• April 2014 – There’s no gaming COROA – a better metric?

    There’s no gaming COROA – a better metric? Metrics that measure business performance can be improperly manipulated. We see it in our simulation exercises, and it exists in the real world. Click here to read about Cash Operating Return On Assets (COROA) if you’re interested in a metric that might not be as easily “gamed”….

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  • Adapt or Die – What Airlines Have To Do To Make a Buck Nowadays (or 37-cents)

    What Airlines Have To Do To Make a Buck Nowadays (or 37-cents) Customers are easily annoyed – but sometimes you can “move” them to accept some necessary changes that they don’t initially like. Take airlines. Passengers initially grumbled when they could no longer carry heavy, bowling-ball filled luggage on board for free anymore. But airlines…

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  • August 2013 – And Now for the World’s Dumbest Idea

    And Now for the World’s Dumbest Idea “Maximize shareholder value”?  According to Forbes, forgetaboutit! (click here to read more) Jack Welch believes that “Shareholder value is the dumbest idea in the world. Shareholder value is a result, not a strategy”. And Peter Drucker wrote that “There is only one valid definition of business purpose: to…

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  • June 2013 – The 2-Qs of Revenue

    The 2-Qs of Revenue You’ve heard of the 4-Ps of Marketing, but how about the 2-Qs of Revenue?  Quantity and Quality. Growth is good (Quantity), but equally important is the profit-making sustainability of your revenue (Quality). In a recent HBR blog, venture capitalist Anthony Tjan describes the 3 attributes of High Quality revenue (click here…

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  • May 2013 – This Leopard Actually Changed Its Spots (Whole Foods)

    This Leopard Actually Changed Its Spots (Whole Foods) We were surprised when we read about Whole Foods’ move to the middle-market, especially since we keep our hands firmly on our wallets when we shop there. The company has begun lowering prices and expanding “out from Prius towns such as New York” to compete with grocery…

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  • March 2013 – Rewards Finally Come to Investors Who Risked

    Rewards Finally Come to Investors Who Risked For some shareholders, it’s raining dollars and cents. U.S. publicly-owned companies are buying back shares and issuing dividends at a frenzied pace (see link). That sounds pretty good, right? Well, probably. After all, in doing so, companies are returning capital to owners. And the markets seem to like it; the activity has…

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  • December 2012 | Big Data Analytics: Not Just for Presidential Candidates

    Big Data Analytics: Not Just for Presidential Candidates The physicist Niels Bohr once famously said, “Predictions are hard to make, especially about the future.”  But in today’s business world, it’s getting easier and easier thanks to big data analytics. The goal of data analytics is to “measure everything” (think of Google’s infamous practice of analyzing…

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  • October 2012 | Guess which country is becoming a lowest-cost manufacturer?

    Guess which country is becoming a lowest-cost manufacturer? (spoiler alert: it’s not China) The U.S. is on-track to become one of the lowest-cost manufacturers in the developed world. We know that sounds like a typo – but when Boston Consulting Group says it in Business Week, it’s probably pretty reliable. Click here to read the…

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  • September 2012 | What’s A Customer Really Worth To You?

    What’s A Customer Really Worth To You? For several years PriSim has been teaching students to consider the “lifetime value” (LTV) of their customers. And now we’ve published an article describing the LTV process. Click here to read a copy of the article. It’s easy to fall into the trap of valuing customers based solely…

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  • Behind The Smoke-Screen Of Financial Indices

    Behind The Smoke-Screen Of Financial Indices Ever thought, “The Dow is up, so life is good!” So have we. But when you dive a little deeper into the ever-present number, you will question that assumption. “The Dow Jones Industrial Average” sounds simple, but it’s actually a highly specialized number. First, it’s only based on 30…

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