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A shadow board could shed light on your company’s best future

In many industries, market conditions move fast. Businesses that don’t have their ears to the ground can quickly get left behind. That’s just one reason why some of today’s savviest companies are establishing so-called “shadow” (or “mirror”) boards composed of younger, nonexecutive employees who are on the front lines of changing tastes and lifestyles.

Generational change

Millennials — people who were born between approximately 1981 and 1996 — have been flooding the workplace for years now. Following close behind them is Generation Z, those born around the Millennium and now coming of age a couple of decades later.

Despite this influx of younger minds and ideas, many businesses are still run solely by older boards of directors that, while packed with experience and wisdom, might not stay closely attuned to the latest demographic-driven developments in hiring, product or service development, technology, and marketing.

A shadow board of young employees that meets regularly with the actual board (or management team) can help you overcome this hurdle. Ideally, the two boards mentor each other. The older generation shares their hard-earned lessons on leadership, governance, professionalism and the like, while the younger employees keep the senior board abreast of the latest trends, concerns and communication tools among their cohort.

Other benefits

You also can tap the shadow board for their input on issues that directly affect them. For example, would they welcome a new employee benefit under consideration or regard it as irrelevant? Similarly, you can use the board to “test drive” strategies targeting their generation before you get too far down the road.

And your shadow board can serve as generator of new initiatives and innovations, both employee- and customer-facing. Some companies with shadow boards have ended up overhauling their processes, procedures and even business models based on ideas that first emerged from the younger employees’ input.

Another benefit? Shadow boards can keep traditionally job-hopping Millennials from jumping ship. Many are eager to get ahead, often before they’re equipped to do so, and they don’t hesitate to look elsewhere. Selecting younger employees for a shadow board sends them the message that you see their potential and are invested in grooming them for bigger and better things. It also facilitates succession planning, a practice too many businesses overlook.

The right approach

Don’t establish a shadow board just for appearances or without true commitment. That can do more harm than good. Younger generations see lip service for what it is, and word will spread fast if you’re ignoring the shadow board or refusing to seriously consider its input. When done right, this innovative effort can pay off in the long run for everyone involved. Our firm can help you further explore the financial and strategic feasibility of the idea.

© 2019

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Is multicloud computing right for your business?

Cloud computing — storing data and accessing apps via the Internet — has been widely adopted by businesses across industry and size. Like many technological advances, though, new derivatives continue to emerge — including so-called multicloud computing.

Under this approach, companies don’t rely on a single cloud service; rather, they distribute their data and computing needs among several providers. Popular options include Amazon Web Services (AWS), Google Cloud Platform and Microsoft Azure.

Various advantages

The strategy offers various advantages. For example, like any cloud computing arrangement, it provides scalability. As your needs expand or drop, you can readily adjust your storage capabilities to keep a lid on costs.

Multicloud computing also is a way to hedge your bets. Every cloud provider has downtime at some point but, if you use multiple clouds, you can switch critical workloads and applications to a cloud that’s up and running. And it helps you avoid “vendor lock-in,” or getting restricted to a single provider’s infrastructure, add-on services and pricing models.

Improved performance is another factor. Using several providers based relatively close to you geographically means fewer “network hops” between servers. This reduces latency (the delay between a user’s request and the provider’s response), jitter, packet loss and other disruptions.

Many businesses prefer the “a la carte” nature of multicloud computing. Different providers may have different features that you need to meet your technical or business requirements. For instance, you might choose a pricier but more secure cloud for applications with sensitive data and a cheaper alternative for less sensitive data. Similarly, a business that relies heavily on Windows might use Azure for internal operations but tap AWS for its website and Google Cloud for machine learning.

Potential pitfalls

Some companies find themselves engaging in multicloud computing without ever deciding to do so. Unintentional multiclouds can result from “shadow IT,” whereby different departments or business units start using public clouds on their own accord and then one day turn to IT for help.

Whether multicloud computing develops from shadow IT or a conscious strategic decision, it comes with potential pitfalls. Managing multiple clouds can prove complex. You can use integrated suites of software known as “cloud management platforms” to administer multiple clouds. But these platforms tend to take a “least common denominator” approach, treating multiple clouds as a single cloud by focusing on storage, network and computing functions. As a result, you may find it difficult to leverage each cloud provider’s distinctively useful features.

Total costs

Last but certainly not least, you must consider the total cost of ownership of any multicloud strategy. Although the availability of alternative providers may increase your bargaining power, the cost of paying several vendors can go beyond the upfront prices and monthly fees. You may also incur additional fees for items such as licensing and integration. We can help you perform a cost-benefit analysis of any multicloud solution you’re considering.

© 2019