The Great Divide: The Gap Between Financial and Operating Performance

A budget goal to increase operating profit by 10% might seem reasonable. That is until it’s time to make it happen.

While it’s always a worthy objective to work toward financial improvement, difficulties often arise from an operational perspective. Whether it’s increasing sales or reducing costs, improving financial outcomes requires doing things differently, but managers aren’t always aware of or prepared for what that practically means. READ MORE

2023 was an ‘extinction’ level year for tech startups. Where did all the money go?

Startups are not having a good 2023. And the investors who handed out billions of dollars to fund them aren’t very happy about it.

During more flush years, venture capitalists, angel investors and billionaire evangelists poured their cash into tech startups – the easy money pipe was seemingly open to any Tom, Dick or Harry who had an idea and was willing to attach a buzzy phrase like ‘blockchain’ or ‘AI’ to it. Valuations soared and unicorn companies, those startups said to be worth $1 billion or more, proliferated. READ MORE

Companies are cutting worker benefits to offset the sting of high inflation

Companies looking to cut costs to offset the pain of high inflation are quietly paring back the non-cash benefits they offer to employees – and the problem may soon get worse.

That is according to a new analysis by Glassdoor, which found that a growing number of employees lost access to 401(k) retirement plans, dental insurance, vision insurance, tuition assistance and other benefits this year.  READ MORE

The US economy grew by 5.2% in the third quarter, even faster than previously estimated

US economic growth was even stronger in the third quarter than previously estimated, underscoring the economy’s remarkable resilience in the face of elevated inflation and high borrowing costs earlier this year.

Gross domestic product, the broadest measure of economic output, rose at an annualized rate of 5.2% from July through September, according to the Commerce Department’s second estimate, released Wednesday morning. GDP is adjusted for inflation and seasonal swings. READ MORE

Use of AI could create a four-day week for almost one-third of workers

Artificial intelligence could enable millions of workers to move to a four-day week by 2033, according to a new study focusing on British and American workforces.

The report from the thinktank Autonomy found that projected productivity gains from the introduction of AI could reduce the working week from 40 to 32 hours for 28% of the workforce – 8.8 million people in Britain and 35 million in the US – while maintaining pay and performance. READ MORE

Military veterans who became Fortune 500 CEOs

For decades, members of the armed forces have traded in their uniforms for corporate suits. A handful of them have even climbed their way to the top of Fortune 500 companies.  

Many are highly qualified for executive roles because they are trained to adapt quickly and make informed decisions in highly stressful environments, Eric Eversole, Hiring Our Heroes president and a vice president at the U.S. Chamber of Commerce, told FOX Business. READ MORE

DOJ Policy on M&A to Encourage Extra Scrutiny of Target Companies’ Compliance

A Justice Department policy shift around the disclosure of possible wrongdoing uncovered in mergers and acquisitions reinforces the need for buyers to dive deep into a target’s compliance efforts, both before and after a deal closes, corporate advisers said.

Under a new policy announced in October, an acquiring company that discloses potential wrongdoing at a company being acquired within six months of either side of the deal closing date—and fully cooperates and fixes the underlying problems within a year of closing—can presume it won’t be prosecuted by the Justice Department. READ MORE

Why Would Workers Return to a Former Employer?

Post-Covid, there has been a lot of media attention to what is being called “the Great Resignation”—workers leaving their jobs to look for better or different employment options. This includes changing career paths, returning to school to ready oneself for a new career, and leaving steady employment to join the “gig economy.”

Surprisingly, however, a subset of workers who leave their employers have decided to return to their previous companies, in what is called “the Boomerang Effect.” What is going on? READ MORE

How Can You Be Sure Someone Has Exceptional Leadership Skills? It Comes Down to 4 Actions

Leadership is no Sunday stroll in the park. It's more like a hike up a steep, rocky mountain, often in unpredictable weather. You'll face challenges that'll test you and moments that'll have you questioning if you're cut out for it.

Whenever I deliver keynotes on leadership topics, I touch on the most critical aspect leaders need to become exceptional: You have to value your people.

If this has got you pondering whether your team feels genuinely appreciated and valued, there are some tried-and-true methods you can use to elevate your leadership game. Let me share a few practical tips to help you along the way. READ MORE

Why Are Newly Promoted Employees Quitting Their Jobs?

Promotions are commonly career milestones that are celebrated widely, posted on social media, and viewed as a mark of career achievement in one's life. But in reality, we are beginning to witness the very opposite.

A recent study has uncovered a startling truth about newly promoted managers: in a survey of 1.2 million workers in the United States, nearly one-third of employees quit their roles within the first month after their first internal promotion, according to ADP's findings. READ MORE

Goldman Sachs no longer sees U.S. govt shutdown in 2023

Goldman Sachs removed its forecast for a U.S. government shutdown this year given new geopolitical risks and the election of a speaker at the House of Representatives, but warned of risks in 2024.

The brokerage's previous base case was for a shutdown for up to 2-3 weeks in the current quarter ended December, which now seems "much less likely", Goldman Sachs economists led by Jan Hatzius said. READ MORE

We need a better way to find AI’s dangerous flaws

As concerns mount about AI’s risk to society, a human-first approach has emerged as an important way to keep AIs in check. That approach, called red-teaming, relies on teams of people to poke and prod these systems to make them misbehave in order to reveal vulnerabilities the developers can try to address. Red-teaming comes in lots of flavors, ranging from organically formed communities on social media to officially sanctioned government events to internal corporate efforts. Just recently, OpenAI announced a call to hire contract red-teamers the company can summon as needed. READ MORE