Behavioral Economics and Behavioral Finance Manifesto

Steve Shu Consulting

In this post, I want to share my thoughts on design values related to behavioral economics and behavioral finance (which going-forward in this post I’ll simply refer to as behavioral science for brevity). With that as backdrop, here’s my Behavioral Economics and Behavioral Finance Manifesto (much like I did with my Management Consulting Manifesto back in 2011 ). Behavioral Economics General Management Innovation Behavioral Finance Behavioral Science Nudge

BCG report: Ending the Era of Ponzi Finance

Consultants Mind

The Boston Consulting Group even went so far as to call … Continue reading → Learning BCG Boston Consulting Group Consulting Economics Era of Ponzi Finance Management consulting Not sure how this happens, but the entire developed world is in debt. Europe, the US, and Japan have borrowed so much money that they are headed towards ruin.

Finance vs Strategy

Tom Spencer

A successful firm will need to pursue sound strategy and, at the same time, stay on top of its finances. Business Strategy consulting finance Management Consulting The financier cares about the next 3 months or less. The strategist cares about the next 3 years or more. The financier wants the deal to close as soon as possible so that he can earn his bonus.

New technology, new rules: Reimagining the modern finance workforce

McKinsey

Innovations in technology and management practice are creating new opportunities for the finance function to add value to the business. Here’s how finance teams will need to evolve to make the most of them. Insights on Operations

Managing Overwhelm

Jacq Hackett Consulting

You realise it’s the end of the quarter and you still haven’t figured out a system for sorting out your finances. Here are my five tips for managing these and similar problems in your business so you can avoid getting overwhelmed: Tip one: Don’t be afraid to go back and renegotiate terms when timeframes shift because of an issue that’s beyond your control. So don’t be overwhelmed by managing the business finances; instead get a bookkeeper and avoid that end of quarter panic.

Bots, algorithms, and the future of the finance function

McKinsey

Automation and artificial intelligence are poised to reshape the finance function. Knowing what to automate and managing the disruption can lead to a new era of productivity and performance.

What Will It Take to Make Finance More Gender-Balanced?

Harvard Business

It is no wonder we came to fear our gender would keep us from achieving the same level of success as our male peers in finance. We turned to those most able to effect change in finance: the professionals actively working in the field. shutterjack/Getty Images.

Why Do Management Consulting Firms Hire MBAs?

Steve Shu Consulting

Prior to my current role, I spent many years in the traditional management consulting space. Management consulting projects can span diverse areas from operational to finance to marketing to strategy to IT management, etc. Management Consulting

Navigating risks in project finance

McKinsey

When it comes to infrastructure and capital projects, managing risks and incentives correctly can be a major enabler for opening up new funding streams and creating bankable project pipelines.

How Blockchain Is Changing Finance

Harvard Business

They represent content and digital rights management platforms (such as SingularDTV ), distributed venture funds (such as the the DAO , for decentralized autonomous organization), and even new platforms to make investing in ICOs and managing digital assets easy (such as ICONOMI ). The unstoppable force of blockchain technology is barreling down on the infrastructure of modern finance. Our global financial system moves trillions of dollars a day and serves billions of people.

China Faces "Minsky Moment" on Ponzi Financing

MishTalk

Inquiring minds are tuning into a report on the Ponzi finance setup in China. Our analysis indicates that China’s economy has arrived at that unstable state where speculative and Ponzi finance appear to dominate. Mike "Mish" Shedlock [link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Blockchain For Managers

Tom Spencer

Many individuals will be self-employed, and the value creation process will be overseen and managed in a way that no longer requires multiple layers of other human beings to be part of the process. Many things managers do – and in many industries – are about to be automated out of existence.

How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business

If you’re not a numbers person, finance is daunting. Even if you don’t need to know a lot about finance to do your day-to-day job, the more conversant you are on the subject, the better off you’ll be, according to Richard Ruback, a professor at Harvard Business School and the coauthor of the HBR Guide to Buying a Small Business. Stop avoiding finance because you’re afraid of numbers. “Finance and accounting are very simple.

Due Diligence by Management Consulting Firms

Tom Spencer

It was a very interesting experience, so in this post I will share what I learned, as well as talk about the role played by management consulting firms.

I’ve finally released Inside Nudging: Implementing Behavioral Science Initiatives

Steve Shu Consulting

Inside Nudging is written for management professionals and scientists to feed their thinking and discussions about implementing behavioral science initiatives (which includes behavioral economics and finance) in business settings.

In Conversation: Eric Ries on the Finance of Innovation

Strategy+Business

For more related insights, read "Why Eric Ries Likes Management" at [link In the fourth video interview of this five-part series, Eric Ries, author of The Lean Startup, describes his system of innovation accounting--and how it can convert learning into dollars.

What is return on equity (ROE)?

Consultants Mind

In simplest terms, … Continue reading → Learning Banking Consulting Finance Management consultingROE (return on equity) is one of the key formulas that most MBAs (yes, including Marketers) remember learning on their path to financial literacy. It is often the best FIRST place to start for financial statement analysis.

Make working capital work harder for you

McKinsey

Companies can unlock value by managing working capital more effectively. Strategy & Corporate Finance InsightsTop performers are transforming the cash-conversion culture across the organization and implementing advanced digital-analytics solutions.

Greek Finance Minister Proposes Greece for Puerto Rico Trade: Should US Accept the Offer?

MishTalk

Greek finance minister Wolfgang Schäuble has a sense of humor. Who knew Wolfgang Schäuble, Germany’s prickly finance minister, had a sense of humor? Mike "Mish" Shedlock [link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Enter the Carpetbaggers: Ukraine's New Finance Minister a US Citizen, New Economy Minister from Lithuania

MishTalk

Ukraine''s just-named "Finance Minister" is a US citizen, and Ukraine''s new "Economy Minister" is from Lithuania. citizen and chief executive of private equity group Horizon Capital, will take over as "Finance Minister". Ukraine has a new finance minister, Natalie Jaresko. The post of "Economy Minister" was just given to an asset management firm partner from Lithuania, and the "Health Minister" is from Georgia.

Greece Empties IMF Reserve Account to Pay IMF; Liquidity "Terribly Urgent" Says Finance Minister

MishTalk

Greece emptied an IMF holding account to repay 750 million euros ($840 million) due to the fund, a Greek central bank official said, avoiding default but underscoring the dire state of the country's finances. Made a day early, the IMF payment calmed immediate fears of a Greek default, but Finance Minister Yanis Varoufakis said on Monday the liquidity situation was "terribly urgent" and a deal to release further funds was needed in the next couple of weeks.

Finance Can Be a Noble Profession (Yes, Really)

Harvard Business

When I ask students graduating from Harvard Business School what they’re doing next, I often get some version of “I’m going into finance but…” Then they quickly explain that finance is just a way station on the route to nobler goals. Recently, I asked a few students how people react to their choice to go into finance, and I was greeted with nervous laughter. The usual reactions to misbehavior in finance are outrage or regulation.

I’ve finally released Inside Nudging: Implementing Behavioral Science Initiatives

Steve Shu Consulting

Inside Nudging is written for management professionals and scientists to feed their thinking and discussions about implementing behavioral science initiatives (which includes behavioral economics and finance) in business settings. That said, Inside Nudging introduces some behavioral science concepts to provide context and help develop a common language between management professionals and scientists.

Greece Bank Deposits Drop to 11-Year Low; Creditors Offer 6 Month's Financing; Round One of Saga Nearly Over

MishTalk

Financing Dangle Please consider Merkel, Hollande Dangle Financing Before Greece's Tsipras. Mike "Mish" Shedlock [link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management.

Is #MeToo Backlash Hurting Women’s Opportunities in Finance?

Harvard Business

When my mother graduated from college in 1972, she interviewed at an investment bank where a manager told her that for certain positions, women were interviewed but never hired. In the aftermath of the MeToo movement around sexual harassment, I wonder how much progress we’ve really made; recently, several men have privately told me that they have no intention of hiring women for open roles, or of managing young women if they can avoid it.

2015 Management Consulting Salaries – Undergraduate, MBA, Interns and More

Management Consulted

As you’ve been busy popping bottles of champagne, watching the ball drop while fireworks shoot up in the background, or just flat-out ambitiously working through the New Year holiday, we here at Management Consulted have had our version of fun.

France Seeks Another Tax on Facebook, Google And YouTube, to Finance "French Culture" Cinema

MishTalk

RT reports French broadcasting watchdog CSA eager to tax YouTube, Facebook, Dailymotion France''s Superior Council of Audiovisual, an independent broadcasting authority, wants to impose taxes on media giants like YouTube, Facebook and Dailymotion to force them to contribute to financing French culture. In a report this week, the Superior Audiovisual Council (CSA) says that video-sharing websites should be subject to a tax that helps finance the production of French films and TV shows.

Management Consulting versus Investment Banking

Management Consulted

The cons of investment banking – the long hours, the repetitive and unengaging nature of the work, the lack of non-finance exit opportunities – mattered far more to me than a 6-figure salary. Relationship with coworkers, managers, and firm.

Japan Finance Minister Seeks Record Debt Servicing on Interest on National Debt; What's Next?

MishTalk

Japan''s Finance Ministry will request a record 25.3 The decision, aimed at guarding against any future rise in long-term interest rates, underscores the increasing cost Japan must pay to finance its massive public debt. link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

French Industrial Output Drops Unexpectedly; France Finance Minister in Complete Denial; Expect the Unexpected

MishTalk

France Finance Minister in Complete Denial Those of you seeking still more amusement can find it in one of the usual places: statements made by French politicians. For example (and also from today), the Financial Times reports Pierre Moscovici, France Finance Minister Says Economy has ‘Truly Emerged from Recession’ “France has truly emerged from recession,” Moscovici insists. “Of Visit [link] to learn more about wealth management and capital preservation strategies of Sitka Pacifi

France Finance Minister "I Refuse to Raise Taxes to Close any Budget Gaps"; "Rethinking" the USA

MishTalk

Michel Sapin, France’s finance minister, sent tremors through European capitals with a defiant warning that his country would no longer try to meet its deficit targets and would not inflict further damage on its economy by tightening into the downturn. “I Mike "Mish" Shedlock [link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Not only is support for sanctions in Europe crumbling, so is support for alleged austerity.

Simmereing Stew; Italy's Finance Minister Joins "United States of Europe" Parade; Germany's "5 Wise Men" Argue for Grexit

MishTalk

Italy's finance minister, Pier Carlo Padoan calls for ‘Political Union’ to Save Euro. Italy’s finance minister has called for deeper eurozone integration in the aftermath of the Greek crisis, saying a move “straight towards political union” is the only way to ensure the survival of the common currency. He said an elected eurozone parliament alongside the existing European Parliament and a European finance minister should also be considered. “

The future of risk management in the digital era

McKinsey

We, in collaboration with the Institute of International Finance (IIF), worked with more than 50 institutions around the world, including banks, regulators, and fintechs, to explore critical questions on the future of risk management. This report aims to answer these questions and shares insights to help organizations navigate a digital transformation of the risk function—now and in the long term. Our Insights

Ukraine Government Breaks Up: Prime Minister Resigns Over "Vital Laws on Energy and Army Financing"; Follow the Money

MishTalk

Issues concern unpaid soldiers, pro-Russian MPs, and various oil schemes to finance the war. Mr Yatseniuk rebuked the existing parliament for putting Ukraine’s future at risk and betraying the ideals of the protests that toppled Mr Yanukovich in February, by failing to pass vital laws on energy and army financing. Vital Laws on Energy and Army Financing Inquiring minds may be asking " What Might Those Vital Laws Be?

Made in France: Montebourg Ridiculed in Text and Pictures; France Goes After "Red Bull" Energy Drinks to Finance Social Security

MishTalk

Members start Tuesday afternoon discussion of the draft law on financing of Social Security. link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management.

Profile of Success: Dave Ramsey

Consultants Mind

He only talks about financial planning and money management – but he can be just a polarizing and crazy as the other “shock-jock” radio personalities. Most Americans are irresponsible with their finances and cannot handle debt. Dave Ramsey.

Five Fifty: Confronting uncertainty

McKinsey

Good strategists manage uncertainty by playing the probabilities. Strategy & Corporate Finance InsightsBut most of us use wishful thinking instead.

Two Powerful Ways Managers Can Curb Implicit Biases

Harvard Business

Many managers want to be more inclusive. For the most part, managers are not given the right tools to overcome the challenges posed by implicit biases. But this demands a lot of cognitive energy, so over time, managers go back to their old habits. PATRIK STOLLARZ/Getty Images.

2016 Top 10 U.S. MBA programs for Management Consulting

Management Consulted

MBA programs for Management Consulting – and the results may surprise you. If you’re from somewhere else on the planet, want to stay somewhere else on the planet, or especially if you want to speak French, be on the lookout for our upcoming article on the Top 10 International MBA programs for Management Consulting (spoiler alert – one of them accounts for the maximum number of consulting recruits WORLDWIDE, especially across top firms, and more than any U.S.

How to Successfully Meet the Three Biggest Marketing Challenges

The More Clients Blog

I like to think I’m a pretty good marketer of my professional services. After all, I’ve been at it for 34 years, read hundreds of marketing books, thousands of articles and studied with the very best marketing gurus.