article thumbnail

What is Great Leadership?

Great Leadership By Dan

A solution would be to force leaders to differentiate based on performance accompanied by constant and current feedback and differentiated reward systems instead of labels. Companies also use rating systems to reward and recognize performance and tuck these systems under the guides of pay for performance.

article thumbnail

Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

health care system. Explanations include their IT departments already have their hands full installing, maintaining, and upgrading electronic health record (EHR) systems. But much of the blame can be attributed to hospitals’ misaligned budgeting and incentive systems. Gillian Blease/Getty Images. Insight Center.

Insiders

Sign Up for our Newsletter

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

article thumbnail

When It Pays to Think Like a Finance Manager

Harvard Business Review

If you want approval for a new project — purchasing new equipment or computer systems, applying for a patent, building a new store — chances are you need your company’s finance department on board. Everyone always wants new equipment — new computers or other hot technologies. Of course not.

article thumbnail

Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

That system was efficient, but the new management team decided that, at this moment in its history, the company needed adaptability more than efficiency. To prioritize projects, for instance, the ALL team could have forecast future cash flows for every potential investment and ranked all proposals on the basis of their net present value.

article thumbnail

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

Harvard Business Review

The Refresher: Net Present Value. While not fully analogous, if Singapore sovereign wealth fund Temasek holds its equities for, say, 8 years on average while quantitative arbitrage hedge fund Renaissance Technologies holds them for milliseconds at a time, the Temasek capital is more valuable than Renaissance’s.

Hedge 9
article thumbnail

Why Those Guys Won the Economics Nobels

Harvard Business Review

You know, the future value of money, the present value of money — money today is worth more than in the future because you can invest it and get interest. That is, potentially amazing technology if you can only figure out how it works. This stochastic discount factor model is the modern economic update of those, correct?

CAPM 8