Establishing too-frequent earning guidance and quarterly guidance systems forces CEOs to optimize for short-term results, causing them to pass on NPV-positive investments to make this quarter's numbers, which 40% of CFOs admit to doing, ultimately making companies perform worse than they could.

causalpending

Speaker

Roger Martin

Evidence Quote

40 of cfos freely admit uh uh that uh they will they will not make an investment that they know is npv positive uh in order to make this quarters uh guidance

Source

Forward Thinking with Roger Martin | The Knowledge Project #97The Knowledge Project Podcast
Created: 8/10/2026, 11:30:31 PM

My Notes

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