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Archive for November 22nd, 2012
Happy Thanksgiving !
November 22, 2012
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McKinsey: More diversity, higher ROEs … any questions?
November 22, 2012Punch line: Between 2008 and 2010, companies with more diverse top teams were also top financial performers. That’s probably no coincidence.
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Excerpted from the McKinsey Quarterly Article’s, “Is there a payoff from top-team diversity?”
There are many reasons companies with more diverse executive teams should outperform their peers: fielding a team of top executives with varied cultural backgrounds and life experiences can broaden a company’s strategic perspective, for example.
To understand whether reality is consistent with theory, McKinsey looked at the executive board composition … [and] the findings were startlingly consistent: for companies ranking in the top quartile of executive-board diversity, ROEs were 53 percent higher, on average, than they were for those in the bottom quartile.
While it could not quantify the exact relationship between diversity and performance in such cases, McKinsey did offer them as part of a growing body of best practices.
These successful companies are simultaneously pursuing top-team diversity, ambitious global strategies, and strong financial performance.
Edit by JDC
T’Day Flashback: Ken tells WaPo “Get to the pocketbook first.”
November 22, 2012Last year, I was interviewed by the Wash Post re: retailers moving to Thanksgiving evening openings in advance of Black Friday.
I served up some ivory tower stuff about budget effects, shopping days’ effects, etc.
Here are my full talking points and what made the cut …
Black Friday 2011: Holiday shoppers hit stores, with a Thanksgiving head start
Last year, Toys R Us became one of the first big-box chains to launch its Black Friday specials at 10 p.m. Thursday. This year, Wal-Mart matched the move.
So Toys R Us opened its doors even earlier, at 9 p.m.
“This is just the beginning,” said Ken Homa, professor of marketing at Georgetown University’s McDonough School of Business. “Next year, we’re likely to see everybody doing this. . . . The guys with the first opportunity to get to somebody’s pocketbook are likely to take share away from their competitors.”
Accurately quoted and, if I must say so myself, captures the essence of my message … and my style.
Probably a bit nostalgic for my former students …
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