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Eliminate Slogans, Exhortations and Targets

Deming Institute

Watch this short video for a great story illustrating this problem in action: There may be cases in which incentives work only as intended, but I suspect they are relatively rare. Distorting the numbers, a form of creative accounting aimed at looking good rather than doing well, is rampant in American business.

Deming 28
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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. Getting the measurement right is central to providing convincing evidence on the debate over short-termism.

EPS 8