Remove Development Remove GAAP Remove Innovation Remove Management

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource. So, investors, and therefore managers, might be adjusting their approach to risk accordingly. Furthermore, the operating managers cannot take their eyes off day-to-day operations to focus on innovation. Analysts increasingly rely on non-GAAP metrics. Martin Konopka/EyeEm/Getty Images.

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Calculating the Market Value of Leadership

Harvard Business Review

GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined. To gain more insights into a specific firm, investors have shown more interest in intangibles like strategy, brand, innovation, systems integration, collaboration, and so on. The leadership ratings index we have developed has two dimensions, or domains: individual and organizational.

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