Harvard Business Review

NOVEMBER 20, 2013

The rest of the companies, more than 2,400, simply do not have a strategy that effectively outperforms the market. A second new McKinsey study delves into the question of what executives are doing about their strategic shortfall, and concludes that most are not doing enough. How confident are you that you can ‘beat the market’?

Strategy 8

Strategy McKinsey Strategic Planning Cost of Capital 8

Harvard Business Review

MARCH 10, 2011

When executives evaluate a potential investment, whether it's to build a new plant, enter a new market, or acquire a company, they weigh its cost against the future cash flows they expect will spring from it. It's the opening paragraph of a Harvard Business Review article called "What's Your Real Cost of Capital?"

CAPM 13

CAPM Cost Discounted Cash Flow Cost of Capital 13

Harvard Business Review

MARCH 10, 2011

Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. We find that 55 percent of respondents are convinced their cost of capital estimates are off by more than 50 basis points.

Cost of Capital 12

Cost of Capital CAPM Cost Discounted Cash Flow 12

Harvard Business Review

SEPTEMBER 8, 2014

The goal of strategy is profitable growth, meaning economic value above the firm’s cost of capital. But most sales compensation plans focus purely on volume incentives. Soon, it really doesn’t matter what your strategic planning documents say. In effect, the C-suite is saying to salespeople: “go forth and multiply!”

Debt to Equity Ratio 9

Debt to Equity Ratio Cost of Capital Strategy Incentives 9

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. With Discovery-Driven Growth , Rita and Ian offer managers everywhere a time-tested blueprint for planning and executing a strategic growth agenda with confidence – in any market.

Innovation 50

Innovation NPV Business Model Constraint 50