Remove Cost of Capital Remove Innovation Remove Marketing Remove Metrics
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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

What if concentrated market power of a few companies in an industry has made these companies more profitable than usual? I have worked on research that has found that a strong company culture is associated with lower levels of myopic decision making, better productivity, and innovation. Overly optimistic financial statements.

EPS 8
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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

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The Comprehensive Business Case for Sustainability

Harvard Business Review

Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. . Fostering innovation.

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Is Your Business Biased Against Innovation?

Strategy Driven

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Many conventional metrics we use to estimate value are based on faulty assumptions. Companies that will eventually be wrecked by others’ innovations are operating on autopilot.