Remove Cost of Capital Remove Development Remove Management Remove Training
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CEOs Don’t Care Enough About Capital Allocation

Harvard Business Review

Unless your company’s return on capital exceeds its cost of capital, no amount of revenue growth can create value. For the many firms whose cost of capital and return on capital are roughly equal, in fact, the only path to value creation is to increase return on capital.

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The Case for Investing More in People

Harvard Business Review

.” There is a virtuous cycle between productivity and people: Higher levels of productivity allow society to reinvest in human capital (most obviously, though not exclusively, via higher wages), and smart investments result in higher labor productivity. Productivity in most developed economies has been anemic.

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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

Another pervasive reason is that senior executives are trained as operators, not innovators. For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. Procter & Gamble’s Connect + Develop program and the Innocentive platform apply similar approaches.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

These require sophisticated, sustainability-based management. Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. ” Improving risk management. billion in mining projects since 2010. Fostering innovation.