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Journal Article
Cashing Out Excellence
2023
Overview
Leaders in organizations often trade long-standing capabilities for short-term results, a practice known as performance hacking. This behavior is seen in organizations that struggle to cope with disruptive events, such as the pandemic, and resort to cashing out capabilities and allegiances that were once relied upon for success. Performance hacking involves manipulating financials through investment planning and cost-cutting measures to maintain short-term financial results, but it does not prioritize long-term value creation or investments in facilities, technology, research and development, or a capable workforce. This article highlights the negative consequences of performance hacking and the need for leaders to prioritize long-term strategies and value creation.
Publisher
Zinio, LLC,Massachusetts Institute of Technology, Cambridge, MA
Subject
