10 Reasons Why Every Manager Should take a Finance Course

Great Leadership By Dan

Caution: when employees feel like owners, no more wasting money on expensive furniture, management boondoggles, or projects with a poor net present value. We just finished a “ Finance and Accounting for the Non-Financial Manager ” program this week for a large client. The audience was mostly engineers – program and project managers, the ones in charge of designing and making complex stuff. It was 3.5

Why You Should Crowd-Source Your Toughest Investment Decisions

Harvard Business Review

Most companies – including the movie studios in Hollywood – over-rely on basic tools like discounted cash flow and net present value. How P&G Presents Data to Decision Makers. Only three or four out of every ten movies made in America breaks even or earns a profit.

How Marketers Can Avoid Big Data Blind Spots

Harvard Business Review

That’s because marketing has a big opportunity to drive above-market growth and demonstrate its value to the C-suite and the boardroom. That kind of value can turn plenty of heads in the C-suite. Without ongoing investment in the brand, the value of this base erodes over time and creates a stiff head wind for future sales. These estimates can then help determine the Net Present Value (NPV) of the long term effect of marketing in terms of future sales.

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An Unexpected Lesson from Mandela: Why Context Matters

Harvard Business Review

I made what I thought was a brilliant presentation to senior bureaucrats and technologists. These were engineers and network planners; surely, they understood economics and net present value analysis. Yes, I was there at a true inflection point, armed with the finest analysis possible, elaborate layers of spreadsheets, and well-crafted presentations.

How CMOs Can Get CFOs on Their Side

Harvard Business Review

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). CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment. As a long-term asset of significant value, the brand should be part of those calculations.

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The Big Trends Changing Community Development

Harvard Business Review

From the private sector, the trend is toward recognizing the business value of community progress. What began as charity-minded Corporate Social Responsibility (CSR) programs have evolved into pursuits of “shared value.” And when companies collaborate, even further value can be created – a point I discussed in a previous post. Big trends in business and society tend to march along at a measured pace.

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years. These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector.