Remove EPS Remove Goal Remove Metrics Remove Products
article thumbnail

How Incentives for Long-Term Management Backfire

Harvard Business Review

The board chose earnings per share (among other financial metrics) to measure and reward executives for long-term performance. As earnings goals became harder to hit with internal growth, the company used most of its money for share buybacks to achieve its three-year earnings-per-share goals.

article thumbnail

4 Ways CEOs Can Conquer Short-Termism

Harvard Business Review

Great stories are credible, simple, consistent, and use both financial and nonfinancial metrics to link a long-term vision and firm values with a distinctive business strategy and focused operational priorities. ” The blueprint included the company’s purpose, vision, values, and strategic goals, and fits on a single page.

CEO 10
article thumbnail

Why I'm Glad I Got Fired

Harvard Business Review

Then I'd spend the day putting together a fix plan for fixing an issue with a product shipment or the General Motors account. Words like "productivity," "efficiency," and "innovation" are defined by goal posts of our own creation: number of units shipped, revenue and profit, EPS and shareholder return.

EPS 16