Harvard Business Review

OCTOBER 3, 2011

Critics imply that managing for shareholder value is all about maximizing the short-term stock price. Companies that manage for shareholder value, the thinking goes, do whatever it takes to engineer an ever-higher market price. In the very long haul, earnings and cash flow converge. Creating Shareholder Value.

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

OCTOBER 10, 2017

Even if executives try to prioritize it, innovation often gets crowded out by more “urgent” short-term pressures. For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. That’s why successful innovators prepare for irrelevance long in advance.

Innovation 8

Innovation P&L ROI Long-term 8

Harvard Business Review

MARCH 31, 2015

While consumers are rightfully worried that their personal information may be compromised, shareholders and companies’ management have a wider set of concerns, including loss of intellectual property, operational disruption, decreased customer trust, tarnished brand, and loss of investor commitment.

Price 8

Price Long-term Banking Short-term 8

Harvard Business Review

MARCH 28, 2016

This was the era of the company man, where employees exchanged long-term loyalty for a livable wage and a pension plan. And given the pace of growth, capital was always in demand. Outside funds bring with them a pressure to achieve short-term results that trade-off with value creation.

Long-term 8

Long-term Short-term Reputation Incentives 8

Harvard Business Review

NOVEMBER 25, 2013

Just 36 percent of CMOs, for example, have quantitatively proven the short-term impact of marketing spend, according to the 2013 CMO Survey (and for demonstrating long-term impact, that figure drops to 32 percent). Help CFOs focus on the long term. Why is this so challenging?

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

OCTOBER 21, 2016

These require sophisticated, sustainability-based management. Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. ” Improving risk management. billion in mining projects since 2010. Fostering innovation.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

DECEMBER 13, 2017

Some argue that profits are stagnant because of short-termism—that decades of focusing on current profits over long-run innovativeness has resulted, now, in companies that are hollowed out. Again, this occurs because division manager compensation is tied to division profits. What’s behind the disconnect?

Short-term 8

Short-term Decentralization Company Trends 8

Harvard Business Review

APRIL 2, 2014

In the long-version explanation of the prizes published by the Nobel committee last fall, Campbell was cited more often than anybody else, apart from the three winners. 2 is this distinction between short-term vs. long-term predictability. That was another discovery of the 1980s that was inconsistent with the paradigm.

CAPM 8

CAPM Discount Price Finance 8

Strategy Driven

SEPTEMBER 9, 2011

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Companies have long struggled to generate sustained profitable growth – and few have succeeded. How do they do it? But they do it very consciously. That makes all the difference.

Innovation 50

Innovation NPV Business Model Constraint 50