In review: Golden parachutes reward risk or moral hazard?

September 2010 in review. A roundup of blogs from the previous month:

Golden parachutes reward risk or moral hazard? —

No matter the solutions recently suggested, like England’s Cadbury and Hampel codes for public companies, America’s recent financial-reform act, or clawback clauses, there remains one conflict:  business ethics will never win over moral hazard.

The bureaucrat and bureaucracy revisited —

Organization that grow too quickly is risk in an ability to perform work in a repeatable consistent way.  As organizations grow, one-off solutions that may have been needed in the early days can now cripple an organization and increases risk to deliver quality goods and services at a good price.  Bureaucracy provides investors and customers accountability.  Bureaucracy is important to manage risk.

What for-profits can learn from non-profits —

The organizations that maximize efficiency of either are free to deliver great value to their stakeholders.  Whether the resources is an investor/donor dollar or an hour of someone’s time both are finite.  Looking for new thoughts or approaches deserves a bit of a peek at the better non-profits.  And that’s innovative thinking.

When a small business should fear growth —

All organizations crave increased revenues.  However, increased revenues increases liability and the risk to deliver on contracts, manage finances, manage vendors, manage customers, and manage employees.  Increased sales can actually cripple an organization’s ability to deliver to customers.

Hiring the right person is more emotional than rational —

Technical skills do not correlate to an effective employee and do not lend insight into someone’s ability to work well with a team, to fit in culturally, to manage, or to lead.  Technical skill is not an indication of future success, it is an indication of performing a task.

Evaluating risk: financial models versus competency models, part 2 —

Competency models are strategic initiatives and some firms look at their competency models as intellectual property that are their strategic and operational competitive advantage.  Senior management competencies in the hands of competitors provides competition with knowledge of organization plans, the development of senior managers, and the strategy of operations; as all are linked to strategic initiatives.

The key to innovation may be better employee hygiene —

If employees don’t feel safe in their job, don’t feel safe they’ll have a job, or don’t feel like they belong to your organization’s future, how can we expect innovation or better, faster, cheaper, smarter, processes and harder-working employees?

4 performance myths dispelled and no more performance reviews —

4 performance myths and 7 ways to ruin a perfectly good employee.

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