Most executives naturally gravitate toward one of these two approaches. The challenge is that companies need both.
Most executives naturally gravitate toward one of these two approaches. The challenge is that companies need both.
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Most executives naturally gravitate toward one of these two approaches. The challenge is that companies need both.
Most executives naturally gravitate toward one of these two approaches. The challenge is that companies need both.
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3 Comments On: Enhance Assets or Reduce Liabilities?
Simple statements with profound meaning.This goes to reinforce my strong belief in sense and simplicity which is incidentally the brand promise of Royal Philips where I worked for 3 decades.
I agree there is a tension between asset enhancement and liability reduction. But this is a paradox that needs to be managed by the Board – the purpose of the board.
You have stated the essence of business in these simple words and to manage this needs leadership and right talents. While one needs to encourage entrepreneurship, controls are critical.
Larry,
Excellent article. The CEO was very perceptive about the skill set of his team. Also, teching young execs to look at situations from muiltiple viewpoints is sound advice. That is more helpful than the term “thinking strategically”, which too often is a euphemism for “think like me”. I think viewing situations simplistically is an excellent first step. It helps in problem definition, an area we do not spend enough time on. We are too quick to solve ill-defined problems. Thanks.
Interesting article early in my career prior to the Glass-Stegall act being repealled. Wells Fargo was a super regional bank that I believe used this asset enhancement/ Liability model to great financial success. Later in life I met the CEO just prior to Carl Reichardt and he told me that Carl Reichardt’s strength was in balancing this model