Remove Long-term Remove Management Remove Present Value Remove Strategy
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What is Great Leadership?

Great Leadership By Dan

There is still a propensity to use the word manager verses leader which can have a significant different intend and meaning. Managers tend to govern over process, data, projects and products while leaders tend to utilize human capital to navigate these same areas and participate as part of the process.

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Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business Review

When Patrick Collison, CEO of electronic payments company Stripe, helped kick off our second-year strategy course at the Stanford Graduate School of Business this year, he observed that this has created one of the most profound differences in decision criteria between leaders in industrial-era and internet-era companies. So is Facebook.

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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business Review

” Laying out their data, they find that long-term oriented companies create more financial value and more jobs. I agree with their vision of a future in which more companies focus on the long term and become more productive for the world (their findings accord with my own work on the dangers of short-termism ).

Hedge 8
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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

So, in real terms, debt financing is essentially free. The ready access to low-cost capital should change the way business leaders think about strategy, and in particular the relative value of improving profit margins versus accelerating growth. The Refresher: Net Present Value. Related Video.

ROE 13
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Is Your Business Biased Against Innovation?

Strategy Driven

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. Companies have long struggled to generate sustained profitable growth – and few have succeeded. How do they do it? If it is positive, it’s thumbs up, if it’s negative, it’s thumbs down.

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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Successful companies shape their high-level strategies by relying not on complicated frameworks but on simple rules of thumb. It illustrates how simple rules can help companies shape strategy in an uncertain environment. Rail accounted for only 20% of long-haul shipments in Brazil, compared with 80% in most countries.

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Reclaiming the Idea of Shareholder Value

Harvard Business Review

Activist investors challenge management strategies. Investors and others ask why companies binge on buybacks while skimping on value-creating investment opportunities. Properly understood, maximizing shareholder value means allocating resources so as to maximize long-term cash flow.