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.

EPS 8

EPS Metrics Depreciation Short-term 8

Strategy Driven

MAY 25, 2021

In an ideal world, every business would be successful enough to bring in a steady cashflow and keep themselves operating at a sustainable level. This is where a business has to restructure their company debt, contacting their debtors to arrange manageable payment instalments or liquidate assets to pay off outstanding debts.

CVA 122

CVA Restructuring Finance Short-term 122

Harvard Business Review

MARCH 14, 2014

Right away, the senior management team converts its PowerPoint decks into a road show that explains the strategy, develops a comprehensive implementation plan, sets up a program management office, establishes steering committees, assigns roles, and even starts restructuring. But after six months the plan starts to falter.

Strategy 8

Strategy Restructuring Committee Short-term 8

Harvard Business Review

AUGUST 9, 2016

The primary focus was on fixing the acquired firm through financial restructuring, dramatic cost cutting, and strategic slashing. Leaders were driven by short-term profits and rapid action to flip the organization. architectural design, streets, water, electricity, sewage, and regulations).

LBO 8

LBO Restructuring Real Estate Leveraged Buy-out 8

Harvard Business Review

JANUARY 30, 2017

Although good at scaling and operating a sales organization, the leader was unable to succeed in a rapidly changing environment that needed experimentation and nimbleness. A tyrant, for example, may fix some things in the short term but create other problems at the same time.

Restructuring 8

Restructuring Health Care Self-aware Short-term 8

Harvard Business Review

FEBRUARY 27, 2015

Greece did have some good arguments going for it: It had achieved the biggest fiscal adjustment any developed country had mustered so far , stabilized its economy, and restructured its private debt. So, clemency on loan terms might make procedural sense. The EU is notorious for putting off its hard decisions. This looks unlikely.

Restructuring 8

Restructuring Policies Crisis Banking 8

Harvard Business Review

SEPTEMBER 26, 2011

The stock market is short-term-oriented. Furthermore, these actions are taken seemingly without regard to the consequences for the community, the employees, the survival of the company as an institution, or the creation of long-term firm value. Yes, those actions would have boosted short-term earnings. I disagree.

CEO 15

CEO Short-term Long-term Restructuring 15

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. The latter was concerned with “measuring long-term progress in the areas of diversity and inclusion, sustainability, and culture.”

TSR 9

TSR Banking Committee Incentives 9

Harvard Business Review

MAY 1, 2018

We still believe the executives at Tejon Ranch made some mistakes, as did we, but our biggest collective mistake was thinking in terms of threats rather than opportunities. One popular view of activists is that they are short-term, cut-and-run operators who are looking for a quick profit.

CEO 8

CEO Real Estate Long-term Short-term 8

Harvard Business Review

JUNE 23, 2016

While a natural inclination, this group is (by design) representative of current operating units and functions, which often have a status quo to defend. Lastly, this group may be more attuned to individual interests (including performance metrics and compensation incentives) rather than the collective and longer-term needs of the firm.

Leadership 10

Leadership Diversity Committee Long-term 10

Harvard Business Review

JANUARY 29, 2018

For the latter, we measured incumbents’ operational efficiency, commitment to innovation, and defenses against attack. But companies in this state often face increasing pressure to improve efficiency and reduce operating costs in their legacy businesses, and this pressure attracts opportunistic disruptors.

Industry 8

Industry Fixed Assets Retail Market Penetration 8

Harvard Business Review

DECEMBER 10, 2015

Many of us are familiar with the hazards of Groupthink - when teams or organizations operate on autopilot and feel a general false sense of invulnerability. They wind up maintaining course without appropriately considering emerging risks, debating alternative scenarios, or exploring new courses of action.

Groupthink 8

Groupthink Team Consensus Christensen 8

Harvard Business Review

OCTOBER 4, 2017

However, studies dating back to Joseph Schumpeter’s coinage of the term “ creative destruction ” suggest that adjustments to technological change may be more episodic. These patterns are consistent with a restructuring of labor demand towards these skills. production and operatives).

Skills 8

Skills Sample Technology Depreciation 8

Harvard Business Review

MAY 28, 2015

The Future of Operations. The latter are troublesome because the knowledge base and skills required to operate in the new realm are so fundamentally different. Paralleling Jim March’s classic analysis of “exploration vs. exploitation,” short term crowds out long term here as well. Insight Center.

Technology 8

Technology Depreciation Christensen Short-term 8

Harvard Business Review

MARCH 12, 2018

What happened to being rewarded for consistent, quality work over the long-term? His biceps were visible under his t-shirt and his short hair was still wet from exercise. And it’s unclear if a person’s athletic progress can do anything to mitigate the effects of short-termism (i.e.

CEO 8

CEO Company Sports Fashion 8

Harvard Business Review

FEBRUARY 9, 2015

That means strengthening regulation where some businesses are putting competitive pressure on others by skimping on safety, by denying workers basic benefits, or by operating with dangerous degrees of leverage. The ruthless short-run Darwinianism of the activists is not the way forward.

Class 8

Class Outsourcing Long-term Short-term 8

Harvard Business Review

SEPTEMBER 17, 2013

In this context, their efforts to improve care have focused largely on raising the volume of the discrete services they provide, with “efficiency” gauged in terms of “throughput.”. Free-agent physicians operate independently, rather than as part of an integrated team. is delivered by independent physicians in private practice.

Health Care 9

Health Care How To Cost System 9

Harvard Business Review

SEPTEMBER 20, 2016

But he wasn’t sure that his young team could keep the business thriving if he took his focus off day-to-day operations. Even though that would mean that we’d need to restructure your team, and you’d likely have to give up some of your projects?” With Hari back, maybe he could revive his dreams for the company.

Case Study 8

Case Study Real Estate Travel Consultative 8

Harvard Business Review

NOVEMBER 19, 2013

So nobody was shocked when, for a recent strategy project, Masala passed over many well-known consultancies that he viewed as having already “made a science out of their way of thinking of restructuring.” While that may be true in terms of financial luxury, this perception can also be misleading.

Innovation 9

Innovation Company Entrepreneur Constraint 9

Harvard Business Review

MARCH 20, 2017

It constantly plows capital into its long-term operations — often at the expense of short-term financial results. Lafley and Roger Martin coined the term cumulative advantage to describe the distinct strategic benefit of not changing. ” Continuity is the fertile soil in which change takes root.

Short-term 9

Short-term Drucker Resistance Restructuring 9

Harvard Business Review

MAY 1, 2017

So, in real terms, debt financing is essentially free. See More Videos > See More Videos > To elaborate, a company’s intrinsic equity value reflects the long-term cash flows that shareholders expect to receive over time, discounted at the appropriate risk-adjusted cost of equity capital.

ROE 14

ROE Long-term GDP Six Sigma 14

Harvard Business Review

SEPTEMBER 13, 2018

Some are short-term, others stretch into an imagined future. The logic of centralized long-term strategic planning (done once a year at a fixed time) is the antithesis of an organization redesigned around teams who define their own priorities and resources allocation on a weekly basis.

Agility 15

Agility Planning Fayol Strategic Planning 15

Harvard Business Review

MAY 10, 2013

It is far more likely that the hard work of restructuring will be the task of private equity firms, leveraged buyout firms or hedge funds, all of whom have a financial motivation to make whatever disengagement decisions are necessary to profit from the eventual re-sale of a healthier company. So we are left with a quandary.

Venture Capitalist 8

Venture Capitalist Restructuring Competitive Advantage Short-term 8

Harvard Business Review

FEBRUARY 14, 2011

To forestall unrest, Jordan's King Abdullah II removed his cabinet , and Yemen's President Ali Abdullah Saleh has committed to leave at the end of his term. Consultants came to their assistance with solutions to short-term concerns ranging from moving out cash to halting expansion plans. The Case of Egypt.

Strategy 13

Strategy Politics Short-term Long-term 13

Harvard Business Review

DECEMBER 6, 2016

secretary of health and human services, is a fierce and long-time critic of the Affordable Care Act (ACA), including initiatives that restructure how some doctors are paid. By contrast, the consequence of staying in their fee-for-service world is minimal in the short term. Create discomfort and outsized rewards.

Health Care 8

Health Care System Insurance Quality 8

Harvard Business Review

SEPTEMBER 1, 2017

It includes full-fledged exits by corporations like Clorox , one of the first corporations to cease its operations in the market in 2014 (to later be seized by the Venezuelan government), and companies like Bridgestone and General Mills , which sold their Venezuela businesses to local industrial groups and private investors, respectively, in 2016.

Sharpe 8

Sharpe Price Politics Supply Chain 8