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Are Bosses Always Over-Confident?

The Horizons Tracker

Strategic nonconformity was measured on any deviation from industry-level means across six categories, including inventory levels, advertising intensity, R&D intensity, and financial leverage.

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How To Really Measure a Company's Innovation Prowess

Harvard Business Review

Who is the world's most innovative company? Last year , number crunchers at Forbes found that Salesforce.com is the company with the highest "Innovation Premium" baked into its stock price. Perhaps a company's ability to innovate doesn't last long. There's no doubt: measuring "innovation" is a fuzzy business.

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How To Really Measure a Company's Innovation Prowess

Harvard Business Review

Who is the world's most innovative company? Last year , number crunchers at Forbes found that Salesforce.com is the company with the highest "Innovation Premium" baked into its stock price. Perhaps a company's ability to innovate doesn't last long. There's no doubt: measuring "innovation" is a fuzzy business.

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Research: CEOs with Diverse Networks Create Higher Firm Value

Harvard Business Review

We also found that this greater firm value comes from better corporate innovations and successful diversified M&As. One was that a more diverse network would give CEOs access to diverse sets of knowledge , which can lead to novel ideas and willingness to tackle innovative projects. Our findings have broad implications.

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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

And the average long-term ROE is more than 25%, reflecting improved efficiency combined with greater reliance on financial leverage at most companies. Others reward easy-to-measure improvements in existing processes over less-easily-quantified innovations. The result: a shortage of good growth ideas.

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The Type of Socially Responsible Investments That Make Firms More Profitable

Harvard Business Review

The results of this paper provide support to an earlier article (“ The Performance Frontier: Innovating for a Sustainable Strategy ”) where we described a framework that companies could use to create value by doing good.

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Private Equity’s New Phase

Harvard Business Review

Traditionally, PE firms bring financial discipline and strategic clarity to firms they acquire. This expertise may include restructuring debt, increasing financial leverage, clarifying strategic priorities, increasing productivity, implementing rigorous operational systems, or heightening accountability for results.

LBO 8