article thumbnail

Winning Now, Winning Later: Playing the Infinite Game

Leading Blog

Grow while keeping fixed costs constant. He shares his self-defeating behavior early in life that led him nowhere and the commitment that was required to turn his life around. As we’ve seen, winning today and tomorrow requires extraordinary effort and commitment on the part of leaders, teams, and organizations.

article thumbnail

During this Crisis, Don’t Expect Business as Usual from the Family Enterprise

Strategy Driven

For example, within resilient family businesses, owners are not just together to make money, but to share values, responsibilities and a commitment to future success. This is a time to share the challenges regarding fixed costs, debt, obligations and the cost of doing business.

Crisis 66
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Five Ways to Retain Employees Forever

Harvard Business Review

Clearly, for employees to safely make a long-term commitment to an organization, the employer will need to give them good reason to stay. By making the fixed cost of payroll inherently more variable under differing business conditions, you can make your company more resilient and agile, while also treating your employees exceptionally well.

article thumbnail

What the Nonprofit Sector Needs to Reach Its Full Potential

Harvard Business Review

Imagine eliminating all of the redundancies in fixed costs. This is the kind of exciting, courageous, surprising, breathtaking action the people who work in this sector are waiting for its leaders to take. ” A commitment to progress should be our overriding culture. Consolidating databases and information and talent.

article thumbnail

How Companies Can Use Investors to Their Advantage

Harvard Business Review

Directly influenced by investor input, Nikon developed a restructuring plan that would carry a onetime cost of ¥48 billion ($460 million) but generate ¥20 billion ($190 million) in annual savings. I assumed you had some further cost reduction up your sleeve.” The number of directors and officers would be reduced.

article thumbnail

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

If a company has beat or missed its EPS targets by less than two cents , that means the company has nipped and tucked its quarterly results just enough to meet the target EPS number it committed to analysts. This measure has been validated by extensive academic research. So this measure may mislabel efficient companies as myopic.

EPS 8
article thumbnail

How to Know If a Spin-Off Will Succeed

Harvard Business Review

In parallel, it reduced its fixed costs by restructuring its industrial footprint and overhead structure; increasing sales, marketing, and R&D expenditures in targeted areas; and dramatically reducing working capital.