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

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

genius708_0

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!

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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.

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THE DYNAMIC BUSINESS PLANNING MODEL


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/

A Dynamic Business Planning Model is a model of organization effectiveness based on both the classical goal approach and open systems theory ideas pioneered by researchers at the University of Michigan’s Institute for Social Research, including Robert Katz, Robert Kahn, and Basil Georgopoulos. See reference book at the end of this article.

Borrowing from the classical goal approach, for-profit firms depend upon financial viability to survive.

A financially viable company can pay its bills when they are due and operates at a profit.

Simple enough. But achieving financial viability is much more complicated than merely determining objectives for profit and production of goods and then setting out to achieve those goals. This Model defines the issues you must manage to assure financial viability, including market strategy, work flow, resource acquisition, human relations, resource allocation, public relations, and technical mastery. Successful corporate strategy must tackle each of these issues.

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Robot revolution: rise of ‘thinking’ machines could exacerbate inequality

Heather Stewart, Joint Political Editor of the Guardian (British Newspaper)

Global economy will be transformed over next 20 years at risk of growing inequality, say analysts

A line of human-shaped robots on display at an industry fair.
Robots made by Shaanxi Jiuli Robot Manufacturing Co on display at an industry fair in Shanghai in November. Photograph: Imaginechina/Corbis

A “robot revolution” will transform the global economy over the next 20 years, cutting the costs of doing business but exacerbating social inequality, as machines take over everything from caring for the elderly to flipping burgers, according to a new study.

As well as robots performing manual jobs, such as hovering the living room or assembling machine parts, the development of artificial intelligence means computers are increasingly able to “think”, performing analytical tasks once seen as requiring human judgment.

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THE SOCIETY OF THE TWENTY-FIRST CENTURY (Re-posted)

Dr. John Psarouthakis, Executive Editor www.BusinessThinker.com;  Distinguished Visiting Fellow, Institute for Advanced Studies in the Humanities, University of Edinburgh, Scotland (2011-2013).
CV details: click on  http://bit.ly/2sXvygl

This posting is a summary of my presentation to the Institute for Advanced Studies in the Humanities, University of Edinburgh, Scotland.

Unfortunately, we have entered a century in which many of the old cultures and societies that have been successful under the old technologies and cultural norms have fallen by the wayside.   We witness already  dramatic shifts in economic wealth, both within and across nation states.

There is still some debate about how the new changes in technology will affect some of the more prevalent twentieth century ideologies.   For example, will the new technologies and associated cultural changes support or retard the growth of the liberal democracies? Or, will the vision of George Orwell be realized, with a technology-induced return to a world-wide authoritarian state? Obviously, all the data are not in, and will not be in for another seventy-five years or so. The early returns, however, suggest that many of the new technologies seem to enforce democratic values and practices.   For example, one of the critical features of using information technologies and computerized systems is the rapid and transparent exchange of information across settings, cities, and nations.   This is highly compatible with democratic systems and values. However, we have also witnessed that China has been able to have an effective state control over these advanced technologies so that has been little if any democratization and is some cases it could be argued that we have seen a decrease in democratization! The Economist in a recent article has concluded that the democratization effects on China by technology could have been overestimated.

On the other hand, some of the new technologies will reinforce distinctions between individuals and classes of people, thus perhaps leading to a more hierarchical and elitist structure of society.   Moreover, the ability of the new technologies to successfully manage and facilitate diversity of tastes and markets, may lead to a fragmentation of societies such that it will be difficult to sustain larger goals and visions.   For example, it is unclear whether a television society can really sustain a long-term mission, or goal, or struggle.

Continue reading THE SOCIETY OF THE TWENTY-FIRST CENTURY (Re-posted)

WARNING FROM AN ENTREPRENEUR OF THE YEAR


Dr. John Psarouthakis
, Executive editor www.BusinessThinker.com and entrepreneur of the year awardee.

You probably relish the challenge of seeing how far and how fast you can grow. Growth can be an exhilarating experience and public recognition of growth accomplishments abound. Most honor rolls of business, such as the Fortune 500 and Inc. 500 base selection on sales or sales growth.

But beware. So much hoopla accompanies rapid sales growth that the question of profitability may go unexamined until major problems set in. My experience confirms the critical point that growth alone does not guarantee profitability or long-term survival–and can actually spell disaster if improperly managed.

The case of an auto parts supplier entrepreneur highlights this point. At one point in his firm’s meteoric growth, he received many local, state, and national awards honoring his accomplishments, including Entrepreneur of the Year.

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VALUING AND PRICING THE COMPANY (Re-posted)

Dr. John Psarouthakis, Founder and former CEO, JPIndusries,Inc., a Fortune 500 industrial corporation. Publisher of www.BusinessThinker.com

Before you can begin final negotiations on price, you need to determine the value of the company. You can use several techniques to value a company.  We recommend the discounted cash flow value approach as the most accurate method although other approaches are useful in preliminary stages of your search to give you a sense of the range of the estimated price.

Timing and Scope of the Valuation Process

An initial calculation of valuation can be done on a fairly mechanical basis, based on information provided to you by the seller using established formulae and guidelines.  However, determining the accuracy of the financial data that the seller provides you is an on-going part of the evaluation process that should take place throughout preliminary and formal due diligence up to the closing.  Thus valuation takes place along with negotiations throughout the deal-making process.  One of the key objectives of due diligence is to surface any information that might affect the accurate valuation of the company. If your team does not have a financial auditor you should hire one to verify the accuracy of the historical data.

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The Business Enterprise and Today’s Society (Reposted)

Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com

Founder and former CEO, JPIndustries, Inc., a Fortune 500 industrial group

 

We have been in the midst of a fundamental and historic shift of how the economies around the world develop. With the collapse of the centralized and state control model of the economy what we have now, however, imperfect it maybe, is the model of the “Free Market.”

This shift is occurring in parallel with two other sociopolitical expressions:

  1. Smaller government, though the last few years this seems not to have been happening.
  2. The need, indeed the demand by our society to provide assistance, protection, and distribution of economic benefits in a “fair” way

What we are witnessing is a major shift on “how we can fulfill our expectations of a humanistic society” while we keep the state’s interventions and control power at minimum.

Continue reading The Business Enterprise and Today’s Society (Reposted)