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

Harvard Business Review

The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex.

EPS 8
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The Authenticity Trap for Workers Who Are Not Straight, White Men

Harvard Business Review

Moving up in an organization depends on looking and acting like a leader, on being perceived as having “executive presence” (EP). According to research from the Center for Talent Innovation (CTI), EP constitutes 26% of what senior leaders say it takes to get to the next promotion.

EPS 8
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How Incentives for Long-Term Management Backfire

Harvard Business Review

To hear long-term investors tell it, company executives have embraced short-term thinking like never before. Four hundred seventy-one companies in the S&P 500 bought back stock last year, and 372 companies expanded their dividends — actions undertaken in spite of the need to invest heavily to keep up with global market changes.

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Business Needs to Do What Government Can't

Harvard Business Review

Most of us would say it's exceptionally hard, particularly when power is concentrated in a few incumbent companies with deeply rooted vested interests. The financial crisis is a prime example of too few people holding the reins. Just under 1,000 companies account for half of the world's market capitalization, Eccles notes.

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Yes, Short-Termism Really Is a Problem

Harvard Business Review

.” On the other side, noted economist and hedge fund adviser Larry Summers cautions that reforming “quarterly capitalism” would risk driving us toward “Japan’s keiretsu system, which insulated corporate management from share price pressure by tying large companies together.” public companies.

Hedge 8
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The 6 Ways Business Leaders Talk About Sustainability

Harvard Business Review

The focus of people using a resources frame to understand sustainability is often on waste reduction and technological innovation. For example, in the 1990s, leading businesses like 3M adopted concepts like eco-efficiency, focusing on saving and making money through the better management of materials, energy and waste.

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What Apple Should Do with Its Massive Piles of Money

Harvard Business Review

Cook, In a recent article posted on this website, I criticized Carl Icahn’s call for your company to intensify its stock buybacks. In 1993, Apple distributed $273 million in buybacks and $56 million in dividends, even as profits plunged from $530 million to $87 million, compelling the company to do a $297 million long-term bond issue in 1994.