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Trend lines, market sizing, and competitive benchmarks that served companies well during periods of gradual market evolution do little good in industries where new technologies create seismic shifts, demand is uncertain, and rivals emerge from left field. The company could merge with Dell.
Management concepts, by contrast, operate in poorly regulated environments where failures are often brushed under boardroom or faculty carpets. Still, market research suggests that future markets for its products and services could be huge — with the U.N. But the TBL wasn’t designed to be just an accounting tool.
Data contributes not only to brand equity, but to what constitutes product and service delivery in globally connected and hyper-competitive markets. These costs – and the risks to the broader economy — are high enough that we expect the inclusion of EvD to soon become a requirement in corporateaccounting.
All this in addition to stiffening of long-standing regulation of markets [e.g. But, it was for the board to look hard at these — and doubtless many other factors — and make the most difficult decision of all: to evaluate the fundamental condition of the corporation and move forward with new leadership.
What makes this case of corporateaccountability so important is that it is a discretionary matter of "private ordering" under JP Morgan risk management policies, not under a mandatory rule contained in Dodd-Frank. Claw-backs or hold-backs of past awards could be appropriate for the departed employees.
This requirement is in their very DNA or, better, the code we programmed into them when we invented them; seeing as how that was close to 1,000 years ago, corporations have had a pretty long and successful run as the dominant business entity. Old ways of doing things are replaced by better ones. It’s only creative destruction.
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