Book Description

The annual budgeting process is a trap. Pressured by fixed targets and performance incentives, managers focus on making the numbers instead of making a difference, meeting set goals instead of maximizing potential. With their compensation at stake, managers often resort to deceitful-even unethical-behavior. In the end, everybody loses-the employee, the company, and ultimately the customer.

Now, finance experts Jeremy Hope and Robin Fraser reveal the results of an intensive study aimed at fixing the broken budgeting process. They argue that companies must abandon traditional budgeting contracts in favor of a radical new model that links performance measurement to evolving competitive benchmarks-and shifts the firm's focus from controlling employee behavior to delivering customer value.

The Beyond Budgeting model is built on the best practices of companies that have successfully revised their centralized planning and budgeting processes. It combines a leadership vision that devolves more authority to operating managers and a finance vision that enables fast decision making through appropriate tools and accessible information. Through vivid examples, Hope and Fraser illustrate how companies can implement these shared visions-and the long-term benefits that accrue from embracing them.

Offering a compelling case for breaking free from the budgeting trap, this book paves the way toward making organizations better places to work for, invest in, and do business with.

... Read more

Reviews (2)

Excelent real life cases
This book does capture the findings from the work of Beyond Budgeting Roundtable in a excellent way. The cases in the book are real and are brilliant proofs of the fact that it is possible to run even a large corporation with out traditional budget models. I'm really looking forward to the follow up.

Good Book on Relatively New Topic
As a business consultant with many years experience in budgeting, I found this a very useful overview of a relatively new topic in finance. The authors clearly show the limitations of the traditional budgeting process and present a comprehensive alternative.
However, while the book brings many examples from real companies, many of the ideas still seem a little conceptual and difficult to imagine how they would actually work in practise.

This book will certainly interest anyone seriously involved in budgeting. ... Read more

Book Description

Harvard Business Essentials

Your Guide and Mentor to Doing Business Effectively

In the faced-paced world of business today, everyone needs a personal resource-a place to go for advice, coaching, background information, or answers. Bosses and colleagues aren't always available when you need them-and they might not always have the most reliable solutions to your business problems right at hand.

The Harvard Business Essentials series fills the gap. Concise and straightforward, these books provide highly practical advice for readers at all levels of experience. Whether you are a new manager interested in expanding your skills or an experienced executive looking to stay on top, these solution-oriented books give you the reliable tips and tools you need to improve your performance and get the job done. Harvard Business Essentials titles will quickly become your constant companions and the trusted guides you'll turn to throughout your business career.

Finance for Managers Calculating and assessing the overall financial health of the business is an important part of any managerial position.From reading and deciphering financial statements, to understanding net present value, to calculating return on investment, this book provides the fundamentals of financial literacy.Easy to use and non-technical, this helpful guide gives managers the smart advice they need to increase their impact on financial planning, budgeting, and forecasting. ... Read more

Reviews (1)

Essential, Yes, and for Many, Invaluable
This one of the volumes in the new Harvard Business School Essentials Series. Each offers authoritative answers to the most important questions concerning its specific subject. The material in this book is drawn from a variety of sources which include William J. Bruns, Michael J. Roberts, and Robert S. Kaplan as well as Harvard Business School Publishing and Harvard ManageMentor®, an online service. Each volume is indeed "a highly practical resource for readers with all levels of experience" but I think those who have only recently embarked on a business career will derive the greatest benefit.

This volume explains the basic concepts of finance to managers who are not financial managers. As Richard Luecke notes in the Introduction, "Knowing how to finance assets, forecast future cash flows, maintain a budget, determine which operations are profit generators and which are not, and judge the real economic merits of different investment opportunities will help you stay in business and turn a profit." Samuel L. Hayes served as subject advisor to Luecke, writer of this and other books in the Harvard Business School Essentials Series and author or developer of more than 30 other books as well as several dozen articles.

There are ten chapters followed by an Appendix: Activity-Based Budgeting. (More about that material in a moment.) Each chapter is introduced by a list of "Key Topics" to be covered in it. For example, in Chapter 5, the focus is on start-up financing, financing current operations, financing growth, establish a proper match of assets with financing, and typical financing arrangements. Obviously, all of this material may seem basic (if not self-evident) to the experienced financial manager but keep in mind that the material was carefully selected for managers who are not financial managers.

One of the most informative discussions is provided in the Appendix when brief but sufficient attention is given to "Developing Cost Drivers" and more specifically to activity-based budgeting (ABB) and how it differs from activity-based costing (ABC). Less experienced non-financial managers are frequently asked to prepare a report which, more often than not, involves a budget or at least a cost analysis. A basic understanding of ABB and ABC will guide and assist the completion of that task. Whereas ABC starts with the cost of resources, allocates these costs to activities, and then allocates these costs to products and/of services, ABB starts with the planned product or service, estimated sales volume, and mix and comes up with the requisite activities to produce the mix and volume.

Financial managers as well as non-financial managers who supervise other non-financial managers should seriously consider providing copies of this book to those who currently do not understand "how to finance assets, forecast future cash flows, maintain a budget, determine which operations are profit generators and which are not, and judge the real economic merits of different investment opportunities" which will help [their organization] stay in business and turn a profit." Of course, younger executives need not wait for such provision. Published as a paperbound volume and priced attractively, Finance for Managers would be a modest investment for them to make in their own careers. ... Read more

Book Description

More than a decade ago, Robert S. Kaplan and David P. Norton introduced the Balanced Scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships. Then, in The Strategy-Focused Organization, Kaplan and Norton showed how organizations achieved breakthrough performance with a management system that put the Balanced Scorecard into action.

Now, using their ongoing research with hundreds of Balanced Scorecard adopters across the globe, the authors have created a powerful new tool-the "strategy map"-that enables companies to describe the links between intangible assets and value creation with a clarity and precision never before possible.

Kaplan and Norton argue that the most critical aspect of strategy-implementing it in a way that ensures sustained value creation-depends on managing four key internal processes: operations, customer relationships, innovation, and regulatory and social processes. The authors show how companies can use strategy maps to link those processes to desired outcomes; evaluate, measure, and improve the processes most critical to success; and target investments in human, informational, and organizational capital.

Providing a visual epiphany for executives everywhere who can't figure out why their strategy isn't working, Strategy Maps is a blueprint any organization can follow to align processes, people, and information technology for superior performance.

... Read more

Reviews (14)

Organizational Cartography of the Highest Order
Kaplan and Norton co-authored an article which was published in the Harvard Business Review (January/February 1993). In it they introduce an exciting new concept: the balanced scorecard. They have since published three books: this one, preceded by The Balanced Scorecard: Translating Strategy into Action (1996) and The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment (2000). Here's some background on the two books before we shift our attention to Strategy Maps.

In The Balanced Scorecard, as Kaplan and Norton explain in their Preface, "the Balanced Scorecard evolved from an improved measurement system to an improved management system." The distinction is critically important to understanding this book. Senior executives in various companies have used the Balanced Scorecard as the central organizing framework for important managerial processes such as individual and team goal setting, compensation, resource allocation, budgeting and planning, and strategic feedback and learning. When writing this book, it was the authors' hope that the observations they share would help more executives to launch and implement Balanced Scorecard programs in their organizations.

Then in The Strategy-Focused Organization, Kaplan and Norton note that, according to an abundance of research data, only 5% of the workforce understand their company's strategy, that only 25% of managers have incentives linked to strategy, that 60% of organizations don't link budgets to strategy, and 85% of executive teams spend less than one hour per month discussing strategy. These and other research findings help to explain why Kaplan and Norton believe so strongly in the power of the Balanced Scorecard. As they suggest, it provides "the central organizing framework for important managerial processes such as individual and team goal setting, compensation, resource allocation, budgeting and planning, and strategic feedback and learning." After rigorous and extensive research of their own, obtained while working closely with several dozen different organizations, Kaplan and Norton observed five common principles of a Strategy-Focused Organization:

1. Translate the strategy to operational terms

2. Align the organization to the strategy

3. Make strategy everyone's job

4. Make strategy a continual process

5. Mobilize change through executive leadership

The first four principles focus on the the Balanced Scorecard tool, framework, and supporting resources; the importance of the fifth principle is self-evident. "With a Balanced Scorecard that tells the story of the strategy, we now have a reliable foundation for the design of a management system to create Strategy-Focused Organizations."

Those who have not as yet read The Balanced Scorecard and/or The Strategy-Focused Organization are strong urged to do so. Brief comments about them in commentaries such as these merely indicate the nature and extent of the brilliant thinking which Kaplan and Norton provide in each.

What we have in Strategy Maps are two separate but related components: Further development and refinement of core concepts introduced in the earlier two books, and, a rigorous examination of new ideas and new applications by which to convert intangible assets into tangible outcomes. In the Introduction, Kaplan and Norton explain that their direct involvement with more than 300 organizations provided them with an extensive database of strategies, strategy maps, and balanced scorecards. This abundance of material has revealed a number of strategies and tactics by which literally any organization (regardless of size or nature) can create and then increase value. The strategies and tactics are embraced within three targeted approaches for aligning intangible assets to strategy:

"1. Strategic job families that align human capital to the strategic themes

2. The strategic IT portfolio that aligns information capital to the strategic themes

3. An organization change agenda that integrates and aligns organizational capital for continued learning and improvement in the strategic themes."

Kaplan and Norton carefully organize their material within five Parts. I presume to suggest that Part I be read and then re-read before proceeding to Value-Creating Processes, Intangible Assets, and Building Strategies and Strategy Maps. Part Five provides a number of case files generated by private-sector, public-sector, and nonprofit organizations. In fact, I strongly suggest that Chapter 2 be re-read several times because it offers an invaluable primer on strategy maps. When reading and then re-reading Chapter 2, be sure to check back on Figure 1-2 (Page 8) and Figure 1-3 (Page 11) in the Introduction.

One word of caution from Kaplan and Norton: "It is important (if not imperative) to describe an organization's strategy with word statements of strategic objectives in the four linked perspectives BEFORE turning to measurements. Many organizations building BSCs attempt to go directly from somewhat vague strategy statements to measures without this step, and often omit critical aspects of the strategy or else select from measures that are already available, rather than selecting measures that quantify their strategic objectives."

This is a much longer review than I usually compose because I am convinced that only what is measurable is manageable. Also because, after extensive prior experience helping corporate clients with formulating process maps of various kinds, I am convinced that organizational "journeys" to increased sales, profits, and value need maps by which to reach those destinations just as those who drive vehicles do when seeking their own destinations. One of the greatest benefits of strategy maps is that the process by which they are devised helps to ensure that the most appropriate destination is identified. Think of Kaplan and Norton as travel agents and cartographers, to be sure, but also as consultants whose services you can retain merely by purchasing their three books, then by absorbing and digesting the information and counsel those three books provide. For many decision-makers in all manner of organizations, Strategy Maps may well prove to be the most valuable business book they ever read.

Great addition to the trilogy
"Strategy Maps: Converting Intangible Assets into Tangible Outcomes" by Robert S. Kaplan, David P. Norton is a great third addition to the trilogy - "The Balanced Scorecard: Translating Strategy into Action" and "The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment"

The book goes into extraordinary detail of how both private and public organizations have succeeded in today's competetive environment by using the Balanced Scorecard to transform into what Kaplan and Norton call "Strategy-Focused Organizatons."

I particularly like the fact that the authors do not rely on theoretical "what if" examples like many academic theorists do -Kaplan and Norton have tested their ideas with real organizations that now endorse the concenpt (indeed, they created a Balanced Scorecard Hall of Fame to recognize those organizations that achieve exemplary results). The authors provide many examples of how such organizations have achieved breakthrough results through case studies.

This is a must have for all Balanced Scorecard enthusiasts and a great tool for managers to have to help think through the articulation of strategy, a pre-requisite to its actual implementation.

Organizational Cartography of the Highest Order
Kaplan and Norton co-authored an article which was published in the Harvard Business Review (January/February 1993). In it they introduce an exciting new concept: the balanced scorecard. They have since published three books: this one, preceded by The Balanced Scorecard: Translating Strategy into Action (1996) and The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment (2000). Here's some background on the two books before we shift our attention to Strategy Maps.

In The Balanced Scorecard, as Kaplan and Norton explain in their Preface, "the Balanced Scorecard evolved from an improved measurement system to an improved management system." The distinction is critically important to understanding this book. Senior executives in various companies have used the Balanced Scorecard as the central organizing framework for important managerial processes such as individual and team goal setting, compensation, resource allocation, budgeting and planning, and strategic feedback and learning. When writing this book, it was the authors' hope that the observations they share would help more executives to launch and implement Balanced Scorecard programs in their organizations.

Then in The Strategy-Focused Organization, Kaplan and Norton note that, according to an abundance of research data, only 5% of the workforce understand their company's strategy, that only 25% of managers have incentives linked to strategy, that 60% of organizations don't link budgets to strategy, and 85% of executive teams spend less than one hour per month discussing strategy. These and other research findings help to explain why Kaplan and Norton believe so strongly in the power of the Balanced Scorecard. As they suggest, it provides "the central organizing framework for important managerial processes such as individual and team goal setting, compensation, resource allocation, budgeting and planning, and strategic feedback and learning." After rigorous and extensive research of their own, obtained while working closely with several dozen different organizations, Kaplan and Norton observed five common principles of a Strategy-Focused Organization:

1. Translate the strategy to operational terms

2. Align the organization to the strategy

3. Make strategy everyone's job

4. Make strategy a continual process

5. Mobilize change through executive leadership

The first four principles focus on the the Balanced Scorecard tool, framework, and supporting resources; the importance of the fifth principle is self-evident. "With a Balanced Scorecard that tells the story of the strategy, we now have a reliable foundation for the design of a management system to create Strategy-Focused Organizations."

Those who have not as yet read The Balanced Scorecard and/or The Strategy-Focused Organization are strong urged to do so. Brief comments about them in commentaries such as these merely indicate the nature and extent of the brilliant thinking which Kaplan and Norton provide in each.

What we have in Strategy Maps are two separate but related components: Further development and refinement of core concepts introduced in the earlier two books, and, a rigorous examination of new ideas and new applications by which to convert intangible assets into tangible outcomes. In the Introduction, Kaplan and Norton explain that their direct involvement with more than 300 organizations provided them with an extensive database of strategies, strategy maps, and balanced scorecards. This abundance of material has revealed a number of strategies and tactics by which literally any organization (regardless of size or nature) can create and then increase value. The strategies and tactics are embraced within three targeted approaches for aligning intangible assets to strategy:

"1. Strategic job families that align human capital to the strategic themes

2. The strategic IT portfolio that aligns information capital to the strategic themes

3. An organization change agenda that integrates and aligns organizational capital for continued learning and improvement in the strategic themes."

Kaplan and Norton carefully organize their material within five Parts. I presume to suggest that Part I be read and then re-read before proceeding to Value-Creating Processes, Intangible Assets, and Building Strategies and Strategy Maps. Part Five provides a number of case files generated by private-sector, public-sector, and nonprofit organizations. In fact, I strongly suggest that Chapter 2 be re-read several times because it offers an invaluable primer on strategy maps. When reading and then re-reading Chapter 2, be sure to check back on Figure 1-2 (Page 8) and Figure 1-3 (Page 11) in the Introduction.

One word of caution from Kaplan and Norton: "It is important (if not imperative) to describe an organization's strategy with word statements of strategic objectives in the four linked perspectives BEFORE turning to measurements. Many organizations building BSCs attempt to go directly from somewhat vague strategy statements to measures without this step, and often omit critical aspects of the strategy or else select from measures that are already available, rather than selecting measures that quantify their strategic objectives."

This is a much longer review than I usually compose because I am convinced that only what is measurable is manageable. Also because, after extensive prior experience helping corporate clients with formulating process maps of various kinds, I am convinced that organizational "journeys" to increased sales, profits, and value need maps by which to reach those destinations just as those who drive vehicles do when seeking their own destinations. One of the greatest benefits of strategy maps is that the process by which they are devised helps to ensure that the most appropriate destination is identified. Think of Kaplan and Norton as travel agents and cartographers, to be sure, but also as consultants whose services you can retain merely by purchasing their three books, then by absorbing and digesting the information and counsel those three books provide. For many decision-makers in all manner of organizations, Strategy Maps may well prove to be the most valuable business book they ever read.

Disappointing and a rehash
I was extremely disappointed by this book.

My most serious concern was the failure of the authors to cite John Thorpe's "The Information Paradox: Realizing the Business Benefits of Information Technology". Results Chains were first developed in the late 80s and early 90s by DMR Consulting and Fujitsu Consulting. Basically, Strategy Maps are simplified Result Chains with a Balance Scorecard flavor. Harvard professors MUST do a review of the literature BEFORE they publish.

This is important because a Results Chain avoids 3 problems that will bedevil Strategy Map users.
1) A Results Chain is more much explicit about the role that assumptions play in achieving business outcomes. Assumptions are either statements about uncertainty (e.g. price is an important criteria for customers) or they are things that are outside of your control (e.g. a competitor will not enter this market). Strategy Maps DO NOT talk about risks or assumptions. This is bizarre.

2) The book continually mixs up inputs, outputs (from internal processes), and outcomes. (Osborne's "Reinventing Government" has a nice appendix about the differences.) It is not clear whether the elements on the Strategy Maps are actions to be taken or the results of these actions.
The failure to understand these distinctions will cause confusion down the road.

3) Results Chains are much more explicit about the contributions that one element plays in achieving business outcomes. In contrast, all the Strategy Maps have many-to-many relationships.
What will happen if the benefits are not achieved? How are you going to do any kind of root-cause analysis with a Strategy Map?

As the other reviewers have noted, the Strategy Maps in the book are very generic. This may provide a starting point for developing your own Results Chain.

Take a look at Thorpe's book.

What about IP?
I will confess -- I've only spent a few minutes with this book in a boosktore. I didn't buy it. Here's a big reason why: the index lacked entries not only for "patents" but for "intellectual property".

For lots of companies in my part of the world (Silicon Valley) patents and other intangible rights in technology are the most important kind of intangible asset. You also can't do patent strategy without having some understanding of the constraints (and opportunities) created by patent law. If the book omits those topics, then I don't see how it can do a complete job.

OTOH, if you like lots of consultant-type diagrams with platitudes about "customer value", "long-term value" "meeting customer needs" and the like, all garnished with arrows going all over heck, you might feel very comfortable with this book. ... Read more

Reviews (3)

Very poorly written
I found Arditti's writing to be simply attrocious. What the marketplace needs is a clear, concise guide to instrument structure and valuation, and Mr. Arditti writes in circles. As an example, his chapter on option pricing refers to "using the methods used previously in this chapter" without referring to how to apply these to the method just introduced. The method just introduced was explained using numbers that were presumably fabricated, but lord only knows, because the author can't be bothered to specify how his example was structured.

In trying to explain things simply, the author fails to explain anything clearly. "Derivatives" is an extreme disappointment. As a reference, this book may have some use, but if you're looking to learn something from it, stear clear.

He knows how to design derivatives and make them work
I am completely satisfied with this book. He knows how to design derivatives and make them work. This book does a remarkable job of explaining the theory and practice of derivative securities.

EXCELLENT AND IN PATCHES OUTSTANDING
This book is an excellent resource for beginning and intermediate level fund managers who want to understand the derivatives to be able to use them in risk hedging and income maximization.

The book is excellently organized in four sections and each section is self sufficient. Each of the sections begin with basics, illustrates the concepts with example, introduces the mathematics of pricing and methodology of hedginag of risks

Every section has also a nice subsection on terminology and definitions.

The book is an excellent attempt to explain a highly technical and complex subject.The section on Interest Rate swaps is outstanding. A must read for all corporate money managers and a must addition to all financial libraries. ... Read more

Book Description

Two of the most innovative thinkers in the field present a workthat represents the single best resource for understanding andimplementing activity-based cost management.Kaplan and Cooper revealthat most companies don't know how to measure accurately, influence, orunderstand the fundamental cost drivers in their businesses.They thenprovide a detailed and comprehensive blueprint that will enablemanagers to make better decisions and to promote organizationallearning and improvement.

Cost and Effect takes the management,finance, and accounting fields to an entirely new level, as the authorsdemonstrate how the principles of activity-based costing and otheradvanced cost management techniques, such as target and kaizen costing,can drive business performance.Using lively examples from a varietyof leading companies worldwide--including Siemens, Hewlett-Packard,AT&T, the Swedish wire manufacturer Kanthal, Kirin Beer, and Procter &Gamble--they show how to create integrated, knowledge-based systemsthat provide meaningful information on current and pastperformance.

The innovation systems described in Cost and Effectwill help you: Determine where improvements in quality, efficiency,and productivity will have the highest payoffs. Assist front-lineemployees in their learning and improvement activities. Make betterproduct mix and capital investment decisions. Negotiate moreeffectively on price, product features, quality, delivery, and serviceto promote win-win relationships with your customers. Choose low-costsuppliers who are truly low cost, not just low price. Design productsand services that meet customers' expectations--and that can beproduced and delivered at a profit. Integrate your activity-basedcost system into reporting and budgeting processes to reveal thesources of excess capacity.

Everyone involved in running abusiness--from general managers and strategic planners to financialexecutives, IT professionals, and operations managers--must read thisbook to learn how innovative cost and performance measurement systemscan enhance their organizational profitability and performance. ... Read more

Reviews (7)

BEST ANALYSIS OF ACTIVITY BASED COSTING AND HOW TO GUIDE
Kaplan and Cooper have put together an outstanding guidebook for managers to follow in order to reap the most significant benefits from activity based costing and other cost management techniques. The great merit of this book is that it does not preach to the reader the latest management fad, but rather goes through a thorough analysis of budgeting processes, highlighting benefits and drawbacks of each. They do not claim ABC is the best approach, and even praise some simpler methods that are more adequate for certain companies. Instead, they point to the circumstances in which ABC can provide outstanding results to companies.

The book structured first with an analysis of the most often used systems of managerial cost accounting. It highlights the shortcomings of these, proceeding then to present certain productivity improvements that could contribute to performance. These are mostly related to the quality movements (TQM, 6 Sigma, etc), which are presented in a very understandable way. These are complements to the existing usual cost management systems. These improvements can be made even without implementing ABC systems.

Then the authors proceed to describe activity based costing and its benefits in terms of choosing customers, suppliers, and product breadth. They present many examples that would be very relevant to any practitioner, in industry or service. There is a specific section focusing on services, which makes the appropriate adaptations to the systems for the peculiarities of it.

Overall, an outstanding work, to help anyone involved in cost management, whether they are interested in activity based costing or more traditional standard costing methods.

The very best book on activity-based management.
I have read this book cover to cover and have re-read chapters. Kaplan ensures that you grasp the fundamental concepts by keeping things simple. He illustrates the concepts with easy to understand examples. I gained very little knowledge from the first 3 ABM books I read, but after reading "Cost and Effect," I felt that I had a good enough grasp of the fundamentals to actually implement a costing system.

Cooper and Kaplan: my heroes
After reading several academic papers concerning activity based costing I still wasn't convinced about the usefullness of the methodology. After reading Cost & Effect I revised my opinion on Cost Management. This book gives all the answers to effective Cost Management. It takes you from the ABC Age to the Activity Based Management Age and clearly helps you to understand what costs are alle about. Once you really understand the topics of this book you will be able to face and manage costs in whatever business you are in. Read it!

Evolving Toward Better Financial Information and Actions!
Cost & Effect will most appeal to those who have had extended experience with Activity-Based Costing (ABC) or operate in manufacturing industries.

If you are interested in learning more about Activity-Based Costing, this book is not the best choice for you. Professor Kaplan has co-authored books that explore this subject in much greater detail.

Most people set as their initial priority the need to have accurate financial reporting for the entire enterprise. Falling below that level of effectiveness is Stage I in the terms of this book. Once you have that financial reporting done accurately, you are at Stage II. But you know almost nothing about how to manage your costs better. In order to do that, you will need to establish ad hoc financial reporting processes designed to help your organization learn from its experience and identify opportunities for improvement, built around Activity-Based Costing (ABC). ABC is simply a way of more accurately applying overhead costs back to activities and then processes that permits accurately understanding more about which combinations of products and services and customers are profitable and which are not. Then, within each activity, you can also see the inefficiencies in what you are doing that present opportunities for improvement. The book also has a nice discussion of Kaizen costing that is widely used in Japanese companies looking for on-going cost improvements, based on Professor Cooper's research. There are a few case histories to illustrate the principles, but most will find these insufficient to guide them through the process. In other books, Professor Kaplan has pointed out that there is a lot of acquired art in the subject and you probably need help to get it right. I concur. Once you have ABC operating in stand-alone systems, you are at Stage III.

At this point, you will have a financial reporting system that is separate from the ABC system. How do you put them together? That the subject of chapter 14, which is the key value-added part of this book. You will see what the systems architecture and process flow needs to be in order to combine ABC with Enterprise-Wide Systems (EWS) of the sort that many large companies have invested in during recent years. Putting the two together will greatly improve planning, budgeting, design of new products and services, and operational improvements. Chapter 15 expands into the area of how to apply the combined system to budgeting and transfer pricing. Combing ABC and EWS puts you at Stage IV, a level rarely reached today.

The book's main message is that it's a mistake to try to go from Stage II directly to Stage IV. There's a lot of experimentation and mistakes that you can benefit from in an extended Stage III. I agree again, based on my experience with ABC.

The one caution you should have about ABC in this context is that if you are going to radically change your business model every 2-5 years as many companies are, Stage IV is probably unattainable and undesirable. You can't hold back business model innovation for better cost systems. The next business model innovation will probably give you better costs than tweaking the current business model with ABC will.

Seek out the fastest route to progress, and do more of it!

The book I use every day!
I would like to have it in German and French languages in order to recommend it to my colleagues. ... Read more

Book Description

In this article, Bob Zider, president of the Beta Group, a California-based firm that invests in commercializing new technologies, presents an analysis of present-day venture capitalists and shows why its practitioners have a lot more in common with investment bankers than you might think. The popular mythology surrounding the U.S. venture-capital industry derives from a previous era. Venture capitalists who nurtured the computer industry in its infancy were legendary both for their risk taking and for their hands-on operating experience. But today things are different, and separating the myths from the realities is crucial to understanding this important piece of the U.S. economy. Today's venture capitalists are more like conservative bankers than the risk takers of days past. They have carved out a specialized niche in the capital markets, filling a void that other institutions cannot serve. They are the linchpins in an efficient system for meeting the needs of institutional investors looking for high returns, of entrepreneurs seeking funding, and of investment bankers looking for companies to sell. Venture capitalists must earn a consistently superior return on investments in inherently risky businesses. The myth is that they do so by investing in good ideas and good plans. In reality, they invest in good industries--that is, industries that are more competitively forgiving than the market as a whole. And they structure their deals in a way that minimizes their risk and maximizes their returns. Although many entrepreneurs expect venture capitalists to provide them with sage guidance as well as capital, that expectation is unrealistic. Given a typical portfolio of 10 companies and a 2,000-hour work year, a venture capital partner spends on average less than 2 hours per week on any given company. In addition to analyzing the current venture-capital system, the author offers practical advice to entrepreneurs thinking about venture funding. ... Read more

Reviews (1)

Clear introduction into venture capital
Bob Zider is president of the Beta Group, a firm that develops and commercializes new technology with funding from individuals, companies, and venture capitalist. This Harvard Business Review-article was published in November-December 1998, which was during the Internet/e-commerce boom.

"Contrary to popular perception, venture capital plays only a minor role in funding basic innovation." Zider discusses the role venture capital plays: it "fills the void between sources of funds for innovation and traditional, lower-cost sources of capital available to ongoing concerns." He then continues to describe the investment profile and the logic of the deal venture capitalists use to achieve their investors' high expectations at an acceptable risk. Zider also explains the attractive returns for venture capitalists (in return for financing one or two years of a company's start-up) and the reason why "seemingly bright and capable people seek such high-cost capital?" The article is complemented with some extremely useful sidebars to clarify this mythical industry.

Yes, I do like this article. This clear article kills some myths and fairytale stories about the venture-capital industry. It is primarily aimed at beginners, although some financial knowledge is useful for readers. For readers who appreciate this type of article I also recommend Justin Pettit's 2001-article 'Is Share Buyback Right for Your Company?' The author uses simple business US-English. ... Read more

Book Description

About 75 percent of active investors consistently deliver returns below those of passive index funds. Why? In part, it's because proven methods for valuing assets are too complex to apply-causing investors to rely on commonly used benchmarks such as current earnings and price-earnings multiples that simply don't reflect how the market prices stocks.

Now, leading valuation experts Alfred Rappaport and Michael J. Mauboussin argue that the secret to beating the market stands in plain sight. Embedded in the stock price-the most accessible piece of information in the investment arena-lies all investors need to know about how the market expects a company to perform. By correctly decoding that information, say the authors, investors are on the way to anticipating changes in a company's competitive position that the current stock price doesn't reflect-and making informed buy, hold, or sell decisions before the rest of the crowd. This proven approach, expectations investing, holds the potential to change the rules and improve the odds of the stock selection game forever.

The beauty of expectations investing is that it harnesses the power of the market's own tried-and-true pricing model-discounted cash flow-without requiring difficult and often dubious long-term forecasting. Highly practical, the book provides a strategic framework and corresponding tools for using price-implied expectations (PIE) to:

Interpret current prices and anticipate revisions in expectations.
Monitor signals from managerial actions such as mergers and acquisitions and share buybacks and estimate their impact on shareholder value.
Devise, adjust, and communicate management strategy in light of shareholder expectations.

In addition, a unique expectations infrastructure helps track value creation from the initial triggers that shape performance to the resulting impact on sales, operating profit margins, and investment efficiency.

Universally applicable to public companies across the economic landscape, Expectations Investing will enable professional investors, analysts, and executives to translate heightened uncertainty into lucrative opportunity.

... Read more

Reviews (20)

Must Reading
In an investment world filled with tinsel and glitter, Rappaport and Mauboussin have given us substance and common sense. Using the invaluable information imbedded in the price of a stock to establish the market's expectations,the authors present a (fairly) simple methodology for assessing the valididity of those expectations, and to invest accordingly, It is, as Peter Bernstein says in his brilliant foreword (an absolute must- read before you plunge into the text), "a logical path to the heart of value."
I'm pleased to have give the book an earlier endorsement, because I hope that mutual fund managers will learn from "Expectations Investing" that there are far better ways to manage money--ways to focus on "value" whether their style is value or growth--than the costly, high-turnover, momentum-driven strategies that are rife in the industry today.
More than ever after the 35% fall in the stock market since March 2000, investors need wisdom. They'll find it here.

An investor's guide on how to approach the investing process
This book is a must read for anyone that invests in the market and wants to make consistent gains in his/her portfolio. Most people spend more time planning a vacation than they do in picking the stocks in their portfolios. And even when they do some research into a stock usually it constitutes asking their peers on what they think about company XYZ. And the people they solicit this advice from are just as ineffective in their research and knowledge about company XYZ.

Mr. Mauboussin and Mr. Rappaport give investors the right tools to make careful and informed investing decisions. The authors suggest that the market prices "expectations" into a stock and a good investor needs to strip this from the analysis and find the true intrinsic value of a security. The is accomplished by various financial analysis tools presented in the book and also by a fundamental shift in investor thinking and perception.

A Different Approach
Stock market investing books usually come in two flavors.

The first group of authors tell you to look for certain price and volume patterns; that the stock price depends on those patterns because those patterns are a reflection on human behavior.

The second group of authors tell you to look for certain ratios in the financial statements; that the stock price depends on those ratios.

Then there's this book, which tells you that the price could depend on a lot of things, like mergers and acquisitions and the synergy they generate, executive compensation, competitive strategies, stock buybacks, etc. But they don't tell you how to calculate those factors into the stock price. The book is a good book which certainly provokes thought. And it's probably good for finding stocks for the long term investor. But for me, it's a little too impractical. And a little too academic intellectual guru voodoo. When I have money at risk, and I have to make quick decisions (which can affect my net worth), I like to keep things simple and easily measurable which technical and fundamental analysis allows me to do.

Recommended by Enron!
I haven't read the book but I saw an unintentionally funny quote on the book jacket. Amongst other people praising the book and urging you to buy it, there is a quote from one Jeffrey Skilling from the Enron Corporation:

"Expectations Investing reinvents today's investment market architecture. . . . A valuable tool for the innovative investor." -Jeff Skilling, CEO, Enron Corp.

You too can become as "innovative" as Enron! Wonder if they'll remove that recommendation in reprints...

Expectations Investing: Reading Stock Prices for Better Retu
I used to always wonder how do investment analysts evaluate stocks.Buffett never beleived in P/E nor P/S or P/CF. Mind you [local store] never traded under P/E of 24, neither DELL nor msft.
So how do you pick these great stocks?

If a investor is reading this book, he has crossed over from Amateur investor stage to become a semi professional. Evaluate your stocks as you evaluate a business. When you buy business, you are basically looking at how much cash can I take home very month.

This is a great book. ... Read more

Book Description

THE HARVARD BUSINESS REVIEW PAPERBACK SERIES is designed to bring today's managers and professionals the fundamental information they need to stay competitive in a fast-moving world.Here are the landmark ideas that have established the Harvard Business Review as required reading for ambitious business people in organizations around the globe.

These eight articles examine all aspects of the work of modern nonprofit organizations.The thoughtful essays cover important topics such as earning the public trust and learning from the success of venture capitalists. ... Read more

Reviews (3)

Very good, but not great
I really enjoyed the book for the most part. There are some great topics discussed. I especially enjoyed the chapter on nonprofit/corporation alliances. The downside: I thought the two chapters regarding Boards were lacking. Overall, it's definately worth checking out.

To much money for the lack of versatility
The book is great. But, the E-book has a lot of inconveniences comparing vs. a regular book, such as:

1.- You are unable to print the file (Make a hard copy) 2.- You only can read it from the equipment you downloaded (If there is a way to use it in others, it's very hard to find Believe me !) 3.- You must read it only at the monitor 4.- If you don't like it. (At this time) you can't return the item. (Amazon Policies). 5.- It cost the same as a normal book.

Harvard Business Review on Nonprofits
The book is solid and accurate review of some crucial questions nonprofits are dealing with today. Anybody interested in topics as leadership, financial matters, founding, strategic alliances, entrepreneurship, excellence in performance and establishing trust in the field of the non-profit business, will benefit from reading a particular chapter or the whole book. Different authors, all experts in their fields, with practical axperience participate to a wide focus of the topics in question. What is missing in my opinion is maybe an article dealing with internal marketing - the nonprofits are mostly services and in this field a performance is inevitably linked to people performing the service. ... Read more

Amazon.com

"Until a few years ago," notes journalist-consultant Udayan Gupta, "venture capitalists were hardly on anyone's radar screen."That's not the case these days, as financiers who used to work behind the scenes now regularly set markets afire with their public support of high-profile technology and Internet stocks. In Done Deals, Gupta allows 35 of the brightest stars in what has become a $30-billion-a-year business to tell their own stories in their own words. We get to see exactly what they were thinking when they backed such endeavors as Intel, eBay, Excite, Genentech, and 3Com. Gupta's intention is to demonstrate how the industry has changed over the past half-century and how it differs today among its various forms. He achieves this beautifully by dividing the first-person accounts into thematically attuned sections that focus on dealmakers of the future (such as Mitch Kapor of Accel Partners), early pioneers (including the late Benno Schmidt of J.H. Whitney & Co.), West Coast veterans (such as Don Valentine of Sequoia Capital), past and present East Coast practitioners (like Charles Waite of Greylock Management), and visionaries (including John Doerr of Kleiner Perkins Caufield & Byers). Some of the stories are more detailed than others, but taken together, they provide a well-rounded view that will interest anyone who must deal with this often intertwined yet still individual world. --Howard Rothman ... Read more

Reviews (14)

Not Impressed
Where are the great stories that are promised? I read the whole book and am still scratching my head! Most of the stories surround how the VC's got started in the business, what it was like being a VC in the 60's & 70's, how much money investors made on different investments, etc...not why deals were funded. I was hoping to get a better sense of what decision making criteria were used to justify various investments and left severely disappointed.

Where is the industry going? Again, no real insights here...

As someone stated earlier, if I wanted a historical perspective on the VC industry or a who's who in the industry, there are many, many sources on the internet for this information.

Try Ruth Ann Quindlan's book for better insights into the decision making that goes into dealmaking.

Horrible editing, but great stories!
The stories of the pioneers of the industry were captivating and showed the "pure" spirit of the early VC world. Their warnings on the collapse of the fee-driven, vapor business plan-led, and greedy VC environment of the 00's and its dangerous deviation from the "let's build profitable businesses and let the entrepreneurs shine forth" mindsets that got it all started were prescient. The stories tell you how it began, and how to build long-term success by tempering your craving for instant gratification (in fact, several of the pioneers warned that the lust for quick money can destroy the industry), then read this book. If not for the poor proofreading (lots of grammatical errors, from a Harvard book, no less!), I would have given this 5 stars. Probably... well, I saw this in a bookstore in China and read through it on the plane to Europe last week. If the Chinese read this... watch out!

AN INVALUABLE PEEP INTO THE WORLD OF VENTURE CAPITAL
Many of the yesteryear superstars from the boom hitech sector may have unceremoniously gone belly up, and VC is not exactly as "hot" as it was at the turn of the century, but turns out that circling overhead the dot-com carnage was an enthusiastic Gupta scribbling detailed notes of what was going on in the industry. He rounded up a flock of 35 leading venture cap investors, from early pioneers such as Eugene Kleiner and Arthur Rock to current industry stars Geoff Yang and John Doerr. Had them reveal a great deal of gripping skinny on their ventures, solid facts from actual deals they'd worked on. Organized the stash of all this collective wisdom into a neat little bound volume -- and voila - we have a ripper of a book!

Organized into five parts (Fast Forward, Beginnings, West Coast, East Coast and Visions), the book examines the industry's humble beginnings to its extraordinary present (ok, very very recent past and hopefully a recent future). For a non-US reader such as myself, it also contains a priceless critique on the differences between West Coast and East Coast investing, which is unique because you'll recognize that a relatively nascent industry such as VC can sport widely varying investment philosophies as well. As investment spreads out to Europe, Australia and China, this becomes even more useful.

The book packs info about the hottest deals we had heard about - from Yahoo to www.Amazon.com - which makes for a gripping read in of itself. But beyond that, there are invaluable insights and discussions at length about how the VCs set up their partnerships and hand pick top management teams. Much better than reading a "VC 101" text book because it presents a hands-on glimpse at the industry's past and future from the veterans' point of view.

Consider this book to be a detailed case study introduction to some of the more successful companies, from some of the more committed (and recognized) minds. A highly recommended possession for your libraries -- if not as investment advice, at least as an insider guide to the fascinating industry of venture capital.

Questioning
I opened this book with anticipation that I would be presented with an insightful examination of how the greats of the venture capital world worked with thier investments. What I found was a one-sided exploration about why these folks were great but not any of the grit that they must have faced to become the success that they are.

a must for VCs
As a VC myself, I found this book to be very inspirational. What struck me as a common theme among the great VCs was that there was a sense of vision and purpose. Sure everyone wanted to make a lot of money but you get the feeling all of these guys cared about creating a frontier and exploring it. With the bursting of the internet bubble I think people need to get back to that. Unfortunately, VCs are too busy raiding distressed companies to really think about creating the next tech frontier. But the next great VC will be the one that follows the instincts laid out in this book. Hopefully it will be me! ... Read more

Book Description

"The Venture Imperative is strongly practical in orientation…a must-read for those serious about launching a corporate venturing unit within their own company."

-Vince Barabba, General Manager, Corporate Strategy and Knowledge Development, General Motors Corporation

Innovation has become a game of corporate life or death: Produce and market successful new ideas, and a company thrives; ride competitors' coattails, and the company eventually falls by the wayside. Yet continuous innovation has traditionally been as risky and difficult as it is essential. How can corporations create an environment that has enough freedom to allow for innovation, while providing enough structure to control risk?

In this groundbreaking book, Heidi Mason and Tim Rohner-leading voices in venture strategy-prove that corporate venturing is the best way to intelligently and successfully test and launch innovative corporate growth strategies. Venturing drives corporate strategy by harnessing internal and external innovation, while limiting financial risks.The process starts with the right environment: the Venture Business Office-a group that directly connects individual ventures to the parent investor and the larger venture community.

Corporate venture programs have traditionally failed because they lacked a viable structure for business R&D. Drawing lessons from years of experience, Mason and Rohner unveil a new, four-step approach that will enable any business to:

· Create a diversified portfolio of ventures to drive new growth opportunities

· Optimally allocate people and capital

· Recognize-and remedy-failing ventures at any stage

· Keep venture programs connected to the parent firm's strategy, and integrated with R&D, M&A and Corporate Development

· Measure the results

· Continuously innovate

The authors also show how to utilize the proven Bell-Mason Venture Development Framework-derived from the time-tested best practices of successful new ventures-as a guiding tool throughout the process.

For executives, investors, and entrepreneurs alike, this book reveals the art-and the science-behind winning corporate venture programs.

... Read more

Reviews (7)

Could Become a Business "Classic"
Mason and Rohner do indeed provide a "new model for corporate innovation" based on the assumption that if done right, venturing offers several substantial benefits to the mature corporation that, in combination, cannot be obtained elsewhere: "access to exceptional talent, the means to focus on important new opportunities that didn't fit into the established mold and culture, and the ability to experiment with different ways of organizing and operating that were more suitable to the issues at hand and to future growth." In turn, the mature corporation offers a great deal to fledgling start-ups that they couldn't obtain through any other method: "access to rich resources, including deep domain experience and knowledge, technology, established brand, supplier, and customer bases." After years of rigorous research and analysis, Mason and Rohner concluded that "the dual-value propositions for corporate venturing" offer a unique and compelling opportunity for a mutually beneficial codependency, one which "reveals a clear path for success -- a new model for corporate venturing, one that lives up to its potential and is sustainable over time." With precise and eloquence, Mason and Rohner explain HOW.

They organize their material within three Parts: Laying the Foundation for Innovation, A Guide for Venturing, and Capturing Strategic Value. Following the Afterword by Gordon Bell (author of High-Tech Ventures: The Guide for Entrepreneurial Success), there are seven especially valuable appendices whose subjects range from "VBO Business Plan Elements" to "Partner Profile Template." The acronym VBO refers to "Venture Business Office" which, as the authors explain in the Preface, is a demilitarized zone" which "connects the big company, the outside venture community, and start-ups. whether they emerge from inside or outside the corporate walls. The VBO is the logical conduit between [and among] these very different yet potentially synergistic worlds."

The authors provide in this single volume a comprehensive, cohesive, and cost-effective (four-stage, step-by-step) process by which to derive maximum value from the aforementioned "convergence." Along the way, they include dozens of charts ("Figures"), micro-case studies which illustrate various innovation initiatives, checklists, summaries, "Key Lessons," and (in the appendices) just about everything anyone would need to know about the design, establishment, and development of a VBO. Presumably, many of those who read this brilliant book are involved with organizations (including corporations) which either do not need or cannot afford a VBO worthy of the name. Nonetheless, there is an abundance of information and advice which would be of great value to them. I also highly recommend this book to others now involved in start-ups or not-yet--mature organizations as well as to venture capitalists, management consultants, and other service providers (e.g. bankers, attorneys, and accountants) who can -- and indeed should -- be included in venturing initiatives.

In their Preface, Mason and Rohner suggest that "there is an opportunity to learn from the successes of venturing and create tools, organizational structures, processes, and -- most important -- a point of view that will make venturing work for most companies that are willing to take the matter seriously -- as one that may ultimately amount to corporate life or death." They realize that a VBO may not be appropriate for many organizations. Make no mistake about it: Venturing worthy of the name requires rigorous and sustained communication, cooperation, and collaboration as well as sufficient resources. In that event, however, venturing not only permits but indeed assures innovation of a nature and to an extent otherwise unattainable.

Essential tool in your corporate innovation kit
Innovate or evaporate seems to be the mantra of most management gurus. Asked how to facilitate innovation these gurus usually lack an answer. Mason and Rohner are different as they show in this excellent book. Combining a clear framework with interesting examples this is a must read.

To further develop your view on the topic of facilitating innovation in your organization I would recommend 'Webs of Innovation' by Alexander Loudon and 'Radical Innovation' by Leifer et.al.

Solid Blueprint for Corporate Venturing
After leading an internal iniative to bring more innovation into a corporation, I found much of the task in selling your innovative idea depends greatly on convincing the "the suits" that the business plan is sound. The practical experience from the authors provides a solid blueprint for both internal and external innovators to map out their proposed venture to evaluate the likelihood of success. I frequently refer to the numerous examples while evaluating new business deals, both pre and post launch.

I also recommend the reader concentrate on the chapter, "Battling Corporate Antibodies". The greatest barrier is often from your own team, the "middle-manager" which will require much more time and effort to emotionally educate than is ever expected. Excellent insight is provided in dealing with the numerous approval stages and cultural hurdles that a new venture proposal must overcome within a corporation to survive beyond just an idea.

I do recommend this book for those brave innovators within a corporation and the bravest, those outside the safe womb of a corporation seeking to build a new idea into a business.

Provides roadmap for corporate venturing
I really enjoyed The Venture Imperative. The authors provide a good framework for corporate venturing right down to a "how to" roadmap for applying their concepts. Additionally, they've developed a useful vocabulary for in house venturing. There are plenty of real world case studies that really add to the material. I've known Heidi Mason and have found her work on venturing to be very relevant to major corporations. This books brings corporate venturing into the mainstream.

Essential to getting to less talk, more action
Very cool. As a former "intrapreneur" and current venture capitalist, all the baggage around venturing that Mason and Rohner brilliantly dissect definitely struck a chord. More than just an all too familiar management do's and don'ts list, the principles and diagnostics they propose are actually very liberating -- because they set expectations appropriately at each stage and create a critical path to success. Every company should understand the value of a Venture Business Office and what kind of person makes a good VEO! Overall, I appreciated the informed, balanced approach they took: a refreshing change from the hyperbolic management books of recent years. ... Read more

Book Description

The 2002 edition of The Harvard Business School Guide to Careers in Finance is an indispensable resource for anyone considering a job search in finance or investment banking. This all-in-one guide details the trends in finance, describes the industry's vast and varying career opportunities, and provides guidance on the recruiting process. Included in this new edition are profiles of leading investment banks, commercial banks, and Fortune 500 companies that hire MBAs; a selected bibliography; and a useful glossary of finance terms.

The Harvard Business School Guide to Careers in Finance Includes:
*Is a Career in Finance Right for You?
*Company Profiles
*Recruiting Contacts
*Career Resources
*Career Paths in Finance
*Investment & Commercial Banking
*Financial Services
*Corporate Finance
*Glossary of Financial Terms ... Read more

Reviews (5)

superficial book
This book is extremely superficial and unimaginative, giving only scant information and profiles from a number of companies of a few finance careers.

good, but the Vault guides are better
In my opinion there is more and better objective information on Finance and investment banking careers in the Vault Career Guide to Investment Banking and in the Vault Guide to Finance Interviews, which have the added benefit of being able to be purchased on vault.com and downloaded immediately. Good luck.

better information in the Vault guides
In my opinion there is more and better objective information on Finance and investment banking careers in the Vault Career Guide to Investment Banking and in the Vault Guide to Finance Interviews, which have the added benefit of being able to be purchased on vault.com and downloaded immediately. Good luck.

fair
This book was fair, but in my opinion the Vault Guide to the Top Finance Firms is a superior guide to careers in finance. Also try the Vault.com Guide to Finance Interviews. Good luck.

Good Book for Finance Review
This was just as good as their 1999 edition. ... Read more

Book Description

When the economy was booming and dot-coms were flying high, venture capitalists were admired as impresarios of innovation. Then the market tanked, start-ups fizzled, and those same deal-makers were rebuked as predators out for a quick score. So which portrayal is accurate? Where is this much-hyped industry heading? And what will it mean for the future of innovation in the global economy?

In this definitive book, industry experts Paul Gompers and Josh Lerner provide the first cool-headed explanation of the venture capital industry and the role it plays in our economy. They underscore that, regardless of the economic conditions, innovation is incredibly difficult to finance, take to market, and translate into value. While venture capital has evolved to address these problems-the industry has fueled innovation, economic growth, and wealth creation for decades-features of the venture industry have left it vulnerable to boom-and-bust cycles. In the near future, say the authors, the industry must transform dramatically, with important implications for industry players and the entrepreneurs and organizations they serve.

Drawing from compelling research and industry "war stories," Gompers and Lerner present a series of practical frameworks for understanding the relationships among venture capital, innovation, and entrepreneurial success. They demystify how the venture capital world operates, and outline the opportunities and obstacles faced by all players in this evolving arena.They explore:

· The problems entrepreneurs encounter in securing financing, and how the venture capital model can help innovators to resolve them

· How venture capitalists can effectively pursue promising opportunities while building a sustainable franchise

· How corporations, nonprofits, and government institutions can harness the power-and avoid the pitfalls-of the venture capital model when applying it in their own sectors

Whether the industry is enjoying an incredible growth spurt or weathering an economic slowdown, readers will find this book an immensely practical guide to leveraging the venture capital model to turn innovation into value.

... Read more

Reviews (2)

Authoritative and Well Written
Gompers and Lerner have written the best book on venture capital thus far. The authors have done a great service to entrepreneurs, VCs, and the entire business community with this work.

It is written, organized, and executed at perfect pitch and should be read by anyone considering taking the plunge into entrepreneurship, pursuing a career as a VC, or simply wanting to know more about the complexities and true nature of venture capital.

As venture capital gradually becomes more plentiful in the next 24 months, reviewing this work should be required of serious-minded professionals.

Absolutely Phenomenal Book
I can't say enough good things about this book! Gompers and Lerner provide a crystal clear explaination of the role venture capital plays in the economy and offers an insightful view of how venture capital will change in the future.

Anyone who is launching a new venture should bypass the "How To Write A Business Plan" books and pick up a copy. ... Read more

Book Description

Finance 1999 is an indispensable resource for anyone considering a job search in finance or investment banking. This all-in-one guide details the trends in finance, describes the industry's vast and varying career opportunities, and provides guidance on the recruiting process. Included in this new edition are profiles of leading investment banks, commercial banks, and Fortune 500 companies that hire MBAs; a selected bibliography; and a useful glossary of finance terms. ... Read more

Reviews (4)

GREAT GREAT GREAT
Terrific book great for helping to get a finance job! A must buy for any MBA.

A solid book
I help manage the career center an elite business school in the Northeast - and this is one of our most popular books. Along with the VaultReports.com Guides, this book is essential preparation for a career in investment banking.

Great!!!!
Terrific book great help for getting a job in finance. Great information direct for a huge number of the top finance firms.

Mainly presents the companies' viewpoint
Just a Q&A with the companies, so you get only their side. I thought the VaultReports.com guide was more objective and also had actual finance interview questions. Overall, though, the Harvard guide is still useful. There are also good Web sites out there on Finance jobs. ... Read more

Book Description

In this article, Timothy A. Luehrman, professor of finance at Thunderbird, The American Graduate School of International Management, explores how option pricing can be used to improve decision making about the sequence and timing of a portfolio of strategic investments. In financial terms, a business strategy is much more like a series of options than like a single projected cash flow. Executing a strategy almost always involves making a sequence of major decisions. Some actions are taken immediately while others are deliberately deferred so that managers can optimize their choices as circumstances evolve. While executives readily grasp the analogy between strategy and real options, until recently the mechanics of option pricing were so complex that few companies found this method practical to use when formulating strategy. But advances in both computing power and our understanding of option pricing over the last 20 years now make it feasible to apply real-options thinking to strategic decision making. To analyze a strategy as a portfolio of related real options, this article exploits a framework presented by the author in "Investment Opportunities as Real Options: Getting Started on the Numbers" (HBR July/August 1998). That article explained how to get from discounted-cash-flow value to option value for a typical project; in other words, it was about reaching a number. This article extends that framework, exploring how, once you've worked out the numbers, you can use option pricing to improve decision making about the sequence and timing of a portfolio of strategic investments. The author shows executives how to plot their strategies in two-dimensional "option space," giving them a way to "draw" a strategy in terms that are neither wholly strategic nor wholly financial, but some of both. Such pictures inject financial discipline and new insight into how a company's future opportunities can be actively cultivated and harvested. ... Read more