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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business

The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex.

Metrics 28
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The Importance of Business Acumen for High Performance

LSA Global

We believe that employees need to better understand the key factors that affect a company’s operations and financial strength to improve decision-making and strategy execution. A McKinsey survey of over 1,500 corporate directors revealed that only 36 percent had a complete understanding of their company’s financials. Operating income.

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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. Earnings quality: Accruals as a share of revenue.

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The Comprehensive Business Case for Sustainability

Harvard Business

This can disrupt a firm’s ability to operate on schedule and budget. McKinsey reports that the value at stake from sustainability concerns can be as a high as 70% of earnings before interest, taxes, depreciation, and amortization. ” Improving risk management.

Study 28