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Deadly Disease of Management: Emphasis on Short-term Profits

Deming Institute

Thomas Johnson and Anders Broms, the authors provide many good thoughts on the problems of accounting measures and management. At Berkshire, managers can focus on running their businesses: They are not subjected to meetings at headquarters nor financing worries nor Wall Street harassment. In Profit Beyond Measure by H.

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How Incentives for Long-Term Management Backfire

Harvard Business Review

Four hundred seventy-one companies in the S&P 500 bought back stock last year, and 372 companies expanded their dividends — actions undertaken in spite of the need to invest heavily to keep up with global market changes. The logical performance period for long-term incentives is one that matches those cycles.

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Bonus or No Bonus? | N2Growth Blog

N2Growth Blog

Posted on November 29th, 2010 by admin in Miscellaneous , Operations & Strategy , Talent Management By Mike Myatt , Chief Strategy Officer, N2growth Bonus or no bonus? There is a tremendous amount of conflicting data as to whether or not incentive compensation in any form is an effective motivation tool. That is the question.

Blog 382
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StrategyDriven Editorial Perspective – The Government has Created a Monster

Strategy Driven

Nonetheless, the failure and resolution of Texas-based First RepublicBank, reminds us that the hand of government can harm as well as help when it wrestles the invisible hand of the market. With both banks highly concentrated in the weak Texas real estate market, the deal ended up helping neither bank. Managing the Crises , p.

Banking 50
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The Economics of Why Companies Don’t Fix Their Toxic Cultures

Harvard Business Review

By thinking of a company’s culture as a form of investment subject to market failures, we can better understand why companies sometimes tolerate misconduct, and why they can’t always fix it on their own. Rules may be followed to the letter, but not in spirit. Market Failures and Misconduct Risk. Externalities.

Company 10
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Social Pressure Is a Better Motivator Than Money

Harvard Business Review

So if financial incentives aren't a big lever, where can leaders look to increase motivation? In our research for Beyond Performance we found there is a simple one that is often overlooked: Moving beyond the 'market contract' with employees and forging a stronger 'social contract'. How would she react? Most of the lawyers agreed.

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Why the 21st Century Will Belong to Family Businesses

Harvard Business Review

Without external markets to please, they can take a long-term perspective and make decisions on the basis of sustainable economic value. As one client told me, “It used to be that unhappy customers would write a letter. Organization: From Managing Complexity to Rapid Response. We have to stay out in front of our image.”