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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. FCLT and McKinsey rely on readily available and machine-readable accounting data to measure myopia.

Metrics 29
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The Importance of Business Acumen for High Performance

LSA Global

A McKinsey survey of over 1,500 corporate directors revealed that only 36 percent had a complete understanding of their company’s financials. How can you expect to pitch a new strategy or product if you are unable to articulate its potential revenue, costs, and return on investment? Cash flow. Operating Expenses.

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

Harvard Business

McKinsey has a new study out on an important topic — the question of whether corporations systematically take too short a view and do not invest enough for the long term. I was therefore excited to see that McKinsey had a new empirical study that provides evidence in favor of the view that corporations should take longer views.

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The Comprehensive Business Case for Sustainability

Harvard Business

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. Disruptions in the supply chain may affect production processes that depend on unpriced natural capital assets such as biodiversity, groundwater, clean air, and climate.

Study 28
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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. What We Actually Measured — and the Limits of Our Knowledge.