Harvard Business Review

SEPTEMBER 8, 2014

The goal of strategy is profitable growth, meaning economic value above the firm’s cost of capital. Hence, the customer-selection criteria of sales managers, and call patterns of sales reps, directly impact the first value-creation lever: which projects the firm invests in. But consider the basics.

Debt to Equity Ratio 8

Debt to Equity Ratio Cost of Capital Strategy Incentives 8

Harvard Business Review

FEBRUARY 7, 2017

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. and historic lows in new capital investment. This has long seemed intuitively true to us. We calculate that U.S.

Long-term 8

Long-term EPS Short-term Management 8

Strategy Driven

SEPTEMBER 9, 2011

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. Yet for the small handful of companies that have managed to drive growth consistently – even through tough times – the payoff is great. How do they do it?

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

JUNE 18, 2015

What have been less explored are the specific actions taken by private equity (PE) fund managers. In a survey of 79 PE firms managing more than $750 billion in capital, we provide granular information on PE managers’ practices and how firms’ strategies relate to the characteristics of their founders.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

FEBRUARY 1, 2018

It permits immediate expensing of many capital investments. It treats pass-through entities more favorably than in the past , and it increases the incentive to repatriate off-shore cash. The cost of capital is at historic lows, averaging below 6% for most large U.S.

Supply Chain 8

Supply Chain CEO Discount Retail 8

Harvard Business Review

DECEMBER 13, 2017

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.

Short-term 8

Short-term Decentralization Company Trends 8

Harvard Business Review

MAY 25, 2018

” Another is, “How will a company like that ever be managed?” The most successful will develop clear joint goals and an entrepreneurially enabled management style that focuses more on outcomes than on control. Of course, we can already hear the objections coming from the grizzled veterans of traditional M&A.

Incubator 8

Incubator Insurance Cost of Capital Competitive Advantage 8