10 Reasons Why Every Manager Should take a Finance Course

Great Leadership By Dan

The audience was mostly engineers – program and project managers, the ones in charge of designing and making complex stuff. 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.

Why You Should Crowd-Source Your Toughest Investment Decisions

Harvard Business Review

Yet the decision to green-light a project is usually based solely on “expert opinions” — in other words, executives’ intuition supplemented by standard regression analysis. How P&G Presents Data to Decision Makers.

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). Moreover, the previous year’s survey showed that 63 percent of projects do not use analytics to inform marketing decisions. CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment.

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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. For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1%

Why Those Guys Won the Economics Nobels

Harvard Business Review

Many lay readers are familiar with John Burr Williams and the dividend discount model , or the discounted value of future cash flows. 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. Then at the end, when you’ve brought everything to the present, scenario by scenario, you average. And that’s what these guys [the 2013 Nobel winners] did.

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