What Shapes Careers

MCKINSEY QUARTLERY—Executives around the world say the events that most profoundly affected their careers originated largely at work, not from family or personal issues, according to a McKinsey Quarterly survey.

Although 40 percent of respondents say they have had difficulty balancing work and home life, they also say this challenge doesn’t drive most career decisions.

The survey uncovered few differences between the experiences of men and women. However, women are more likely to have had a mentor or role model and to have experienced discrimination.

Respondents are satisfied with the outcome of career-shaping moments, saying that they led to more interesting and important jobs and to higher compensation. Read article.

Does Judgment Trump Experience?

HARVARD BUSINESS SCHOOL—The publication of a new book, Judgment: How Winning Leaders Make Great Calls, by Warren Bennis and Noel Tichy warrants attention if for no other reason than the range of experiences that they bring to the topic. The event coincides with an issue that has arisen in the U.S. presidential campaign, an issue of broad relevance: Does judgment trump experience? Read article.

Inside Apple Stores, a Certain Aura Enchants the Faithful

THE NEW YORK TIMES—“Whenever we ask consumers to cite a great retail experience, the Apple store is the first store they mention,” said Jane Buckingham, president of the Intelligence Group, a market research firm in Los Angeles. “Basically, everything about it works. The people who work there are cool and knowledgeable. They have the answers you want, and can sell you what you need. Customers appreciate that. Even the fact that they’ll e-mail you a receipt makes you feel like you’re in a store just a little bit further ahead of everyone else.”

This could be part of the reason that Jack Graham, 16, visiting for the holidays from Worcester, England, spent at least an hour each day of his visit at one of the three New York Apple stores, his parents sitting by patiently, happy to watch the crowd.

“These stores are going to become iconic places that people go to see when they come to New York,” said Mr. Gartenberg, the analyst. “Rockefeller Center, Radio City Music Hall and Apple’s great glass cube on Fifth Avenue.” Read article.

The Google Enigma

STRATEGY+BUSINESS—Should innovation-minded managers look at the fast-growing Internet company as a model — or an anomaly?

This decade’s most re markable business story has been the rise of Google from the dot-com ashes. The company didn’t even exist 10 years ago — it was incorporated by its founders, Stanford University graduate students Larry Page and Sergey Brin, on September 7, 1998 — but it is today a juggernaut that is as feared as it is admired. The company’s growth has been dizzying, its revenues shooting up from less than US$500 million in 2002 to more than $10.5 billion in 2006. And despite a prolonged hiring binge, an aggressive acquisition program, and a multibillion-dollar investment in building data centers, Google remains robustly profitable, earning a net income of $2 billion on $7.5 billion of sales through the first half of 2007. Since the company’s initial public offering in August 2004, its stock price has risen fivefold.

Whenever a company becomes wildly successful in a brief span of time, it naturally becomes an object of fascination for corporate executives and even the general public. More than that, it comes to be presented as a new model for business success. Reporters and scholars scour its history and its practices, looking to distill general lessons for other firms to copy. Google is no exception. Read article.

The CFO’s First Hundred Days

MCKINSEY QUARTERLY—New chief financial officers may not be spending their time where it’s most needed, according to a new McKinsey survey of CFOs. Finance chiefs, globally and across industries, report spending most of the first hundred days on budgeting, management reporting, and financial reporting. By contrast, they think that the most crucial activities during that time are understanding the drivers of the business, providing input into corporate strategy, and building the finance team.

Why are there such differences between what they do and what they regard as important? A possible answer was suggested by one CFO’s response to a question about what, in hindsight, respondents would have done more or less of. This CFO pointed out, “There is no simple answer to this. One cannot put the clock back. Every day the situation changes, and the responses and actions will have to be tuned to the situation. CFO[s] must be able to assess the business needs and act.” Read article.

When Enough is Enough

THE WALL STREET JOURNAL—For the wealthy, 2007 was the year that bigger was better — from yachts and incomes to personal staff and art collections.

In 2008, the rich are likely to be uttering a new mantra — downsizing.

The fallout from the debt-market crisis, along with growing concerns about inequality and the environment, are likely to usher in a year of moderation for the rich. Don’t worry: Conspicuous consumption won’t disappear.

Yet the recent surge in the population of millionaires and billionaires is likely to slow, at least in the near term. Buzzwords like “mass luxury” and “exclusive” are likely to be replaced by terms like “authenticity” and “sustainability.” In 2008, the rich will strive to be more down to earth, even as they take off in their new G550 private jets.

“I think there is increased anxiety among the wealthy,” says Peter White, a New York-based counselor to rich families. “But I also think there is a greater understanding of the interconnectedness of things, that what they do in their individual lives can have broader implications.” Read article. 

Disappointing Sales During Holiday Season

THE NEW YORK TIMES—American consumers, uneasy about the economy and unimpressed by the merchandise in stores, delivered the bleak holiday shopping season retailers had expected, if not feared, according to one early but influential projection.

Spending between Thanksgiving and Christmas rose just 3.6 percent over last year, the weakest performance in at least four years, according to MasterCard Advisors, a division of the credit card company. By comparison, sales grew 6.6 percent in 2006, and 8 percent in 2005.

“There was not a recipe for a pick up in sales growth,” said Michael McNamara, vice president of research and analysis at MasterCard Advisors, citing higher gas prices, a slowing housing market and a tight credit market.

Strong demand at the start of the season for a handful of must-have electronics, like digital frames and portable GPS navigation systems trailed off in December. And robust sales of luxury products could not make up for sluggish sales of jewelry and women’s clothing. Read article.

Evaluating Potential Mergers

BNET—A merger may seem like the quick and easy way to grow your company. But the process is complex and fraught with risk: More than 50 percent of mergers fail. Why? Because they’re the corporate equivalent of an impulse purchase: Executives fall in love with the promise of a new acquisition without asking themselves if it’s really a good fit. In Part One of our three-part series on mergers and acquisitions, we examine the fine art of evaluating a merger before you make an offer. Read article.

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