In the wake of the 2008 financial and economic crisis, there is a growing call for business leaders to move away from short-term approaches to running and investing in companies to what McKinsey's global managing director Dominic Barton calls ""long-term capitalism.""
In his article in the Harvard Business Review, Barton lays out a compelling case for leaders to take the initiative in shifting away from a focus on ""quarterly capitalism"" in order to invest and build value for the long-term and spur broad economic growth. Leaders must change structure and incentives to focus on the long-term, Barton says, and they must infuse their organizations with the perspective that serving the interests of all major stakeholders is not at odds with the goal of maximizing corporate value. Companies must also bolster their board's ability to govern like owners and executive compensation must be adjusted.
In this interactive Harvard Business Review webinar led by HBR editor-in-chief, Adi Ignatius, Barton outlines practical approaches that business leaders, boards, and investors can employ to help foster capitalism for the long term.