Harvard Business Review

SEPTEMBER 4, 2017

“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.

Human Capital 15

Human Capital Kaizen Agility Energy 15

Harvard Business Review

OCTOBER 3, 2011

Critics imply that managing for shareholder value is all about maximizing the short-term stock price. Companies that manage for shareholder value, the thinking goes, do whatever it takes to engineer an ever-higher market price. If the market doesn't respond, management can take action to benefit from the value gap.

Short-term 13

Short-term Long-term Price CEO 13

Harvard Business Review

DECEMBER 13, 2017

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.

Short-term 8

Short-term Decentralization Company Trends 8

Strategy Driven

SEPTEMBER 9, 2011

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Yet for the small handful of companies that have managed to drive growth consistently – even through tough times – the payoff is great. How do they do it?

Innovation 50

Innovation NPV Business Model Constraint 50