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How Incentives for Long-Term Management Backfire

Harvard Business

Why isn’t more of that cash going into developing businesses for long-term gains — the big, outsized gains that come from big bets on the future? This is a classic story of unintended consequences — inadvertently short-circuiting long-term management — to the detriment of companies, investors, and the economy.

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How Competition Is Driving AI’s Rapid Adoption

Harvard Business

In comparison, absorption of AI might reach today’s level of digital absorption by 2027—in roughly ten years. Even if a technology race develops, some companies will adopt rapidly, but others less so—and the benefits of AI will vary accordingly. Our simulation suggests that it may reach 70% by 2035.

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Is Corporate Short-Termism Really a Problem? The Jury’s Still Out

Harvard Business

On the one hand, there are many anecdotes suggesting that pressures to manage earnings hold back investment. On the other hand, some of what is done in the name of managing for the long term may be unmonitored waste. Some companies have great ideas, great management teams, and compelling strategies.

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5 Ways the Best Companies Close the Strategy-Execution Gap

Harvard Business

Following the company’s go-private transaction in October 2013 , Dell put in place new models for strategy development, resource allocation, and performance management. Strategy development at Dell is no longer a batch process tied to some planning calendar; it is a continuous process. Value flexibility. Take Google.

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A Refresher on Marketing ROI

Harvard Business

While MROI is not usually public information, managers can use published financial statement data to estimate MROI for a competitor. “In principle, managers should try to estimate the full cost of the marketing activity, including creative development, media spend, and customer-facing staff time.”

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