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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

But we recognize that, in many businesses, resources are often allocated according to short-term, bottom-line pressures. We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. of revenues) in expected net present value over 10 years.

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

To date, however, the reality of marketing analytics has fallen short of the promise. Just 36 percent of CMOs, for example, have quantitatively proven the short-term impact of marketing spend, according to the 2013 CMO Survey (and for demonstrating long-term impact, that figure drops to 32 percent).

CFO 8
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Match Your Innovation Process to the Results You Want

Harvard Business Review

It tends to be short-term, uses familiar (traditional) metrics and development systems like Stage Gate. When forced to present familiar metrics for truly out-of-the-box "beginning" ideas, work teams develop what our friend Jay Paap calls "Imaginary Numbers." So let's talk about incremental. The risks-rewards are relatively low.

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An HBR Refresher on Breakeven Quantity

Harvard Business Review

. “It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis.

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How to Choose the Ideas Your Company Should Invest In

Harvard Business Review

Note what isn't part of the decision: an idea's net present value or return on investment. The goal in executing tests is to maximize short-term learning , not profits.

Company 14