Coaching Tip

DECEMBER 24, 2010

Among the problematic symptoms and by-products of incoherence – of paying too much attention to external positioning and succumbing to pressure for excessive short-term growth – companies are often: . Hedging bets with multiple options, which reinforces complexity and raises costs. Leaders must compel the organization to choose.

Strategy 178

Strategy Short-term Competitive Advantage Fixed Assets 178

Harvard Business Review

JANUARY 16, 2018

On January 6, 2017, JANA Partners , a New York–based activist hedge fund, and the California State Teachers’ Retirement System (CalSTRS) sent a letter to Apple’s board of directors that may change the future of activist investing. But it’s also true that many activists are not as short-term as many assume them to be.

Hedge 9

Hedge Long-term Short-term Letter 9

Strategy Driven

OCTOBER 30, 2019

You can earn from your property as you live in it or own it for longer, and this can be great in terms of increasing your value. Our it could mean buying more than one and having a property portfolio that you then earn from monthly as well as long term. Investing in stock, shares and long term investments.

Long-term 50

Long-term Short-term Hedge Construction 50

Strategy Driven

NOVEMBER 22, 2022

For example, investors can use physical precious metals as a hedge against currency devaluation or inflation. These assets can also be used as a store of value and a potential hedge against geopolitical risks. Both can be a hedge against inflation. This can be a good thing for short-term traders. Gold Mutual Funds.

Hedge 121

Hedge Price Short-term Reputation 121

Harvard Business Review

JULY 18, 2017

Short-term corporate behavior is a major problem in the 21 st century firm. Too many companies prioritize quarterly earnings over long-term innovation, human capital investment, and brand development, and many people believe short-term shareholders are to blame. Tim Evans for HBR. So how can we ensure the latter?

Short-term 8

Short-term Intangible Assets Hedge Long-term 8

Harvard Business Review

OCTOBER 9, 2015

With Hillary Clinton’s tax proposals to encourage longer-term investing , the debate over whether American business is too fixated on the short term has moved from the dimly lit offices of earnest policy wonks into the klieg lights of U.S. primary season. But that is far from true. ” A Review of Relevant Studies.

Hedge 8

Hedge Short-term Long-term EPS 8

N2Growth Blog

AUGUST 12, 2010

He is one of my favorite leadership bloggers, and hopefully we’ll still be on speaking terms after this post. Decisioning by consensus usually results in no decision being made, or an intellectually dishonest, watered-down decision that is so full of compromises, hedges and caveats that a non-decision might have been preferable.

Consensus 349

Consensus Team Building Blog Team 349

Harvard Business Review

OCTOBER 19, 2011

A recent report by the Aspen Institute [ PDF ] suggests a big part of the problem with corporations' focus on the short term is shareholders themselves. The first is to educate shareholders by providing them with better information about their own long-term interests. This powerful minority is activist hedge funds.

Long-term 11

Long-term Hedge Strategy Short-term 11

The Horizons Tracker

NOVEMBER 6, 2022

While larger companies may be able to hedge the costs associated with key inputs and smooth out any cyclical costs, smaller businesses may struggle to achieve this. If you sacrifice consumer trust to protect the business, this will have long-term consequences – It’s very difficult to restore a brand once it has been tarnished.

Supply Chain 113

Supply Chain Charan Short-term Long-term 113

Harvard Business Review

AUGUST 12, 2013

Everybody has been piling on to hedge fund manager Bill Ackman lately. Ackman''s short-selling campaign against vitamin distributor Herbalife has blown up in his face, with the company''s stock up more than 75% since he unveiled his position last December and some of his most prominent hedge fund competitors profiting from his misery.

Hedge 8

Hedge Short-term Long-term Finance 8

Harvard Business Review

MARCH 14, 2016

When executives complain about activist hedge funds, it’s often under the cover of short-termism. Activists are bad, the thinking goes, because they pressure companies to prioritize quarterly profits over long-term value creation. That view isn’t well supported by the evidence.

CEO 8

CEO Hedge Reputation Short-term 8

Harvard Business Review

OCTOBER 3, 2011

In my latest book, Fixing the Game: Bubbles, Crashes, and What Capitalism can Learn from the NFL , I wrote about the negative impact of executive stock-based compensation on corporate short-termism. Eliminating stock-based compensation would help reduce the incentive for executive leadership to focus on the short term.

Long-term 14

Long-term Company Short-term Hedge 14

The Idolbuster

JANUARY 22, 2013

In a similar way, I think that people in the business world should know better than to blindly follow forecasts or other business means of predicting the future, which is exactly what Professor and former hedge fund manager Nassim Nicholas Taleb argues in his book The Black Swan. Become an expert at sandbagging the forecast.

Hedge 45

Hedge Environment Project Politics 45

Harvard Business Review

MAY 6, 2016

To hear long-term investors tell it, company executives have embraced short-term thinking like never before. Two obvious pieces of evidence: The use of earnings for share buybacks that cost more than they’re worth, and dividend increases that divert cash from long-term investment.

Long-term 8

Long-term Incentives Short-term Management 8

Harvard Business Review

MARCH 8, 2016

They transfer money away from public treasuries and wage earners to provide a short-term incremental benefit that does nothing to improve the company’s long-term prospects. But neither should they make capital-allocation decisions without regard to the long-term consequences for their own success.

Politics 8

Politics Short-term Long-term Porter 8

Harvard Business Review

MARCH 1, 2018

The constantly fluctuating number of barrels of crude available from nimble shale operations is a primary driver, but so are the long-term impact of increased fuel efficiency and the fits and starts of the global transition away from fossil fuels on world demand. It makes price movements less extreme but also more difficult to predict.

Offshoring 10

Offshoring Price Transportation Long-term 10

Harvard Business Review

AUGUST 26, 2015

As a result, they tend to overlook other important measures — for instance, customer satisfaction, employee motivation, and supplier support — and their narrow view of the organization can do long-term damage. In short, we had to be a bit myopic to survive. It was no way to run a firm over the long term.

Metrics 8

Metrics Long-term Short-term Hedge 8

Harvard Business Review

MARCH 11, 2014

That leaves at least three other deep benefits to investing in green power on your own facilities in ways that may take longer to pay back in traditional terms. By creating an energy-price hedge, building resilience, and driving brand value, deep green investments create significant value and thus do have a strong ROI.

CEO 8

CEO ROI Environment Hedge 8

Harvard Business Review

OCTOBER 25, 2017

.” We collected data from a private online knowledge-sharing platform where buy-side (hedge fund, mutual fund) investment professionals (analysts, portfolio managers) share their investment recommendations to buy and sell a given security, along with the analysis supporting their position, with other members of this platform.

Objective 8

Objective Metrics Sample Hedge 8

Harvard Business Review

OCTOBER 30, 2017

Over a period of years, every GE senior manager would learn the lean startup methodology, and GE would be the showcase for how modern companies use entrepreneurial management to transform culture and drive long-term growth. The bad news is that, once they take control of a company, activist investors’ goal is not long-term investment.

Ries 8

Ries Long-term Short-term Price 8

Harvard Business Review

JULY 12, 2016

Ask someone to name the demands that activist hedge funds make of companies and they’ll likely list corporate governance issues like board changes and executive compensation, or perhaps some form of restructuring. Paul Garbett for HBR. ” We found that 58% of the shareholder proposals in our sample were filed on immaterial issues.

Proposal 8

Proposal Short-term Advertising Hedge 8

Harvard Business Review

SEPTEMBER 26, 2011

But three years after the financial crisis broke, I remain more convinced than ever that the fundamental cure for restoring economic growth and repairing societal trust in business is to deepen our ability to manage companies for the long term. Acting and communicating in this fashion will also start to attract long-term investors.

Long-term 8

Long-term CEO Short-term McKinsey 8

Harvard Business Review

OCTOBER 16, 2014

9, armed with about 1% of Apple’s outstanding stock, the hedge-fund activist published an open letter to Apple CEO Tim Cook, urging him to accelerate the company’s stock repurchases by making a tender offer. Another hedge-fund activist, David Einhorn, was then playing that role). Carl Icahn is at it again.

Safe Harbor 9

Safe Harbor Hedge EPS Price 9

Harvard Business Review

DECEMBER 16, 2013

The firm also estimated that more than a hundred hedge funds have now migrated into the activist camp. Even Microsoft is soon to have a hedge-fund activist, ValueAct Capital Management’s president G. Law firm Wachtell Lipton identified 27 activist-investor initiatives in 2000, but more than 200 in 2013. Mason Morfit.

Hedge 8

Hedge Sharpe Short-term Active Listening 8

Harvard Business Review

JULY 19, 2016

This move was designed to reduce the possibility of stakeholders pressuring politicians to intervene if market turbulence leads to substantial short-term losses for the fund. We pay competitively but no hedge fund-size packages.”

Politics 8

Politics Hedge Constraint Committee 8

Harvard Business Review

SEPTEMBER 20, 2017

CEOs live in fear of activist hedge funds, and politicians worry about their effects on workers. Listed companies have returned record levels of cash to shareholders through dividends and share buybacks (a capital allocation shift that is less vulnerable to criticisms of short-termism than in the U.S., In the U.S.,

ROE 8

ROE Construction Hedge Policies 8

Harvard Business Review

DECEMBER 19, 2017

This is partly due to the tendency to grow more than needed as a hedge against weather and disease and fluctuating wholesale and retail orders. too short, long, big, small or uneven in shape, too red or not red enough, and so on). Food waste starts at farms in the value chain. In the U.S.,

Retail 8

Retail Supply Chain Crisis Short-term 8

Harvard Business Review

JUNE 26, 2014

Argentina lost big to a group of American “vulture” hedge funds in court last week, when the Supreme Court declined to reconsider an appeals court decision that the funds had the right to demand that the country make good on a bunch of old bonds they owned even though it long ago renegotiated the terms of that debt with most creditors.

Bond 8

Bond Long-term Short-term Finance 8

Harvard Business Review

NOVEMBER 30, 2011

At a recent dinner party, I was speaking with a friend who had just been promoted to vice president at a well-known New York hedge fund. Taking a job just for the plush office and expense account might be a short-term strategy that compounds feelings of unhappiness further down the track.

Career 19

Career Christensen Hedge Short-term 19

Harvard Business Review

JULY 22, 2016

And despite their relatively short existences, digital platforms such as Uber, Airbnb, Pinterest, and Snapchat are wreaking havoc on traditional businesses. It recently rolled out a short-term car rental product called Express Driv, through which Lyft drivers can rent GM cars.

Real Estate 8

Real Estate Business Model Incubator Short-term 8

Harvard Business Review

FEBRUARY 5, 2014

But it is tough for public companies in particular to spend money when they think it doesn’t pay back in traditional ROI terms. Ultimately, second path is clearly the most likely, and the clean economy will dominate over time on purely economic terms — a variable cost of basically zero for renewable energy will win out. They’d better.

NGO 9

NGO Energy Morale Price 9

Harvard Business Review

MARCH 28, 2016

He manages a $2 billion hedge fund that had a terrible quarter — two of his largest positions, both energy stocks, dropped 25%, turning what would have been a lackluster result into a disaster. The benefit in the long run far outweighs the short-term pain. One case in point I came across recently was Brad.

Letter 8

Letter Price Hedge Committee 8

Harvard Business Review

OCTOBER 3, 2012

And why does a top hedge fund manager "earn" enough to pay for thousands of teachers? Let me put that in real-world terms. Remind me: why is an average investment banker worth, say, a hundred times as much as an average teacher? Is there a trade-off between meaning and money? Can it be resolved?

Sharpe 21

Sharpe Follow-up Short-term Hedge 21

Harvard Business Review

MARCH 18, 2013

In terms of sales volume, product line diversity, operating system flexibility, R&D spending, and even customer loyalty , Samsung has emerged as a fierce competitor that has bested former industry champions like Nokia and Apple. In short, it is an Android phone that wants to stand out more as a Samsung made and operated phone.

Brand 8

Brand Customer Loyalty Hedge Wilde 8

Harvard Business Review

JANUARY 21, 2014

ValueAct Capital, a San Francisco hedge-fund with more than $11 billion under management had made a habit of investing in a limited number of companies that appeared undervalued or not fully understood by investors—and it now wanted into not only Motorola’s stock but also its boardroom.

Hostile Takeover 8

Hostile Takeover Chief Financial Officer Due Diligence Charan 8

Harvard Business Review

JANUARY 23, 2017

” People in industries as different as commercial real estate, pharma, biotech startups, hedge funds, and public school districts worried about how to transform a competitive, star-driven culture into a collaborative one when they had no power to juggle financial rewards and no influence over promotion decisions.

Payback Period 8

Payback Period How To Real Estate Hedge 8

Harvard Business Review

AUGUST 15, 2011

On the same stage as Summers, Mahathir bin Muhammed, Prime Minister of Malaysia, was calling for short-term currency controls to prevent "hot money" speculators from infecting the Malaysian ringgit with the same disease. And by the late 1990's investment banks and hedge funds were in the business of betting for and against currencies.

Banking 11

Banking ROE Proposal Self-aware 11