Harvard Business Review

APRIL 23, 2015

“These ideas are more than 30 years old,” managers complain. The basic principles are: If you want to earn above the cost of capital (if you want to create value), you must get a higher return on your efforts than the average competitor. Another example comes from the restaurant industry.

Strategy 8

Strategy Porter Price Cost of Capital 8

Harvard Business Review

OCTOBER 21, 2016

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. ” Improving risk management.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

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 10

Debt to Equity Ratio Cost of Capital Strategy Incentives 10

Harvard Business Review

DECEMBER 13, 2017

Some argue that profits are stagnant because of short-termism—that decades of focusing on current profits over long-run innovativeness has resulted, now, in companies that are hollowed out. One trend that has contributed to short-termism and lower innovativeness is the increased prevalence of outside CEOs.

Short-term 8

Short-term Decentralization Company Trends 8

Harvard Business Review

MAY 25, 2018

Companies are seeking to be quicker on their feet and more innovative. Our own consulting industry is the poster child for this phenomenon.) ” Another is, “How will a company like that ever be managed?” But some elements of what Rockefeller created may be coming back into vogue.

Incubator 8

Incubator Insurance Cost of Capital Competitive Advantage 8

Harvard Business Review

APRIL 2, 2014

Others, most notably money managers and former Fama students Cliff Asness and John Liew in an epic Institutional Investor article , have done a lot recent to clarify how Fama’s ideas and Shiller’s can at least co-exist peacefully. It is used in the more technical end of the financial industry, for example in derivatives valuation.

CAPM 8

CAPM Discount Price Finance 8

Strategy Driven

SEPTEMBER 9, 2011

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. 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. Net present value [NPV] is a case in point.

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

MARCH 1, 2017

This all adds cost, with consumers ultimately bearing the burden. First, because it’s antiquated, a kludge of industrial technologies and paper-based processes dressed up in a digital wrapper. But the solution to this innovation logjam has emerged: blockchain. Most firms cite opportunities to reduce friction and costs.

Finance 8

Finance IPO Banking Venture Capitalist 8