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

Harvard Business Review

If a company has beat or missed its EPS targets by less than two cents , that means the company has nipped and tucked its quarterly results just enough to meet the target EPS number it committed to analysts. Such misplaced optimism potentially masks underinvestment in technology needed to keep up with the competition.

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How Incentives for Long-Term Management Backfire

Harvard Business Review

For example, one large technology company embraced a strategy to win through new digital businesses. Another company, in the agricultural technology sector, chose free cash flow as the primary long-term incentive measure. One milestone might include completion of prototype-level next-generation digital products.

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Business Needs to Do What Government Can't

Harvard Business Review

Levi Strauss, intriguingly, has used biomimetic techniques in developing new production techniques for jeans. We're moving towards innovation in technology, pricing, business models and partnerships," explains head of corporate responsibility management, Dorje Mundle, of the company's base-of-the-pyramid operations.

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Yes, Short-Termism Really Is a Problem

Harvard Business Review

.” Keiretsu “was widely seen as a great Japanese strength,” Summers notes, “yet even apart from Japan’s manifest macroeconomic difficulties, Japanese companies lacking market discipline have squandered leads in sectors ranging from electronics to automobiles to information technology.”

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The 6 Ways Business Leaders Talk About Sustainability

Harvard Business Review

The focus of people using a resources frame to understand sustainability is often on waste reduction and technological innovation. Challenges of this frame: It is tempting to imagine that such technology will solve all our resource problems, but shoehorning billions of extra people onto the planet must have consequences.

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What Apple Should Do with Its Massive Piles of Money

Harvard Business Review

However, there are two other important groups of people who invest in the corporation without a guaranteed return: Taxpayers , through a wide variety of government agencies charged with spending on physical infrastructure and the nation’s knowledge base , regularly provide productive resources to companies without a guaranteed return.