Harvard Business Review

APRIL 16, 2015

Unless your company’s return on capital exceeds its cost of capital, no amount of revenue growth can create value. For the many firms whose cost of capital and return on capital are roughly equal, in fact, the only path to value creation is to increase return on capital.

CEO 8

CEO ROIC Cost of Capital Merton 8

Harvard Business Review

OCTOBER 15, 2013

At many companies the total cash investment in acquisitions, R&D, and fixed assets has not earned back its cost of capital after adjusting for the time lag in realizing incremental benefits. That outcome reflects the wrong allocation and/or ineffective execution. Don’t delegate them away.

P&L 8

P&L Fixed Assets Delegation Charan 8

Harvard Business Review

SEPTEMBER 13, 2017

From 1993 to 2013 the cattle herd in the Brazilian Amazon rain forest — covering most of country’s northern region — expanded by nearly 200%, to more than 60 million head. These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector. million and $16.5

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

MARCH 31, 2015

During the 2013 holiday season shopping period, Target was the object of then the biggest cyber attack on a retailer. The company lost a total of about $236 million in breach-related costs, $90 million of which were offset by insurance. Several banks are suing the company claiming that its negligence cost them tens of millions.

Price 8

Price Long-term Banking Short-term 8

Harvard Business Review

OCTOBER 21, 2016

In 2013, GE had reduced greenhouse gas emissions by 32% and water use by 45% compared to 2004 and 2006 baselines, respectively, resulting in $300 million in savings. Since 1994, Dow has invested nearly $2 billion in improving resource efficiency and has saved $9.8 billion from reduced energy and wastewater consumption in manufacturing.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

NOVEMBER 25, 2013

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). To date, however, the reality of marketing analytics has fallen short of the promise.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

APRIL 2, 2014

And that’s what these guys [the 2013 Nobel winners] did. The capital asset pricing model was supposed to allow companies to calculate their cost of capital in a consistent way. Steve Ross , who was at Yale and now is at MIT, he did the basic theory. The pot of gold can no longer be just at the end of the rainbow.

CAPM 8

CAPM Discount Price Finance 8