Harvard Business Review

OCTOBER 21, 2016

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. That conventional wisdom has now reversed.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

OCTOBER 3, 2011

Critics imply that managing for shareholder value is all about maximizing the short-term stock price. Companies that manage for shareholder value, the thinking goes, do whatever it takes to engineer an ever-higher market price. The objective is to build value and then let the price reflect that value. Take M&A as an example.

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

JUNE 27, 2012

Of the 70,000 companies with market data available, more than 42,000 earned shareholder returns (dividends + stock price appreciation) below inflation. real revenue and profit growth and earning their cost of capital has steadily declined. Only 9% of companies achieved even a modest level of sustained and profitable growth.

Creativity 14

Creativity Long-term Kotter Cost of Capital 14

Harvard Business Review

MAY 14, 2013

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.

Price 8

Price Energy Politics Marketing 8

Harvard Business Review

JUNE 18, 2015

” 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.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

FEBRUARY 7, 2011

We will define skill as "the ability to use one's knowledge effectively and readily in execution or performance" and luck as "events or circumstances that operate for or against an individual." Take, for instance, a group of companies that currently have high returns on invested capital (ROIC). The first is to define the terms.

Skills 15

Skills ROIC Sports Cost of Capital 15

Harvard Business Review

NOVEMBER 7, 2012

There is a fascinating relationship between executives and the stock prices of the companies they manage. On the other hand, they frequently find their stock price inscrutable. The vast majority of executives think that their price is too low, but few can articulate an analytical case that backs that intuition.

Price 8

Price Analysis Cost of Capital Disruptive Innovation 8

Harvard Business Review

MAY 24, 2017

When Caesars Entertainment, a gaming company, reorganized operations in 2011, the senior team not only developed a database on the performance and the potential of the company’s top 2,000 managers but also analyzed the ability of the top 150 to take on new and different jobs. Invest human capital just like you invest financial capital.

Human Capital 15

Human Capital Management Company ROCE 15

Harvard Business Review

FEBRUARY 7, 2017

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. In this case its capital charge is $800 times 8%, or $64.

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. Companies that will eventually be wrecked by others’ innovations are operating on autopilot. Net present value [NPV] is a case in point.

Innovation 50

Innovation NPV Business Model Constraint 50