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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

While this might seem like a radical step for hospitals, it is exactly the transition that occurred 100 years ago in the business world in general when companies shifted from a departmental or functional structure to a decentralized, business-unit structure that that was more aligned with and accountable for its products, services, and customers.

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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. 100 units = $3.00*(100 + BEQ).

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. These criteria assume a limited supply of financial capital and that prudent allocation of financial capital determines a firm’s success.

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