Harvard Business Review

OCTOBER 3, 2011

Second, he or she needs to understand how capital markets work. 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. Understanding Capital Markets.

Short-term 13

Short-term Long-term Price CEO 13

Harvard Business Review

JUNE 27, 2012

We have been studying companies that seem to be able to endure and adapt for longer periods of time, and have come to the conclusion that the extinction of once-great innovators is less often caused by technological or market evolution, and more often by self-inflicted wounds and slow cycles of decision and adaptation.

Creativity 15

Creativity Long-term Kotter Cost of Capital 15

Harvard Business Review

NOVEMBER 25, 2013

Marketing is in the midst of an ROI revolution. The arrival of advanced analytics and plentiful data have allowed marketers to demonstrate return on investment with a degree of precision that’s never been possible before. To date, however, the reality of marketing analytics has fallen short of the promise.

CFO 8

CFO Short-term Long-term Benchmarking 8

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

SEPTEMBER 8, 2011

Forget the deficit, monetary policy, stimuli, stock markets, corporations, taxes — that stuff makes my head spin (and apparently the economy as well). Banks aren't looking for cheaper capital; they are looking for lower risk. Long-term, stable growth cannot be truly sustainable if it is also massively unequal.

GDP 13

GDP Planning Cost of Capital Banking 13

Harvard Business Review

FEBRUARY 7, 2017

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. This has long seemed intuitively true to us. and historic lows in new capital investment.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

APRIL 26, 2017

The marketing, underwriting, and servicing of SME loans have largely taken a backseat. New digital entrants have spotted the market opportunity created by these dynamics, and the result is an explosion in online lending to SMEs from fintech startups. Banks’ cost of capital is typically 50 basis points or less.

Banking 12

Banking Stage-Gate Credit Scoring Competitive Advantage 12

Harvard Business Review

MARCH 31, 2015

It is true that that breaches are expected and have become a regular cost of doing business, but there are deeper reasons for the market’s failure to respond to these incidents. By now, it has long surpassed its one-year maximum. Attackers have collected over a Terabyte of data and records of 47,000 employees.

Price 8

Price Long-term Banking Short-term 8

Harvard Business Review

MAY 14, 2013

Here''s a very strange thing: Europe''s decades-long effort to reduce carbon emissions has been thrown into a shambles because utilities and manufacturers are exceeding their carbon-reduction targets. Markets fundamentally don''t work when they are "long" — that is, flooded with things no one wants. That''s right.

Price 8

Price Energy Politics Marketing 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

OCTOBER 21, 2016

Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. 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.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

DECEMBER 13, 2017

This has been a remarkable year for the markets. 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. This means they generate less revenue, profit and market value per dollar of R&D.

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. Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. When the Riksbank Prizes in Economic Sciences (a.k.a.

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. If it is positive, it’s thumbs up, if it’s negative, it’s thumbs down.

Innovation 50

Innovation NPV Business Model Constraint 50