Remove 2025 Remove Cash Flow Remove Operations Remove Productivity
article thumbnail

Stop Focusing on Profitability and Go for Growth

Harvard Business

Our models suggest that by 2025 global financial capital could easily surpass a quadrillion dollars, more than 10 times global GDP. Equity cash flows, in turn, are a function of a company’s long-term return on equity (ROE), growth, and the value of shareholders’ equity on its books. times global GDP).

article thumbnail

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business

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. The differences were dramatic. Where Do We Go from Here?