The Soul of Enterprise: Business in the Transformation Economy by THRESHOLD

Join Ed and Ron as they discuss the thorny issue of team member compensation. The tradeoff between creating an incentive for firm-wide profit and contributing discretionary effort, and engaging in politics to move up the ladder.

Why is an oil or pharmaceutical company condemned for earning windfall profits when market conditions change, while an individual homeowner who realizes a tidy profit off of a hot real estate market is applauded? Popular movie stars, directors, and entertainment companies can earn above-normal profits without so much as a whisper of public protest. Premium ice creams and chocolates are very expensive and yield profit margins that would have made the “robber barons” of yesterday blush. Very few of us would continue working at 50 percent of our present salaries. Are we not charging what the market will bear? Why are individuals and corporations held to different standards? Perhaps it is not so much price that bothers people as it is profits. Join Ed and Ron for a discussion on Fairness and how it distorts our view on prices and profits.

On April 30th and May 1st, Ed and Ron taught their first workshop in Chicago on the Subscription Economy Business Model. The advantages of this model are many, including: Predictable revenue; not selling services, but creating annuities with a lifetime value that far exceeds whatever you paid to acquire them; collective knowledge of your customers, which is a competitive advantage that cannot be duplicated; one-to-one marketing; not pricing a product or service, but rather customer transformation and peace of mind; you can predict demand and plan capacity more effectively; and it breaks down silos and creates a true “one-firm” model. Join us for our After Action Review and Lessons Learned from the participants.

Ed and Ron are honored to interview Tyler Cowen, professor of economics at George Mason University, blogger at Marginal Revolution, and author of many books. Tyler’s podcast, Conversations with Tyler, is one of our favorites. Tyler is an original and thought-provoking writer, exploring a wide range of topics with an economist’s eye that makes you see the world in a new way. Join us for what is sure to be a fun and interesting conversation with one of the world’s leading economic thinkers.

In the glorious tradition of afternoon naps and Taco Tuesday, we are fast approaching the last Friday of the month which can only mean one thing…Free-Rider Friday! As many know, our typical show is “topic” driven. We dive deep into one subject for the length of the show, usually with a guest or two. Free-Rider Fridays are designed to be “event” driven, whatever issues are in the news that we (or you) find worthy of commentary. In economics, free riding means reaping the benefits from the actions of others and consequently refusing to bear the full costs of those actions. This means Ed and Ron will free ride off of the news, and each other, with no advanced knowledge of the events either will bring up.

One of the most innovative pricing strategies that should be in every firm’s pricing stack is the TIP clause. Most feedback that firms receive on pricing is negative (“Your price was too high”). Or it is ambivalent: “Your price was just right.” No customer ever discloses how much money your firm left on the table. Innovative pricing strategies, such as the TIP clause, are outward focused and attempt to capture more of the value created for customers, in extraordinary engagements. Having more accurate cost accounting or better project management won’t help you capture this level of value, which is why pricing is the main driver of profitability. You don’t want to miss this show as Ed and Ron share stories from around the world of firms that have successfully implemented the TIP clause.

Ed and Ron are honored to interview Jordan Birnbaum, VP and Chief Behavioral Economist with ADP. Ron met Jordan recently and heard him speak on some of the behavioral economic ideas that guide how we make decisions. Join us for what will surely be an interesting and wide-ranging discussion about how behavioral economics can be applied to businesses of all kinds.

In ancient Rome, during the Punic Wars, Cato the Elder is said to have ended every speech he delivered before the Roman Senate with the phrase, “ET CARTHAGO DELENDA EST” (and Carthage must be destroyed!). He did this without regard to the subject of his speech. It is in this spirit that we present ET HORA LIBELLUM DELENDA EST which, loosely translated, means, “and the timesheet/billable hour must be destroyed!” Enjoy!

In the glorious tradition of afternoon naps and Taco Tuesday, we are fast approaching the last Friday of the month which can only mean one thing…Free-Rider Friday! As many know, our typical show is “topic” driven. We dive deep into one subject for the length of the show, usually with a guest or two. Free-Rider Fridays are designed to be “event” driven, whatever issues are in the news that we (or you) find worthy of commentary. In economics, free riding means reaping the benefits from the actions of others and consequently refusing to bear the full costs of those actions. This means Ed and Ron will free ride off of the news, and each other, with no advanced knowledge of the events either will bring up.

What happens when your firm becomes filled with too many “C,” “D,” and “F” customers? How should you fire a customer? There are many strategies, some more effective than others. Join Ed and Ron as they discuss essential strategies to deploy to fire customers with dignity, professionalism, while maintaining the goodwill of your firm.