Category: Management & Leadership

At first glance, this year’s dry conditions may look like a disaster for both U.S. farmers and the equipment manufacturers that depend on agricultural activity for their own livelihood. However, the reality of the situation is more complicated.

Samuel Allen, chairman and chief executive officer at Deere and Co., recently said “This year’s drought could positively influence our outlook.”

J.B. Penn, the chief economist at Deere and a former official with the U.S. Department of Agriculture, explained that, although this season’s orders of farm equipment will be stifled by conditions, there is a strong chance that a significant rebound will occur next year.

Penn points out that the current tightness in the food market will lead to higher crop prices, which will buoy farmers’ financial situation during the next growing season, assuming production returns to normal levels.

This may lead to an increased willingness to invest in equipment. Crop insurance is another factor that will help farmers emerge from the drought on solid financial footing.

It can be difficult for companies to project how current trends will affect their mid- and long-term outlook. Businesses that lack the experienced financial staff to conduct this sort of specialized analysis can benefit from working with professional recruiters to quickly connect with the kind of high-quality financial professionals who can guide their development over time.

For companies not seeking to add new permanent staff members, working with a financial project consulting service can be the ideal solution. An interim investment analyst can help a company determine what sort of spending in the present could drive significant business growth in the future.

Best Buy founder Richard Schulze recently expressed an interest in buying out the company. In a letter to the Best Buy board of directors, Schulze offered to pay $26 per share, which would value the entire company at up to $8.84 billion. The company has reacted cautiously.

Being confronted with such starkly divergent paths can leave executives unsure of how to proceed. Best Buy has clearly decided to keep its powder dry for the time being and has sought to prevent Schulze from making any furtive moves that could prove disruptive for the struggling electronics company.

Business leaders need access to concrete information in order to make the best decisions regarding specific opportunities. Working with a financial project consulting service can help companies assess their options and do what is best for their long-term outlook.

Of course, sometimes what a company needs is simply new leadership. Best Buy, keeping its distance from Schulze and his buyout offer, recently named Hubert Joly as its new CEO.

Previously, Joly ran Radisson Hotels and Country Inns & Suites as CEO of hospitality company Carlson. He also oversaw corporate turnarounds at Vivendi and Electronic Data Systems.

“Hubert was an outstanding candidate for this position and I am confident he will be a great fit for Best Buy,” Hatim Tyabji, chairman of Best Buy’s board, said in a statement. “Hubert’s range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative and experienced leadership in executing strategies.”

With his experience turning around large companies, Joly is well suited to lead Best Buy in its current situation. Businesses that are looking to connect with high-caliber professionals can benefit from partnering with corporate recruiters to successfully conduct an executive or financial professional search.

According to a study by research firm TNS, demand for sparkling wine and Champagne is currently on the rise, offering an opportunity to some beverage makers and posing a challenge for others.

Champagne and other sparkling wines could increase their overall share of the global alcohol market from 5.1 percent to 7.8 percent. Survey respondents indicated that their preference for these types of drinks stems from both their superior taste and the sense of sophistication that they afford.

In the U.S., these bubbly beverages’ share could nearly double from 3.5 percent to 6.5 percent.

However, TNS’ research indicates that many consumers are still hamstrung by the cost of sparkling wines. This means that there may be particular opportunities for beverage manufacturers that are able to offer more affordable products, making sparkling drinks accessible for those merely celebrating life, rather than a specific special occasion.

“The study does not indicate that consumers plan to increase their alcohol consumption overall, more that they would like to drink sparkling wines more regularly,” said Jan Hofmyer, chief researcher for behavior change at TNS. “Manufacturers of other alcoholic drinks should take note, as they will need to build loyalty and commitment to ensure their own market share is not affected by this desire to drink more fizz.”

Businesses across a variety of sectors should focus on anticipating and reacting to emerging trends in their target markets. However, recruiting accountants and other financial professionals who are capable of designing fiscally sound plans to take advantage of market trends can be challenging. Some firms may be able to benefit from working with professional recruiters to conclude a fast, effective financial professional search.

For companies that aren’t currently looking to take on additional long-term staff members, working with the interim professionals at a financial project consulting service can be the ideal solution for addressing immediate needs.

The 2009 American Recovery and Reinvestment Act – commonly referred to as “the stimulus” – made government funding available for a wide range of development activities, including the deployment of renewable energy systems at individual businesses.

However, many corporate leaders may not be aware that they can still cash in on the act’s incentives today.

Reimbursement amounts range from 10 percent of the capital costs for geothermal heat pumps and microturbines to 30 percent for solar and wind projects. A diverse group of companies have benefited from this program already, including manufacturers, hotels and furniture stores.

The only requirements are that the business must have completed or currently be in the process of installing renewable energy equipment at their facilities and the project must have been initiated before December 31, 2011.

However, in order to cash in on the incentives, businesses must provide considerable documentation and work with an external audit service in order to verify the amount spent on the equipment and installation, as the cost of the project directly affects the amount of reimbursement that the company is eligible to receive.

Companies interested in seeking financial compensation under the rules of this program must file their claims by September 30, 2012.

Going forward, working with a financial project consulting service can help companies plan their development initiatives in a way that allows them to take advantage of opportunities to benefit from tax credits, grants and other government initiatives, as well as market trends.

Especially for organizations that do not have extensive financial planning staff, partnering with an interim investment analyst can help businesses identify opportunities, evaluate options and execute projects efficiently.

Employee engagement has become a buzzword for professionals in recent years. But, many business leaders may be unsure of how to create conditions in their workplace that will facilitate increased engagement among employees.

And, with the economy still struggling, many firms remain focused on survival, leaving leaders with little time to spend on team building. However, most continue to acknowledge the importance of maintaining employees’ morale and interest in their work. A 2010 survey by the Economist Intelligence Unit found that 84 percent of employers believe alienated employees form one of the greatest threats to their businesses.

Psychologist Robert Hogan told attendees of the American Psychology Association’s annual conference in August that bad management contributes significantly to workers’ stress levels and can affect their engagement and productivity.

Tomas Chamorro-Premuzic, a business psychology professor at University College in London, told USA Today one part of the problem may be that individuals are often placed in situations that do not suit them. The effect can be greatly exacerbated when unsuitable candidates are selected for executive offices or other leadership positions.

“People choose jobs that are not ideal for them,” he says. “The realities of the job market today is to have a job or take an offer without thinking whether it’s the right job for them. That leads to dissatisfaction and complaints.”

This highlights the importance of placing the right professionals in the right positions. Recruitment firms can provide expertise that helps their clients place individuals in jobs where they will be well-suited to their work and remain engaged over the long-term.

Through a comprehensive individualized assessment of each candidate – including an in-depth interview process and contextual research – professional recruiters help companies evaluate their needs, identify leading candidates and recruit their top choice for any given position.

A number of public school districts in the Boston area have begun accepting tuition-paying students from overseas in a bid to bolster their strained budgets.

Arlington, Marblehead and Hopkinton have hosted international students in the past five years. And, communities including Natick, Avon and Burlington are currently awaiting approval from the federal government to begin issuing student visas.

Administrators from these school districts told The Boston Globe that hosting students from abroad offers a “win-win” opportunity for their communities. On the one hand, it adds to the area’s cultural diversity and offers native students a chance to broaden their knowledge of the world. And, it also brings in much-needed revenue for their education systems, many of which have been strained by deep budget cuts in recent years.

“I’m not opposed to pulling in revenue,” said Kevin Meagher, acting business manager of Marblehead, which will host five full-time international students in the coming school year. “We’re not in business for the sake of business, but if we have an open seat, we’re not averse to charging a student who is coming from another country.”

U.S. colleges have been in the business of attracting international applicants for many years. The full tuition paid by foreign students helps institutions offset the rising cost of higher education and expand their program offerings.

For budget-conscious school districts, local governments, non-profit organizations and even private businesses, it is sometimes essential to find creative ways to increase revenues or cut costs. Working with a financial project consulting service can help any organization identify and take advantage of opportunities to put itself on a stronger financial footing.

According to the latest report from the Bureau of Labor Statistics (BLS), the U.S. economy added 163,000 jobs in July.

This is being taken as a very positive sign, as the report offered a significant rise in job creation, compared to the figures reported during the preceding three months.

For those firms that are looking to capitalize on the current bout of economic growth by hiring new workers, it may be in their best interest to partner with a firm of professional recruiters. Working with experts offers several key benefits to a company.

Partnering with professionals eliminates the need to rely on personal connections to come up with candidates in a timely manner, which can lead to imperfect outcomes. Also, professional recruiters have a level of experience and focus that allows them to provide a significant aid to their clients throughout the recruitment process, helping companies to identify, evaluate and recruit their top choices for the positions that they are looking to fill.

However, it is important for businesses to ensure that they are prepared to expand their staff before taking on new payroll and benefits commitments. The news in last month’s jobs report was not all positive, as the unemployment rate rose slightly to 8.3 percent, due to the expansion of the workforce. And, as we’ve reported previously, global events such as the European financial crisis continue to exert a drag on the U.S. economy.

Working with a financial project consulting service can help your company determine whether this is the right time to be making significant long-term commitments by bringing in new staff members.

Key committees in both chambers of the U.S. Congress recently approved legislation that would remove decades-old restrictions on trade with Russia, which were implemented in 1974 to pressure the Soviet Union to change its human rights policies.

The removal of these outdated trade barriers may create a significant number of opportunities for U.S. businesses. The U.S. Chamber of Commerce has estimated that U.S.-Russian trade, which was about $10 billion in 2011, could double or triple as a result of normalized trade relations.

The Chamber has also asserted that the Russian state will require nearly $500 billion worth of infrastructure development over the course of the next five years. This could present a particularly lucrative opportunity for American construction firms, especially given that the domestic real estate market has still not fully recovered from the bursting of the housing bubble.

However, doing business overseas and dealing with foreign tax and regulatory systems can be challenging. It requires careful planning and attention to detail. Emerging markets can present a particularly high level of risk for investors.

Working with a financial project consulting service can help business leaders identify and act on opportunities in a way that maximizes returns and mitigates risks.

For firms that are seeking to take advantage of renewed trade with Russia and other opportunities abroad, retaining the services of an international tax consultant can be extremely helpful in navigating other nations’ taxation systems and ensuring that new business ventures will generate enough revenue to be worthwhile. An interim investment analyst can also aid companies that are looking to put their capital to work in emerging markets.

According to a new study conducted by research firm Truven Health Analytics, eliminating employees’ health benefits may put businesses at a significant disadvantage with regards to their ability to recruit and retain talented professionals.

Under the terms of the 2010 Patient Protection and Affordable Care Act (PPACA), businesses with over 50 employees that do not offer health insurance plans to their staff will be required to pay fees that will be used to support public health insurance exchanges. However, the Truven study asserts that employers’ calculations must account for more than simply balancing current healthcare costs against the nominal penalties established by PPACA.

The study states that “employers must provide market value – in benefits and compensation – to retain skilled workers.” It goes on to explain that employers will find it difficult to unilaterally eliminate benefits, due to the need to offer compensation packages that will be attractive to leading professionals.

Dr. Raymond Fabius, chief medical officer at Truven, asserts that “Not only is eliminating group health coverage not cost efficient, it would have an enormous negative impact on an employer’s competitive market position.”

Recruiting and retaining high-performing executives and financial professionals may turn out to be especially difficult for firms that eliminate health benefits, as the most talented individuals may be accustomed to a compensation system that includes comprehensive health coverage.

Working with professional recruiters can help companies identify and address obstacles in their recruitment process and position themselves to experience greater success during an executive or financial professional search.

On Monday, July 30, the Federal Reserve Board announced that it had established finalized standards for risk management at financial market utilities (FMUs) that are designated as “systemically important” by the Financial Stability Oversight Council.

FMUs are institutions that provide infrastructure to clear and settle payments and other financial transactions. Some examples include central securities depositories, payment systems and central counterparties.

The final rule – termed Regulation HH – implements two provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in 2010. The new regulations establish standards for managing the risks involved in payment, clearing and settlement operations at critical FMUs. Institutions that are registered as clearing agencies with the Securities and Exchange Commission or Commodity Futures Trading Commission are exempt from the new rules.

Regulation HH also establishes requirements for designated FMUs to provide advance notice before implementing material changes to their rules, procedures or operations.

The standards are based on those developed by the Committee on Payment and Settlement Systems and the Technical Committee of the International Organization of Securities Commissions.

The Board described the new rule as “substantively similar” to the version that had been proposed previously. It includes one new provision empowering the Federal Reserve Board to waive certain elements of Regulation HH for particular FMUs where the nature of its operational risk would make adherence to specific standards inappropriate.

For any firms that may be affected by these new regulations, which will officially go into effect on September 14, 2012, working with a financial project consulting service can be extremely helpful in navigating the transitional process and ensuring that compliance does not come at the price of operational flexibility and efficiency.