Harvard Business Review

MARCH 1, 2024

Companies that integrate the cost of capital into their strategy and planning reap real benefits. To do that, executives need to rediscover the concept of economic profit (EP) — that is, revenue minus not just operating and administrative costs, but also the cost of the capital needed to produce that revenue.

EPS 21

EPS Cost of Capital Strategy Cost 21

Harvard Business Review

FEBRUARY 4, 2013

The oft-cited CEO of Unilever, Paul Polman, announced the company's Sustainable Living Plan , saying to investors: "if you don't buy into [our long-term value model], I respect you as a human being, but don't put your money in our company.". Breakthrough Finance. Zeitz is also rolling out the EP&L across the holding group PPR.

EPS 8

EPS Innovation CEO Pharmaceuticals 8

Harvard Business Review

FEBRUARY 7, 2017

New research, led by a team from McKinsey Global Institute in cooperation with FCLT Global , found that companies that operate with a true long-term mindset have consistently outperformed their industry peers since 2001 across almost every financial measure that matters. The differences were dramatic.

Long-term 8

Long-term EPS Short-term Management 8