Harvard Business Review

NOVEMBER 25, 2013

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

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

OCTOBER 3, 2011

Creating Shareholder Value. 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. That is a profound misunderstanding.

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

SEPTEMBER 13, 2017

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.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

SEPTEMBER 10, 2012

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.

Process 15

Process Innovation Stage-Gate Net Present Value 15

Harvard Business Review

NOVEMBER 19, 2015

This can be quantified by analyzing the extent to which the share prices of S&P 500 firms are driven by a firm’s present value of future growth options (PVGO) rather than cash flow from current operations. Investors now value the future growth options of these firms relatively less—by a staggering $1 trillion.

Company 8

Company Succession Maturity Long-term 8

Harvard Business Review

OCTOBER 15, 2012

As innovators engage with the market through the MVP, they learn valuable information to help them refine the product-market fit and better understand and further build for the value proposition. Net Present Value ). This iterative approach is consistent with "real options" (vs. Strategy #5: Don't worry about competing agendas.

Innovation 8

Innovation Execution Net Present Value Open-book 8

Harvard Business Review

MARCH 4, 2013

The researchers found that gifts were far more motivating to short-term employees than unexpected cash bonuses, effectively paying for themselves by improving productivity. The findings provide some guidance on the types of gifts that are likely to engender the greatest motivation and loyalty.

Motivation 9

Motivation Library Short-term Loyalty 9

Harvard Business Review

JUNE 22, 2015

. “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.

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

Harvard Business Review

APRIL 27, 2017

” Laying out their data, they find that long-term oriented companies create more financial value and more jobs. I agree with their vision of a future in which more companies focus on the long term and become more productive for the world (their findings accord with my own work on the dangers of short-termism ).

Hedge 9

Hedge Short-term Long-term NPV 9

Harvard Business Review

MAY 1, 2017

Today, the average cost of equity capital sits at close to half that: just 8% for the roughly 1600 companies comprising the Value Line Index. So, in real terms, debt financing is essentially free. In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins.

ROE 14

ROE Long-term GDP Six Sigma 14

Harvard Business Review

JANUARY 11, 2012

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 15

Company Net Present Value How To Proposal 15

Harvard Business Review

APRIL 2, 2014

You know, the future value of money, the present value of money — money today is worth more than in the future because you can invest it and get interest. The early tests that looked at the stock market and looked at short periods of time generally found pretty decent results consistent with the market efficiency insight.

CAPM 8

CAPM Discount Price Finance 8