Remove Cost of Capital Remove Development Remove Operations Remove Price
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Is Your Business Biased Against Innovation?

Strategy Driven

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Companies that will eventually be wrecked by others’ innovations are operating on autopilot. New product development is such a big piece of building new business, or so we are told.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

This can disrupt a firm’s ability to operate on schedule and budget. Of the respondents, 72% said that climate change presents risks that could significantly impact their operations, revenue, or expenditures. ” Improving risk management.

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Why Europe's Carbon Woes Matter to the Whole World

Harvard Business Review

In fact, they''re operating at such a comparatively low level that as things stand now, many of them, including utilities, will be able to emit as much carbon as they want for the next decade without hitting their limits. There''s no way to determine precisely how much effect the postponement would have had on carbon prices.

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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering. In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies.

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What If Companies Managed People as Carefully as They Manage Money?

Harvard Business Review

Finding, developing, and retaining this talent is hard — so much so that the business press refers to a “war” for talent. Invest human capital just like you invest financial capital. We measure the lifetime value of investments, and we establish hurdle rates before deploying a single dollar of capital.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

New research, led by a team from McKinsey Global Institute in cooperation with FCLT Global , found that companies that operate with a true long-term mindset have consistently outperformed their industry peers since 2001 across almost every financial measure that matters. It started with developing a proprietary Corporate Horizon Index.