Remove Cost of Capital Remove Innovation Remove Marketing Remove Short-term
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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

A recent McKinsey report found that while 84% of corporate executives think innovation is key to achieving growth objectives, only 6% are satisfied with the innovation performance of their firm. Even if executives try to prioritize it, innovation often gets crowded out by more “urgent” short-term pressures.

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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. Getting the measurement right is central to providing convincing evidence on the debate over short-termism.

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Should Companies Retain "Strategic" Cash?

Harvard Business Review

Strategic cash provides more flexibility concerning the timing and pricing of potential acquisitions; having cash on hand is the best insurance that CFOs will be able to respond with alacrity to opportunities and not be subject to the vagaries of the financial markets. Facilitate Investments. Arguments Against Strategic Cash.

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

But we recognize that, in many businesses, resources are often allocated according to short-term, bottom-line pressures. of the world market, and the second-largest beef producer and consumer. These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector.

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The Real Reasons Companies Are So Focused on the Short Term

Harvard Business Review

This has been a remarkable year for the markets. Some argue that profits are stagnant because of short-termism—that decades of focusing on current profits over long-run innovativeness has resulted, now, in companies that are hollowed out. MirageC/Getty Images.

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Why Those Guys Won the Economics Nobels

Harvard Business Review

Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. You’d have this beta with the market, so you have the riskless rate plus beta times the equity premium. It’s not something that necessarily resonates a lot with people in the markets or people in the world.

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