4 Ways CEOs Can Conquer Short-Termism

Harvard Business Review

Great stories are credible, simple, consistent, and use both financial and nonfinancial metrics to link a long-term vision and firm values with a distinctive business strategy and focused operational priorities. ” The blueprint included the company’s purpose, vision, values, and strategic goals, and fits on a single page. Bertolini observed that many of his peers had been promising 15% earnings per share (EPS), even during the financial crisis of 2009.

EPS 4

You Can't Impress Stock Analysts.and Shouldn't Try

Harvard Business Review

Who declared 7 or 10 or 15 percent growth in earnings a sacrosanct pursuit, above all other corporate goals — like the innovation that leads to novel solutions that address customer needs? Nobody writes a paean to the search for 9 percent EPS growth. It's a strategic and operational straight-jacket. ExxonMobil reported last week that its net income reached $10.3 billion.in just the third quarter. The oil giant is arguably the most profitable corporation in history.

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Why I'm Glad I Got Fired

Harvard Business Review

A friend of mine, Godfrey Sullivan , asked me to consider running the operations for the Americas unit at Autodesk. Words like "productivity," "efficiency," and "innovation" are defined by goal posts of our own creation: number of units shipped, revenue and profit, EPS and shareholder return.