Harvard Business Review

JULY 17, 2017

When I ask students graduating from Harvard Business School what they’re doing next, I often get some version of “I’m going into finance but…” Then they quickly explain that finance is just a way station on the route to nobler goals. And it is truly fascinating.

Finance 8

Finance Insurance Career Reputation 8

Harvard Business Review

JANUARY 13, 2014

While analysts fear this will spark a margin-eroding price war, this concern is premature. Since early last year, T-Mobile has spearheaded what I call a value war — as opposed to a price war — in the wireless market. It’s actually common for companies with varying value propositions to co-exist peacefully. to 75 cents.

Price 8

Price Wireless Finance Airlines 8

Harvard Business Review

MARCH 23, 2015

If you want approval for a new project — purchasing new equipment or computer systems, applying for a patent, building a new store — chances are you need your company’s finance department on board. To get the green light, it helps to understand how finance people think. Finance & Accounting Tool.

Finance 8

Finance NPV CFO ROI 8

Harvard Business Review

DECEMBER 16, 2013

The car service company just arranged low-cost financing to help add 100,000 cars to its fleet; revenues are growing by 20% monthly ; and New York Magazine proclaimed the company may be – one day – more valuable than Facebook. Great service and an innovative pricing strategy. So what’s driving Uber’s success?

Price 9

Price Transportation Discount Incentives 9

Harvard Business Review

FEBRUARY 28, 2018

They are egged on by short-term shareholders, who care only about making a quick buck, rather than growing the company for the long term. This is taught in any Finance 101 class, and is presumably what McKinsey advises its clients. So, when the lock-up expires, the CEO is concerned about the stock price.

Price 8

Price CEO Short-term Long-term 8

Strategy Driven

SEPTEMBER 14, 2019

There are several ways that you can provide incentives or benefits to your employees. In this day and age, employers have come to realize the importance of having long-term employees that know the company’s trade by heart. That can be a huge loss of profit in a company if we’re basing it on productivity alone!

Incentives 11

Incentives Report Price Long-term 11

Harvard Business Review

FEBRUARY 2, 2012

The Financial Services Roundtable, the lobbying group for the biggest financial companies in the U.S., For Bogle, that's because the company where he spent his peak earning years was structured as a mutual — owned by its customers and operated on their behalf. But, to follow Swensen's reasoning, the incentives are all wrong.

Finance 13

Finance Motivation White Paper Banking 13

Harvard Business Review

MARCH 14, 2017

After extensive assessment, they settled on two initiatives: realigning incentives for employees and systematically introducing outside talent and practices. We believe these same measures can be successfully adopted and adapted by other companies in pharma and other sectors that seek to avert, or reverse, innovation stagnation.

Innovation 9

Innovation Company Incentives Industry 9

Harvard Business Review

JANUARY 19, 2018

Companies less frequently offer formal training – a trend that has been on the decline for years. During my 11 years at PepsiCo, mostly during the 1990s, “personal development” was treated as a major company initiative. Become an expert in an area of increasing importance to your company.

Career 15

Career Development Company Supply Chain 15

Harvard Business Review

OCTOBER 26, 2011

Solyndra's example has been particularly stark: it raised over $1 billion in equity finance in addition to receiving a $535 million loan guarantee from the Department of Energy, all prior to a cancelled IPO and the recent FBI investigation upon its bankruptcy.

Energy 11

Energy Finance IPO Biotechnology 11

Harvard Business Review

JUNE 18, 2015

PE firms typically buy controlling shares of private or public firms, often funded by debt, with the hope of later taking them public or selling them to another company in order to turn a profit. But how do PE firms decide which companies to buy? We classify private equity as buyout or growth equity investments in mature companies.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

JUNE 12, 2018

For companies, smart cities represent major business opportunities — and not only for tech firms selling systems to government agencies. Even if they don’t become providers of systems or services, many companies will need to adapt in some way as cities become more digitally connected.

Real Estate 9

Real Estate Company Transportation B2C 9

Harvard Business Review

OCTOBER 3, 2011

Eliminating stock-based compensation would help reduce the incentive for executive leadership to focus on the short term. Many companies face quarterly or even more immediate pressure from their shareholders (increasingly made up of hedge funds, program traders, and day traders) to deliver short-term performance.

Long-term 14

Long-term Company Short-term Hedge 14

Harvard Business Review

DECEMBER 21, 2011

Finance puts the systems in place to track the money coming in. The company holds us accountable for revenues and expects us to develop and maintain the connections to drive sales. These salespeople earned lucrative commissions on sales to current customers and had little incentive to hunt for new customers.

Company 14

Company Market Penetration Long-term Short-term 14

Harvard Business Review

NOVEMBER 7, 2018

More recently, it has gained attention as a way to finance new ventures, through what is known as an Initial Coin Offering (ICO). Less noticed, though, is ICOs appear almost antithetical to the standard approach to financing a risky venture. In fact, ICOs have upended the conventional pattern of staged experimentation and fundraising.

Cost 8

Cost Decentralization Finance Entrepreneur 8

Harvard Business Review

OCTOBER 11, 2013

Most companies provide a very small number of health-plan options, with the result that workers don’t have to – and never learn to – make significant decisions about coverage. The genius in Singapore’s health-care system is that each individual’s stake in health-care financing is clearly visible. Push for transparency.

Health Care 8

Health Care Company Insurance Incentives 8

Strategy Driven

DECEMBER 5, 2013

In the more recent crises, Bernanke explained, liquidity started to dry up when housing prices declined, and subprime mortgage defaults rose in 2007. Morse tried and failed to corner the stock of the United Copper Company. Morse tried and failed to corner the stock of the United Copper Company. In 1907, the fire started when F.

Banking 50

Banking Crisis Morale System 50

Harvard Business Review

SEPTEMBER 15, 2017

Conventional wisdom is that CEOs buy back stock to manipulate the short-term stock price. It boosts prices in the short run, but the real way to boost the value of a corporation is to invest in the future, and they are not doing that.” Moreover, the claim that buybacks weaken companies long-term isn’t borne out by the data.

Short-term 8

Short-term Long-term Intangible Assets Rate of Return 8

Harvard Business Review

AUGUST 28, 2017

Innovations in spatial sciences, combined with big data, raise the possibility of the insurance industry introducing innovative pricing strategies that induce private real estate owners and local governments to take efforts that together yield a more resilient real estate capital stock. Dating back to at least F.

Insurance 10

Insurance Real Estate Industry Bond 10

Harvard Business Review

MAY 3, 2017

When a corporate scandal breaks – like the recent one at Wells Fargo or earlier ones at Lehman, Enron, or Qwest – the question is always raised: what was the board of directors doing while the managers in these companies were involved in such unprofessional behavior? And my research suggests that those incentives need to change.

Incentives 11

Incentives Proposal Committee Long-term 11

Harvard Business Review

JANUARY 12, 2017

Yet by April 2016 Adobe’s stock price had nearly tripled from its value four years earlier. But the move to SaaS comes with considerable challenges: Firms will need to change their structure , sales culture, and incentives , and convince existing as well as new customers of the new offering’s value.

Business Model 8

Business Model Licensing Company Software 8

Harvard Business Review

FEBRUARY 23, 2016

And indeed, the evidence does suggest that incentive-based pay can be damaging in many settings. The research that has been conducted on business leaders suggests that financial incentives can work… and quite often do. But, for executives, you do have such a measure – the long-run stock price.

Execution 8

Execution Incentives Short-term Long-term 8

Harvard Business Review

JANUARY 24, 2012

Baruch Lev teaches accounting and finance at NYU's Stern School of Business. And I couldn't resist following up with an email Q&A: Justin Fox: A lot of smart people have been saying for a while now that public-company executives should put less time and effort into dealing with Wall Street. Your book argues that they're wrong.

Short-term 12

Short-term Long-term Parcell Incentives 12

Harvard Business Review

APRIL 2, 2018

Because patients regularly change insurers, any individual insurer has less incentive to commit to investing in an expensive, high-value treatment if the return on investment could end up accruing to a competitor. Consider, for example, the debate around the pricing of new Hepatitis C Virus (HCV) therapies.

Health Care 8

Health Care Insurance Pharmaceuticals Incentives 8

Strategy Driven

DECEMBER 2, 2019

Use these strategies to make your company customer-centric: 1. Executives frequently focus on analyzing the company’s profit and loss to determine where the company is over-spending and being wasteful, and then figure out how to reduce expenses to drive more profit to the bottom line. Traditional branding is an old paradigm.

Company 70

Company P&L Bottom-up Advertising 70

Harvard Business Review

MARCH 29, 2018

Each of the new companies offers the hope of transforming the performance of the U.S. But much of the blame can be attributed to hospitals’ misaligned budgeting and incentive systems. This is an imperfect option though since it still does not give a department the incentive to achieve savings in future years.

Budgeting 8

Budgeting System Innovation Payback Period 8

Harvard Business Review

OCTOBER 18, 2016

Such performance-insensitive pay packages seem to defy both common sense and established economic theory on optimal incentives. Why, then, do company boards and shareholders of most firms approve those packages? Except that the performance that they’re rewarding is industry performance, not company performance.

CEO 8

CEO Asset Management Cooper Industry 8

Harvard Business Review

SEPTEMBER 5, 2016

Its CEO, John Fallon, says of this approach, “It is by having a bigger impact on education — measured by expanding access and improving outcomes — that we will make Pearson a faster-growing and more sustainably profitable company.” ” Health care.

Incentives 8

Incentives Health Care Education Insurance 8

Harvard Business Review

SEPTEMBER 4, 2017

The managers of the new business or organizational unit would have incentives similar to those of their new competitors. For those companies with the skill to pull it off, it worked. Asset-light businesses are not financed with debt. They’re financed with equity—in other words, a stake in the company.

Christensen 8

Christensen Finance Innovation B2B 8

Harvard Business Review

SEPTEMBER 24, 2012

The author, Susan Lambert, writes that although the challenges are very different, the root cause — incentives —and the outcome — workers at all paygrades must always be "available" — are the same. The New Price of American Politics (The Atlantic). Business Books Are the Ultimate Business Card (Fast Company).

Ryan 15

Ryan Open-book Politics Incentives 15

Harvard Business Review

SEPTEMBER 22, 2011

More and more companies are tying incentive pay to customer metrics. TIAA-CREF, the big financial services company, includes customer loyalty score improvement in senior executive compensation. The payoff from linking incentives to customer feedback can be significant. The company's managers felt helpless and frustrated.

Incentives 10

Incentives Sample Customer Loyalty Metrics 10

Harvard Business Review

DECEMBER 7, 2017

These two trends may seem separate—or, some people believe, incompatible—but together I believe they have the power to improve finance’s role in the world. On the other side, fans of active management see it as a trend that can damage market efficiency and lead to distortions in market prices.

Supply Chain 8

Supply Chain Asset Management Chemicals Long-term 8

Harvard Business Review

DECEMBER 15, 2015

As a consequence, salespeople tend to sell to anyone they can, often at discounted prices to make a volume quota target. Because of this, selling cycles were lengthy, and, even when reps did close deals, they did so at highly discounted prices and were forced to include unwieldy service requirements. It did this in a few ways.

Strategy 8

Strategy Team Discount ROIC 8

Harvard Business Review

MAY 20, 2014

In pharmaceuticals, the largest company, Pfizer, is the result of decades of mergers. New, small entrants into the market will be at pains to form relationships with such firms, and the power imbalance is effectively a monopsony — sell to us at our price, on our invoice terms, or get lost. Economy Entrepreneurship Finance'

Pharmaceuticals 11

Pharmaceuticals Banking Chemicals Trends 11

Harvard Business Review

AUGUST 8, 2018

If all went well, AI-powered robots would enable the company to achieve a weekly production of 5,000 Model 3 electric cars to keep up with burgeoning demand. The problem, as the company painfully discovered, was that full automation wasn’t everything it was cracked up to be. To be precise, my mistake. Humans are underrated.”

Power 11

Power Engineering Analysis Training 11

Harvard Business Review

OCTOBER 1, 2013

Vital though near-term effectiveness is, the exchanges hold a longer-term potential—they can help reshape the organization, delivery, and financing of insurance. They want insurers to compete with one another on the basis of price and service. But in 2016 the exchanges will open to companies with 51 to 100 employees.

Insurance 9

Insurance Goal Health Care Long-term 9

Harvard Business Review

OCTOBER 11, 2013

Corporate incentives and culture may be even more important in explaining what changed on Wall Street in recent years, and by placing too much emphasis on quantitative ratios like leverage, we may be missing some other important parts of the problem. drop in asset prices would wipe out the equity of the bank.

Incentives 8

Incentives Banking Ethics IPO 8