Innovation Excellence

FEBRUARY 14, 2016

When companies base their internal performance measurement systems solely on short-term profits or traditional GAAP-approved accounting returns—the results can be dangerously skewed, causing premature or inappropriate decisions about the fate of new innovations and R&D funding. Continue reading →

GAAP 59

GAAP System Innovation Short-term 59

Harvard Business Review

NOVEMBER 29, 2010

Say that in a roomful of managers, and you get nervous laughter. Wall Street's " financial innovations " of recent years seem to have given creativity a bad name. As long as the new ideas cohere with ethical standards, and generally accepted accounting principles ( GAAP ), they can yield immense benefits. Except when it's good.

Creative Accounting 15

Creative Accounting Creativity GAAP Balanced Scorecard 15

Harvard Business Review

JUNE 8, 2018

So, investors, and therefore managers, might be adjusting their approach to risk accordingly. Therefore, companies see little value in disclosing the details of their current and planned projects in their financial disclosures, even if those disclosures can reduce the information asymmetry between investors and managers.

Report 9

Report GAAP Net Present Value CFO 9

Harvard Business Review

NOVEMBER 1, 2011

Who declared 7 or 10 or 15 percent growth in earnings a sacrosanct pursuit, above all other corporate goals — like the innovation that leads to novel solutions that address customer needs? I hope we see more leaders walking away from these absurd pressures that keep them from building innovative, profitable, sustainable companies.

GAAP 10

GAAP Short-term P&L EPS 10

Harvard Business Review

APRIL 3, 2015

GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined. To gain more insights into a specific firm, investors have shown more interest in intangibles like strategy, brand, innovation, systems integration, collaboration, and so on.

Marketing 8

Marketing Leadership Venture Capitalist GAAP 8