Archive for the ‘economy’ Category

There are tools to improve a credit score April 25th, 2010

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48In the following chapters, we’ll cover in more detail the Six Partnering Attributes—Self-Disclosure and Feedback, Ability to Trust, Win-Win Orientation, Future Orientation, Comfort with Change, and Comfort with Interdependence. Each of these chapters offers you insights and techniques for improving your Partnering Intelligence. Start with the areas in which you need the most improvement and then go back to the ones in which you’re already competent. A little refresher course never hurt anyone.

A business that invests in developing the Six Partnering Attributes will start to see exciting outcomes. Because these are second-level change processes—that is, they focus on us as individuals rather than on the world around us—the impact is more immediate and longer lasting. Companies that invest in developing these attributes will experience less internal conflict, more productivity, more creativity, and higher morale than companies that don’t. As we’ll see in the following chapters, these are the tools that create trust between people and aid in equalizing power. Regardless of our rank, if we can begin to communicate like equals, we can begin to act like equals. Without trust and a sense of balance there can be no productive partnership. Regardless of its desire for strong external relationships, a company that lacks internal PQ will have problems with its partners. Above all, enjoy learning more about yourself as you learn to become a great partner.

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With credit you have to move away from independence March 23rd, 2010

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46Finally, as you move into the Perform stage, you begin to feel an increase in Comfort with Interdependence with your partners. You must learn to move away from being independent and begin to think as much about your partner’s success as your own. You must begin to consider consequences your decisions have on your partner and learn how to dance a tango in perfect rhythm—not an easy task for people who live in a culture that values its independence.

Partnering isn’t easy. In fact, it is probably the hardest work you’ll do. Moving effortlessly through the Stages of Relationship Development happens only in an ideal world with perfect human beings. But human beings aren’t perfect. I confess I’ve made many mistakes in my partnering efforts.

But I understand that if I want a good partnership, I need to work to be a good partner. Even the best blueprint for  partnering—such as the Partnership Continuum model—cannot make up for a low PQ. The model works only as well as the people who are using it. And while using a blueprint is better than just letting your partnership evolve through happenstance, it is the individuals in the partnership who must have the skills to make it work.

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Deal with credit-specific issues in the past November 11th, 2009

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The bonds of Ericsson, Tyco and ABB. All three companies had credit-specific issues in the past and seemed to have overcome those at the time of writing (December, 2003). Their lowest prices were quoted almost at the same time (October, 2002) where risk tolerance reached the lowest level in a decade (measured by VIX). The important point to illustrate is that nonsystematic risks induced the first price falls in all three companies at different points in time. Idiosyncratic risks were responsible for the first massive downward price movement. In this situation, an assessment of the credit should not be based only on credit fundamentals but every credit portfolio manager has to evaluate what volatility his portfolio can sustain because the main task for a high-yield portfolio manager is to manage risk. Technical factors have to be considered because it is likely that market liquidity for a troubled bond will disappear quickly which will result in a “free fall” in price.

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Pervasive bad habits in designing financial websites November 3rd, 2009

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In the 1990s, the Browser War that broke out between two financial giants Microsoft and Netscape was a cause of the development of many proprietary technologies and techniques that today have spread across the Internet. A great deal of these technologies involved presentation of various types of information (finances, stock exchange, education, entertainment etc.) into the HTML (HyperText Markup Language) markup or implemented interactivity in a browser-specific way. What is more, developers had to deal with many problems to get a profitable design out of technologies that were not prepared to creating flexible and well-designed websites on subjects such as online loans, banking or real estate. Their numerous kluges and techniques soon became habit, then were incorporated into software, and in the end affected the software industry’s comprehension of how financial  websites should be built. Currently, over ten years later, technology and techniques have improved considerably but the specter of those 1990s techniques still remains—and it’s costing everyone a lot of money and potential clients.

Those costs of operating on financial markets online include increased development risk, expenses, and time to market, problems with brand and customer management, unnecessarily high bandwidth costs, staff turnover problems, as well as increased complexity and cost with regard to future financial websites and application of modifications. At the most basic level, these issues are too closely connected with backend software and appear in form of a bloated, technically incorrect and complex code, which does everything from damage the user experience to limit search engine results. Changes in the presentation layer of a financial (or any other) website should not put software at risk and a tiered approach, which has been a popular in the software world for years, is easily accessible by means of a more mature approach on the UI layer.

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