article thumbnail

The Answer to Short-Termism Isn’t Asking Investors to Be Patient

Harvard Business Review

Toyota has a class of shares that gives investors “loyalty dividends” if they hold onto them for five years. Third, even taking the existence of a large shareholder as given, loyalty dividends encourage only holding for the long-term, rather than stewardship. Some companies take matters into their own hands.

article thumbnail

Your Digital Strategy Shouldn’t Be About Attention

Harvard Business Review

Consider Mr Porter , the man-cousin of Net-a-Porter. Its rivals try to infect the entire internet with glamorous photoshoots studded with celebrities — something Mr Porter eschews completely. Deliver lasting gains in their quality of life. Don’t just carrot-and-stick them into “loyalty.”

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Skills Doctors and Nurses Need to Be Effective Executives

Harvard Business Review

While these qualities help engender loyalty, they often make some of the difficult conversations associated with managing people especially challenging. Strategy guru and Michael Porter of Harvard Business School elegantly articulated this when he wrote that strategy is both what we choose to do — and what we choose not to do.

article thumbnail

The Comprehensive Business Case for Sustainability

Harvard Business Review

Michel Porter and Mark Kramer pioneered the idea of “creating shared value,” arguing that businesses can generate economic value by identifying and addressing social problems that intersect with their business. The system also improves product quality by creating regulated growing conditions. Building Customer Loyalty.