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

Harvard Business Review

For instance, McKinsey considered a smaller ratio of capital expenditure to depreciation to indicate short-term thinking, because it’s assumed that short-term companies will invest less, and less consistently, than other companies. As I said earlier, measuring a company’s short-term orientation is incredibly tricky.

EPS 8
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Is Your Business Biased Against Innovation?

Strategy Driven

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. They can hire an individual to manage it, they can outsource the office management, they could sign up with a software service platform like Microsoft to run it for them.