Remove Cash Flow Remove Meeting Remove Metrics Remove Productivity
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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business

If a company has beat or missed its EPS targets by less than two cents , that means the company has nipped and tucked its quarterly results just enough to meet the target EPS number it committed to analysts. It assumes that a smaller proportion of cash flows in earnings indicates a myopic firm. Corporate culture.

Metrics 29
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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource. They believe that they can always raise financial capital to meet their funding shortfall or use company stock or options to pay for acquisitions and employee wages.

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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business

It failed to meet its revenue and subscriber growth targets. The level and trend of a company’s top-line metric is an advance indicator of the success of its business model. The company’s first revenues indicate the acceptance of its product or services by customers. What caused this slump?

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business

After all, if you’re trying to sell a product or strategy, you need to be able to demonstrate that it is both practical and high margin. “The decision-makers will want to see a simple model that shows revenue, costs, overhead, and cash flow,” he says. ” Focus on key metrics. Play with numbers.

Finance 28
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The Comprehensive Business Case for Sustainability

Harvard Business

Disruptions in the supply chain may affect production processes that depend on unpriced natural capital assets such as biodiversity, groundwater, clean air, and climate. These unpriced natural capital costs are generally internalized until events like floods or droughts cause disruption to production processes or commodity price fluctuation.

Study 28
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Subscription Business Models Are Great for Some Businesses and Terrible for Others

Harvard Business

Identify the right metrics. In the digital membership economy, the metrics best apt to indicate success are more likely to be around member churn and engagement. For product development, the offering needs to evolve constantly to meet members’ needs – changes only every year or two won’t cut it.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. After all, “short-termism” does not correspond to any single quantifiable metric.