Morning Advantage: Obama and Romney Give Outsourcing a Bad Name
HBR.org 2012-07-19
In demonizing outsourcing, both Obama and Romney are playing a stupid political game with the U.S. economy, says Daniel Altman in Foreign Policy. While it's true that some forms of outsourcing have "sinister ends" like allowing companies to avoid paying a fair domestic wage, its biggest economic effect may be encouraging specialization — and that can be an important form of progress. Consider accounting, where a smaller number of highly efficient employees of a professional firm may be able to do all the work — often cheaper and better — that is currently spread across larger numbers of in-house corporate staff. Does that mean outsourcing destroys jobs? "If you're a lousy, expensive, or under-utilized accountant, then yes, your job might disappear," Altman writes. "But this is just the economy's way of telling you that your labor might be used more efficiently in another occupation. Unfortunately, it takes time to retrain and start over in a new job, and that's where the political problems begin. In the United States, there is no broadly effective mechanism for helping people make this transition."
BUT CAN SHE MAKE YAHOO A VERB?
Marissa Mayer Is the Right Kind of Game-Changer (HBR.org)
The best game-changing moves are unexpected, counterintuitive, and consequently generate a great deal of buzz, says marketing strategist Dorie Clark. And Marissa Mayer's appointment as Yahoo's CEO succeeds across the board. First, her name wasn't even mentioned as a contender. Second, she is young. Third, she is female. Finally, come October, she's due to give birth to a son. "The Yahoo board is already winning points for their conviction that this is no impediment to service," Clark writes. Her appointment has changed the conversation from Yahoo's past to its future. And most importantly, notes Clark, she's got the expertise needed to do the job, making this more than a PR stunt.
US Libor Scandal Liability Forecasts Are Too Sanguine (Oxford Analytica)
US prosecutors are assessing whether criminal charges can be brought against firms and individuals for alleged manipulation of the Libor. Look for officials to wield the threat of prosecutions to force bank concessions, which in turn may lead to more resignations by top executives, says Oxford Analytica. Actual criminal indictments of firms are unlikely, given the potential systemic cost of a major banking failure in what remains a fragile global financial system, but civil and private lawsuit liabilities could be huge — and will certainly exceed the more optimistic current estimates.
Knocking Off the Knock Offs
Exploring the Supply Side of Fake Goods (Strategy+Business) Where’s the Venture Capital? (Chief Executive) Strategy: The First Step Towards Creating A Great Customer Experience (Forrester Blogs)