Happy Friday! Here are my May 17 Hot Topics and how they relate to advancing leadership or culture.
Hot Topic 1: New Long-Term Stock Exchange to Open in California.
What it’s About: On May 10, 2019, the U.S. Securities and Exchange Commission (SEC) granted approval for a new national securities exchange, the Long-Term Stock Exchange (LTSE). The LTSE (aka the Silicon Valley Stock Exchange), expects to begin accepting listings of companies and commencing trading sometime later in 2019. The exchange has high profile backers like venture capitalist, Marc Andreessen, who came to fame in the 1990’s as the co-developer of the pioneer browser, Netscape Navigator, and Eric Ries, who will be the CEO.
Why it’s Important: I’ve always believed that a CEO wringing his or her hands in quarterly increments is way more distracting than beneficial. Yes, businesses are expected to create sustainable value. However, short-term thinking can cause near-sighted, myopic decision making at the top of the house. A 2017 study by public policy think tank, Third Way, found that within five years after going public, the pressures to meet analysts’ short-term profit estimates leads to, on average, a 40 percent decline in patents; an indication that innovation momentum slows. Short-term focus can set you back. If you’re in the c-suite or board, keep your eye on this experiment and understand the implications for you. The long view is an important trend for the rest of us to be aware of.
What it’s About: Adidas first started making the recycled shoes in collaboration with environmental group, Parley for the Oceans, in 2015. They developed the very cool kicks using plastic waste intercepted on beaches, before it can reach the oceans. The Parley shoes will reuse designs from the UltraBoost collection, and newer versions of Adidas Originals. They are as “hot” as these topics!
Why it’s Important: Before we are consumers, we are all citizens first. Many of us are looking beyond just a transaction. We want things that are hip, functional, available, and at value. Many of us will pay somewhat more when all four elements are achieved. The current plan, as I understand it, is to make the Parley originals out of recycled plastic and when they deteriorate, to grind and micro-manufacture your next pair out of the old pair; a continuous, local, personal supply chain. This is an example of how being purpose and value focused can drive innovation; maybe even market disruption.
My Weekly Wine Recommendation (Thanks to Vivino):
[Picture and ratings provided by Vivino.]
And finally! Here’s Cecil’s Bleat of the Week!
“There is no innovation or creativity without failure.” – Brené Brown.
Bye for now!
– Lorne Rubis
Incase you missed it:
Monday’s Lead In podcast.
Wednesday’s Culture Cast podcast.