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. It reflected the reality that a lot of GE’s growth will be coming from the developing world, and the leaders have to be there.

P&L 8

P&L Fixed Assets Charan Delegation 8

Harvard Business Review

OCTOBER 21, 2016

Managing risks therefore requires making investment decisions today for longer-term capacity building and developing adaptive strategies. Recognizing the growing consumer interest in sustainable products and looking to solve consumer challenges such as high energy costs, CPG companies have developed new products to gain access to this market.

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). Together with the CFO, the CMO must develop a set of objectives that directly deliver on financial objectives and business goals.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

APRIL 2, 2014

Campbell’s work has also made liberal use of the analytic tools developed by Hansen. Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. And that’s what these guys [the 2013 Nobel winners] did. Steve Ross , who was at Yale and now is at MIT, he did the basic theory.

CAPM 8

CAPM Discount Price Finance 8