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Don was driving from Bellevue to the Boeing s South Central facility where his office was when he got a shock. I had KIRO news on and all of a sudden I hear this breaking story that two hackers have busted into Boeing and there s a federal investigation. I m thinking, Damn! The story had been leaked by a Boeing employee unhappy with the decision to watch Matt and Costa s activities rather than arrest them immediately, Don later found out. Don raced to his office and called everyone involved. I said, Look, this whole thing has broke! It s on the news! We gotta do something now. Howard Schmidt was there and being an expert on writing search warrants for computers, he stepped in and helped them so they got it right so there wasn t any question about it. In fact, Don wasn t too upset about the leak. We were pretty close to busting them anyway. We had plenty, tons of evidence on these guys. But he suspected there was even more that hadn t come to light yet. There s a few things we figured they were into, like credit card fraud.

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Generally, clients demand a senior person on the case full time only if they are not comfortable with the underlying team If that is the case, the firm has already damaged its relationship with the client, possibly irreparably and there are a variety of other issues that must be addressed While most professional services firms are structured as partnerships, some are publicly owned, and may be organized like a typical corporation The benefits of this model include having a CEO and a COO to oversee operations, strategy, and other corporate functions so senior staff can focus exclusively on delivery and business development In addition, a publicly owned firm can leverage capital markets to finance growth Also, because the employees are not necessarily owners (except through stock purchases), systems and processes may be more efficiently managed, and there can be a perception that they are more objective.

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philosophy to bleed a property by doing only the minimum maintenance required to keep the property producing income These investors are also known as slumlords, and they make a lot of money on their investment until the property is sold or bulldozed Research in inner cities has shown that if there is graffiti on a building or a broken window that is not repaired immediately, it quickly attracts more abuse If it is repaired immediately, it is less likely to be vandalized again in the same immediate time period Whether or not you care about your buildings will be readily apparent, and you will attract the positive or Plan to keep your propnegative by your choice in erties for a long period maintenance philosophy of time to obtain the highest rate of return, Protect your investment while at the same by monitoring it frequently.

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Finally, we can calculate the NPV. The NPV is the sum of all discounted cash f lows, which in the brewery example equals $614,000. To understand precisely what this means, observe that the sum of the discounted cash f lows from years 1 through 10 is $10,614,000. This means that the project generates future cash f lows that are worth $10,614,000 today. The initial cost of the project is $10,000,000 today. Thus, the project is worth $10,614,000 but costs only $10,000,000 and therefore creates $614,000 of new wealth. The managers of the beer company would be well advised to adopt this project, because it has a positive NPV and therefore creates wealth.

With public ownership, there is also a ready-made mechanism for checks and balances because of the more rigid structure, the reporting requirements, legal mandates for certain disclosures and shareholder pressure All of the benefits of public ownership can also be drawbacks Public ownership can lead to increased bureaucracy, which hampers a firm s ability to respond with agility to changes in the market or business environment Lack of partnership as an incentive can make it more difficult to attract and retain top employees Employees may even feel less committed to developing the firm because they cannot aspire to ownership Given that people are its most valuable resource and that a professional services firm grows by adding people, publicly owned firms need to be very careful that their ownership model doesn t hamper necessary staff growth because shareholders are too focused on revenues and profits.

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