article thumbnail

5 Leadership Signals that Turn Culture into Advantage

Skip Prichard

There’s nothing wrong with operating out of self-interest. All that corruption helped them hit quarterly EPS targets. He can tell you what’s moving in the right direction—and where we’re getting loose and need to tighten up operations. Let’s be candid: That’s part of the job. That’s what Wells Fargo did.

article thumbnail

Adapt Your Strategy to Higher Interest Rates

Harvard Business Review

To do that, executives need to rediscover the concept of economic profit (EP) — that is, revenue minus not just operating and administrative costs, but also the cost of the capital needed to produce that revenue.

EPS 28
Insiders

Sign Up for our Newsletter

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

article thumbnail

Dress for the Job You Want?

Harvard Business Review

within large corporations) identified when asked what contributed to, or detracted from, "executive presence" (EP) at their firm. Indeed, half the women surveyed and 37% of the men considered appearance and EP to be intrinsically linked; they understood that if you don't look the part of a leader, you're not likely to be given the role.

EPS 17
article thumbnail

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. On the surface, this measure looks reasonable.

EPS 12
article thumbnail

Strong Dollar, Weak Thinking

Harvard Business Review

But the strengthening creates a serious challenge for the big American multinationals with large foreign operations. The real problem is that the earnings from their substantial foreign operations are translated back to the home country financials to produce fewer dollars of net profit.

EPS 8
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 13
article thumbnail

You Can't Impress Stock Analysts.and Shouldn't Try

Harvard Business Review

Nobody writes a paean to the search for 9 percent EPS growth. It's a strategic and operational straight-jacket. If you believe the best-selling business books from the last 25 years, companies are "In Search of Excellence" or trying to go from "Good to Great." Moreover, pure growth targets are even wackier right now.

GAAP 12