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Sustainable Investment Funds Can Encourage Worse Behavior

The Horizons Tracker

Subsequently, leveraging historical data, the researchers evaluated the responses of the highest and lowest polluting groups to fluctuations in their capital costs, an impact similar to the objectives of the sustainable investing movement.

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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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Should Companies Retain "Strategic" Cash?

Harvard Business Review

Strategic cash also can be used to finance long-term reinvestment programs in the business—which is especially valuable to companies in capital-intensive industries (e.g., high technology or pharmaceutical) that are investing in projects with uncertain long-range payoffs. energy or telecom) or research-intensive industries (e.g.,

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The Case for Investing More in People

Harvard Business Review

We know that great ideas that drive breakthroughs in productivity come from human beings with the time, talent and energy to innovate. One step in reversing this trend is to start treating hours like dollars, with a real opportunity cost. Both Kaizen events and Agile sprints are investments in innovation and human capital productivity.

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What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Harvard Business Review

The cost of capital is at historic lows, averaging below 6% for most large U.S. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders.

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6 Digital Strategies, and Why Some Work Better than Others

Harvard Business Review

Digital technology has been roiling markets and disrupting companies for more than two decades, but despite that lengthy history, incumbents are still struggling to enact and deliver on digital transformations. Sponsored by DXC Technology. Insight Center. Crossing the Digital Divide. How the best companies get up to speed.

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

Harvard Business Review

Repaying such profits to shareholders through share repurchases is better than misinvesting that cash to diversify into unrelated businesses in which management has no expertise or overinvesting in projects that may not return cost of capital. As I said earlier, measuring a company’s short-term orientation is incredibly tricky.

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