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Leading Management Principles of the World’s Top Shipbuilders

Epicflow

This is almost 10% higher than in 2016. Since 2007, MHI Group has changed its management paradigm toward portfolio optimization, introducing a strategic business evaluation system and focusing on cash flow. Due to poor project performance, $99 million is wasted for every $1 billion invested.

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How U.S. Hospitals and Health Systems Can Reverse Their Sliding Financial Performance

Harvard Business

Since the beginning of 2016, the financial performance of hospitals and health systems in the United States has significantly worsened. MD Anderson Cancer Center lost $266 million on operations in FY 2016 and another $170 million in the first months of FY 2017. All these problems contribute to diminished cash flows.

System 71
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2016 ECS Value Creators Report: Building Endurance

BCG

Report Wednesday, October 26, 2016. Japanese companies’ average annual TSR of 14% in the five-year period from 2011 through 2015 is generated by extremely strong margin increases and cash flows. Japan and China are robust markets for ECS value creation.

Report 40
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Martinka Consulting - Untitled Article

Martinka Consulting

A December 2, 2016 Wall Street Journal article was titled, “ Car Sales Roll Along; Aided by Discounts.*” He knew cash flow. Or should we say he knew short-term cash flow. He watched his cash flow like a hawk. This reminded me of a story I tell in a couple of my talks.

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How Companies Can Use Investors to Their Advantage

Harvard Business

By 2016, the rise of smart phones seemed to have made the company less relevant: Its revenues were at almost the same level they had been a full decade earlier. Yet investors can be a powerful strategic resource, providing not only capital but also less-biased insight into the threats and opportunities that a company encounters.

Company 102
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How Incentives for Long-Term Management Backfire

Harvard Business

Another company, in the agricultural technology sector, chose free cash flow as the primary long-term incentive measure. Facing headwinds to growth, executives delayed R&D and capital investments to hit three-year free-cash-flow goals. Eventually, the company’s share price nosedived.

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What GE’s Board Could Have Done Differently

Harvard Business

Since Immelt’s departure, GE’s stock is down another 30%, as its new CEO, John Flannery, has struggled to cope with the cash flow drain from years of problematic acquisitions, divestitures, and buybacks. Because of these dubious decisions, GE’s ratio of debt to earnings has soared from 1.5 in 2013 to 3.7