article thumbnail

Lafley’s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

The demands of 80/20 criteria shifts the innovation emphasis away from more traditional financial metrics around DCF , IRR , and NPV and toward better understanding of how novelty preserves, protects, and extends the 80/20 franchise. Lafley 2.0

Brand 8
article thumbnail

What If Companies Managed People as Carefully as They Manage Money?

Harvard Business Review

A veritable alphabet soup (ROA, RONA, ROIC, ROCE, IRR, MVA, APV, and the like) exists to measure our financial capital. A statistical analysis of metrics from Workplace Analytics and other factors revealed that top performers and average performers spent their time differently.

article thumbnail

Connecting To Happiness: A Single Model For Leadership Excellence

Terry Starbucker

In this case, we went from “ Hit budget and greatly improve operating metrics ” (the goal) to “ serve our customers and support each other ” (the Cause). The goal is a high IRR, and the resulting Cause is “ meaningfully increasing shareholder value”. Then, all the dots need to be connected with the technicians. happiness).

IRR 295