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Kaiser CEO Bernard Tyson Dies Unexpectedly, Here Is His Impact

In stunning news, healthcare lost a major leader today. Bernard J. Tyson, the Chairman and CEO of Kaiser Permanente, unexpectedly passed away in his sleep at just 60 years young. Unexpected is an understatement since it was only yesterday when Tyson was a guest speaker at the AfroTech gathering in Oakland as shown by this tweet:

                               

And three days prior, he had been in New York City to speak at the Fast Company Innovation Festival as seen in this picture:

Today In: Innovation

Discussing and advocating for key health issues was a big part of Tyson’s life. Through my career, I have met many hospital, health clinic, and insurance executives, and Tyson without a doubt has stood out from most of the rest. He was far from a “mind the store and pick up the paycheck” CEO. Sure, we can rattle off what happened to the typical metrics used to measure hospital and insurance CEO’s since he became Kaiser Permanente’s CEO in 2013 and it’s Chairman of the board of directors in 2014. Kaiser Permanente went from having 9.1 million members to 12.3 million, employing a workforce of 174,000 to 218,000, and generating $53 billion in annual revenues to $82.8 billion. These are all very impressive jumps but do not begin to capture the larger and what I think are the more important steps that have occurred.

Tyson has helped Kaiser Permanente become a leader in transforming how healthcare systems can have a greater impact on population health. Historically, many hospitals and much of the health care system in the U.S. have been way too focused on inpatient and “sick” care, because surprise, surprise, that’s where the immediate money seems to be. You can make a whole lot more money today trying to fix a medical problem (and even failing horribly to fix it) than preventing the problem in the first place.

This has made much of healthcare far too reactive, waiting for problems to occur, too focused on repairing people after they have already been broken. It’s like waiting at the of the wall for Humpty Dumpty to fall rather than helping him down from the wall or at least installing some seat belts. It can also be analogous to waiting for a car to fall into pieces before you take it (or rather carry it in a bag) to the shop and ask the mechanic, “hey, can you do something about patching everything together? I need to drive to a date tonight.”

Under Tyson’s leadership, Kaiser Permanente has taken major steps to expand the role of health care beyond the walls of hospitals and clinics. For example, as I reported previously for Forbes, there are the ongoing initiatives to address obesity and homelessness in the communities surrounding Kaiser facilities. Tyson covers the latter in this Kaiser Permanente video:

                                  

Another example is their first-of-its-kind partnership with the National Basketball Association (NBA) to tackle (or rather, since it’s basketball, assist with) children’s health issues, which I also have written about for Forbes.

Then there’s climate change, which for Pete’s and everyone else’s sake exists. Recognizing the impact that all of their facilities and many employees can have on pollution and the climate, Kaiser Permanente has been taking steps to become carbon neutral by 2020.

If this doesn’t sound like your typical hospital system or clinic, it isn’t. Tyson hasn’t been your typical healthcare system CEO either. When I spoke to Tyson earlier this year, the conversation was more about a vision of how healthcare should be and what a good healthcare system should be doing rather than a review of how great things already are. He didn’t dwell on dollar signs and listing the clinical services that Kaiser and its many physicians offer. Instead, he talked at length about how Kaiser was trying to not just be reactive but rather address the “social determinants of health” such as “improving basic infrastructure, promoting healthy eating, working on exercise, and taking care of the key ingredients to promoting health.” As he emphasized, “great health care is not just engaged with treatment.”

Tyson also pointed to a part of the body that healthcare systems frequently neglect. No, not the feet or the spleen. It’s the head or more specifically the mind, which incidentally should be connected to the rest of your body. As Tyson mentioned, Kaiser has been “extremely focused on the mind, as in mental health and well-being,” and “looking at the whole person.” He spoke of the “comprehensive package, looking at health and health care.” Again, while healthcare systems may talk about mental health and well-being, talk is cheap. They often don’t mind the gap or rather address the gap in taking care of the mind in the community. How many have actually invested in community well-being programs as Kaiser Permanente has?

Of course, Kaiser Permanente does have strong incentives to keep its millions upon millions of members healthy since it serves the dual purpose of insurer and healthcare system. However, this dual role alone may not necessarily lead to transformative change. When you talk to Tyson, you never got the sense that he was just spewing platitudes. Rather, expanding healthcare these directions seemed to be a passion.

For example, take a look at his experiences as a child. As he related to me, he was “greatly impacted by a wonderful mother, who was sick all of my life and wonderful doctor who take care of her and us.” This combined with the fact that his “father was a minister” meant that his “line of sight was always the community of the congregation. The community was the family.” He spoke of “having resources in the community and encouragement with multiple ‘moms’ who raised me as a child. The community came together,” and offered “a support system that you can rely on, that was in your corner,” that was encouraging, “you to be all that you can be.”

Certainly, Tyson was much more than the color of his skin. Nevertheless, in this day and age, color of the skin still unfortunately can be a major barrier in healthcare. It was an important step that Tyson, as a racial minority, became the leader of the largest nonprofit health plan and integrated delivery system in the United States. This brought a little more demographic diversity to healthcare leadership, which remains way too homogeneous. If you look at pictures of many healthcare system executives, the colors of the neckties are often more diverse that the colors of the skin. Tyson helped get many people more used to seeing an effective and forward-thinking healthcare system leader from a different background.

Tyson didn’t shy away from talking about how race, ethnicity, gender, and sexual orientation either. These demographic characteristics still unfortunately affect healthcare inside and outside hospital and clinic walls. In fact, he had strong interests in reducing disparities of care as well and said, “The fact that someone may not be getting what they should be getting because color of skin or sexual orientation is unacceptable. Period. No sentence to follow.”

The Kaiser Board of Directors has named Gregory A. Adams to fill Tyson’s shoes as Chairman and CEO on an interim basis. These are certainly big shoes to fill. Adams is no stranger to the Kaiser system as he had been reporting to Tyson as the Executive Vice President and Group President, overseeing all eight Kaiser Permanente Regions that includes 38 hospitals and 651 medical office facilities. Additionally, Adams has led Kaiser Permanente’s national Medicare care delivery strategy and was responsible for Kaiser Permanente’s partnership with the NBA. Adams appears in this video covering the launch of the NBA partnership:

                                

Adams has been with Kasier Permanente since 1999, beginning at Kaiser Permanente in Southern California and subsequently holding positions with increasing leadership responsibility. Adams’ Kaiser Permanente biography includes more information on his background.

In a statement, Ed Pei, Kaiser Permanente board member and Chair of its Executive Committee and the Governance, Accountability and Nominating Committee, said: “Bernard was an exceptional colleague, a passionate leader, and an honorable man. We will greatly miss him. The board has full confidence in Greg Adams’ ability to lead Kaiser Permanente through this unexpected transition.”

Indeed, in his five years as CEO and over 30 years in the Kaiser system, Tyson made a major impact on healthcare that went well beyond hospital and clinic walls in many ways. Unfortunately, we won’t be able to see all that he could have done with more years at the helm.

Follow me on Twitter or LinkedIn. Check out my website.

I am a writer, journalist, professor, systems modeler, computational and digital health expert, avocado-eater, and entrepreneur, not always in that order. Currently, I am a Professor of Health Policy and Management at the City University of New York (CUNY), Executive Director of PHICOR (@PHICORteam), Associate Professor at the Johns Hopkins Carey Business School, and founder and CEO of Symsilico. My previous positions include serving as Executive Director of the Global Obesity Prevention Center (GOPC) at Johns Hopkins University, Associate Professor of International Health at the Johns Hopkins Bloomberg School of Public Health, Associate Professor of Medicine and Biomedical Informatics at the University of Pittsburgh, and Senior Manager at Quintiles Transnational, working in biotechnology equity research at Montgomery Securities, and co-founding a biotechnology/bioinformatics company. My work involves developing computational approaches, models, and tools to help health and healthcare decision makers in all continents (except for Antarctica) and has been supported by a wide variety of sponsors such as the Bill and Melinda Gates Foundation, the NIH, AHRQ, CDC, UNICEF, USAID and the Global Fund. I have authored over 200 scientific publications and three books. Follow me on Twitter (@bruce_y_lee) but don’t ask me if I know martial arts.

Source: Kaiser CEO Bernard Tyson Dies Unexpectedly, Here Is His Impact

765K subscribers
The Kaiser Permanente model is all about integration and partnerships, and how everything comes together for patients, said Kaiser Permanente CEO Bernard Tyson. Tyson thus has to balance his time with both internal and external constituents, which is a non-trivial task for an organization of Kaiser Permanent’s size. “The outside influences so much of what happens on the inside, that I have to spend a lot of my time with customers, the government and other key parties.” In his visit to Systems Leadership on April 25, 2019, Tyson spoke with Lecturer Robert Siegel on the challenges of running an $80B per year company in a complex world while still focusing on the goal of keeping patients healthy.
Read more on Medium: https://stanford.io/2XZKhTZ

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3 Key Signs Your Startup’s Business Plan Needs to Change

Pivoting is expensive, but so is making smaller changes to your business plan to address the present-day realities of your market, your customers and your company. Revising your plan and implementing those changes can be time-consuming and expensive, and it can result in considerable operational upheaval.

But sometimes that’s exactly what your small business must do to ensure future success. How will you know it’s time to re-write your small business’s playbook? Here, three key signs:

1. Your growth is stagnant.

In a startup, momentum is everything. Growth provides the resources to continue to expand, beat the competition, improve quality and service, and increase efficiency through economies of scale.

Unfortunately, most small businesses can’t afford to simply plow additional funds into advertising in order to grow. Keeping customer acquisition costs down — and churn rate down as well — is key in the early stages for any bootstrapped startup.

In that case, growth might require jettisoning — or at the very least de-emphasizing — some products to focus on more profitable products. (See Steve Jobs when he returned to Apple in 1997.) That may require you to shift employees into new seats: sales, service, operations, etc.

Do this and the result might be a ripple effect of positives: Shifting employees provides opportunities for them to learn new skills, demonstrate new talents and learn about other functional areas. Moving a few employees into different roles can help re-energize and re-engage a number of other people.

Growth could also require introducing new products or services, especially when they complement existing offerings. Complementary offerings are a great way to re-engage existing customers as well as to bring in new customers who may then purchase other products or services.

In short: If your growth has stalled, what you planned to offer may not be sufficient. So how will you know what changes to make?

Ask your customers. They’ll tell you.

2. The needs of your “ideal” customer have changed.

Every business plan includes information on the target market: Demographics, interests, needs, pain points, etc. Over time, those needs can change (or maybe they never actually existed, at least on a sufficiently broad scale).

If you’re a tech company, evolving technologies can change the way customers interact with your service. If you’re in the restaurant business, today’s hot trend can be tomorrow’s outdated fad.

More likely, as your business has grown, so too has your infrastructure — meaning the level of one-on-one service you planned to provide is no longer necessary. (Or even desired.)

A great business plan lays out a blueprint for meeting customer needs and solving customer pain points. A great business constantly evolves to ensure those needs are met and those pains are eliminated.

Stay on top of metrics like return, service calls, churn rate, etc. to keep up with changing customer needs. Talk to your customers to find out how their needs may have changed.

Then revise your plan to make sure you provide not just what your plan says, but what customers really want and will pay to get.

3. You need full-time people in freelancer seats

Early on you may not have needed — or maybe couldn’t afford — to hire full-time people to perform certain functions. Wisely, you turned to freelancers. Freelancers are great for completing specific tasks, especially when sufficient expertise or specialized knowledge is a necessity.

The problem with freelancers is that they can only perform specific tasks. They can’t step into other roles. They can’t step into other functions. Because they aren’t a part of your company, they can’t learn and grow and develop with your company.

At some point it makes sense to hire a full-time employee. While they might not currently possess every drop of skill and experience they need to succeed in the role, when you hire people who are adaptable and eager to learn, they soon will.

And then they will help create an outstanding foundation upon which your company can grow.

By: Craig Bloem Founder and CEO, FreeLogoServices.com

Source: 3 Key Signs Your Startup’s Business Plan Needs to Change

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Tutorial starts at 1:20 Whether you’re starting a new business or just trying to get your existing business a bit more organized, writing a business plan is the perfect way to clearly outline how your business operates, declare goals, and set out a strategy to reach those goals. In this video you’ll learn about the six essential pages every business plan should have, what to record on each of those pages, and also how to write your business plan as quickly and easily as possible — even if you’re a complete beginner! 🔹 Download the FREE Six-Step Business Success Plan: https://www.gillianperkins.com/downlo… // WHAT TO WATCH NEXT Six Ways to Earn Six Figures Working from Home https://www.youtube.com/watch?v=Y1i8x… How I (actually) Got My First Client Online https://www.youtube.com/watch?v=AST3P… How I Created Multiple Streams of Income for Myself https://www.youtube.com/watch?v=dfaH_… How to Decide What Business to Start https://www.youtube.com/watch?v=Mid_A… // LINKS Learn more about Gillian and find resources to build your online business: https://www.gillianperkins.com Join our private Facebook group! https://www.facebook.com/groups/start… Follow Gillian on Instagram to get a BTS look at what it’s like to be a digital entrepreneur: https://www.instagram.com/gillianzper… // MAIL Gillian Perkins International P.O. Box 13573 Salem, OR 97309 NOTE: This description may contains affiliate links to products we enjoy using ourselves. Should you choose to use these links, this channel may earn affiliate commissions at no additional cost to you. We appreciate your support! KEYWORDS how to write a business plan, free business plan, do i need a business plan, #entrepreneurship, #gillianperkins, business plan how-to guide, business plan step by step, business plan tips ,gillian perkins, gillianperkins, do you need a business plan, How To Write a Business Plan To Start Your Own Business, how to write a business plan step by step, business plan for beginners, simple business plan, business 101, business plan template, business plan example, how to write a business plan for beginners

Investors Are Pouring Billions Into Proptech Here’s Who’s Getting It

The real estate business is finally getting renovated, as a new wave of startups build property-technology platforms that improve or simplify the complicated process of buying, selling, renting, or owning a home. And VCs have been more than willing to open their checkbooks: Since 2013, annual investment in U.S. proptech companies has grown at a rate five times that of investment in all U.S. businesses. In 2019, investment in U.S. proptech is on pace to exceed $10 billion. Here’s where some of this year’s money has gone.

$370 million

Compass hosts real estate listings on an easy-to-use online platform. It also provides tools for agents, including real-time pricing, marketing software, and automated multiplatform listings, leaving more time for face-to-face meetings with clients.

$300 million

Opendoor buys homes directly from sellers in exchange for cash, which helps them afford down payments on their new digs. The company holds DIY open houses that allow almost anybody with a smartphone to tour a home–without an agent–between 6 a.m. and 9 p.m.

$160 million

Better, a direct lender, allows homebuyers to quickly get a mortgage via a simple online application. Plus, no commissions and no fees mean borrowers pay only interest.

$170 million

Nextdoor keeps people up-to-date on events in their neighborhood. The social network also helps neighbors find babysitters and pet sitters, swap safety tips, and, of course, gossip.

$200 million

Clutter packs, stores, and moves its customers’ belongings­–and lets them track their inventory online. A forthcoming feature will help customers decide what to move, sell, or donate with a few clicks.

$300 million

Lemonade’s app lets homeowners and renters buy insurance against life’s lemons, such as losses from fire, water damage, and theft.

By: By Kevin J. RyanStaff writer, Inc. @wheresKR

 

Source: Investors Are Pouring Billions Into Proptech. Here’s Who’s Getting It

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Read the full report here: https://www.sbs.ox.ac.uk/news-and-eve… Will we soon be able to buy a house with the click of a button? A new report released by Saïd Business School, University of Oxford takes an expansive look at property technology (PropTech), and its findings detail the dramatic changes facing the real estate industry. The 95-page report was written by Andrew Baum, Visiting Professor of Management Practice at Oxford Saïd and real estate industry veteran, using data from PropTech venture capital firm PiLabs and interviews from over 50 real estate professionals.

Why You Should Try a Subscription Model for Your Business (and Some Tips on How to Do It)

Every entrepreneur wants consistent monthly income to fuel their cash flow and business goals. However, between economic cycles and changing customer interests, that regular revenue may be hard to achieve.

I’ve talked with more and more small business owners lately who use a subscription business model. It involves offering monthly subscriptions for various products and services. Options for these subscriptions cover all kinds of items. Maybe you know someone who receives a subscription box filled with clothing or makeup. Perhaps you’ve tried making meals prepared by Blue Apron or you receive shaving supplies from Dollar Shave Club. Millions of people enjoy Netflix and Spotify for streaming. Other companies offer toys for kids and treat boxes for pets.

The subscription e-commerce industry generates hundreds of millions of dollars in revenue each year. A 2018 McKinsey survey noted that nearly 60 percent of American consumers surveyed had multiple subscriptions. The monthly subscription economy doesn’t show any signs of slowing down. People love the time and money they save, as well as the excitement of personalization and convenience.

Besides attracting and retaining customers who want these benefits, there’s a significant advantage for subscription companies: recurring revenue. Instead of a one-time payment, monthly subscription businesses collect a monthly fee (or sometimes a year of fees in exchange for a lower monthly rate) before sending out the product or service.

This revenue model provides an upfront spike in cash flow along with a longer-term outlook for stable income. Moreover, you’ll get a better sense of product volume for inventory planning and management.

There is no time like the present to start a monthly subscription business to ride the lucrative wave. Here’s how to launch:

Decide on a subscription model type.

There are three main sub-models that can frame your monthly business within the subscription model. The curation model involves creating a personalized box for customers based on interests they share when they sign up. This might include sample-size versions of products related to a hobby or lifestyle.

The replenishment model is the one I use most often. It offers a regular stream of products the customer uses. For example, Amazon offers this under the name, “Subscribe and Save,” for many food items, cleaning supplies, vitamins, and more.

The access model provides a feeling of exclusivity for customers who get products and experiences not available to anyone without a subscription. Again, let’s reference Amazon. Its Prime program gives members special discounts, offers, and products not accessible to non-Prime members.

Consider a service-oriented subscription model.

You may be wondering how to find your niche. Consider a service-oriented skill set you have that could fit this approach. For example, if you specialize in graphic design, web development, or writing, consider this model for your monthly business.

In contrast to a monthly retainer model, a service-based subscription model provides upfront revenue while giving clients the opportunity to select a pricing tier with accompanying services that fit their needs.

Proceed like any business startup.

I’ve met many a startup founder that didn’t do the basics. Make sure you conduct research, determine a market need or interest, think about what the new product looks like, scope out any competition, and establish pricing.

Create a business plan that outlines your monthly business model, marketing plans, launch timeline, budget, and profitability forecast. Explore technology that helps automate the ordering, processing, and payment aspects of your subscription. I know entrepreneurs who use SaaS companies like Zuora or Zoho here. Also, study how other subscription brands have used marketing tools and platforms to launch and grow their business.

When you are ready to share your subscription business with your audience, consider a no-obligation trial. This entices people to try it on their terms and get excited to sign up for a longer period. In addition, make sure your website or social media promotion has a transparent subscription pricing guide that describes what customers receive at each pricing tier.

Taking all these steps prior to launch can set your monthly subscription business up for success. You want to know that you can attract customers and then deliver an exceptional experience so they maintain their subscriptions and spread the word.

Offer a recurring automatic payment method.

As part of establishing a successful subscription business, it’s ideal to offer old and new customers a way to select recurring automatic payments for their monthly subscription service. They can choose where to deduct the money from — a bank account or credit card.

This model works because it saves them from having to remember to make a payment each month. Instead, they can set up a payment method and comfortably receive the service on a regular basis.

By: John Boitnott

Source: Why You Should Try a Subscription Model for Your Business (and Some Tips on How to Do It)

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For more info: http://smarturl.it/COBS-YT Could doubling or tripling your revenue this year be a reality? Are you serious about growing your business and maximizing its success? Business growth is extremely teachable and you can “Clone” success strategies and tactics as easily as it is to learn a recipe and bake a cake! The Cloning of Business Success is a one-of-a-kind, live hands on business event where you will be guided through a proven process for creating the specific blueprint to dramatically increase your revenue and profits in the next 6-12 months. I realize this is a bold claim, but the truth is, there are a few key things that (when done right), will have an immediate positive impact on your business’ revenue. I know this to be true because I’ve done it may times myself and have shown thousands of small business owners all over the world how to do it for themselves. Now, it’s your turn. For more info: http://smarturl.it/COBS-YT Subscribe To My Channel: http://www.youtube.com/subscription_c… Facebook: http://www.facebook.com/johnassarafpage http://www.facebook.com/PraxisNowLLC Twitter: http://twitter.com/johnassaraf http://twitter.com/PraxisNowLLC Website: http://www.johnassaraf.com http://www.praxisnow.com

IRS Announces New Per Diem Rates For Taxpayers Who Travel For Business

Are you wondering about those updated per diem rates? The new per-diem numbers are now out, effective October 1, 2019. These numbers are to be used for per-diem allowances paid to any employee on or after October 1, 2019, for travel away from home. The new rates include those for the transportation industry; the rate for the incidental expenses; and the rates and list of high-cost localities for purposes of the high-low substantiation method.

I know, that sounds complicated. But it’s intended to keep things simple. The Internal Revenue Service (IRS) allows the use of per diem (that’s Latin meaning “for each day” – remember, lawyers love Latin) rates to make reimbursements easier for employers and employees. Per diem rates are a fixed amount paid to employees to compensate for lodging, meals, and incidental expenses incurred when traveling on business rather than using actual expenses.

Here’s how it typically works: A per diem rate can be used by an employer to reimburse employees for combined lodging and meal costs, or meal costs alone. Per diem payments are not considered part of the employee’s wages for tax purposes so long as the payments are equal to, or less than the federal per diem rate, and the employee provides an expense report. If the employee doesn’t provide a complete expense report, the payments will be taxable to the employee. Similarly, any payments which are more than the per diem rate will also be taxable.

Today In: Money

The reimbursement piece is essential. Remember that for the 2019 tax year, unreimbursed job expenses are not deductible. The Tax Cuts and Jobs Act (TCJA) eliminated unreimbursed job expenses and miscellaneous itemized deductions subject to the 2% floor for the tax years 2018 through 2025. Those expenses include unreimbursed travel and mileage.

That also means that the business standard mileage rate (you’ll find the 2019 rate here) cannot be used to deduct unreimbursed employee travel expenses for the 2018 through 2025 tax years. The IRS has clarified, however, that members of a reserve component of the Armed Forces of the United States, state or local government officials paid on a fee basis, and certain performing artists may still deduct unreimbursed employee travel expenses as an adjustment to income on the front page of the 1040; in other words, those folks can continue to use the business standard mileage rate. For details, you can check out Notice 2018-42 (downloads as a PDF).

What about self-employed taxpayers? The good news is that they can still deduct business-related expenses. However, the per diem rates aren’t as useful for self-employed taxpayers because they can only use the per diem rates for meal costs. Realistically, that means that self-employed taxpayers must continue to keep excellent records and use exact numbers.

As of October 1, 2019, the special meals and incidental expenses (M&IE) per diem rates for taxpayers in the transportation industry are $66 for any locality of travel in the continental United States and $71 for any locality of travel outside the continental United States; those rates are slightly more than they were last year. The per diem rate for meals & incidental expenses (M&IE) includes all meals, room service, laundry, dry cleaning, and pressing of clothing, and fees and tips for persons who provide services, such as food servers and luggage handlers.

The rate for incidental expenses only is $5 per day, no matter the location. Incidental expenses include fees and tips paid at lodging, including porters and hotel staff. It’s worth noting that transportation between where you sleep or work and where you eat, as well as the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings, are no longer included in incidental expenses. If you want to snag a break for those, and you use the per diem rates, you may request that your employer reimburse you.

That’s good advice across the board: If you previously deducted those unreimbursed job expenses and can no longer do so under the TCJA, ask your employer about potential reimbursements. Companies might not have considered the need for specific reimbursement policies before the new tax law, but would likely not want to lose a good employee over a few dollars – especially when those dollars are important to the employee.

Of course, since the cost of travel can vary depending on where – and when – you’re going, there are special rates for certain destinations. For purposes of the high-low substantiation method, the per diem rates are $297 for travel to any high-cost locality and $200 for travel to any other locality within the continental United States. The meals & incidental expenses only per diem for travel to those destinations is $71 for travel to a high-cost locality and $60 for travel to any other locality within the continental United States.

You can find the list of high-cost localities for all or part of the calendar year – including the applicable rates – in the most recent IRS notice. As you can imagine, high cost of living areas like San Francisco, Boston, New York City, and the District of Columbia continue to make the list. There are, however, a few noteworthy changes, including:

  • The following localities have been added to the list of high-cost localities: Mill Valley/San Rafael/Novato, California; Crested Butte/Gunnison, Colorado; Petoskey, Michigan; Big Sky/West Yellowstone/Gardiner, Montana; Carlsbad, New Mexico; Nashville, Tennessee; and Midland/Odessa, Texas.
  • The following localities have been removed from the list of high-cost localities: Los Angeles, California; San Diego, California; Duluth, Minnesota; Moab, Utah; and Virginia Beach, Virginia.
  • The following localities have changed the portion of the year in which they are high-cost localities (meaning that seasonal rates apply): Napa, California; Santa Barbara, California; Denver, Colorado; Vail, Colorado; Washington D.C., District of Columbia; Key West, Florida; Jekyll Island/Brunswick, Georgia; New York City, New York; Portland, Oregon; Philadelphia, Pennsylvania; Pecos, Texas; Vancouver, Washington; and Jackson/Pinedale, Wyoming.

You can find the entire high-cost localities list, together with other per diem information, in Notice 2019-55 (downloads as a PDF). To find the federal government per diem rates by locality name or zip code, head over to the General Services Administration (GSA) website.

Follow me on Twitter or LinkedIn. Check out my website.

Years ago, I found myself sitting in law school in Moot Court wearing an oversized itchy blue suit. It was a horrible experience. In a desperate attempt to avoid anything like that in the future, I enrolled in a tax course. I loved it. I signed up for another. Before I knew it, in addition to my JD, I earned an LL.M Taxation. While at law school, I interned at the estates attorney division of the IRS. At IRS, I participated in the review and audit of federal estate tax returns. At one such audit, opposing counsel read my report, looked at his file and said, “Gentlemen, she’s exactly right.” I nearly fainted. It was a short jump from there to practicing, teaching, writing and breathing tax. Just like that, Taxgirl® was born.

Source: IRS Announces New Per Diem Rates For Taxpayers Who Travel For Business

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Per Diem is one of the largest tax deductions available to owner-operator truck drivers. Effective October 1, 2018, the daily rate was increased. In this video, we discuss Per Diem and how it will affect owner-operators.

With Its Stock Hitting An All-Time High, Here’s Why Nike Is So Dominant

Topline: Nike, already the world’s dominant athletic footwear and apparel brand, hit an all-time high share price on Wednesday, boosted by a successful digital transformation, high demand for athletic products and product innovation that is faster than its competitors.

  • Nike surged 5.5% after smashing expectations on its first-quarter earnings report yesterday, soaring past its previous record high of $90 per share. The stock opened at an all-time high Wednesday and is now up almost 18% for the year.
  • The company cited new product innovation and investments in e-commerce for helping boost results, as it continues to maintain a leading position in the athleisure and street fashion trend.
  • Furthermore, “Nike’s digital investments continue to bear fruit,” as Jefferies analyst Randal Konik says. Digital sales spiked 42% from a year earlier, as the company has increasingly been investing in apps and online selling platforms—which further helped drive overall sales growth. As a result, Nike has increasingly adopted a direct-to-consumer strategy for its business, discarding the traditional method of selling products through retailers.
  • The latest earnings show that despite trade tensions between the U.S. and China, the company wasn’t hit as hard by tariffs as some of its peers. Global sales grew 7% from a year earlier to $10.7 billion (above the expected $10.4 billion, according to FactSet). That growth was largely driven by revenue in China, which surged 22% to $1.7 billion.
  • Wall Street had a field day with Nike’s first-quarter earnings report, which widely surpassed even the loftiest expectations. Many analysts rushed to upgrade the stock’s price target and rating: Over 70% recommend it as a “buy,” according to Bloomberg data.
  • While Adidas is still the company’s biggest rival globally, it “has lost market share to Nike in some areas,” Morningstar analyst David Swartz told Forbes. He also pegs ANTA, the largest Chinese sportswear company, as a legitimate competitor in China, though its market share still lags slightly behind Nike and Adidas. He identifies the region as a huge growth market and highlights the 2020 Olympics as another big event where Nike will do well: “That should give them a big boost in Asia.”

Crucial quote: In a call with analysts Tuesday evening, CEO Mark Parker reiterated that demand for athletic product remained high worldwide. He highlighted women’s apparel, which also grew at a double-digit rate last quarter, as another high priority growth area for the company. “The opportunities ahead are as bright as I’ve ever seen them,” Parker said.

What to watch for: While Nike’s performance and revenue growth was stellar, the valuation of its stock price is somewhat expensive relative to its peers, according to Konik. Nike currently trades at a price-to-earnings ratio of 32.5—compared to Adidas, at 29.5, for instance. The company will need to maintain its rapid pace of growth in the next few years to justify its valuation, but that may well be possible, as Nike has momentum in its favor. They “crushed it” in the latest quarter, according to Konik, who puts the stock’s price target at $97 thanks to the “ongoing power of its brand.”

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I am a New York—based reporter for Forbes, covering breaking news—with a focus on financial topics. Previously, I’ve reported at Money Magazine, The Villager NYC, and The East Hampton Star. I graduated from the University of St Andrews in 2018, majoring in International Relations and Modern History. Follow me on Twitter @skleb1234 or email me at sklebnikov@forbes.com

Source: With Its Stock Hitting An All-Time High, Here’s Why Nike Is So Dominant

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Nike is one of the most recognized brands in the world. It continues to surpass rivals like Adidas and Under Armor, despite controversy and slowing sales growth in U.S. How did Nike become the giant it is today? Nike’s iconic swoosh logo and “Just Do It” slogan are universally known. As of June 2019, Nike is valued at nearly $130 billion, making it one of the most valuable companies in the world. It’s popular shoe lines include the Nike Air Max, Nike Air Force 1, Nike VaporMax, Nike Cortez, and of course, Air Jordans. Air Jordans, combined with an advertising strategy that embraces controversy and exclusive contracts with some of the biggest sports leagues in the country have helped Nike succeed. But sales growth in North America is slowing down and and sneaker sales aren’t growing as fast as they used to. Nike also faces criticism for its treatment of female employees, which is something the company will need to work on as it tries to make Women’s apparel and sneakers a bigger part of its strategy. Will Nike continue to grow or will Adidas, Under Armour, and other brands continue to eat into its market share? » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC How Nike Became The Most Powerful Brand In Sports

What Makes People Truly Happy in Retirement?

What makes people happy in retirement? That’s the question Michael Finke has been researching for many years now. He’s the chief academic officer of the American College of Financial Services, and was one of 16 experts who spoke on at TheStreet’s Retirement, Taxes, and Income Strategies symposium held recently in New York.

And he now has the answer.

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But first a little background. Finke has been researching the question of what makes people happy in retirement because he wants to know to what extent does what people do with their money make them happy in retirement. “Is it better if they have a lump sum? Is it better if they have a pension, or some kind of annuitized income?”

And what he found was this: There seems to be three pillars of happiness in retirement. The first pillar is money, which he says is good news for those of who are actually saving for retirement. “You are happier if you have more money,” Finke said. “So money is a pillar.”

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And it shouldn’t be any surprise, he said, that health is also a pillar of happiness. “You can have all the money in the world, but if you’re not healthy, you’re not actually gonna enjoy your retirement,” Finke said.

But most of his newest research is on social well-being. For instance, the extent to which you have good relationships with your spouse is is one of the strongest predictors of happiness in retirement. “So make sure you invest in that as much as you’re investing in your 401(k),” Finke said.

The other predictors of happiness in retirement are, according to Finke, friendships and the depth of friendships and the number of friendships that you have with other people. “And even when we look at spending, what we see is that social spending is what really makes people happy,” he said.

Spending money on all sorts of other stuff that we think might make us happy in retirement doesn’t really make us that happy. “It is social spending that makes us happy,” Finke said.

So that’s the foundation of his research in life satisfaction in retirement. “You have to have all three of those if you’re going to be satisfied, and all of them are an investment,” said Finke.

What is an investment in retirement? According to Finke, an investment is anything that requires a sacrifice during your working years in order to build value. “When you save for retirement, it means that you’re living a little bit less well,” he said. “You’re setting money aside that you could have spent today, and you’re (going to) spend that money in retirement.”

Health is an investment, too, said Finke who recalled his early days as a food consumption researcher. “The whole reason I got into finance was because I took a doctoral class in investments because I wanted to understand investments theory, but my theory was that the same thing that motivated people to save money for retirement is the thing that motivated them to engage in healthy behaviors like eating better or exercising, and so that’s an investment in your future as well,” he said.

Relationships are an investment as well and it takes ongoing investment and time and resources to be able to maintain those friendships “so that you can actually draw from them in retirement,” said Finke.

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And if you haven’t made those investments — and men are especially bad at making investments in friendships — you’re not going to be as happy in retirement, he said.

Women, by contrast, invest more. “Women have more deep relationships than men do by the time they get to retirement,” he said. And that, said Finke, actually creates a big issue because very often women have friends outside of the relationship, and they want to spend time maintaining that investment with their friends.

A man’s social circle, by contrast, is at work. “And by the time they retire, they’re relying more on their spouse,” Finke said. “In an opposite-sex couple, they’re relying on their spouse for that, to spend time with them, to go on vacation with them and have lunch with them, and sometimes that creates a bit of friction in retirement.”

Finke also noted that married retirees, in general, are happier, but the happiest group is women who are newly divorced between the ages of 60 and 65. “That’s the happiest group,” he said.

By:

Source: What Makes People Truly Happy in Retirement? – TheStreet

Got questions about money, retirement and/or investments? Email Robert.Powell@TheStreet.com.

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Need help preparing for retirement? Check out Retirement Daily.

 

Societal Impact: Moving From “Nice-To-Consider” To “Business Imperative”

Over the past few years, societal impact has been growing as an area of interest for businesses. Business leaders, myself included, have voiced the belief that businesses should have a purpose beyond profits, and uphold a responsibility to society and the environment.

Although this school of thought is sometimes met with skepticism from those who doubt the commitment of businesses to do good, there is new research suggesting that businesses are actually taking significant action to improve their impact on society and the environment.

According to a new report from Deloitte Global, societal impact has become the most important factor organizations use to evaluate their annual performances, outranking financial performance and employee satisfaction. These findings are based on a survey of more than 2,000 C-suite executives across 19 countries. This shows a shift, even just from last year’s survey report, in which executives expressed uncertainty about how they could influence the direction of Industry 4.0 and its impact on society.

What is driving this change? There is no one answer. Almost half of executives surveyed (46 percent) reported that their efforts have been motivated by the quest to create new revenue streams, and a similar percentage said that initiatives that have a positive societal impact are necessary for sustaining or growing their businesses. An organization’s cultures and policies were also cited as motivation (43 percent).

External pressure continues to be a major driver as well. According to Deloitte Global’s series of inclusive growth surveys, some of this drive comes more from public sentiment, which is increasingly influencing business leaders’ decisions related to societal impact by encouraging them to reevaluate their strategies.

Purpose in action

When it comes to societal impact, businesses are beginning to put actions behind their words. Seventy-three percent of surveyed CXOs report having changed or developed products or services in the past year to generate positive societal impact. What’s more, 53 percent say they successfully generated new revenue streams from these socially conscious offerings.

While some leaders have started to see profits from positive societal goods and services, there is disagreement over the question of whether initiatives meant to benefit society also benefit bottom lines. Fifty-two percent see societal initiatives as generally reducing profitability; 48 percent said that such initiatives boost the bottom line.

Despite these concerns, leaders report a commitment to initiatives that benefit society.  There’s probably a short term vs longer term element in this regarding the sustainability of business which may have influenced the answers.

Strategically integrated

Beyond products, services, and new revenue streams, leaders are integrating societal impact into their core strategies. Executives say they have been particularly effective preparing for the impact that Industry 4.0 solutions will have on society. They’re also building external partnerships and joint ventures, and strengthening ecosystem relationships to make a greater impact.

Whether driven by finding new sources of revenue, or the need to respond to external pressures, businesses across all industries seem to be moving towards improving their societal impact. It is heartening to see that leaders are incorporating these considerations into their strategies, as well as operations. When societal impact is seen to be an integral part of a business’s makeup, the most meaningful results can be achieved.

To learn more read, “Success Personified in the Fourth Industrial Revolution: Four Leadership Personas for an Era of Change and Uncertainty.”

David Cruickshank was elected into the role of Chairman of Deloitte’s global organization, Deloitte Touche Tohmatsu Limited, in June 2015 having served on its Global Board for eight years from 2007. Prior to this, he was Chairman of the UK member firm from 2007-2015. He is a Chartered Accountant and a graduate in business and economics from the University of Edinburgh. David is co-chair of the World Economic Forum’s Partnering Against Corruption Initiative and a Board Member of the Social Progress Imperative.

Source: Societal Impact: Moving From “Nice-To-Consider” To “Business Imperative”

Today, many firms are active on social media, but not all of them are experiencing transformational change and return on investment. Why do some businesses succeed, while others fail? Join us for a fireside chat on why Social Business has become too important to delegate completely to a junior social marketing team and why going forward, CEOs, CMOs, management teams, and boards must personally own and drive Social Business strategy and re-architect traditional business models and client engagement models.

Fireside chat with Clara Shih, CEO and Co-Founder, Hearsay Social and Kristin Lemkau, CMO, JPMorgan Chase.

 

How Did This Phoenix Tech Company Achieve a Staggering 36,000 Percent Growth? A Mistake Had a Lot to Do With It

The story of the fastest-growing private company in America, a profitable technology startup called Freestar whose revenue growth since 2015 has been a staggering 36,680 percent, starts with a calendar.

Not a buzzy new calendar app. Not a life-altering meeting request. A printed wall calendar. One of those relics with pictures of animals or landscapes that we all used to tack up in the kitchen.

This particular calendar–Tempe12–had, well, swimsuit models. Arizona State University co-eds in bikinis, to be exact. “All the girls had to have a minimum 3.0 GPA, so they had beauty and brains,” explains Freestar co-founder David Freedman, without a trace of sheepishness. Freedman, who launched the calendar when he was a 22-year-old fifth-year senior at ASU back in 2004, has come a long way since then. But he draws a straight line from that fairly crude start to his current success.

Freestar, you see, sells solutions and services that help publishers make more money online by optimizing their advertising operations. When Tempe12 was just getting started, Freedman sold all its ad space to local businesses. The calendar took off, expanded to 21 other colleges by its third year, and drew attention from Playboy and Howard Stern. Tempe12 had a website with photo archives and decent traffic–but no efficient way to make money.

In 2008, Freestar’s other co-founder, Chris Stark, joined Freedman, taught himself to code, and started scaling Tempe12’s online ad business. Other publishers noticed and asked for help, so Freedman and Stark launched a consultancy–DigitalMGMT.

“Smaller publishers would get requests from an advertiser to spend money on their website, and they didn’t even know how to sell it or how to serve it,” Freedman remembers. He and Stark could help. They had no secret formula, no proprietary technology, but they were crafty and entrepreneurial and understood an industry that was evolving every month.

“The biggest problem we had at that point was that we’d take a client from making five grand a month to 50 grand, and some other company would come in and buy them,” says Stark. “Our success meant having to always find new clients.”

In 2014, Freedman and Stark set out to raise around a million dollars and then spent most of it purchasing nine small publishers–webdesignledger.com, webresourcesdepot.com, a stock photography site called lostandtaken.com–thinking that they’d “juice the revenue and sell them off,” Freedman recalls. It was the birth of Freestar–and it was a big mistake.

Almost immediately, Freedman and Stark realized that publishing a swimsuit calendar didn’t give them any real editorial expertise. They also realized that focusing on scaling their own websites put them in competition with the sites for which they consulted.

But around the same time, Stark began experimenting with a new technology that was revolutionizing online advertising: header bidding. Until then, many Web ads had been bought in a split-second auction process that went like this: A publisher sent out a request to advertisers to bid on an ad space, and the software would automatically accept the first qualifying offer.

Ads could be sold in real time–but publishers couldn’t weigh offers against one another, potentially missing the best ones. Publishers also had little sense of who was buying ads, which left their sites vulnerable to shady operators. “It was as if you were selling your car at an auction, and they let only one person into the room at a time,” Stark explains. “That person could offer whatever they wanted–and you had to either accept or reject their offer.”

With header bidding, a snippet of code sent a request to all potential advertisers simultaneously–and then selected the best offer. Suddenly, publishers earned more from each ad, and they had more control over which ads ran on their sites. A decade after Freedman started dabbling in ad sales, Freestar took off like a rocket.

“The beautiful thing is, when you start making people more money and helping them run their businesses better, they typically have pretty big mouths,” says Freedman. “Word travels quickly.” Today, Freestar works with more than 300 publishers, including Barstool Sports, Snopes, and Fortune.

Coindesk, which covers all things cryptocurrency, saw ad revenue increase 300 percent in the first month it worked with Freestar, says Jacob Donnelly, the publisher’s managing director of digital operations. Freestar, he says, has made it unnec­essary for Coindesk to hire anyone to handle advertising operations. “That lets me think more strategically about revenue generation,” he says, “which is huge.”

Freestar generates its own revenue by taking a small percentage of the ad dollars that flow through its technology. The company hauled in $37 million last year and expects to cross the $100 million mark soon. It now employs 40–including a new face up top. Freedman and Stark aren’t big on job titles, and neither was ever formally CEO or president.

About a year into the company’s breakout growth, the founders tried to hire Kurt Donnell, a well-regarded media executive in their hometown of Phoenix, but failed to bring him on.

Two years later, they tried again, and Donnell joined as president this past January. What changed Donnell’s mind? “They had executed on everything they said they were going to do two years prior,” he says. And, he adds, “the growth was just astonishing.”

By: Tom Foster

 

 

Source: How Did This Phoenix Tech Company Achieve a Staggering 36,000 Percent Growth? A Mistake Had a Lot to Do With It

It’s August, and All of Europe Is on Vacation. How Do You Run Your Global Business?

Paid vacation time is mandatory in the European Union–four weeks is a minimum. That number can seem crazy to people in the United States, where it takes 20 years of service to reach an average of 20 vacation days a year–and even when we have it, we don’t use it all.

But, in my experience, Europe embraces vacation–sometimes in ways that make no sense. I’ve frequently found restaurants that close for two weeks during peak tourist season–because the owners want to take their own vacation time. I’d think they would close in the offseason and make money while they could, but the vacation culture is strong.

This summer, my family is basically staying put, for a variety of reasons. We’re making a couple of short trips, but otherwise staying in our home in Switzerland (which, admittedly, is a prime vacation spot in and of itself). And it’s impossible to get anything done.

My lawyer has been on vacation for the past three weeks and will be back next week. I have some things I need her to look at, and they have to wait.

Getting a doctor’s appointment? Good luck! At least the walk-in clinic runs year-round.

While this affects my day-to-day life because I’m physically here, it can also affect your business, even if you’re based in the United States. When someone says, “The Geneva office is closed for three weeks,” they aren’t joking, and no one around here even bats an eyelash. So, how do you do the international part of your business when everyone else is at the beach? Here are some ideas:

Plan ahead

This is going to happen every year. Some countries are worse than others, with everyone going at the same time. One of the problems is that European schoolchildren tend to have shorter summer vacations–six weeks is common–compared with the 10 to 12 weeks American schoolchildren get. Don’t cry for the poor, suffering schoolchildren here–they get an additional eight weeks throughout the school year.

But those six weeks are going to vary from country to country. German and British schools tend to get out at the end of July, while Swiss schools close the last week in June. So, you’ll have better luck with your London office in July than you will with your Swiss office. Go ahead and ask when peak vacation season is and plan accordingly.

Partner with larger companies

While small businesses can be excellent partners, if you will need people year-round, without fail, a large company will be a better bet than a small one. The multinational corporation isn’t going to shut down its Paris office for the summer, but the small business might close its doors for the entire month of August. Ask when you are building relationships. They won’t think to bring it up, because it’s often a normal part of doing business here.

Embrace vacation yourself

Go. Take a vacation. Step away from the office and your phone and your laptop. Europeans have proved that the world doesn’t end if you go on a vacation. If you’re good at what you do, people will be waiting for you when you get back. It’s OK to take some downtime.

Just make sure that if you do come to Europe for your vacation that the restaurants will be open in the small village you thought looked charming. Otherwise, you may be miserable during your vacation.

By: Suzanne Lucas, Freelance writer @RealEvilHRLady

Source: It’s August, and All of Europe Is on Vacation. How Do You Run Your Global Business? | Inc.com

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