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

Skip Prichard

AUGUST 25, 2019

There’s nothing wrong with operating out of self-interest. All that corruption helped them hit quarterly EPS targets. Word of Tim’s plans got out and a multitude assembled below to watch him climb the tower, after which he conducted a three-hour inspection with the civil engineer. Let’s be candid: That’s part of the job.

Competitive Advantage 94

Competitive Advantage Leadership Analysis Tips 94

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 9, 2011

within large corporations) identified when asked what contributed to, or detracted from, "executive presence" (EP) at their firm. Indeed, half the women surveyed and 37% of the men considered appearance and EP to be intrinsically linked; they understood that if you don't look the part of a leader, you're not likely to be given the role.

EPS 15

EPS Banking Handbook Micromanagement 15

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.". Zeitz is also rolling out the EP&L across the holding group PPR. Breakthrough Institutions.

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

Harvard Business Review

FEBRUARY 24, 2017

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. ” Keeping it simple, with five core strategies in his long-term plan, helped people remember his message.

CEO 9

CEO Short-term Long-term EPS 9