All posts by John Psarouthakis

drjohn11aDr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Distinguished Visiting Fellow at the Institute of Advanced Studies in the Humanities, University of Edinburgh, Scotland, publisher of www.GavdosPress.com and Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

National Fiscal Flexibility: EU Parliament Plans A Big Step Backwards

By John Weeks. He is an economist and Professor Emeritus at SOAS, University of London. John received his PhD in economics from the University of Michigan, Ann Arbor, in 1969. He is author of a new book entitled ‘Economics of the 1%: How mainstream economics serves the rich, obscures reality and distorts policy’ (Anthem).

I and many others have argued that the basic EU treaties have flexibility to accommodate most social democratic policies such as those in the 2017 Manifesto of the UK Labour Party. Our argument may soon suffer a decisive blow from the EU parliament.

In March 2012 twenty-five EU national governments signed the Treaty on Stability, Coordination and Governance (TSCG), the “fiscal pact”. By signing national governments “contracted” (the treaty term) to obey its detailed fiscal rules. The TSCG did not achieve unanimous approval, thus could not become part of the de facto EU constitution; i.e., contrary to the intention of the fiscally reactionary governments, it was not incorporated into the Treaty on the Functioning of the European Union (TFEU).

Continue reading National Fiscal Flexibility: EU Parliament Plans A Big Step Backwards

Assetization of Human Capital

By Martin Ejenobor. Partner at Revele. He  is a Business Adviser, Innovation Strategist, Speaker, Trainer, Thinker and Entrepreneur with over 15- years multifaceted experience proffering solutions “to” various industries including FMCG, Luxury Goods, Human Resource Development and Sports.

“This article addresses the concept of people as capital that companies can buy and sell. Is this just a dream or it’s a trend?
How soon will it happen if at all”

Here are some excerpts from this article posted in LinkedIn recently. Click on the link at the end of this sharing.

“Let’s start by defining the word ‘asset’ then we will describe it in context for clarity”.

“The definition of the word asset usually comes close to the ability of a (tangible or intangible) things to be monetized. If it cannot be sold, it is has no value for the which it may be traded then it is not an asset”.

“Human Capital is a Knowledge Based Asset (KBA) and therefore yields as such. So back to our talk of assetization, it is clear that an asset is anything an entity can trade for money (Knowledge, property -tangible or intangible, stocks, bonds, etc) but has any organization traded its humans (staff) as assets? Your guess is as good as mine- none!”

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Robots v experts: are any human professions safe from automation?

Editor’s note: Given the intense discussion on the employment issues generated by the Robotics technology, I found this book presentation published by British www.theguardian.com very relevant and I am refering to it here.

By

Richard Susskind OBE is an author, speaker, and independent adviser to international professional firms and national governments. He is president of the Society for Computers and law IT adviser to the lord chief justice. Tomorrow’s Lawyers is his eighth book,

and

Daniel Susskind is an economist, lecturer at Balliol College, Oxford, and co-author with Richard Susskind of The Future of the Professions

The main themes of our book, The Future of the Professions, can be put simply: machines are becoming increasingly capable and so are taking on more and more tasks.

Many of these tasks were once the exclusive preserve of human professionals such as doctors, lawyers and accountants. While new tasks will certainly emerge in years to come, it is probable that machines will, over time, take on many of these as well. In the 2020s, we say, this will not mean unemployment, but rather a need for widespread retraining and redeployment. In the long run though, we find it hard to avoid the conclusion that there will be a steady decline in the need for traditional professional workers.

During the year after the book’s hardback publication in October 2015, we tested this line of argument on audiences of professionals in more than 20 countries, speaking to around 15,000 people at over 100 events. The response, frankly, was mixed. Our work seems to polarise people into those who agree zealously with our thesis, and those who reject it unreservedly. Both sides argue their views passionately.

For the entire article please click

WHO BUYS COMPANIES AND WHY

If you are buying a business for the first time, you will find that buying a business is a unique experience that requires extensive knowledge and skills in a broad spectrum of areas–legal, accounting, banking, financing, understanding of government regulations, especially in areas of environment, safety and employee relations.  You must learn how to obtain and screen leads, how to evaluate and price prospective companies, and how to conduct due diligence. But even highly experienced entrepreneurs who have completed dozens of deals still rely upon professional expertise for certain phases of the process.  Thus expect that even after you learn more about the deal-making process, you will still need to hire consultants to assist you in making a successful purchase.

Buying a company is very demanding because it is an intellectual, pragmatic and emotional process, all in one. It is an intellectual process because to be successful you have to think it out.  It is a pragmatic process because you have to be realistic about the company you are looking to buy, whether it is worth buying, what its real value is, and what it should be priced at. And buying a company, finally, is an emotional process.  Throughout negotiations, beginning with first contact with the seller and continuing through to the closing of the sale, you experience tremendous highs and lows. You must be able to handle both extremes of emotion. You must handle the highs, so as not to reveal your enthusiasm to the seller, and after the lows, to be able to come back and find a solution to the problem that might otherwise kill the deal.  The emotional component holds true even after many deals but you do learn to control those emotions with practice.

Reasons for Buying Your Own Business

Some of the reasons for buying your own business are similar to those of any entrepreneur: to control your own destiny; the personal challenge, making money, the satisfaction of building and running something on your own. Continue reading WHO BUYS COMPANIES AND WHY

“Dr. John’s Newsletter”

Dear Colleagues,, Associates, and Friends

Please be informed that I will be launching, in September, the
“Dr. John’s Newsletter” that will focus on activities I am involved in and most likely could be interesting and useful to you. This Newsletter will be sent out bimonthly to those that register.

Sign up for Dr. John’s Newsletter by clicking here!

In today’s technologically driven world there is access to more information than ever before, but navigating through the abundance of material available can be incredibly overwhelming and time consuming. Also Information and facts are not enough to indefinitely sustain a business. There must be knowledge. Knowledge is born when facts and information come together to create a deep understanding of an idea, concept, principle, model, or design—the type of understanding that helps the individual, company, or corporation to make decisions that produce sustainable profitable growth.
Continue reading “Dr. John’s Newsletter”

Terrified of AI? Don’t Be, It May Be The Key to Tomorrow’s Survival

Tom Koulopoulos is the author of 10 books and founder of the Delphi Group, a 25-year-old Boston-based think tank and a past Inc. 500 company that focuses on innovation and the future of business.
We are drawn to doomsday scenarios. It’s in our nature. In many ways the history of civilization has been one of fearing and resisting the same technological advances that somehow help us beat the odds and propel us to the next level of progress. AI is no different.
Still, trying to separate the hyperbole from the facts is not always easy.
For the full article in Inc. please go to:   http://on.inc.com/2hKRZ4g

Six common characteristics of very smart people

FROM THE SERIES «THE GENIUS BEHIND» THE BBC

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There is some truth secret recipe on how someone can turn into a genius? The truth is as attractive as it sounds this idea, chances are very small. But there are some common characteristics of very shifty people the BBC identified and introduced us.

Within six interviews made by journalists of the British public television to six scientists and inventors who have been distinguished for their intelligence, the BBC has some advice on how can someone, if not able to become like them, at least to improve themselves.

1) Seek alternative road

The conclusion is reached in the case of Sarah Segker, an astrophysicist at MIT, which was  against the initial skepticism argued that the answer to the failure of telescopes to ‘trap’ a detect for possible signs of life on other planets is finding their indirect footprint in the planet’s atmosphere. Do not blindly follow the dominant paradigm, look for alternative even against the initial review, propose new roads, innovation is a sign of intelligence!

Continue reading Six common characteristics of very smart people

These 15 charts illustrate the current U.S. private equity landscape

From PitchBook on July 19, 2017

Being honest, our 2Q 2016 U.S. PE Breakdown is the best thing you can read to catch up on the latest private equity trends in dealmaking, debt usage, EBITDA multiples, exit activity, fundraising and more. It’s completely free and you can access it here.

If you’d rather look over the highlights, we’ve featured the top charts from the report below:

U.S. PE activity by quarter

2Q has brought activity back to the trends we previously anticipated, with both aggregate deal value and volume sliding. Overall volume has returned to 2013 levels.

For the entire article and remaining very informative charts please go to:     http://bit.ly/29YuEqW

THE BUSINESS ORGANIZATION IS A DYNAMIC SYSTEM

Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com and former founder and CEO of JPIndustries, Inc., a Fortune 500 industrial group.

For CV details go to:
https://www.linkedin.com/in/johnpsarouthakis/

Each word in the term, Dynamic Business Planning Model has a special meaning. I use the term dynamic to signify the ever-changing conditions that organizations face outside the firm–and changing management strategies required to keep up with these changes on the inside. Global competition, court rulings, and the changing caliber of job applicants are all examples of these external dynamics.    Because of these dynamics, effective strategy requires frequent review and assessment.

When we speak of a dynamic, I allude to qualities of organizations defined by open systems theory. According to that view, frequent response and adaptation to environmental changes is critical to survival. Though the eight issues remain the same, to grow profitability, the approach you must take to manage each issue changes over time. The open systems view also sees the organization as a collection of interdependent parts. Change one, and it affects the others. You cannot treat any one aspect–be it accounting, marketing, or technical–in isolation.

Continue reading THE BUSINESS ORGANIZATION IS A DYNAMIC SYSTEM