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. The ready access to low-cost capital should change the way business leaders think about strategy, and in particular the relative value of improving profit margins versus accelerating growth. Related Video.

article thumbnail

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business

To help provide a better factual base for this debate, MGI, working with McKinsey colleagues from our Strategy & Corporate Finance practice as well as the team at FCLT Global, began last fall to devise a way to systemically measure short-termism and long-termism at the company level. Earnings quality: Accruals as a share of revenue.