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Zero-Based Budgeting Is Not a Wonder Diet for Companies

Harvard Business Review

Traditional ZBB implementations focus almost exclusively on simple SG&A , in part because SG&A benchmark data is far more readily attainable than are relevant data from the core functions of comparable companies. In another company, commercial discounts was essentially a black box for the finance chief and CEO.

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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

Profits that are received at some future point are discounted by the real cost of finance and any appropriate risk premium. Let's assume that the subsidiary's owner doesn't do anything fancy and discounts profits over time using the same rate. If the owner of that subsidiary discounts profits in Egypt by 12.5 Vinod K.

NPV 14
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Private Equity’s New Phase

Harvard Business Review

In phase one (buy and sell), PE investors looked for the equivalent of a “fixer-upper house” — a dilapidated company in a good industry that could be purchased at a discount and, after the business equivalent of some fresh paint and new appliances, resold for a profit.

LBO 8
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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering. In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies.

CAPM 8
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What Sales Teams Should Do to Prepare for the Next Recession

Harvard Business Review

Our recent benchmarking of nearly 900 B2B companies underscores the importance of these tools. Commercial operations groups tend to be early targets for cuts in a recession. Digital tools and analytic techniques that have flourished in recent years can help make sure those basics are taken care of.

Team 11
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Thank You for Doing Your Job

Harvard Business Review

When what our colleagues and employees do every day becomes no more than a benchmark to beat (e.g. Early on in my career, I had a boss who discounted my ability to connect with clients. And to another: "Every day, I notice how meticulously you attend to operations. of earnings that Cisco did deliver), it can seem unimpressive.

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Case Study: The Ex-CEO Contemplates a Coup

Harvard Business Review

But my youngest uncle worked behind the scenes to make sure that his sons, Fred, Roy, and Bill, were given executive positions in the operating units despite their obvious shortcomings. Fred, Roy, and Bill never rose as high in the company as Ricky, who is now the chief operating officer. As for me, I''m happily uninvolved!