Harvard Business Review

DECEMBER 22, 2016

Over the years, governance has attempted to close that gap by aligning incentives with measures of performance. But where they have succeeded, they have left public corporations increasingly swayed by short-term results (which are easy to measure) at the expense of future success. These attempts have often failed.

Short-term 8

Short-term Long-term Leveraged Buy-out Globalization 8

Harvard Business Review

MARCH 14, 2017

When one of us (Vivek) and his team launched Roivant Sciences in 2014 and began developing treatments for Alzheimer’s disease — they were determined to learn from the pharma industry’s innovation issues and build a more sustainable innovation engine. Roivant’s first response was to address misaligned incentives.

Innovation 8

Innovation Company Incentives Industry 8

Harvard Business Review

DECEMBER 17, 2018

Keep a long term focus. A decision based on short-term financial or legal motives alone is destined to end in problems. It doesn’t matter whether that short-term motive is to make profits or to avoid losses, to follow sanctions or to evade them. Its short-term motives led to deep losses.

Politics 9

Politics Short-term Long-term Banking 9

Harvard Business Review

DECEMBER 29, 2016

But what about the ordinary engineers, managers, and employees who designed cars to cheat automotive pollution controls or set up bank accounts without customers’ permission? More often the dilemmas were the result of competing interests, misaligned incentives, clashing cultures. Cross-cultural differences.

Ethics 9

Ethics Company Emotional Intelligence Short-term 9

Harvard Business Review

MARCH 30, 2017

Companies can be divided into two types , in terms of how they approach hiring and compensation: organizational oriented and market oriented. The shorter-term orientation discourages employers from bearing risks on behalf of their workers and encourages them to use employment practices that lower direct costs and increase flexibility.

Marketing 8

Marketing Short-term Incentives Long-term 8

Harvard Business Review

OCTOBER 5, 2012

CEOs of large companies face a conundrum: they are confronted with a growing number of frugal consumers clamoring for affordable solutions, yet their existing corporate culture and incentive systems are designed to support a "bigger is better" business model — not to deliver more with less. Specifically, CEOs must: 1.)

CEO 8

CEO Innovation Restructuring Incentives 8

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. But in the short run, cash flows and earnings can be very different. Communication.

Short-term 11

Short-term Long-term Price CEO 11

First Friday Book Synopsis

APRIL 5, 2011

Here are brief excerpts from two articles featured by McKinsey & Company. I suggest you read them in the order in which they appear here, then click where indicated to read each in its entirety. I presume to suggest, further, that you register to receive email updates on other resources that are also available at [.].

Crisis 80

Crisis McKinsey Resources Article 80

Harvard Business Review

AUGUST 21, 2012

But a lost sense of direction, one that results in a "lost year" or a "lost decade," is often a sign that leaders have lost something else — something that is arguably more fundamental to long-term organizational success than the ability to set a forward course. Microsoft, Eichenwald suggests, has fallen short on both of those counts.

Long-term 13

Long-term Short-term Engineering Price 13

Harvard Business Review

SEPTEMBER 11, 2017

companies can’t fill their open positions, according to a McKinsey Global Institute study that found that analytical, engineering, and management roles are the hardest to fill. Testing and Learning Identify—and actively communicate and learn from—short-term wins. For instance, 40 percent of U.S.

Content 8

Content Katz Forrester Budgeting 8

Harvard Business Review

MARCH 16, 2016

The key resources were owned by another function that was not involved in the process and had no incentives to lend the resources. The inevitable lack of concrete progress degraded the collaborative innovation back to a short-term sales effort. To no one’s surprise, the experience was not repeated.

B2B 8

B2B Innovation Company Workshop 8

Harvard Business Review

FEBRUARY 23, 2017

An engineer who has the capacity to service 10 machines creates, say, $50,000 of value regardless of whether the firm has 100 or 1,000 machines. In short, CEOs and employees compete in very different markets, one that scales with firm size and one that scales less. Firms can disclose the vesting schedule of incentives.

CEO 8

CEO Price Long-term Incentives 8

Harvard Business Review

NOVEMBER 4, 2014

This is the recipe for “bureaucracy,” the 150-year old mashup of military command structures and industrial engineering that constitutes the operating system for virtually every large-scale organization on the planet. Shrink an individual’s scope of authority, and you shrink their incentive to dream, imagine and contribute.

Bureaucracy 8

Bureaucracy Short-term Long-term Intellectual Capital 8

Harvard Business Review

NOVEMBER 4, 2014

This is the recipe for “bureaucracy,” the 150-year old mashup of military command structures and industrial engineering that constitutes the operating system for virtually every large-scale organization on the planet. Shrink an individual’s scope of authority, and you shrink their incentive to dream, imagine and contribute.

Bureaucracy 8

Bureaucracy Short-term Long-term Intellectual Capital 8

Harvard Business Review

MARCH 18, 2011

When the sponge goes off the market, she must come to terms with the fact that whatever stock she had in her possession was it. Chances are, you will either come up short of your 20-article limit or readers will start blitzing the site on the 30th or 31st of the month. She could buy no more. But wait: there's more.

Advertising 12

Advertising Incentives Media Article 12

Harvard Business Review

APRIL 23, 2015

This may seem like heresy—even the analysts who are bearish on Tesla in the short-run are bullish on its long-term potential. Additionally, the incentive structure is misaligned for employees and value chain partners. That individual is incented to sell as many of the most expensive model (the Model S) as possible.

Price 8

Price Disruptive Innovation Incentives Bottom-up 8

Harvard Business Review

AUGUST 25, 2014

This illustrates one source of confusion in the debate over the existence of a skills gap: distinguishing between the short and long term. Yet although skills are not a major contributor to today’s unemployment, the longer-term issue of worker skills is important both for managers and for policy. But that’s not quite right.

Skills 8

Skills Short-term Technology Learning-by-Doing 8

Harvard Business Review

SEPTEMBER 5, 2013

So large-scale re-engineering programs, productivity drives, and changes to the incentive system are unlikely to work: they can easily be resisted, ignored or gamed. Atomic Object, a software company in Michigan, put in place a standing-only rule in meetings, to keep them focused and short.

Productivity 8

Productivity Products Peer Review Short-term 8

Harvard Business Review

JANUARY 23, 2017

Most of us assume that if we want to change people’s behavior, we need to change their incentives. Take the heat of other short-term goals so that time spent collaborating feels like less of an opportunity cost. The organizational stars have tremendous autonomy over key work decisions. Harness the power of competition.

Payback Period 8

Payback Period How To Real Estate Hedge 8

Harvard Business Review

OCTOBER 6, 2011

We have been deploying technology, re-engineering, training, and adopting modern IT-enabled management platforms to help our workers improve their productivity, hence their income. CEOs and boards: Esquel's governance and incentive structure allow it to persistently embrace and pursue the values described above.

Industry 10

Industry Strategy Supply Chain Long-term 10

Harvard Business Review

JUNE 5, 2012

Remember just a decade ago when the term "inner city" basically meant "dead city," conjuring up images of destruction, dereliction and despair? Go to office openings of new ventures, make a congratulatory call to those who raise money, write a thank you note to the entrepreneur who hired a few engineers or a high school summer intern.

Innovation 13

Innovation Real Estate Entrepreneur Venture Capitalist 13

Harvard Business Review

AUGUST 6, 2015

Often, one or the other gets short shrift in the rush to strike a deal or gets lost in the glare of a promising future. I hesitate to use that term because of its reputation as a business buzzword. Simpler trans­actions usually include little joint management, just an agreement to exchange value on prearranged terms.

Competitive Advantage 8

Competitive Advantage Strategy Short-term Resources 8

Strategy Driven

APRIL 4, 2014

That 2% includes all the doctors, lawyers, accountants and engineers… those of us who actually advise. 70% of corporate CEOs think that business is too much focused on the short-term. Retaining good employees, involving training, motivation and incentives, is yet another matter. The human body has 600 muscles.

Budgeting 92

Budgeting Succession Consultative Crisis 92

Harvard Business Review

JULY 2, 2018

In 2016, DJI had 1,500 people in R&D , or 40% of a workforce of 4,000 – a luxury only available to a company that can tap into low-cost engineering talent. Engineers build new features and functionalities while management graduates can sell products at low cost and even create new business models and commercial innovations.

Innovation 8

Innovation Engineering Business Model Long-term 8

Harvard Business Review

FEBRUARY 27, 2012

Capitalism might be the greatest engine of prosperity and progress ever devised, but in recent years, individuals and communities have grown increasingly disgruntled with the implicit contract that governs the rights and responsibilities of business. How do we stretch management timeframes and perspectives?

Short-term 14

Short-term Long-term Ethics Incentives 14

Harvard Business Review

OCTOBER 9, 2018

Creating any kind of cultural transformation requires a long-term commitment, and that expectation should be set from the start across the various stakeholders interested in bringing the organization into the data-driven era. How can each of these principles be applied to building data skills across teams?

Team 8

Team Welch Motivation Metrics 8

Harvard Business Review

MARCH 1, 2012

These are nuclear engineers, hydraulic and electrical systems workers, and the rich ecosystem of people who make and run what we use everyday — from life-saving tubing hook-ups in hospital rooms to the bridges we cross. A key component: mentoring and cross training between new entrants and greyer talent.

Politics 10

Politics Maturity Mentor Offshoring 10

Harvard Business Review

JUNE 23, 2015

No special incentives. Executives often get fooled by inspiring stories of engineers at companies like 3M or Google coming up with germs of ideas in the 15-20% of their time they allocate to side projects. And that was it. No ring-fenced resources to pursue innovation. No tools or training.

Innovation 8

Innovation Company Six Sigma Constraint 8

Harvard Business Review

AUGUST 21, 2013

Since Jeff Howe first coined the term in a 2006 Wired article , "crowdsourcing" has garnered extensive media buzz and investment dollars. What incentives can be put in place to ensure engagement and success from the community? Let me put it this way: Imagine recruiting and training a team at your own company for a long-term engagement.

Short-term 8

Short-term Talent Management Long-term Project 8

Harvard Business Review

JANUARY 31, 2014

It turns out there’s both good news and bad news when it comes to the answers: Our research found that, among multitaskers, certain types of ads are more (or less) effective in terms of driving TV viewers online. Brands such as Amazon and eHarmony, a dating website, have a stronger incentive to use particular types of ad content.

Advertising 8

Advertising Brand Apparel Audience 8

Harvard Business Review

FEBRUARY 8, 2013

These functional teams struggle to meet the short-term needs of all their constituents, juggling an endless (and often conflicting) list of demands from line units. Unfortunately, however, most cross-functional teams fall far short of delivering truly differentiating capabilities.

Supply Chain 8

Supply Chain Real Estate Short-term Merchandising 8

Harvard Business Review

MARCH 14, 2016

The term “unicorns,” coined, in 2013, by Aileen Lee, founder of Cowboy Ventures , is commonly used to identify venture-backed private companies valued at $1 billion or more. They attempted nearly 34 projects that failed before developing an iPhone app called Picaboo, which was subsequently rebranded as Snapchat.

Company 8

Company Succession Analysis Entrepreneur 8

Harvard Business Review

JANUARY 11, 2017

Policy makers can and should do more to align the incentives of companies and workers, for example by providing tax incentives for profit-sharing schemes , by providing health benefits, by hiring new employees, or by linking workplace practices to government procurement and financing programs.

Skills 8

Skills Engineering Telecommunications Incentives 8

Harvard Business Review

NOVEMBER 2, 2017

trillion in purchasing power parity , it was the third-largest (in PPP terms) and the fastest-growing large economy in the world. In the case of India’s demonetization, it is safe to assume that people have a strong incentive to not lose money, so it is natural that they found ways to deposit their invalidated cash in the banks.

Policies 8

Policies Banking Short-term GDP 8

Harvard Business Review

OCTOBER 20, 2011

The revolution ran on equity capital, which was in short supply. DuPont sent Donaldson Brown, a promising engineer-turned-finance staffer, to Detroit to sort things out, and sort them out he did. Similarly, production engineers treated their factories royally and their labor as expendable, until unions and labor laws intervened.

ROE 12

ROE Debt to Equity Ratio Innovation Incentives 12

Harvard Business Review

APRIL 23, 2015

It suggests that firms sometimes have an incentive to pay workers more than the going rate because doing so attracts better candidates, motivates them to work harder, and encourages them to stay at the company longer. But the story of efficiency wages doesn’t start and stop with traditional economic incentives.

CEO 8

CEO Power Price Merchandising 8

Harvard Business Review

SEPTEMBER 5, 2012

Unfortunately for the accused, they are students — not engineers or project managers — and the professor meant to ban such collaboration in his instructions to the test. Collaboration is not the only skill schools fall short on. The higher the stakes of the test, the greater the incentive to cheat.

Education 8

Education Incentives Efficiency Learning-by-Doing 8