A 95-year-old industrial company had been growing at its usual low-single-digit pace when a new senior leader challenged his team to accelerate growth — specifically to raise EBITDA (earnings before interest, taxes, depreciation, and amortization) by 500 basis points, from 15% to 20%, over the next five years.
Why Your Organization Needs an Aspirational P&L
Four key questions to broaden your team’s thinking.
April 25, 2023
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Summary.
Many companies get mired in translating transformative strategic goals into executable action. The aspirational P&L creates a useful framework to manage projects and engage in change-management initiatives with clear measures mapped to each area of an income statement. This approach is highly relevant today, given the devolving economic conditions — including rising inflation, ongoing supply-chain disruption, and a tight labor market — that are putting pressure on profitability.
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Change may be the only constant in today's organizations. Here's how to lead through it.
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New!
HBR Learning
HBR Learning
Change Management Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Change Management. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Change may be the only constant in today's organizations. Here's how to lead through it.