Remove Cash Flow Remove Comparison Remove Management Remove Productivity
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How Competition Is Driving AI’s Rapid Adoption

Harvard Business

It took more than 30 years for electricity to diffuse and enable industrial plant design that could generate significant productivity growth. In comparison, absorption of AI might reach today’s level of digital absorption by 2027—in roughly ten years. Our simulation suggests that it may reach 70% by 2035.

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How Incentives for Long-Term Management Backfire

Harvard Business

This is a classic story of unintended consequences — inadvertently short-circuiting long-term management — to the detriment of companies, investors, and the economy. Another company, in the agricultural technology sector, chose free cash flow as the primary long-term incentive measure.

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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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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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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. Any deviation from management’s forecast meant failure, regardless of how effectively the strategy was executed. Take Google.