Leading Blog

FEBRUARY 19, 2014

I was struck not only by their disciplined approach but also by their freedom to discover, develop and design within broad operating parameters—conditions I did not typically associate with large, for-profit corporations. Michigan), is president of Eich Associated , a marketing and public relations consulting firm. Eich , Ph.D.

Decentralization 284

Decentralization Organizational Behavior Short-term Public Relations 284

Tanveer Naseer

MARCH 26, 2013

There’s been a lot discussion lately on the merits of telecommuting, in terms of fostering teamwork and innovation among disparate employees in an organization. That it has to change or challenge the status quo of how people operate or do things. That definition has already been created internally and collectively.

Organization 272

Organization Uncertainty Short-term Teamwork 272

Marshall Goldsmith

NOVEMBER 24, 2010

In our book, we studied the practices of organizations like Wegmans Food Markets, ING Direct, and Harrah's Entertainment. Set aside time regularly to provide your employee-owners with information that will help them understand their short-term job prospects. organizations we characterize as "service profit chain leaders."

Heskett 117

Heskett Competitive Advantage Health Care Short-term 117

HR Digest

OCTOBER 6, 2018

Advocates of the FMLA believe that employers don’t have an incentive to create fair workplace standards. In a market scenario where competition is intense, this could help organizations gain a competitive advantage as the existing talent pool is able to meet future demands. Staff More Strategically.

Learning Curve 40

Learning Curve Training Short-term Competitive Advantage 40

Harvard Business Review

MARCH 30, 2017

In it, the authors, both sociologists, made a compelling argument that, to understand labor market outcomes like inequality, it wasn’t enough to look at the supply and demand for individuals’ skills. However, any discussion of firms and wage inequality must not be limited to discussion of market forces. Related Video.

Marketing 8

Marketing Short-term Incentives Long-term 8

Harvard Business Review

DECEMBER 17, 2018

Questions like this involving issues like politics, human rights, or equality often present themselves sooner or later for any business operating in global markets. Over the course of the last few decades, multinationals have entered and left “frontier markets” like Venezuela, Cuba, Iran, Vietnam, Myanmar, and others.

Politics 10

Politics Short-term Long-term Banking 10

Harvard Business Review

MARCH 22, 2018

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. A firm’s cultural capital is a type of asset that impacts what a firm produces and how it operates.

Company 10

Company Banking Incentives Human Capital 10

Harvard Business Review

OCTOBER 25, 2011

The case for embracing the maximization of long-term shareholder value as the governing objective for publicly traded companies has been persuasively argued many times. I will therefore focus on why some CEOs are reluctant to champion long-term shareholder value and what we can do about it. The Right Objective.

Short-term 12

Short-term Long-term Incentives Objective 12

N2Growth Blog

AUGUST 5, 2010

That said, buckle-up and join me for a ride as we journey into the politically incorrect mind of Mike Myatt… The institutionalization of “Politically Correct Thinking&# in the corporate world has done more to harm operating businesses than just about any other social and/or cultural influence in recent times.

Politics 375

Politics Blog Leadership Diversity 375

Harvard Business Review

NOVEMBER 13, 2012

Several operational levers influence sales team activity to help you achieve these ends, including the following. Incentives : motivate high levels of the right sales activity. focus more effort on specific market segments), tweaks to sales force size or structure (e.g. start screening candidates on technology skills).

Market Segmentation 15

Market Segmentation Incentives Short-term Tools 15

Harvard Business Review

APRIL 2, 2018

health care system, ranging from expensive imaging for benign medical conditions to routine pre-operative testing before low-risk surgeries like cataract surgery. And state Medicaid agencies and small insurers frequently assert that short-term budget constraints prevent them from paying for costly, high value therapies like those for HCV.

Health Care 8

Health Care Insurance Pharmaceuticals Incentives 8

Harvard Business Review

OCTOBER 17, 2018

But how will AI impact the economy in broad terms? At the industry level they include (a) the extent of AI diffusion in economies; (b) the build-up of corporate profit; and (c) labor market dynamics. It took several decades for steam to drive the rollout of railways services and create a large market of exchanges in the United States.

GDP 9

GDP McKinsey Long-term Technology 9

Harvard Business Review

OCTOBER 9, 2018

The scientists put out a helpful document with FAQs , but in short, the primary takeaways are these: While the world has already warmed 1.0°C 70-90% of coral dying), but is far better for us than 2 degrees (both in terms of overall well-being and economic impacts). Set science-based carbon reduction targets for operations.

Efficiency 10

Efficiency Supply Chain Energy Transportation 10

Harvard Business Review

DECEMBER 14, 2015

The company’s more than 80 operating subsidiaries have complete independence and minimal oversight from headquarters, which requires little else besides regular financial statements and the return of excess cash that is not needed to sustain and grow the business. A long-term investment horizon improves operating performance.

Short-term 8

Short-term Long-term Supply Chain Ethics 8

Harvard Business Review

SEPTEMBER 15, 2017

Conventional wisdom is that CEOs buy back stock to manipulate the short-term stock price. They fund the buyback by cutting investment, and so firm value suffers in the long-term. It boosts prices in the short run, but the real way to boost the value of a corporation is to invest in the future, and they are not doing that.”

Short-term 8

Short-term Long-term Intangible Assets Rate of Return 8

Harvard Business Review

JANUARY 4, 2018

The ABU was set up as a centralized profit center with ambitious targets and with direct reporting to the chief operations officer; most often, similar units are organized as cost centers with no specific targets. Incentive scheme alignment. Two main traits distinguish GFNorte’s ABU incentive scheme. The right people.

Company 8

Company Chief Operating Officer Incentives Project 8

Harvard Business Review

MARCH 8, 2016

politics is not merely the inevitable result of our free-market system; it is also a consequence of the choices our business leaders make. They transfer money away from public treasuries and wage earners to provide a short-term incremental benefit that does nothing to improve the company’s long-term prospects.

Politics 8

Politics Short-term Long-term Porter 8

Harvard Business Review

MAY 25, 2017

Other firms have ventured down this path, including the conglomerate Wesfarmers , with its 200,000-plus staff, and the global hospital operator Ramsay Health Care. CEO incentives have traditionally been evaluated against objective data — also labelled “hard.” Should soft measures be part of a CEO’s scorecard?

TSR 8

TSR Banking Committee Incentives 8

Harvard Business Review

OCTOBER 3, 2011

Second, he or she needs to understand how capital markets work. 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. Understanding Capital Markets.

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

DECEMBER 29, 2016

More often the dilemmas were the result of competing interests, misaligned incentives, clashing cultures. Leaders in the study reported having to implement staff reduction targets, dispose of big businesses in major markets, and lead mergers and acquisitions. Incentives and pressure to inflate achievement of targets.

Ethics 9

Ethics Company Emotional Intelligence Short-term 9

Harvard Business Review

SEPTEMBER 24, 2015

It is the only Chinese company that receives more sales revenue from markets outside China (67%) than from inside it. isn’t one of those markets. At the time, Zhengfei had no idea what a stock option system was – not being familiar at that time with the types of incentives systems developed in the West.

Case Study 8

Case Study ESOP Incentives Long-term 8

Harvard Business Review

NOVEMBER 16, 2018

Studies show that it’s also counterproductive resulting in lower profit margins, return on equity , and employee morale ; costly delays as players haggle over the size of the kickback; and poverty and poor governance in the markets where they’re paid. ” Identify “moon markets” and walk away.

Management 9

Management Ethics Cost Bureaucracy 9

Harvard Business Review

JUNE 22, 2018

We have long taught that network effects can provide market power and sustained or even self-reinforcing competitive advantage (the best kind). Having five different desktops with different operating systems, on the other hand, is clunky. Then Spotify entered, and showed us just how short-term this advantage was.

Competitive Advantage 8

Competitive Advantage Library Travel Long-term 8

Harvard Business Review

MAY 8, 2018

For firms, shadow economies may increase the prospective costs of doing business, as they connote higher levels of corruption and put licit businesses at a competitive disadvantage , as compared with otherwise less productive firms operating in the informal sector.

Influence 8

Influence Globalization Participative Incentives 8

Harvard Business Review

JANUARY 13, 2015

The logic is simple: Because patients currently do not bear the expense of most of their decisions, shifting expenses to them will cause them to make more rational, cost-effective decisions and will ultimately help bring about a more functional health care market. Reconceive the market. Three obstacles.

Health Care 8

Health Care Insurance Long-term Bottom-up 8

Harvard Business Review

NOVEMBER 10, 2011

The most punishing innovations, they argued, were the ones that were easy to dismiss at first blush — simple, affordable solutions that took root outside the mainstream market. Capital markets is one explanation. The halo effect leads companies to assuming their best operators can seamlessly shift into innovation work.

Innovation 15

Innovation Disruptive Innovation Christensen Kahneman 15

Harvard Business Review

OCTOBER 17, 2013

In my work as an investor, an operating executive at growth companies, a mentor to startups, and a business school lecturer, I’ve come to believe that the quickest way to understand a company’s model is to look at these two documents. Financial incentives are the key tools used to implement a strategy.

Planning 8

Planning Incentives Document Price 8

Harvard Business Review

FEBRUARY 16, 2011

And is that, perhaps, the prime mover of what both Tyler Cowen and I have termed a Great Stagnation? The Enron effect is highly hazardous because it lethally poisons incentives. Let's call it Enronia, for short. Markets would fail at allocating capital — and misallocate and malinvest it in low-worth stuff instead.

Incentives 15

Incentives GDP Hypercompetition Self-aware 15

Harvard Business Review

DECEMBER 19, 2016

Even in the most commoditized markets, winning players need to create value by adding small slivers of differentiated services, logistics, quality and reliability. On the other hand, a highly differentiated offering is no longer a guarantee of long-term value creation. Insight Center. The 21st-Century CEO. Sponsored by Cognizant.

CEO 8

CEO Supply Chain Disruptive Innovation P&L 8

Harvard Business Review

MAY 20, 2014

Hathaway and Litan stay close to the data in this work and stop short of speculating about causes of this trend. financial services sector went from 13,000 of independent banks to half that number, while the top ten banks grew from 20% market share to 60%. As of 2013, the top ten banks had 70% of the market. So allow me.

Pharmaceuticals 9

Pharmaceuticals Banking Chemicals Entrepreneur 9

Harvard Business Review

DECEMBER 7, 2017

It is tough to beat the market and over long periods of time indexing has been shown to outperform most active managers. On the other side, fans of active management see it as a trend that can damage market efficiency and lead to distortions in market prices. The debate is far from settled and will likely go on for a long time.

Supply Chain 8

Supply Chain Asset Management Chemicals Long-term 8

Harvard Business Review

JUNE 19, 2017

Initially, a startup has no business model and no market share to defend. But often the legal obstacles confronting startups have been put in place by companies that look to the government and regulators as their first line of defense against new market entrants. Startups Can Do Anything. to stifle competition.).

Company 8

Company Hotels Business Model Drucker 8

Harvard Business Review

JUNE 29, 2016

At home, the UK faces dissolution pressures if Scotland seeks to salvage its EU membership, while the EU has every incentive to make Brexit a painful experience to deter other defectors, making the outcome of negotiations difficult to predict. There are significant drivers of uncertainty domestically and abroad. For example, a U.S.

Uncertainty 8

Uncertainty Short-term Supply Chain Long-term 8

Harvard Business Review

SEPTEMBER 26, 2011

The stock market is short-term-oriented. Stock-based incentive compensation aligns the self-interest of management with shareholders, and a performance-based pay system increases employee motivation. The market favorably receives projects with long-term payoffs, particularly those in research and development.

CEO 15

CEO Short-term Long-term Restructuring 15

Harvard Business Review

JANUARY 13, 2014

In 1960, marketing legend Ted Levitt provided perhaps his seminal contribution to the Harvard Business Review : “ Marketing Myopia.” And short-term numbers at that. As it notes, “When we operate according to these principles, the stockholders should realize a fair return.”. No, it’s to maximize shareholder value.

Levitt 10

Levitt Christensen Competitive Advantage Welch 10

Harvard Business Review

OCTOBER 29, 2012

And even small improvements in practices can have a huge impact: Among manufacturers, for example, we found that a one-point gain on our five-point scale correlates with 23% higher productivity, 14% higher market capitalization, and a 1.4-percentage-point-higher and then devising metrics for monitoring progress over the short and long terms.

Management 8

Management Benchmarking Short-term Incentives 8

Harvard Business Review

FEBRUARY 23, 2017

The pay ratio is also a misleading statistic because CEOs and workers operate in very different markets, so there is no reason for their pay to be linked — just as a solo singer’s pay bears no relation to a bassist’s pay. Firms can disclose the vesting schedule of incentives.

CEO 8

CEO Price Long-term Incentives 8