Two of our entries this week stem from this week’s Pulitzer Prize announcements. We strongly believe in the principles of journalism, so important reporting is something we like to honor and celebrate.
Also, check out what Greentarget Founding Partner Aaron Schoenherr had to say about the still-unfolding situation at United Airlines – which (we think) barely beat out White House Press Secretary Sean Spicer for having the worst week ever.
With that, here’s Recent Reads.
The Fighter – CJ Chivers just won a Pulitzer Prize for this story about a young Marine veteran struggling with PTSD after his return from Afghanistan. Chivers chronicles Sam Siatta’s felony arrest in Bloomington-Normal, Illinois, after breaking into someone’s home. The arrest reveals the seriousness of Siatta’s PTSD, anxiety and alcoholism. Lawyers worked for over a year to appeal his conviction and, in turn, get him the help he needs. This hit close to home for me as it’s semi-local, and he also attended Illinois State. – Erin Wojcicki
The journalist who won the Charleston Gazette-Mail’s first Pulitzer still does a monthly night cops shift – Full disclosure: I worked with the journalist mentioned in the headline. But even if that wasn’t the case, the story of Eric Eyre is important in an era of shrinking newsrooms and pressing local issues that would go uncovered without dogged, old-fashioned reporting. You’ll have a difficult time picking your jaw off the floor after reading his 2016 coverage of West Virginia’s opioid crisis. Eric did that while writing around 250 stories a year, covering the statehouse … and still manning the police scanner one night a month. Incredible. – Paul Wilson
How Stephen Colbert Finally Found His Elusive Groove – Calling all of my fellow control freaks! This article provides a glimpse into the benefits of letting go and, more importantly, trusting your team. I admittedly don’t watch a lot of Stephen Colbert, but it’s interesting to think that his willingness to be vulnerable, to give up a little control, boosted his show’s ratings. That extra touch of humanity clearly resonated with his audience. It makes me think that maybe we all need to let go a little more. – Megan Duero
Is Instagram Ruining the Great Outdoors? – At the risk of imploding if I see one more social media post with a sepia filter accompanied by #nature #outdoors, here’s an interesting article on Instagram’s impact on distant places and the increasingly fragile world we live in. On the plus side, driving foot traffic (literally) to some of the most remote locations on the planet, to the point where rangers “began asking backcountry hikers not to post precise maps or GPS coordinates of their adventures on the web,” isn’t a bad thing. – Christian Erard
Smartwatch-making company CEO: Smartwatches are pointless – The other morning, I was admiring my roommate’s Apple Watch and explaining to her how much I wanted my own smartwatch – something to monitor my heartbeat, track calories burned and remind me of appointments. But is it really necessary? As explained by Huawei CEO Eric Xu Zhijum, “when the smartwatch team in Huawei presents their ideas to me with great excitement, I keep reminding them to consider whether there are tangible needs [for these products] in the market.” While he’s right in saying smartwatches are NOT a necessity, his comments make me wonder if Huawei is greasing the skids for something revolutionary. – Sarah Rocca
GT Podcast Recommendation
S-Town – It’s from the makers of Serial and This American Life, so you know it’s well-executed and delivers the expected twists and turns. It begins with the story of a clock repairer, John McLemore, who hates his small hometown in Alabama. John is obsessed with climate change and meticulously cares for his backyard maze, among other eccentric behaviors. From there it takes you down a rabbit hole of Deep South poverty, mental health, drug abuse and murder. – Agatha Howland
Blog
It’s been quite a week for United Airlines, and the company remains firmly on its heels. In addition to video of a passenger’s forcible removal going viral, United’s CEO used a term in his first public statement after the incident that was, frankly, mind-boggling:
“I apologize for having to re-accommodate these customers.” Emphasis mine.
There are a lot of lessons to be learned here, but the one we’re most interested in is the tension that exists between legal and communications departments in times of crisis. Please check out my full post for more.
How Duff & Phelps used data to elevate a long-running debate
In at least one respect, fairness opinions — a third-party’s assessment of a prospective merger or acquisition to determine whether its terms are reasonable — are like the C.I.A.: They only make news when something’s gone wrong. Such was the case last September, when Lazard made headlines for its $400 million arithmetic error in a fairness opinion for SolarCity, which was being targeted for purchase by Tesla Motors. The error — and the fact that it made no difference in Lazard’s valuation range (fairness opinions are always expressed in a range) — elicited sharp critique in several prominent media outlets, including The Wall Street Journal. The critical gist was that fairness opinions don’t provide value to companies’ boards. Why? Primarily because the valuation ranges, they say, are so overly broad as to be useless, and because providers are too reliant on “mechanical” discounted cash flow (DCF) analyses that don’t provide accurate information. As this perspective played out in the media, Duff & Phelps, grew frustrated. As the leading provider of fairness opinions, Duff & Phelps knew that this wasn’t the whole story. Sure, in this one instance, something had gone awry. But those casting dispersion on the entire practice for one mistake had constructed their arguments on conjecture rather than evidence, anecdotes rather than facts. As an industry leader, Duff & Phelps sought to elevate the debate around a topic that was crucial to its business. Greentarget believes that true thought leaders have an obligation to contribute to a smarter conversation. So together, and with the help of IBM’s Watson, we collected, reviewed and analyzed more than 3,000 fairness opinions in order to address the critiques — with empirical evidence. The resulting report, which was released last week, demonstrates that, contrary to popularized criticisms, the average range of valuations is sufficiently narrow to support the view that fairness opinions serve as a valuable tool in evaluating purchase offers. Duff & Phelps also learned that the “massive valuation ranges” railed against by critics were not massive at all, and more often than not occurred in assessments of smaller companies. That’s understandable, seeing as there’s less historical data and fluctuating growth expectations that can cause dramatic variances in expected cash flow. Oh, and that reliance on DCF analyses? Not really the case. Duff & Phelps found that fairness opinion advisors have relied on multiple methodologies for some time. For instance, 91 percent of the fairness opinions we reviewed used more than one methodology to arrive at valuations. In 75 percent of the deals, advisors used three or more methodologies. Not only will the report inject some sorely needed empirical data into this conversation, but the findings can be used by boards as a tool in evaluating the fairness opinions they receive when assessing an offer. The data set on average valuation ranges, for example, can be employed as a benchmark, while the information regarding various methodologies will help boards ask the right questions of their advisors. At the end of the day, this won’t end the debate around the efficacy of fairness opinions. The next time one goes haywire, its critics will discuss its possible shortcomings, and rightly so. But with data in hand, Duff & Phelps has given itself a stronger voice to drive a smarter conversation.Grit is a concept we talk about a lot at Greentarget. So we were especially taken this week by a story of Doctors Without Borders health workers in South Sudan who have been forced to establish mobile clinics to serve war-torn areas. It kind of makes the struggles of modern office life pale in comparison. Now, who took my stapler?
We’ve also been reading about really, really bad dreams, efforts to bring back the woolly mammoth (you read that right) and Facebook’s attempt to be a positive force in politics (you read that right, too).
With that, here’s Recent Reads.
When Bullets Fly, These Medics Grab Their Packs And Treat Patients On The Run – In civil-war-torn areas, such as South Sudan, members of Doctors Without Borders (MSF) are often forced to flee from their hospitals as a result of bombings, gunmen, intruders and other threats. Talk about having the strength of character to persevere when faced with adversity. These brave people are a humbling example of the importance of grit and why everyone needs to strive for it. – Kyerstin Hill
The strange case of the phantom Pokemon – If you ever woke up to find yourself pinned down by a Pokemon, or a New England witch, or a Scandinavian elf, you’re not alone. According to sleep scientists this is a common type of nightmare known as sleep paralysis, where you’re actually awake but still dreaming and unable to move. It’s a fascinating story about nightmares that will also cause them. Especially if you’re sleeping in Norway, which is apparently crawling with evil elves who shoot sleeping Norwegians with poison arrows, then perch on their chests. Tough way to start the day. – Brandon Copple
Welcome to Pleistocene Park – When I think of the word “extinct,” the first animal that comes to mind is a woolly mammoth, but that may soon change. This article took me on a journey to Eastern Siberia to follow a pair of scientists in their quest to bring back the mammoth from extinction and bolster an ecosystem threatened by climate change. Although their plan is eccentric, and maybe even impossible, I couldn’t help but admire their bold vision for a future where humans own their creative capabilities to counteract years of destruction. – Scarlett Waldrop
A Positive Outlook May be Good for Your Health – This article points to numerous studies that show those who suffer from chronic illnesses live longer if they demonstrate positive emotions – and separately, specific skills that lead to positive emotions can impact how well people manage stress and their physical health. I believe in the power of positivity and feel that I achieve peace of mind and balance when I maintain a positive mindset. Professionally, I’m able to extend this positive thinking in the work we do at Greentarget. We are tasked with protecting and promoting one of our clients’ most valuable assets – their reputation. We dig deep to get a better understanding of what makes our clients unique and what they do better than anyone else – and from there, share these positive attributes to their current and future stakeholders. – Lisa Seidenberg
Why I’m Moving Home – The mid-2016 publication of J.D. Vance’s Hillbilly Elegy: A Memoir of a Family and Culture in Crisis has been described as required reading for those who seek to understand President Trump’s popularity. Now, the former U.S. Marine and Yale Law School grad is returning home (to what he calls “flyover country,” specifically, Ohio) to devote himself to economic development. His book is on my bedside table right now, and International Trade Commission Vice Chair Dean Pinkert gave a nod to the book in a recent interview. – Steve DiMattia
Google’s Plan to Engineer the Next Silicon Valleys – A fascinating look at how Google’s new Launchpad Accelerator, meant to generate successful startups in emerging markets, is a “strategic philanthropy” play to get more people living, working and playing online where Google has mastered an ecosystem of top experts across digital and business areas. Current geopolitical environment be damned, Google has the freedom to “pursue rising stars in The Rest of the World,” meaning outside of Silicon Valley and the U.S., and mentor anyone, anywhere to engender a treasure trove of data for its own benefit. – Pam Munoz
Facebook’s Newest Feature Could Revolutionize Politics – Social media has taken a lot of hits in the past several months over its perceived negative effect on the 2016 election. To its credit, Facebook listened and just launched functionality that could take activism on social media to new heights. With the new Town Hall functionality, individuals can find contact information for their elected representatives pretty easily. As the article says, the idea is to “make calling your legislator as easy as hitting ‘like.’” – Paul Wilson
Saying that we live in an era of information overload is almost an absurd understatement. Audiences are constantly bombarded with news and content from brand, media and social channels, and the noise has reached record levels due to the major geopolitical and macroeconomic events of the past year.
But the current environment provides some significant opportunities, according to our latest research undertaking, the 2017 Management Consulting Outlook.
The report’s release comes as information access is nearing a crescendo – and the barriers of entry for contributors have never been lower. But this democratization has made it very difficult to locate and distill the right information that audiences need.
In the report, we’ve tried to make it a little easier for everyone while canvassing the landscape ourselves and digging into key issues. Our findings are the culmination of the intelligence we regularly gather to augment what we’re hearing directly from clients and other influencers. They also reflect our ongoing efforts to help position professional services firms with regard to the future direction of their respective industries.
There are many macro trends and forces shaping the delivery of consulting services, including the internal and external pressures firms face. The report pulls from multiple industry sources and perspectives and provides a tight summary of the important themes and industry implications, including:
- Industries Ripe for Management Consulting Services
- New Growth Opportunities Amid Government Shakeup
- Drying Talent Pool Compels Firms to Evolve
- The Uberization of Consultants: Freelance and Network-Based Models
- Boutiques Stealing Market Share From Stalwarts
- Proliferation of Digital Drives Cost-Savings
It’s been several years since the Great Recession put the power back into the hands of the buyer of legal services. The movement probably started before then, but in any case, it feels like we should be past the tipping point when it comes to changes made to law firm business models, client fee structures and legal technology, to name a few industry pillars.
While we don’t attempt to answer why we haven’t reached that point yet, we continue to track the disruptive trends in the market that are driving change in our 2017 Predictive Legal Trends Report.
We found that trends — including mounting cost pressures and the decline in law school admissions — are accelerating, and that their impact is increasing. Law firms continue to see a wane in demand, which creates additional pricing pressure on those that can no longer afford to ignore the industry’s new reality.
Broadly, we found traditional law firms still face significant internal and external threats, and clients continue to expect “more for less,” requiring firms to revisit their business models, offerings and ultimately their value propositions.
All in all, 2017 is taking shape as a year that will see law firms collaborating closely with their clients primarily to meet their needs, but secondarily to head off the competition – not just from traditional competitors but the emerging class of alternative legal service provider upstarts that threaten their business. And while the results of the U.S. presidential election and ramifications of Brexit will no doubt keep Big Law busy for the foreseeable future, smart firms recognize the opportunity to help clients find clarity amid unprecedented global complexity.
For further information, check out the full 2017 Predictive Legal Trends Report.