Theranos Tries To Take It All Back


NEwPhoto of Theranos founder Elizabeth Holmes: Fortune

Today’s Top Stories
 — Theranos Tries To Take It All Back
 — Douglas Rushkoff on How Growth Became the Enemy of Prosperity
 — Danny Hillis on How to Think Long Term (And Still Stay in Business)
 — Holacracy as a Service
 — The Do’s and Don’ts of M&As

Theranos Tries To Take It All Back
Recent days have seen a number of tough-minded analyses of the problems afflicting troubled medical device maker Theranos, ranging from FiveThirtyEight’s contention that new blood tests aren’t the answer to a post from the former chief scientist of Express Scripts arguing that Theranos’ rise is a symptom of our thinking the wrong way about disease. But last night came the shocker: a Wall Street Journal scoop that the company is voiding two years of its test results in an attempt to avoid threatened regulatory sanctions. This follows an executive reshuffle and a series of “broad corrective actions.” The sharp pivot to transparency is certainly welcome from a company that works with such critical data, but this change of strategy likely comes too late to make a difference for regulators, partners, and customers, all of whom feel burned.

Douglas Rushkoff on How Growth Became the Enemy of Prosperity — and How To Fix It
Today on NewCo Shift, R.U Sirius talks to author and big thinker Douglas Rushkoff about the perverse incentives at the core of our economy and how to trade them in for models that build on the contributions and add to the wealth of their workers, communities, and consumers.

Danny Hillis on How to Think Long Term (And Still Stay in Business)
Also on NewCo Shift today, we speak with Long Now founder Danny Hillis about what makes companies last. We explore how to balance strategies that take the long view with those that make sure you can still meet payroll on the first of the month.

Holacracy as a Service
Earlier this week in The Daily, we noted that the premature obituaries for holacracy, the flat management style popularized by Zappos, keep coming in. Don’t tell Zappos founder Tony Hsieh, though. In a talk with recode’s Kara Swisher, Hsieh says his company is considering ways to sell Zappos’ radical corporate culture as a service. It could be a fascinating experiment, though it won’t work for every business. If software is eating the world, why shouldn’t that include new management models?

The Do’s and Don’ts of M and As
Any active ecosystem is full of companies figuring out ways to work better together. If you’re considering a merger, this morning we’ve read two interesting pieces on the topic. One walks you through how to do one well (Harvard Business Review): the trick is focusing on adding value to the acquired company. The other illuminates how not to (New York Times): act with overconfidence, especially if your acquisition puts you in front of a federal judge.

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