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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
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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 99
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Reclaiming the Idea of Shareholder Value

Harvard Business

Properly understood, maximizing shareholder value means allocating resources so as to maximize long-term cash flow. This includes non-financial and financial performance metrics as well as incentive compensation plans.

Cash Flow 121
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Is Corporate Short-Termism Really a Problem? The Jury’s Still Out

Harvard Business

It is also the case that the companies generating the highest immediate cash flows, which should be overvalued on the myopia theory, historically have had the highest stock market returns , implying undervaluation rather than overvaluation. Its findings deserve much discussion, debate, and attempts at replication.

McKinsey 116
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What Your Financial Statements Are Telling You—And How to Listen!

Speaker: David Worrell, CFO, Author & Speaker

Many finance professionals focus on the income statement while overlooking key signals hidden in the balance sheet and cash flow statement. Key Metrics that Matter 🔑 Discover essential financial ratios and indicators that tell the real story of your business.

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Asset Management – Valuation (Part 2 of 4)

Tom Spencer

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. As a secondary metric, large asset managers with diversified businesses may also be looked at from a free cash flow yield perspective.

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Use Data to Fix the Small Business Lending Gap

Harvard Business

Personal credit scores like FICO consider a combination of metrics such as payment history, current level of indebtedness, and types of credit used by potential small business borrowers. And early reports from the architects of these newer algorithms caution how long it takes to thoughtfully incorporate new metrics into the models.