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Objectives and Key Results (OKRs)
In 1983 Andy Grove, Intel’s CEO at the time, published a simple yet powerful framework to help answer two important business questions: Where would you like to take the business in the future? And, how are you going to get there? This framework later became known as OKRs, or Objectives and Key Results. Rooted in…
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Devaluing the Good in Goodwill
When used in finance, the term “goodwill” doesn’t refer to benevolent and kindly feelings about a company. But right now, many businesses probably wish that it did. Instead, goodwill is actually an intangible asset on a company’s balance sheet. It is created when a company acquires another company for a price in excess of the net…
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Business in Crisis – 2020 Edition
Business acumen (“Business savvy” and “business sense” are often used as synonyms) is keenness and quickness in understanding and dealing with a “business situation” (risks and opportunities) in a manner that is likely to lead to a good outcome (Wikipedia, 2020). We all hope our business leaders have some of this today. How do you…
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Deflation – Crashing an Already-Bad Party
Falling prices – it doesn’t sound like that could that be a problem, does it? But from an economic standpoint, deflation is actually a serious concern. Like driving below the speed limit on a busy freeway, it seems like it would be safer, but you might just cause a 25-mile traffic jam. Deflation occurs when…
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The Digital Divide – Between a Digital Rock and a Hard Place
Well, that was fast. Any company that wasn’t already pretty good at doing business online had better shift into high-gear now due to COVID-19. And understandably, employees are also expecting that work be done virtually if at all possible. An HBR article describes how the corporate digital divide has created an urgency for firms to…
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Instant Gratification – Using Stock Tickers in Business Simulation Courses
You’ve seen stock tickers scrolling by on financial news networks, on the sides of buildings, and across giant screens mounted on river-barges in Shanghai (we have). They’re mesmerizing. As the numbers reel by, you can’t wait for your favorite stock symbol to appear. Unless the price has dropped, at which point you wish the dang…
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Airlines prepare for a C(r)ASH landing – paying the price for cash mismanagement
If ever there was a need for companies to have a little extra cash on hand, it’s now. But for several big airlines, the flight to cash has been canceled… United, American, Southwest, Delta, and others spent 96% of their free cash flow over the last 10 years on stock buybacks. That didn’t leave much…
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Running Virtual Classes When Using a Business Simulation
PriSim conducts virtual classes that feature our business simulations. For example, the MEMPC (Master of Engineering Management Programs Consortium: Northwestern University, MIT, Duke, Dartmouth, Purdue, John Hopkins, Duke, Tufts and USC) participates in our asynchronous competitions for graduate students across the country. In addition, the Independent Insurance Agents and Brokers of America (the Big I)…
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Colored Paper
During a business simulation exercise, there is a lot of data to analyze. PriSim allows participants to review all reports on their team computer monitor; however, we have found that many participants still like to print the data. This allows them to highlight, take notes, and underline relevant information. The downside is that often there…
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“It’s Accrual World”
Not surprisingly, a big part of working in finance is about being efficient and accurate. To paraphrase comedian Bob Newhart, “getting within a few bucks of it” isn’t usually good enough. Hence all the late nights if you work in the department. But it’s also about being effective and adding to business results. And that…