Great CEOs are great communicators (see our TEK2day article: Successful CEOs Share These Six Attributes). What constitutes "great communication?" Great communication is: Clear and conciseConsistentDefines ExpectationsHonestUnambiguousValues listening on par with delivering the message
Many companies took steps to protect earnings during the 2008 financial crisis (see our recent Battle-Tested Software CEOs article). We expect companies who lived through that period to exercise their muscle memory to a similar effect during this COVID crisis - GE Aviation did so today. We covered that and more on a recent edition … Continue reading Companies Will Protect Earnings
During a crisis (bookings down by as much as 80% for some Enterprise Technology companies), leaders act with imperfect information. A reactionary approach is never the optimal approach. We offer a 6-step plan. Vilfredo Pareto was an Italian engineer, sociologist, economist, political scientist, and philosopher. The "Pareto principle" - better known as the 80/20 rule … Continue reading A Common Sense Approach to Crisis Management. Leveraging A 6-Step Plan.
We created a list of Software CEOs that operate durable businesses and that successfully led their companies through the 2008 downturn (the closest comp to COVID-19). CEO profiles from our CEORater database. Andy Florance. Founder & CEO of CoStar Group (tkr: CSGP).Bill Stone. Founder & CEO of SS&C Technologies (tkr: SSNC).Henry Fernandez. Founder & CEO … Continue reading Battle-Tested Software CEOs
Today's bloodletting is the result of a spate of negative news over the weekend concerning escalating COVID-19 cases, restaurant closures, limits on large groups, school closures, dramatic action by the Fed and more. There is yet another wave of bad news looming that is likely to arrive in the next couple of weeks. The next … Continue reading More Room For Markets To Drift Down. Software As A Safe Haven.
We prefer dividends, investment in R&D and M&A programs to share repurchases. However, for those companies that include share repurchases as part of their capital allocation strategy, today would be a good day to exercise a portion of that repurchase authorization. Markets hate uncertainty. Markets like it when companies and insiders step-up and buy their … Continue reading Now Would Be A Good Time To Execute That Stock Buyback
Time waits for no one. Fortunes change quickly. Look no further than the case of General Motors (tkr: GM) and Tesla (tkr: TSLA). This time last year GM sported a $55 billion market cap and some months later closed calendar 2019 with $137 billion of revenue. Plenty of time it would seem for GM to … Continue reading Time Waits For No One
Elliot Management is moving to acquire Board seats at Twitter. CEO Jack Dorsey would have done well to have followed our December 2017 advice offered in the TEK2day article: "Distracted CEOs and CEO Overreach." Our position has always been that CEOs have a fiduciary responsibility to shareholders in that they owe 100% of their focus … Continue reading Advice to CEO’s: Pick One. It May Save Your Job
Disney CEO Bob Iger stepped down from his CEO post effective immediately and will remain Executive Chairman through December 2021. Bob Chapek has been named Chief Executive Officer. Our expectation was that Kevin Mayer - Chairman Direct-to-Consumer & International - would be named Mr. Iger's successor. Does this abrupt CEO change foreshadow a larger transaction? … Continue reading Disney’s Sudden CEO Change – What Does It Foreshadow?
It is difficult for many executives to recognize when the time is right to try something new. Here are some classic signposts that may help you identify when it is time to try a new approach, to try something new. When revenue growth slows to a grinding halt it is time to try something new.When … Continue reading Recognize When It Is Time to Try Something New