducing emissions levels of 1990 by 15 per cent in 2020, 37 per cent in 2030, and 80 per cent in 2050. Its efforts allowed the province to meet its 2014 target of 6 per cent below 1990 levels. These targets complemented Ontario’s commitment to the United Nation’s 2015 Paris Agreement. Firms that annually emitted more than 10,000 tonnes but fewer than 25,000 had the option of entering the market on a voluntary basis. The expected downstream impact to the average Ontario household would be an increase of about CA$150 per year in home-heating and car-fuel costs. However, cost increases would be felt less directly through the rest of the economy. Four particular companies in Ontario had some decisions to make regarding how the province’s cap-and-trade program would affect their operations.
In 2018, private equity firm Clayton, Dubilier & Rice celebrated its 40th anniversary and its 20th year under the leadership of CEO Don Gogel. In those decades, CD&R showed solid portfolio performance and generated strong returns for its investors - accomplishments attributed to its unique balance between operations and finance professionals. The firm made sure that, for every deal, it had both the finance and operations expertise to grow revenues, streamline operations, and truly turnaround distressed companies. But as CD&R entered into its fifth decade and its largest fund to date (nearly $10 billion AUM), competition, AUMs, industry "dry powder," and buyout valuations were all on the rise. Within CD&R, rapidly-evolving technologies, talent retention, and the prospect of Gogel's retirement presented additional sources of pressure. Gogel and his team had to consider whether CD&R could maintain its unique identity and continue to add value as it had in the past in the face of such circumstances.
In 2014, Andreas Karaiskos took over as CEO for a classic classroom based financial services training organisation, Fitch Learning, and started implementing a global expansion strategy via enhanced eLearning capabilities, partnerships with global financial institutions, co-location with other Fitch group companies while also evaluating target markets' sustainable financial indicators and their supportive customer demographics. With its main focus on certificate and basic skills training, its global presence and knowledge, and Fitch Group quality stamp, Fitch Learning is well positioned to capitalise on the large global financial institutions' desire to outsource basic training needs. In addition, with Fitch Group's global footprint, Fitch Learning is well positioned for the developing world's increasing need of financially skilled and certified individuals. Fitch Learning, created by merging Fitch's in-house old styled training department with the acquisition of the eLearning company '7cities' and its advanced eLearning platform and online technology. Andreas Karaiskos, who came from the acquired company's "built for sale" culture, had to merge these two very disparate organisations into a modern, flexible, tech savvy 21st century eLearning company "built for growth" and he needed a new strategy! He had to identify and acquire new resources & capabilities, implement a new organisational culture, keeping an eye on the industry trends while also ensuring the company's profitability. The strategy required a deep understanding of the industry and the forces affecting it, as well as a need for great leadership to keep key staff motivated. In an era where the use of Artificial Intelligence, machine learning, automation, ever increasing government regulations (fuelled by the growing numbers of high tech start-ups in the FinTech, EduTech and RegTech areas) does Fitch Learning have the right strategy to remain relevant as a financial services learning provider?
It is not surprising that managers find it hard to distinguish similar-sounding, IT-based concepts such as augmented reality and virtual reality. To many, all of these constructs mean nearly the same and, as a result, the terms are often used interchangeably. This confusion holds back those eager to explore the different opportunities these new technologies present. This Executive Digest presents six different types of reality and virtual reality-(1) reality, (2) augmented reality, (3) virtual reality, (4) mixed reality, (5) augmented virtuality, and (6) virtuality-as part of our actual reality/virtual reality continuum. We then illustrate their differences using a common example and outline business applications for each type.
One of directors' key fiduciary duties is to set the firm's direction and then vet the strategy proposed by the CEO. Despite this, McKinsey reports that the majority of directors feel they do not understand their firm's strategy, and even if they do understand it, they do not feel they have the desired impact on their firm's strategy. This article argues that this shortfall stems from a failure to cross the chasm between CEOs and directors. We propose a framework to bridge this gap and assist board members to better understand and vet their firm's strategy.