Understanding Business Benefits

Fascinating new economic research shows Opportunity Zones have created far more housing than previously known (313,000 units) and at far cheaper subsidy cost than most people realize ($26k/unit) -- making OZs perhaps the most efficient, effective housing supply creation program in existence. I suggest we double down on what actually works, eh? The groundbreaking research was published yesterday by the Economic Innovation Group. The authors concluded that OZ are "dominating other housing tax incentives" in terms of production and efficiency. OZs provide capital gains tax benefits to incentivize long-term investments (10+ years) in designated lower-income neighborhoods. Among their findings: 1) Prior to the legislation, the neighborhoods that became Opportunity Zones had been "left behind" -- economically challenged areas seeing no housing supply growth for a decade. Since then, we've completed 313,000 new housing units across OZs nationally, with more still under construction. See chart below for an absolutely wild visual of this impact. 2) Opportunity Zone neighborhoods now outpace the national average in creating new housing supply. This is another crazy stat because "these are genuinely distressed communities," as one of the authors, Adam Ozimek, noted. He added that some reporting suggesting otherwise has centered around an "unrepresentative handful of outlier anecdotes." 3) OZs account for 48% of new housing in designated tracts, 16% across all low-income communities, and 4% of all new housing nationally. One of the report's authors, John Lettieri, wrote that "these are astonishingly large results" impacting not only urban areas, but also suburban and rural and in between. 4) At a subsidy cost of just $26k/unit, co-author Benjamin Glasner noted that OZs are "vastly cheaper than traditional housing subsidies" for taxpayers. "The results underscore that flexible, market-driven tax incentives can mobilize private capital, unlocking significant investment potential in distressed communities." 5) Why are Opportunity Zones so effective and efficient? Unlike other programs, OZ projects have a "by-right" qualification with no bureaucratic pre-approvals. It's a federal tax benefit that doesn't require approval from cities to tap into (other than standard permits etc. to build) or special connections to access. It turns out simpler is better and faster. We should incentivize the creation of things we need more of as society. We need more housing. So let's lean heavily on programs that actually work. And OZs clearly work well. Encouraging to see that HUD Secretary Scott Turner -- along with policymakers on both sides of the aisle -- want to extend and expand Opportunity Zones. Perhaps even to include for-sale homes in addition to rental apartments. Bottom line: Opportunity Zones, in Glasner's words, "may be the most effective pro-housing supply policy in America today." Let's double down on what actually works. #housing #apartments

Employees won’t perform at their best if they cannot prioritize their self-care. We need to make this a priority‼️ Self-care is used to improve physical, mental and emotional health. This combination is essential for long-term productivity 📈. Without self-care, you get high stress 😫, which can lead to burnout, deteriorating physical health, and depression. Stress is the kryptonite to productivity. And it costs businesses more than $300 billion 💸 a year (Stress. org) How do we improve employee self-care? 1️⃣ Leaders need to first lead by example and focus on their own self-care. No one will listen to you if you don’t practice what you preach. 2️⃣ Discuss the stress in your office openly and with a strategic attitude that includes team members developing solutions together. 3️⃣ Increase individual and team-based autonomy, so employees can create schedules and timelines that best fit their needs. 4️⃣ Have a clear reward system for raises and promotions. Then people will be less likely to overwork and burnout. 5️⃣ Encourage employees to take time off to spend with friends and family. Also, offer support mechanisms, like mentors, within the work environment. Hit the 🔔—> Alex Wisch for more content on #Productivity, #MentalHealth, and achieving #PeakPerformance.

Everyone says office conversions don't work. This developer just doubled this building's value. Here's what nobody tells you: A record 71,000 office-to-apartment conversions are in the pipeline. Most will fail. Some will soar. Here's how Connecticut-based developer Juan Salas-Romer turned one into gold: The scene: An 1855 building in New Haven. 13,900 square feet of history. And one massive opportunity hiding in plain sight. When their largest tenant left, most would enter crisis mode. But Juan saw conversion. The math is simple: Office space brought in $18 per square foot. Apartments? $43.20. A simple 2.4x revenue play. But the execution is never simple. Nobody tells you about: • The sprinkler system that ate their budget • The plumbing that killed their layout • The HVAC that changed everything • The fire codes that rewrote their plans The result? • 34% over budget • 5 months behind schedule • Countless "surprises” But watch what happened next: Before conversion: NOI sat at $154,380. Building valued at $2.2M. After their magic: • NOI jumped to $267,000 • Value hit $4.45M • $1.075M in equity Here's what Juan and his team learned the hard way: • Window placement (it limits everything) • Plumbing costs (they explode) • HVAC flexibility (it disappears) • Fire code impact (it changes everything) Most conversions fail because nobody checks these basic things. But when it works? • Revenue jumps 44% • NOI soars 73% • Value doubles Before you touch an office building, check: • Natural light feasibility • Plumbing capacity • HVAC flexibility • Structural integrity • Budget contingency (we learned 30%+ is smart) Here's the reality: we're watching office buildings die while housing demand hits record highs. The opportunity is obvious, but the execution? That's where most people fail. The full story is linked in the comments.

Looks like the UK is now looking to attract the amazing companies hungry to commercialize their technologies. “WE WILL BUILD THE FUTURE IN BRITAIN” PM LAUNCHES MAJOR BOOST FOR UK CLEAN ENERGY INDUSTRY • Prime Minister brings forward an initial £300 million investment ahead of Spending Review through Great British Energy to win global offshore wind investment for the UK. • Fund will boost domestic jobs, mobilise additional private investment, and secure manufacturing facilities for critical clean energy supply chains like floating offshore platforms. • Prime Minister and Energy Secretary to announce pro-investment plans at major international summit bringing together governments and industry from around the world to drive collective energy security. Communities across the country will benefit from new investment in domestic clean energy supply chains – driving economic growth and supporting thousands of jobs through the Plan for Change. Workers and businesses in the UK’s industrial heartlands will benefit from an initial £300 million of funding through Great British Energy to invest in supply chains for domestic offshore wind. It is expected that the investment will directly and indirectly mobilise billions in additional private investment - helping de-risk clean energy projects and supporting thousands of jobs and revitalising the UK’s industrial heartlands. The public investment complements the £43 billion of private investment pledged for clean energy projects since July. Britain’s engineers, technicians, and welders are being backed by this fast-tracked funding, brought forward by the Prime Minister ahead of the Comprehensive Spending Review, which will allow Great British Energy, the country’s publicly-owned clean energy company, to invest in new supply chains for offshore wind manufacturing components such as floating offshore platforms and cables. This builds on the government’s landmark investment in domestic supply chains through initiatives such as the Clean Industry Bonus and the National Wealth Fund. As part of the government’s modern Industrial Strategy, which will turbocharge growth in the UK’s key sectors including clean energy, the new investment in domestic offshore wind is part of the Prime Minister’s drive to ensure that the clean energy future is “built in Britain”. The funding will ensure that the nation builds resilient domestic supply chains for components which are essential to delivering clean power by 2030. It comes after the Prime Minister said that a new era of global insecurity means that the government must go further and faster in reshaping the economy through the Plan for Change, and that this requires a new muscular industrial policy that supports British industry to forge ahead. Prime Minister Keir Starmer said: "Delivering the Plan for Change means winning the race for the clean energy jobs of the future, which will drive growth and help us reach clean power by 2030.”

Microsoft released Copilot Pro - genAI integrated into MS products. Due to cost, you'll prob choose between Copilot and ChatGPT Teams. Copilot is awesome, but it's a commodity. Want to differentiate yourself? Five keys: First, I think copilot is phenomenal. I love it. It will help your people speed up their work, which speeds up productivity. But you’ll never be an AI-first company with it. What you’ve done is lower the rim on your backyard basketball hoop so everyone can play. That's not a bad thing! It's democratic and brings everyone along. But if you rely on Copilot to be your AI strategy, you’ll always be the same company. Just doing things faster. There is an alternative, friends. Get trained on how to deeply understand and use generative AI. Companies that do this will have the ability to radically improve: Strategy. Sales. Communication. HR and Recruiting. Legal. Leadership. Everything.  Across every department. (I’m working on this, BTW, and will be announcing something soon to help with this, free for everyone.) You probably can’t afford to do both OpenAI's ChatGPT Teams and MS Copilot. So let’s look at some differences: ++++++++++++++++++++++++++++++ 1. Customization and Flexibility ChatGPT for Teams offers a high degree of customization, allowing users to create tailored versions of the AI model, known as GPTs, for specific tasks or workflows. It’s like playing with a remote-controlled car, where you have the freedom to steer the vehicle in any direction you choose. This flexibility can lead to innovative uses of AI that are uniquely beneficial to your team's operations. ++++++++++++++++++++++++++++++ 2. Collaboration and Sharing ChatGPT for Teams is designed to foster collaboration, with features that allow users to share custom GPTs with others. This promotes knowledge sharing and team collaboration, enabling your team to collectively benefit from the AI's capabilities. ++++++++++++++++++++++++++++++ 3. Integration and Augmentation ChatGPT for Teams can be integrated into various workflows, augmenting your entire workforce This is not just about speeding up processes, but about fundamentally enhancing how your team works. ++++++++++++++++++++++++++++++ 4. User Interface and Experience MS Copilot Pro, on the other hand, offers a more streamlined experience, like a Hot Wheels car zooming along a guided track. It provides a tighter user interface with less room for customization While this simplicity can speed up processes and improve productivity, it may not fully leverage the potential of generative AI to augment your workforce. ++++++++++++++++++++++++++++++ 5. Differentiation and Commoditization MS Copilot Pro's approach is a commodity, providing a standard set of features that any organization can use. The customization and flexibility of ChatGPT for Teams can lead to unique applications of AI that differentiate your organization.

New York, Texas, and California may steal the spotlight, but there’s an underdog rising. The Midwest, specifically Missouri and Kansas, is quietly becoming a business powerhouse. - - - Why❓A blend of affordability, accessibility, and a growing talent pool. Let me break down why these states are on every savvy business leader’s radar. 1️⃣ First, understand the cost advantage. Missouri and Kansas offer some of the lowest business operation costs in the country. Why it works: • Lower costs mean higher profit margins. • Affordable real estate provides room for expansion. • Competitive wage rates attract businesses without sacrificing talent. 2️⃣ Second, tap into the talent. Both states boast a skilled, educated workforce. Why it works: • Universities and colleges produce job-ready graduates. • Lower living costs retain talent. • Growing tech and healthcare sectors provide specialized skills. 3️⃣ Third, embrace the central location. The Midwest is a logistical dream. Why it works: • Centrally located for distribution. • Major highways and airports for easy travel. • Proximity to both coasts for balanced trade. 4️⃣ Fourth, leverage the business-friendly environment. Policies and incentives are designed to attract and retain businesses. Why it works: • Tax incentives reduce initial investment costs. • Business grants and loans support growth. • Regulatory environments favor innovation. 5️⃣ Fifth, enjoy the quality of life. Missouri and Kansas offer a high standard of living without the big-city stress. Why it works: • Affordable housing and living costs. • Rich cultural and recreational activities. • Safe, family-friendly communities. ➡️ Missouri and Kansas are ideal for businesses seeking growth without the high costs of coastal states. 📍Companies are already flocking to the Midwest, reaping the benefits of these business-friendly environments. #Midwest #CommercialRealEstate #RealEstate

My recent work for a new client inspires today’s Tuesday Tip. This client is totally brilliant and usually business-savvy. Yet, she constantly encounters problems with her clients about the scope of the services she is supposed to perform for them. When I looked at a few of her contracts, I saw the problem immediately: she defined the scope of her services too broadly, which confused her clients and did not manage expectations. Let’s take a look at the language she was using: 🚫 Too Broad: "Service Provider agrees to perform consulting services as needed for the Client." 👉 Why This Is Problematic: This clause is vague and leaves the door wide open for misunderstandings. What kind of consulting services? How often? What deliverables are expected? Broad language like this creates significant risk for scope creep, unmet expectations, and even disputes. Instead, I drafted some different language for her to use: ✅ Specific and Clear: "Service Provider agrees to provide up to 10 hours in the next 2 months, starting on the date of this Agreement, of business strategy consulting, including: (1) developing a written quarterly business plan for next quarter; (2) a Zoom call advising on the current quarter's written marketing strategy provided by Client; and (3) reviewing next quarter financial projections with feedback provided in writing." 👉 Why This Works: This clause clearly outlines: Scope: What services will (and won’t) be performed. Limitations: Time is capped at 10 hours for two months. Expectations: Deliverables and required client actions (e.g., written, via Zoom) are defined. By being specific, both parties know exactly what’s included, which minimizes confusion, protects you from being overburdened, and reduces the risk of disputes. 💡 Pro Tip: The clearer your contracts, the more professional and trustworthy you appear—and the better protected you’ll be. Take the time to get it right, or work with someone who knows how to do it for you. *For educational purposes. Does not constitute legal advice.

As of Monday U.S. wires go ISO 20022. Why should you care? Because moving money is increasingly commoditized, but providing data that enables contextualizing transactions, automating processes, and mitigating risk delivers real value. After years of preparation, and delays, The Federal Reserve’s Fedwire system will shift to the global ISO 20022 XML format on Monday. The other U.S. wire operator, The Clearing House, migrated its CHIPS system over a year ago. The global deadline for Swift cross-border message migration to ISO 20022 (and the end of coexistence with legacy Swift MT formats) is November 22, 2025. Rich, structured data in every wire payment message isn’t just a compliance obligation—it’s an opportunity. Let’s not forget, ISO 20022 underpins new instant payment infrastructure here in the U.S. and around the world. This isn’t just about wires. ISO 20022 provides an opportunity to: ✅ Streamline reconciliation ✅ Reduce manual intervention when something goes wrong ✅ Detect fraud more intelligently ✅ Automate compliance with embedded metadata ✅ Lay the groundwork for smarter treasury and payments operations But only IF we actually populate and use the ISO 20022 format. It isn't a new specification but it has become a global standard. It has been widely anticipated as an important driver of efficiency and new data-centric solutions for banks. But in the meantime, the world has become much more fragmented and complex. In an increasingly embedded payment ecosystem, banks are far removed from back office workflows and the data that contextualizes transactions. Deep integrations and partnerships will be necessary to access and deliver data to corporate clients. Too many FIs are treating this shift as a box to check, not a chance to compete more effectively in B2B and drive fee revenue. I suspect that very few banks will have the wherewithal (and fortitude) to consolidate, harmonize, and structure their data so that they can make the most of ISO 20022. But those that do will be able to drive both internal efficiency and new revenue streams. (And as a result they will have a leg up when it comes to leveraging AI, too.) A few years ago, the X-9 data standards organization published a paper outlining B2B (AR and AP) opportunities to leverage ISO 20022. It has practical guidance not just for banks but for  corporates, ERP/accounting providers, PSPs, and the broader ecosystem that serves B2B payments. I’ve provided a link in the comments. So now that you’ve transitioned to ISO 20022 for wires and you’re wondering how to use your investment to do more than check a compliance box please reach out. I’m here to help banks, fintechs, and corporates turn this mandatory migration into meaningful advantage that delivers true value to buyers and suppliers on either side of B2B transactions. Finally, thanks to Ravi Loganathan, Toine van Beusekom, Anand Vaidya, and Rich Dooley, MBA, CTP for great conversations about this topic.

A year ago, I took over the Marketing function—with no Marketing background. As part of the executive team, I already had visibility into our marketing outcomes. But when I stepped in to lead the team, I quickly learned how different it is to own the outcomes. I've spent most of my career focused on building systems, solving internal blockers, and scaling sustainably. So I approached marketing the only way I knew how:  🔍 With curiosity  📊 With a focus on data and outcomes  🤝 And with respect for the people who know it better than I do Here's what I've learned (and am still learning): 1️⃣ Marketing is an ops problem AND a creative challenge. You can have the best systems in the world, but if your messaging doesn't land, none of it matters. Conversely, creativity without structure leads to chaos. You need both. 2️⃣ Speed + clarity beats perfection. Getting campaigns out the door, learning from results, and adjusting quickly moves the needle more than over-polished strategies stuck in review cycles. 3️⃣ Cross-functional alignment is marketing fuel. The best-performing campaigns didn't come from silos—they came from alignment between Marketing, Sales, and Engineering. Marketing can't be effective without tight integration across teams. 4️⃣ Marketing attribution isn't just about credit—it's about learning. Understanding which touchpoints drive conversions isn't about assigning glory; it's about improving future decision-making and resource allocation. 5️⃣ Cost efficiency doesn't have to mean cutting corners. We've reduced acquisition costs while increasing qualified traffic and leads—not by spending less blindly, but by getting sharper on targeting, messaging, and timing. A year in, I'm still not a marketer and honestly I probably won't ever be one. But I have a deep appreciation for what this function really is: a blend of storytelling, systems thinking, experimentation, and alignment. If you're an executive without a marketing background taking on the function, leverage your knowledge of the business and your relationship capital within the organization to get people connecting and ideating. Then, lean heavily on your team's expertise. This is how you grow. And this is how you can best help that team succeed. #LeadershipLessons #MarketingStrategy #CrossFunctionalTeams #ExecutiveLeadership

🚀 "Organizations with a Chief AI Officer see 10% greater ROI on AI spend. But today, only 26% of organizations have CAIOs." What does it mean when organizations need a new C-suite role just to navigate AI transformation? It's not just about titles or org charts. It's about recognizing that AI transformation requires more than technical expertise. To succeed, we need to re-imagine how to bridge vision and execution, strategy, and implementation — where new forms of collaboration may be needed. 👉 57% of CAIOs report directly to either the CEO or the Board of Directors; 76% of CAIOs say other CxOs consult them on important AI decisions. 👉Those spearheading hub-and-spoke or centralized AI operating models see 36% higher AI ROI than those managing decentralized operating models. Understanding the transformative value in AI will require us to go beyond the conventional ROI calculations. How we define success in an AI-driven world might need to be re-defined. 💥 68% of CAIOs initiate AI projects even if they can’t assess their impact, because the most promising AI opportunities are often the most difficult to measure. The Chief AI Officers that will succeed in the AI-driven world will be the leaders who can navigate the changing dynamics, and ensure that AI can help advance both human purpose and technical possibilities. Another good read by IBM Institute for Business Value. #AI #BankingOnAI #FinancialServices #Fintech #BankingIndustry