Leading Blog
JUNE 23, 2020
The problem was that he had to deliver something in the short-term to the investors for survival but had to set the company up for tomorrow too. Short- and long-term goals were more tightly intertwined than they appeared. Grow while keeping fixed costs constant. He did both. It is a process.
Harvard Business Review
NOVEMBER 30, 2018
And the same applies to the affected workers: The tight labor market means there are opportunities for those who go through retraining. Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. Another issue involves reallocating resources in the face of fundamental market shifts.
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Harvard Business Review
APRIL 5, 2017
The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. Getting the measurement right is central to providing convincing evidence on the debate over short-termism.
Harvard Business Review
MAY 28, 2018
He asked one former major investor for a reaction to the company’s prediction (accompanying poor quarterly results): “that the [current] market contraction will bottom out soon and our profits will improve.” I assumed you had some further cost reduction up your sleeve.”
Harvard Business Review
JUNE 24, 2013
If you are inside a big company, profit-draining ventures are typically early sacrifices in corporate cost-cutting exercises. There''s a term in the psychology literature for this — the availability heuristic. Growth is great, but profits are more convincing proof of long-term viability.
Harvard Business Review
DECEMBER 21, 2011
Early in my career I was fortunate to help a large manufacturer and distributor of construction and agricultural equipment change the way it went to market in North America. Within the first year of our effort net sales increased 27 percent while fixed costs were reduced by 40 percent. Not all fixed cost reductions were people.
Harvard Business Review
OCTOBER 6, 2014
The “ accelerated recognition of commercial income and delayed accrual of costs” undoubtedly flatters short-term results, but it soon catches up with you, as four suspended senior executives have found out. UK retail, like the rest of the developed world, is witnessing a few big long-term trends. billion to $8.6
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