Day 42 & 43: What I Will Miss Most

The majestic Baker Library framed by clear skies and sunshine on a warm spring morning.

What I Will Miss Most

As Harvard Business School's (HBS) Advanced Management Program winds down, I am mentally preparing a list of things and places that I will miss very much. One of those places is the Baker Library, which has been my favorite hang-out after in-between classes and my Living Group case discussions.

I guess the other one that I will also miss is the unpredictable Bostonian weather that even the plants and animals get confused. It can be sunny and warm one day and be cold and dark the following. According to the residents, the mild winter that just passed resulted in the late arrival of spring. The result, a hybrid of winter and spring. Anyways, I will miss that as well.

Of course, I will miss my classmates and professors who have contributed and helped me immensely in my pursuit of knowledge and learning.


Lessons in Class

Finance
  • When reviewing acquisitions or mergers, conduct a sensitivity analysis across the different variables to test the conclusions / recommendations and the underlying assumptions
  • The first to consolidate and gain scale wins the game since it is able to acquire cash flow and recurring revenues
  • It becomes an even greater advantage if the company is publicly traded since its shares become currency that can push valuations upward
  • Capital market understanding is a strength as it can also impact on the company's product development or accretion strategy
  • Be cautious however of bubble type valuations as it can go down as fast as it went up
Business, Government and the International Economy
  • Increase in labor costs typically results in a drop in total factor productivity and a subsequent decline in export performance
  • Currency risk is not the same as sovereign risk, do not mistake one for the other
  • Economic integration is difficult without political integration
  • Monetary and fiscal policies need to be synchronized and complementary
Operations
  • A few tips on becoming a successful CEO
    • it's not about you, it's about the company
    • focus on adding value
    • let the value you add speak for your success
  • Manage the company for the long-term not for the short-term
    • fight the tyranny of short-termism
    • avoid stock valuations from being your guide or decision metric
    • serve your stakeholders, enrich your shareholders
    • act like you own the place
      • more effective boards
      • more sensible CEO pay