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

APRIL 5, 2017

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. On the surface, this measure looks reasonable.

EPS 8

EPS Metrics Depreciation Short-term 8

Harvard Business Review

FEBRUARY 4, 2013

Just under 1,000 companies account for half of the world's market capitalization, Eccles notes. 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.".

EPS 8

EPS Innovation CEO Pharmaceuticals 8

Harvard Business Review

MARCH 17, 2011

A friend of mine, Godfrey Sullivan , asked me to consider running the operations for the Americas unit at Autodesk. Carol wanted to promote someone from within; however, that executive lacked the broad discipline knowledge of channels, marketing and sales ops. Here's what happened. Only sheer politeness kept me from hanging up.

EPS 15

EPS Strategy Reference Execution 15

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. public market capitalization over this period.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

JUNE 21, 2017

The Trump administration’s proposed tax reform plan to spur economic growth would lower the corporate tax rate from 35% to 15% and offer U.S. To minimize this risk, companies should compare their expectations against the market’s. It’s because many, if not most, public companies fail to adhere to the rule.

EPS 8

EPS Company Offshoring Price 8