Risk, Morals and Investment Appraisal.

One of the underlying assumptions for an investing shareholder is that the interests (returns) of the shareholder coincide with the interests of the manager. Indeed, the Principal-Agent relationship is key to this view and the assumption is that the agent is acting in the best interest of the Principal, using better knowledge to enhance the… Read more »

Strategy and Investment

Introduction According to Michael Porter there are three types of strategy. Readers of his book ‘Competitive Strategy ‘will recognise the broad spectrum of visions and mission that organisations will adopt ranging from differentiation to focus. Latterly there had been a debate about size and how organisations can influence/shift markets and thus their power and influence… Read more »

The shareholder and the firm

Let’s start this article with a disclaimer, this is not about investment criteria per se, it is not about how shareholders and their money are applied for gain. What this article is about is how the needs of the shareholders are aligned with Corporate Goals. It explores some unique challenges in the SME world where… Read more »

Mental Health 1

Mental health is how we think, feel and behave, it manifests itself in various forms and is different in each individual ranging from general uncomfortableness, feelings of dis-ease, depression and anxiety. This can lead to unnecessary worry, extreme sadness, despair and feelings of inadequacy and sates of ‘learned helplessness’ Most business people will experience these… Read more »

Family Accounting

This is an area of many trade offs which has a slightly different twist to non family companies with shareholders and stakeholders who are not as intertwined as Family 1 what is the minimum cash/working capital requirements required to sustain the day to day operations 2 what is to be done with any surplus cash… Read more »

Aesthetic Accounting

The issue here is that people appreciate beauty and respond more positively when things look right Without exposure to beauty, people don’t feel right, information doesn’t feel right and so therefore decisions made or conclusions drawn leave the user with a sense of unease. If things don’t look right there is a depression of spirit… Read more »

Accounting for Conduct

Accountants will hold responsible positions in many businesses of various size and complexity. They will be applying their specialist skills and knowledge to an ever changing set of challenges. Yet Accounting qualifications have not always had a good PR recognition, and indeed the worst excesses of creative accounting have led to accusations of being a… Read more »

Servitisation, a new business?

Introduction The IOT is a great idea, connected machines of all shapes, uses and sizes feed backing constant data about usage , condition and performance- all for better efficiency . Servitisation is not a new idea, it is merely becoming more widespread as firms find more innovative ways of maintaining customer relations and changing their… Read more »

Driver Based Planning

Introduction   Driver based modelling is becoming a function of the current economic uncertainty (aka the ‘new normal’.) Traditionally, forecasts and models have been prepared along the lines of last year’s actuals plus a control /expectation margin either to increase sales revenue by x % or to decrease certain costs by y%. Throw in a… Read more »

The SME Survival handbook

The SME  Survival Guide     About this download This is written by me based on my 30 years experience in the SME sector, I have used the metaphor of a jungle to set the introductory feel for these series of essays, not because the SME landscape is necessarily threatening , but it is certainly… Read more »