Business Conference

10 Questions That Every Business Leader Must Answer

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At the Fortune Global Forum in November, James Manyika, chairman of the McKinsey Global Institute, presented 10 questions that every business leader should be able to answer. Covering a range of topics, with a broad focus on corporate responsibility, the questions are a valuable thought exercise for any modern leader.

“While companies must continue to focus on what they do best — offering innovative, profitable products, and services — they can no longer be bystanders on social issues,” Manyika explained in Fortune last month. “To capture the 21st century’s unprecedented opportunities, while addressing its challenges, large, leading, and market-shaping global companies — and those that aspire to be — will need to chart a course that delivers sustainable and inclusive growth.”

As we enter a new decade in a changing world, every leader should take time to ponder their role in the future of work. While all of Manyika’s questions (which are listed in full at the end of this article) are thought-provoking, the following three proved particularly compelling. It would behoove our businesses, and our society at large, if every leader asked themselves these questions today.

For smart businesses, prioritizing diversity and inclusion is no longer an option, but an integral part of future planning. The impetus need not be optics or even a sense of justice (though the latter is a worthy reason); it can simply be that diverse companies perform better. McKinsey found that companies with the most gender and ethnic diversity on their executive teams were, respectively, 21% and 33% more likely to experience “above-average profitability” than those with the least.

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Graduation

What Can You Do With a Business Degree?

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People with a business degree say it prepares them for a number of jobs, since understanding how to start and run a profitable venture is a major plus in many careers.

“A business degree, whether it is at the undergraduate or Ph.D. level, allows you to understand how to make money off of anything,” Layton J. Cox, a second-year MBA student at Southern Methodist University’s Cox School of Business, wrote in an email.

“Business degree-holders learn the basics of how to determine what a good business opportunity looks like and then how to maximize the amount of money made from this opportunity,” says Cox, who received his bachelor’s degree in accounting from the University of Arizona.

The utility of a business degree isn’t restricted to for-profit companies, says Elissa Sangster, CEO of Forté Foundation, a nonprofit organization that seeks to increase the representation of women in business schools and executive roles.

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School of Business

The School of Business at Portland State Redefines MBA Culture

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The School of Business at Portland State Redefines MBA Culture

Peek into the classrooms of any Master of Business Administration (MBA) across the country, and you’ll likely see a room dominated by men. Despite the growing momentum around gender parity in the boardroom and pay equity in the workplace most graduate business program pipelines are still underserving professional women, which makes it more difficult for employers to recruit a diverse workforce.

Simply put, MBA programs across the nation recruit and graduate substantially more men than women. According to the Association to Advance Collegiate Schools of Business, the percentage of women graduating from full-time MBA programs in the U.S. plateaued at or below 38% from 2012–2017. The universities in the Pacific Northwest are no exception. University of Washington, University of Oregon and Willamette University reported their full-time fall 2019 MBA cohorts were composed predominantly of men, with 62%, 61% and 59% male students, respectively.

You’ll see a very different picture in the Karl Miller Center, home to Portland State University’s School of Business. Year over year, the graduate business programs at PSU have higher recruitment and graduation rates for women than the national averages. In 2019, the MBA full- and part-time programs reached gender parity. This only happens because of a meaningful commitment on the part of PSU to redefine business and transform lives.

What makes PSU different The School of Business’ mission is to create positive social, ecological and economic impact through inclusive, transformative learning and meaningful research. As a mission-driven institution, PSU attracts innovative and collaborative faculty, staff and students.

From curriculum development to student services, The School of Business ensures outstanding women are not just recruited, but are supported throughout their program and graduate with the skills and connections to succeed.

“We have worked hard over the past few years to apply an equity lens to all of our student support systems. This means paying attention to who is succeeding in our programs, who is accessing our services and who our programming is designed for and benefiting,” says Rachel Foxhoven, director of graduate business programs. “We have additional work to do to continue to make business education and its benefits more accessible, and our teams are dedicated to equitable outcomes for all of our students, especially those who have not always seen business as a space where they belong.”

Strong role models and mentorship from faculty and staff like MBA Academic Director Tichelle Sorensen can make the difference for graduate students. A PSU business alum herself, Sorensen brings deep industry connections and a rich professional background to her leadership of The Portland MBA. After working as an intellectual property lawyer who also practiced marketing and employment law, and consulted music and gaming industries and Chinese private and state-owned enterprises, she is no stranger to the realities of working in male-dominated fields.

“The structure of PSU’s cohort means that students have strong peer support, which helps students both stay committed to their purpose as well as their program. We also have a strong network of external mentors, many of whom are women who are reaching back to make the path for the next generation easier,” she says. “The Portland MBA especially has a strong tradition of mentorship from the leadership in the School of Business and faculty members who are committed to seeing our students succeed.”

 

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Cryptocurrencies

Crypto Regulation: Is It Good or Bad for the Industry?

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It’s the issue that never seems to go away: regulation. Some crypto advocates insist it is good for the industry, paving the way for mainstream adoption among consumers and businesses alike. Others warn a legal framework will only end in tears — stifling innovation and putting digital currencies at a disadvantage to fiat, which central banks remain determined to protect.

Ultimately, we have seen both scenarios come true in the real world. Switzerland has been forming a reputation for being a crypto-friendly nation. Two institutions focused on providing banking services for crypto clients have been granted licenses by the Swiss Financial Markets Supervisory Authority — undoubtedly a major milestone. The positive attitude toward digital assets undoubtedly contributed to Facebook’s decision to base its not-for-profit Libra Association there. And figures indicate that the country’s blockchain industry is reaping the rewards associated with this “open for business” approach — with a report suggesting that the value of Switzerland’s top 50 blockchain companies doubled to a collective $41 billion in the first half of 2019.

Then we have the other side of the coin. The United States has been especially tough with its crypto regulation, slamming the brakes on Libra for fear it could undermine the dollar and even threaten the global economy. Some politicians have practically been pulling their hair out at this stance, warning that stymying innovation could see countries with more nefarious means get a foothold in this burgeoning industry.

You also have countries like India that have threatened to impose strict laws on those who deal in cryptocurrencies — potentially resulting in punishments as severe as a 10-year jail term. Such a hardline stance, especially combined with the fact that crypto businesses have been effectively cut off from banking services, has resulted in a number of exchanges closing. There have also been warnings that India could suffer a “brain drain” as talented developers and entrepreneurs take their skills elsewhere, potentially meaning the economy loses out on billions of dollars in revenue. To add insult to injury, the government has been dragging its heels on enforcing the law — and it wasn’t introduced to parliament in the winter session, prolonging uncertainty.

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Some Democrats Want to Ban Fracking, but Business Group Study Says that Would “Devastate” Economy

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The U.S. Chamber of Commerce pushed back Thursday against calls from some Democratic presidential candidates to ban fracking, saying that policy would “devastate” the economies of states like Pennsylvania.

The report is the latest entry in a debate about the costs and benefits of natural gas, and the business group’s Global Energy Institute predicted the nation would lose 19 million jobs, both within and outside the oil and gas industry, between 2021 to 2025.

During the same period, the study found, prohibiting the controversial natural gas drilling technique would reduce U.S. gross domestic product by $7.1 trillion and cause natural gas prices to more than quadruple.

“The effects of a ban on hydraulic fracturing would be so sweeping and widespread across the U.S. economy that no industry or region of the economy would not feel its impact,” Global Energy Institute president Marty Durbin told reporters on a call Thursday.

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School of Business

The Anatomy of a Business Owner

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To succeed, a business must possess all three personas.

The technical persona is about the present and doing the work.

The president persona uses the past to find trends and improve execution.

The CEO persona is focused on the future and looks for ways to pivot and re-align the business so it can grow and prosper in an ever-changing landscape.

The following table is a breakdown that compares the activities of a CEO and President in more detail.

For self-employed, micro, or lifestyle businesses (i.e., businesses with less than $1 million in revenue), all three personas often reside in a single person, the business owner.

To understand how the three personas work together to drive the success of a small business, let us consider what I call the Small Business Owner Bull’s Eye Model.

The Bull’s Eye Model is made up of four subsystems: the core subsystem, support subsystem, coordination subsystem, and strategic subsystem. Naturally, there are certain tasks and personas associated with each of these subsystems. Let’s dive into each of these subsystems below.

At the center of the Bull’s Eye Model is the core subsystem. The core subsystem is comprised of tasks that relate to the actual generation of the output. Core level tasks are activities such as cooking, landscaping, and automotive repair. The core subsystem is the exclusive realm of the technical persona.

Most employees are rated based on their ability to perform these core tasks well. Being exceptionally good at these core tasks leads many people to consider starting their own business. However, having superior core skills usually means that the person loves the tasks associated with the technical persona. Unfortunately, this love of technology is often at the expense of the other two personas, which frequently leads to the failure of the business.

Outside of the core subsystem is the support subsystem. The support subsystem is comprised of tasks that support the production of the output, but do not directly cause the outputs themselves to be generated. Support level tasks are activities such as reading and responding to emails, record keeping, hiring employees, and bookkeeping.

Outside of the support subsystem is the coordination subsystem. The coordination subsystem is comprised of tasks that help to coordinate, develop, or integrate the activities within and between the core and support subsystems. Coordination level tasks are activities such as account management, resource loading, billing, planning, forecasting, managing employees, and payroll.

The support and coordination subsystem tasks are inwardly focused and reward execution. The support and coordination subsystems are the realms of the president persona. The president persona is the manager role and looks at finding ways to make the overall business more efficient and profitable.

Finally, outside the coordination subsystem is the strategic subsystem. The strategic subsystem is comprised of tasks that link the business with the outside environment and assess the degree of alignment and need for change. Strategic level tasks are activities such as marketing & sales strategy, fundraising, and organization development. The strategic subsystem is externally focused and rewards planning, spotting opportunities, and communication skills. The strategic subsystem is most often associated with the activities of the CEO persona. We often think of the CEO persona as the traits associated with entrepreneurism.

Many self-employed, micro, and lifestyle small business owners understand the need to perform the tasks associated with the support, coordination, and strategic subsystems. Yet, few crave these activities over the activities associated with the technical persona. Herein lies the reason that many new businesses fail.

 

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Capitalism

Elizabeth Warren Challenges Jamie Dimon Over Accountable Capitalism

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Sen. Elizabeth Warren took JPMorgan Chase CEO Jamie Dimon and the Business Roundtable to task in a new interview with CNBC’s John Harwood published on Monday over the business association’s August commitment to “redefine” the purpose of a corporation to extend beyond the maximization of shareholder profits.

“If Jamie Dimon thinks it’s a good idea for giant corporations like JPMorgan Chase to have multiple obligations, he and I agree. Then let’s make that the law,” Warren said. Dimon is the chairman of Business Roundtable’s board of directors.

Warren, one of the top contenders in the Democratic presidential primary, suggested that the business association’s move to do away with the notion of “shareholder primacy” was inspired by her proposal to rein in the power of big business.

The Massachusetts Democrat introduced a bill to require the nation’s largest companies to consider stakeholders like their customers and employees a year before the Business Roundtable released its statement, signed by 181 CEOs, calling on businesses to do the same.

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Female Farmer

In The Business Of Blooming: Female Farmers On The Rise In Alaska

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There’s influx of women breaking into the farming industry in Alaska. Experts say it’s part of a nationwide trend. According to a USDA report, the number of female farmers jumped by 56% between 2012 and 2017.

Anne-Corinne Kell is part of that statistic. She says her heart belongs on the farm. “When people asked me when I was a little kid what I wanted to do, I always wanted to be a farmer,” said Kell. “I don’t quite know how to put my finger on it. It was just this deep need in me.”

So that’s exactly what she’s doing. Kell operates Sun Circle Farm in Palmer. It’s covered in ice and snow this time of year but come spring and summertime business is booming.

“We do two Anchorage markets on Saturdays. We have a farm stand here on Wednesdays, which is really busy, and then I sell greens to one of our local restaurants,” said Kell.

Kell is part of a growing trend in Alaska, where on average women account for almost half of farmers, 47%, compared to the nationwide average, 36%. The latest USDA census of Agriculture also shows the number of women farmers in Alaska skyrocketed by 56% over a five-year span from 2012 to 2017.

Executive Director of the Alaska Farmland Trust, Amy Pettit, says the numbers speak to a growth seen in the industry overall.

“Consumers want to know where their food is coming from,” said Pettit. “That has led to an increase in the number of farmers markets, and an increase in the number of opportunities for farmers to sell their products, and for whatever reason, the larger proportion of our new and beginning farmers are women.”

A number of factors could be contributing to this trend. For example, the USDA’s Farm Service Agency offers loan money and grant assistance to minorities and beginning farmers. The abundance of small farms in Alaska could be a contributing factor as well.

“Alaska doesn’t have as many big, big farms, and I think that makes it more accessible to people who don’t come from farming or who maybe are interested in it, but would be scared off or put off by thousands of acres and big combines and things like that,” said Kell.

According to the USDA report, small farms account for more than 400 of Alaska’s farms. Small farms are less than nine acres in size. The agricultural census showed 284 women-owned small farms, compared to 280 men. Whatever the reason may be, Anne-Corrine Kell says she’s just excited to be a part of it.

“I’m trying when I meet young women who want to farm to say, ‘yes, come have coffee with me. Let’s talk about it,’ because I think it makes a huge difference,” said Kell. “If there are any women out there who want to farm, come talk to me! That would be great.”

 

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Facebook App

29,000 Facebook Employees’ Payroll Data Stolen in Car Theft

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A thief reportedly broke into a Facebook worker’s car last month and stole several corporate hard drives containing the banking information of 29,000 current and former Facebook employees, first reported by Bloomberg.

The stolen data reportedly included employee names, bank account numbers, and last four digits of social security numbers. Information about salaries and bonus amounts was also included on the drives. “This theft impacts current and former Facebook employees only and no Facebook user data was involved,” a company spokesperson told Business Insider.

Facebook alerted employees to the stolen data in an email Friday morning.

In a statement, Facebook said it was working with law enforcement, and that it believes “this was a smash and grab crime rather than an attempt to steal employee information.”

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Impeachment

Trump Impeachment Witnesses Are Time 2019’s ‘Guardians of the Year’

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The nonpartisan career officials who blew the whistle on President Donald Trump and testified against him are Time magazine’s 2019 “Guardians of the Year.”

For more than two months, the magazine said, the president “attacked the public servants as ‘traitors’ and ‘human scum.'” And in September, at the US Mission to the United Nations, he “suggested the proper response to the whistle-blower’s complaint was the punishment historically reserved for ‘spies’ and for ‘treason’: the death penalty.”

The majority of concerns these officials raised were buried by political forces higher up in the hierarchy. Still, when Congress called on them to testify — with the exception of the whistleblower, who has remained anonymous amid concerns for their safety — they stepped forward to break their silence in direct defiance of the White House’s orders.

“For each, the decision to step forward came at a cost,” Time said, adding: “And though each followed the rules and used the proper channels, some have found themselves vilified online, their decades of government service impugned and their background questioned. Several have been assailed publicly by the President.”

Vindman in particular was singled out for his background as an immigrant. The Purple Heart recipient, whose family fled the Soviet Union when he was a toddler, found himself the target of attacks from Trump’s conservative allies who suggested that because Vindman was an immigrant he was disloyal to the US.

Yovanovitch, meanwhile, was attacked by Trump while she was in the middle of testifying. After Yovanovitch told lawmakers that she felt threatened by Trump’s comments about her in his July 25 phone call with Ukrainian President Volodymyr Zelensky, the president used Twitter to smear Yovanovitch’s decades of foreign service, an action she described as “very intimidating.”

Trump has slammed others who testified against him, like Taylor, Sandy, and Hill, as “never Trumpers” and “radical unelected bureaucrats,” characterizations they have all disputed while stressing that they were not there to advocate any particular outcome but to be fact witnesses.

The whistleblower, without whom Congress and the public might never have learned of Trump’s scheme, has been the subject of some of the most virulent attacks from Trump and his loyalists, who have accused the person of treason and espionage, both of which are punishable by death.

Time said that initially none of the people named in its article would speak to it for fear of retribution and to protect their and their families’ safety. Eventually, as some agreed to share their experiences with the magazine, they “became emotional when speaking about what they described as the most difficult weeks of their careers.”

Since the officials testified, Congress has moved ahead with impeachment proceedings against Trump. House Democrats announced on Tuesday that they would charge the president with abuse of power and obstruction of Congress.

House Intelligence Committee Chairman Adam Schiff said that the evidence against Trump was “overwhelming and uncontested,” adding that his actions threatened US national security and undermined the country’s interests in favor of personally benefiting Trump.

 

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