Norton Rose Fulbright’s Annual Litigation Trends Survey
Source: Norton Rose Fulbright
The number of US companies facing regulatory proceedings increased for the third consecutive year, according to Norton Rose Fulbright’s Annual Litigation Trends Survey.
The upward trend is the result of a stricter regulatory environment and increased scrutiny from a broad range of state and federal agencies. Close to 20 percent of survey respondents said their companies had faced a regulatory/investigation matter in 2013, up from 9 percent in 2012. The increase was consistent among all industries and companies of varying sizes, but was most pronounced among technology/communications organizations (27 percent versus 10 percent in 2012).
Are you ready for the resource revolution?
Source: McKinsey & Company
Meeting increasing global demand requires dramatically improving resource productivity. Yet technological advances mean companies have an extraordinary opportunity not only to meet that challenge but to spark the next industrial revolution as well.
AON 2014 Political Risk Map
Political strains and focus on geopolitical issues have exacerbated an already weak operating environment for business and exchange transfer risks have increased following the risk of new capital controls. Russia’s economy continues to be dominated by the government, so economic policy deadlock has brought growth to a standstill and with it an increase in the risk of political violence.”
Survey Says… Health Plans Advance Retail Capabilities
“Retail” is a hot topic in the health insurance industry today for good reasons. From the creation of health insurance marketplaces, to the continued growth in Medicaid and Medicare, to the defined contribution movement and the rise of private exchanges, the sale and delivery of health insurance is requiring an increasing focus on the individual consumer. In this context, Deloitte Consulting launched the Health Plan Retail Capabilities Benchmarking Survey to expand our understanding of the industry’s current capabilities and future investment priorities to serve the most dramatically changing segment of the health insurance market – the commercial individual market.
Forty-six health plans participated in an online survey in late 2013. Respondents represented approximately 60 percent of the commercial individual marketplace spanning national, regional, Blue Cross and Blue Shield, provider-sponsored, established and new-entrant plans. Analysis of the survey data reveals three themes:
- Product, pricing and consumer experience capabilities top health plan’s priority investment list
- Near term investment plans focus on regulatory requirements and retention capabilities but widen the aperture to consumer insight, consumer experience and channel in the longer term,
- Technology investments in transparency, mobility, CRM and analytics are fundamental to supporting desired business capabilities.
Illinois Residents Least Trusting of Their State Government
Illinois residents trust their state government to handle their state’s problems far less than residents in any other state. Twenty-eight percent of Illinois residents trust their state government “a great deal” or “a fair amount.” In contrast, at least 75% of North Dakota, Wyoming, and Utah residents trust their state governments.
How government can promote open data
Source: McKinsey & Company
Institutions and companies across the public and private sectors have begun to release and share vast amounts of information in recent years, and the trend is only accelerating. Yet while some information is easily accessible, some is still trapped in paper records. Data may be free or come at a cost. And there are tremendous differences in reuse and redistribution rights. In short, there are degrees when it comes to just how “open” data is and, as a result, how much value it can create.
While businesses and other private organizations can make more information public, we believe that government has a critical role in unleashing the economic potential of open data. A recent McKinsey report, Open data: Unlocking innovation and performance with liquid information,1 identified more than $3 trillion in economic value globally that could be generated each year in seven domains through increasingly “liquid” information that is machine readable, accessible to a broad audience at little or no cost, and capable of being shared and distributed. These sources of value include new or increased revenue, savings, and economic surplus that flow from the insights provided by data as diverse as census demographics, crop reports, and information on product recalls.
Competitive Alternatives is a biennial KPMG study that focuses on business locations in the NAFTA marketplace, as well as leading mature market countries in Europe and Asia Pacific. This study contains valuable information for any company considering international business location options.
Competitive Alternatives 2014 compares business costs and other competitiveness factors in more than 100 cities, in 10 countries: Australia, Canada, France, Germany, Italy, Japan, Mexico, the Netherlands, the United Kingdom, and the United States. For 2014, Competitive Alternatives further expands its coverage in the US, and for the first time includes every US metro area with a population of two million or more.
2014 Sales Compensation Trends Survey© — Executive Summary — January 2014 Survey (PDF)
Source: Alexander Group
Sales departments increased sales volume 6% in 2012. Although this was the same increase for 2012, it was below the anticipated 8.4% planned for 2013. Meanwhile, sales leaders expect sales revenue growth of 8% in 2014.
Sales personnel saw their compensation increase by 5% in 2013; however, this 5% growth for 2013 was above the planned 3% growth for 2013.
Deloitte Football Money League 2014
Welcome to the 17th edition of the Deloitte Football Money League, in which we profile the highest earning clubs in the world’s most popular sport. Published just eight months after the end of the 2012/13 season, the Money League is the most contemporary and reliable analysis of the clubs’ relative financial performance.
The disruptive potential of solar power
Source: McKinsey & Company
The economics of solar power are improving. It is a far more cost-competitive power source today than it was in the mid-2000s, when installations and manufacturing were taking off, subsidies were generous, and investors were piling in. Consumption continued rising even as the MAC Global Solar Energy Index fell by 50 percent between 2011 and the end of 2013, a period when dozens of solar companies went bankrupt, shut down, or changed hands at fire-sale prices.
The bottom line: the financial crisis, cheap natural gas, subsidy cuts by cash-strapped governments, and a flood of imports from Chinese solar-panel manufacturers have profoundly challenged the industry’s short-term performance. But they haven’t undermined its potential; indeed, global installations have continued to rise—by over 50 percent a year, on average, since 2006. The industry is poised to assume a bigger role in global energy markets; as it evolves, its impact on businesses and consumers will be significant and widespread. Utilities will probably be the first, but far from the only, major sector to feel solar’s disruptive potential.
Preparing for bigger, bolder shareholder activists
Source: McKinsey & Company
Activist investors are getting ever more adventurous. Last year, according to our analysis, the US-listed companies that activists targeted had an average market capitalization of $10 billion—up from $8 billion just a year earlier and less than $2 billion at the end of the last decade. They’ve also been busier, launching an average of 240 campaigns in each of the past three years—more than double the number a decade ago. And even though activists are a relatively small group, with only $75 billion in combined assets under management compared with the $2.5 trillion hedge-fund industry overall, they’ve enjoyed a higher rate of asset growth than hedge funds and attracted new partnerships with traditional investors. As a result, they have both the capital and the leverage to continue engaging largecap companies.
Executive Retirement Benefits: Survey of Executive Retirement Benefit Practices — Benefits Data Source
+ On average, executive benefit plans deliver an additional 5% to 7% of earnings in annual retirement income to a mid-level executive.
+ About half of organizations that sponsor employer-paid nonqualified plans offer only pure restoration executive benefits.
IT under pressure: McKinsey Global Survey results
Source: McKinsey & Company
More and more executives are acknowledging the strategic value of IT to their businesses beyond merely cutting costs. But as they focus on and invest in the function’s ability to enable productivity, business efficiency, and product and service innovation, respondents are also homing in on the shortcomings many IT organizations suffer. Among the most substantial challenges are demonstrating effective leadership and finding, developing, and retaining IT talent.
These are among the key findings from our most recent survey on business technology, which asked executives from all functions about their companies’ priorities for, spending on, and satisfaction with IT. Overall, respondents are more negative about IT performance than they were in 2012 and, notably, IT executives judge their own effectiveness more harshly than their business counterparts do. Compared with executives from the business side, they are more than twice as likely to suggest replacing IT management as the best remedy.
- Total economic losses from natural catastrophes and man-made disasters were USD 140 billion in 2013
- Global insured losses were around USD 45 billion in 2013, with large contributions from flooding and hail events
- Around 26 000 lives were lost in natural catastrophes and man-made disasters in 2013
- A special chapter on climate change in the sigma says rising global temperatures are expected to lead to shifts in the frequency, intensity and duration of extreme weather events
Young Americans’ Affinity for Democratic Party Has Grown; Majority have consistently aligned with Democratic Party since 2006
Young adults — those between the ages of 18 and 29 — have typically aligned themselves with the Democratic Party, but they have become substantially more likely to do so since 2006.
From 1993 to 2003, 47% of 18- to 29-year-olds, on average, identified as Democrats or said they were independents but leaned to the Democratic Party, while 42% were Republicans or Republican leaners. That time span included two years in which young adults tilted Republican, 1994 and 1995, when Republicans won control of Congress. Since 2006, the average gap in favor of the Democratic Party among young adults has been 18 percentage points, 54% to 36%.
This Democratic movement among the young has come at a time when senior citizens have become more Republican. The broader U.S. population has shown more variability in its party preferences in recent years, shifting Democratic from 2005 to 2008, moving back toward the Republican Party from 2009 to 2011, and showing modest Democratic preferences in the last two years.
A tale of two Mexicos: Growth and prosperity in a two-speed economy
Source: McKinsey & Company
In the 20 years since the North American Free Trade Agreement went into effect, Mexico has become a global manufacturing leader and a prime destination for investors and multinationals around the world. Yet the country’s economic growth continues to disappoint, and the rise in living standards has stalled. The root cause is a chronic productivity problem that stems from the economy’s two-speed nature. A modern, fast-growing Mexico, with globally competitive multinationals and cutting-edge manufacturing plants, exists amid a far larger group of traditional Mexican enterprises that do not contribute to growth. These two Mexicos are moving in opposite directions. The largest companies are raising productivity by an impressive 5.8 percent a year, while the productivity of small, slow-growing enterprises is falling by 6.5 percent a year. And with employment growing faster in the traditional Mexico, more labor is shifting to low-productivity work.
10Minutes on revenue recognition
After much deliberation, the FASB and IASB are set to release a final global revenue recognition standard in the coming months that will do away with current industry-specific accounting and instead apply a single set of principles to all revenue transactions. Changes to practices, processes and systems could ripple through your business. 10Minutes on revenue recognition provides information about the standard as well as insight into ways in which some companies are preparing for the broader impact.
Companies are missing opportunities to mine big data to reduce fraud risk and improve anti-bribery compliance
EY’s 2014 global forensic data analytics survey, Big risks require big data thinking, highlights that 63% of senior executives surveyed at leading companies around the world, agree that they need to do more to improve their anti-fraud and anti-bribery procedures, including the use of forensic data analytics (FDA). The survey polled over 450 executives in 11 countries, including finance professionals, heads of internal audit, compliance and legal, about their use of FDA in anti-fraud and anti-bribery compliance programs.
The survey also finds that 87% of respondents indicate that regulatory requirements, including anti-corruption laws and recent enforcement trends, are a driving force behind the design and use of FDA, with almost half indicating that these regulatory developments are a top five factor. Bribery and corruption is reported as the top perceived risk at 65%, which aligns well with the finding that 74% report using FDA to combat bribery and corruption. Other perceived significant fraud risk areas, such as asset misappropriation and financial misstatement, are also priority areas for FDA attention.
In recent years, many corporate law departments and law firms have been challenged with the task of reducing the costs of delivering services. Similar to other businesses, in-house and outside counsel have sought to streamline activities and improve efficiencies. In order to do that, counsel needs to be able to assess their past and current billing activities.
Since their introduction about twenty years ago, Uniform Task-Based Management System (UTBMS) codes have brought some clarity to the billing and analytics process, even as the codes have suffered from significant limitations. However, innovations in analytics and predictive coding have introduced new possibilities to traditional UTBMS coding and reporting metrics. With the information that attorneys routinely provide within line-item descriptions in billing invoices, text analytics can be utilized to delve into the informational content of the task descriptions to predict what appropriate codes should be used. This may allow law firms and legal departments to:
- Develop more meaningful metrics at a much lower cost
- Gain more insight into cost-to-deliver services, which allows for a more strategic use of alternative billing arrangements
- Improve partnerships between in-house and outside counsel
Provo-Orem, Utah, Leads U.S. Communities in Well-Being
Provo-Orem, Utah, has the highest Well-Being Index score (71.4) in the U.S. across 189 communities Gallup and Healthways surveyed in 2012-2013. Also in the top 10 are Boulder, Colo.; Fort Collins-Loveland, Colo.; Honolulu, Hawaii; and San Jose-Sunnyvale-Santa Clara, Calif.