Remove Cost of Capital Remove Innovation Remove Operations Remove Productivity
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Entrepreneurship Suffers When Well-Paid Jobs Are Plentiful

The Horizons Tracker

A few years ago I wrote about innovation and entrepreneurship in Norway and Qatar. The author believes that while lower costs of capital would certainly help raise the entrepreneurship rate, it would be most beneficial to entrepreneurs with lower skills. of physicians operating as independent owners in 2019, versus 48.5%

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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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The Case for Investing More in People

Harvard Business Review

Productivity isn’t everything, but in the long run it is almost everything,” wrote Paul Krugman more than 20 years ago. Productivity in most developed economies has been anemic. During much of this time, it has been shareholders, not workers, who have reaped the benefits of higher productivity.

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Shutting Down Stores Doesn’t Have to Be Bad for Business

Harvard Business Review

In retailing, most products, stores, business units, and even firms go through a life cycle of birth, midlife, and death. While legal restrictions set an upper limit on the length of a liquidation, managers may close stores early to save operating expenses. Deciding when to close a store.

Retail 8
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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1% These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector. of revenues) and $13 million to $62 million (0.01% to 0.7% of revenues).

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

Harvard Business Review

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. What would better measures be?

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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.)