Really interesting article from Deloitte's Lang Davison about the "problem" with traditional business metrics. Relates back to the Shift Index I spoke about earlier.
During a steep recession, managers obsess over short-term performance goals such as cost cutting, sales, and market share growth. Meanwhile, economists chart data like GDP growth, unemployment levels, and balance-of-trade shifts to gauge the health of the overall business environment. The problem is, focusing only on traditional metrics often masks long-term forces of change that undercut normal sources of economic value. “Normal” may in fact be a thing of the past: Even when the economy heats up again, companies’ returns will remain under pressure.
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