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Managing Performance When It’s Hard to Measure

Harvard Business Review

The typical approach is to assess an individual’s performance against a metric usually tied to whether or not they performed a task and the amount of output they generated by doing so. While it might be easy to measure someone’s output on an assembly line, how do we decide how well a manager manages or a leader leads?

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CEOs Need Hard Data on Customer Loyalty

Harvard Business Review

This was the headline finding of a recent study (PDF) by the American Institute of CPAs and the Chartered Institute of Management Accountants. Perhaps that's the result of customer metrics long being seen as "soft" numbers with little clear connection to "hard" numbers like revenue or cash flow. Unexpected, to say the least.

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Three Cases of Better Corporate Philanthropy

Harvard Business Review

As Nike's Senior Portfolio Manager Adam Day says, "The global development sector had overlooked the enormous potential of investing in adolescent girls to reduce global poverty. The Nike Foundation also leans on its expertise in innovation and scale to find solutions to poverty, while keeping its operations separate from the business.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

These require sophisticated, sustainability-based management. This can disrupt a firm’s ability to operate on schedule and budget. ” Improving risk management. ” Improving risk management. Coca-Cola, for example, faced a water shortage in India that forced it to shut down one of its plants in 2004.

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Midsized Firms Can Survive a Cash Crisis

Harvard Business Review

Operational meltdowns can devour a midsized company’s cash. To use a different company example, one growing financial services firm’s new CFO learned this in 2004. To keep a finger on the financial pulse of the business, MBH Architects’ founders kept one eye on a key metric: the utilization of its people (i.e.,

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The Secrets to TripAdvisor's Impressive Scale

Harvard Business Review

The company agreed to be acquired by Expedia/IAC in 2004 for $210 million in cash , a huge win for all, particularly given their amazing capital efficiency: they had only raised $4 million in venture capital. TripAdvisor And Expedia: From $4 million invested to $4 billion in value. As a result, gross margins are very high at 98% (not a typo!)

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Carly Fiorina’s Legacy as CEO of Hewlett Packard

Harvard Business Review

I interviewed more than 50 executives and mid-level managers who had worked for HP in the 2004-2007 timeframe, many of whom reported to Fiorina and subsequently worked with her successor, Mark Hurd. Hurd also connected with executives and managers in ways she did not. Many also felt that she needed to check her ego.

CEO 8