article thumbnail

Business Resilience Comes from Working with Nature

Harvard Business Review

One year later, the most powerful storm ever recorded to hit land devastated the Philippines. The latter, gray option would have required significant electric power and produced high greenhouse gas emissions… and it would’ve cost a lot more. Hurricane Sandy, the superstorm that pummeled the U.S.

CAPEX 10
article thumbnail

4 Models for Using AI to Make Decisions

Harvard Business Review

The most painful board conversations that I hear about machine learning revolve around how much power and authority super-smart software should have. Executives who wouldn’t hesitate to automate a factory now flinch at the prospect of deep-learning algorithms dictating their sales strategies and capex.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Is Your Company Actually Set Up to Support Your Strategy?

Harvard Business Review

Are you focusing opex and capex on these priorities in order to build competitively differentiated capabilities? Generic statements such as “leverage scale” or “create a streamlined organization” have little explanatory power. None of these are easy questions. ” he asked.

article thumbnail

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

In recent years we have learned a lot about the causes of short-termism and its intensifying power. These indicators and hypotheses were: Investment: The ratio of capex to depreciation. We assume long-term companies will invest more and more-consistently than other companies. Earnings quality: Accruals as a share of revenue.

article thumbnail

What You Should Know About Dodd-Frank and What Happens If It’s Rolled Back

Harvard Business Review

Congressional leadership included some measures in Dodd-Frank to constrain the Federal Reserve’s power. Practically every other major central bank has more powers to do that since the crisis, whereas the Federal Reserve, as a result of Dodd-Frank, has far less power, far less capacity to do that.