Remove Development Remove EPS Remove Operations
article thumbnail

4 Ways CEOs Can Conquer Short-Termism

Harvard Business Review

Great stories are credible, simple, consistent, and use both financial and nonfinancial metrics to link a long-term vision and firm values with a distinctive business strategy and focused operational priorities. Bertolini observed that many of his peers had been promising 15% earnings per share (EPS), even during the financial crisis of 2009.

CEO 9
article thumbnail

Business Needs to Do What Government Can't

Harvard Business Review

Levi Strauss, intriguingly, has used biomimetic techniques in developing new production techniques for jeans. We're moving towards innovation in technology, pricing, business models and partnerships," explains head of corporate responsibility management, Dorje Mundle, of the company's base-of-the-pyramid operations.

EPS 8
Insiders

Sign Up for our Newsletter

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

article thumbnail

Managing in an Age of Winner-Take-All

Harvard Business Review

Consider management actions such as cutting jobs and investment as a response to currency fluctuations and the resulting accounting impact of those cuts on earnings per share (EPS). The digital revolution — the “mother of all technology developments”— marks a fork in the road.

article thumbnail

How Amazon Trained Its Investors to Behave

Harvard Business Review

In fact, Amazon was only operating at such a high burn rate because it could. With Amazon, though, nobody emphasizes EPS. Once investors stopped giving it free money, the company quickly cut back on its investments and its losses. By the fourth quarter of 2001 — that is, within about 21 months — it was turning a profit.

article thumbnail

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

New research, led by a team from McKinsey Global Institute in cooperation with FCLT Global , found that companies that operate with a true long-term mindset have consistently outperformed their industry peers since 2001 across almost every financial measure that matters. It started with developing a proprietary Corporate Horizon Index.