Harvard Business Review

SEPTEMBER 13, 2017

But we recognize that, in many businesses, resources are often allocated according to short-term, bottom-line pressures. These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector. The Betty and Gordon Moore Foundation provided partial funding for the research.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

DECEMBER 13, 2017

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. Most attempts to combat short-termism are flawed because they focus on changing CEO behavior through some combination of pleading and incentives.

Short-term 8

Short-term Decentralization Company Trends 8

Harvard Business Review

NOVEMBER 25, 2013

To date, however, the reality of marketing analytics has fallen short of the promise. Just 36 percent of CMOs, for example, have quantitatively proven the short-term impact of marketing spend, according to the 2013 CMO Survey (and for demonstrating long-term impact, that figure drops to 32 percent).

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

OCTOBER 10, 2017

Even if executives try to prioritize it, innovation often gets crowded out by more “urgent” short-term pressures. For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. Here are four things leaders can do. Don’t Get Trapped in Your P&L.

Innovation 8

Innovation P&L ROI Long-term 8

Harvard Business Review

MARCH 31, 2015

As every company is becoming a digital company, every leader (who is also becoming a digital leader) is realizing that breaches may negatively affect profitability and the company’s long-term ability to do business.

Price 8

Price Long-term Banking Short-term 8

Harvard Business Review

MARCH 10, 2011

With a record $2 trillion in cash and short-term liquid assets on hand, U.S. Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. What's holding them back?

Cost of Capital 13

Cost of Capital CAPM Cost Discounted Cash Flow 13

Harvard Business Review

MARCH 28, 2016

This was the era of the company man, where employees exchanged long-term loyalty for a livable wage and a pension plan. And given the pace of growth, capital was always in demand. Outside funds bring with them a pressure to achieve short-term results that trade-off with value creation.

Long-term 8

Long-term Short-term Reputation Incentives 8

Harvard Business Review

MAY 4, 2012

As we saw again this quarter, earnings announcements can have significant impacts on stock valuations—at least over the short term. Less Volatility in Stock Price: The net effect of providing guidance is arguably a less volatile stock price, which can result in a lower beta and a lower cost of capital.

CFO 11

CFO Metrics Price Depreciation 11

Harvard Business Review

JUNE 22, 2015

” The other forms of ROI often require a more complex understanding of financial concepts such as the firm’s cost of capital or the time value of money. . “I like breakeven analysis because it is easy to understand and it’s often the simplest way to think about return on investment.”

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

Harvard Business Review

FEBRUARY 7, 2017

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. We’ve seen companies such as Unilever, AT&T, and Amazon succeed by sticking resolutely to a long-term view.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

APRIL 2, 2014

The early tests that looked at the stock market and looked at short periods of time generally found pretty decent results consistent with the market efficiency insight. A lot of other stuff that looked at stocks and looked at short periods of time didn’t find much. 2 is this distinction between short-term vs. long-term predictability.

CAPM 8

CAPM Discount Price Finance 8