article thumbnail

How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years. For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1%

article thumbnail

Match Your Innovation Process to the Results You Want

Harvard Business Review

Incremental innovations can be managed at the operating levels where the people know the customers/consumers best and decisions can be made in a more consensus-driven way with input and agreement between all stakeholder functions. It tends to be short-term, uses familiar (traditional) metrics and development systems like Stage Gate.

Process 15
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Only the CEO Can Make the Big Bets

Harvard Business Review

And using net-present-value estimates for "beginning" ideas is nuts. Incremental innovation can and should be pushed down into the operating levels of the organization. We say, "The Higher the Goal, the Higher the Role." Because they know they would get laughed out of the room if they were to advocate for a hunch.

CEO 12
article thumbnail

How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. The most important concepts to grasp are “how to measure profitability, EBITDA, operating income, revenue, and operating expenses,” he says. The Refresher: Net Present Value.

article thumbnail

How CMOs Can Get CFOs on Their Side

Harvard Business Review

CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment. Marketing KPIs that don’t directly address shareholder value and the company’s objectives don’t tell the CMO or the CFO where marketing efforts are having the most impact.

CFO 8
article thumbnail

The Big Trends Changing Community Development

Harvard Business Review

Three lines of progress are crossing, and rapidly reshaping how businesses and nonprofits together strengthen the locales in which they operate. Child sponsorships have been operating since 1953, and all of them share the high-level objective of breaking the cycle of poverty. This is what is going on now in community development.

Trends 8
article thumbnail

How to Choose the Ideas Your Company Should Invest In

Harvard Business Review

After exploration, there are lots of ways to plan, but at the very least a good plan details the target customer, crucial stakeholders, the essence of the idea, key economics, the commercialization path, proposed operations, the team, financial requirements, and the action plan. What are the assumptions in which you are least confident?

Company 15