Remove Cash Flow Remove Management Remove Metrics
article thumbnail

The Top 13 Metrics that CEOs Should Measure for Strategic Success

LSA Global

While the specific strategy success metrics vary across different industries and different strategies, metrics tend to fall into four overall buckets: Financial, Customer, Employee, and Other. Here is a list of the top thirteen metrics that CEOs should measure for strategic success.

Metrics 68
article thumbnail

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

Harvard Business

Similarly, considering greater accruals (which represent the difference between reported income and operating cash flows) to measure short-term orientation has its difficulties. It assumes that a smaller proportion of cash flows in earnings indicates a myopic firm.

Metrics 100
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Reclaiming the Idea of Shareholder Value

Harvard Business

Activist investors challenge management strategies. Properly understood, maximizing shareholder value means allocating resources so as to maximize long-term cash flow. And without knowing how managers decide, it is almost impossible to hold them accountable for what they decide.

Cash Flow 121
article thumbnail

Asset Management – Valuation (Part 2 of 4)

Tom Spencer

Characteristics of Asset Management Firms. Most major asset managers are conservative with their use of leverage. There are a couple of reasons for this: Asset managers can see cash flow and earnings fluctuate wildly with markets. This will have a pronounced effect on leverage and coverage metrics.

article thumbnail

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.

McKinsey 117
article thumbnail

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. The board chose earnings per share (among other financial metrics) to measure and reward executives for long-term performance.

article thumbnail

Key Performance Indicators (KPIs) for Professional Services Firms

Progressus

These metrics provide the foundation for more outcome-oriented engagements, leveraging real-time data to secure contracts, monitor progress, and demonstrate the value of client investments. Which Metrics Are Essential for Professional Services Firms? For project-centric firms, profit margins rank among the most crucial KPIs.