Remove CEO Remove Development Remove Operations Remove Present Value
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Match Your Innovation Process to the Results You Want

Harvard Business Review

It tends to be short-term, uses familiar (traditional) metrics and development systems like Stage Gate. Incremental innovations can be managed at the operating levels where the people know the customers/consumers best and decisions can be made in a more consensus-driven way with input and agreement between all stakeholder functions.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource.

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Beware of Short-term Management, Not the Short-term Investor

Harvard Business Review

This blog post is part of the HBR Online Forum The CEO's Role in Fixing the System. The short-term investor does not reduce the firm's long-term competitiveness and value;short-term management does. Moreover, I fail to see any argument why such short-term traders, by themselves, destroy value for the economy as a whole.

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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. These value-increasing actions are not necessarily mutually exclusive, but it is likely that certain firms emphasize some of the actions more than others. (We

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Warren Buffett's 2010 Shareholder Letter: What to Expect

Harvard Business Review

But why compare apples (book value) to oranges (share price and dividends)? Buffett explains that book value is the best proxy for "intrinsic value," the net present value of all estimated future cash flows. Consider that since 1965, Berkshire's book value grew 434,057% and the S&P index grew only 5,430%.

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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Next, ALL's CEO assembled a cross-functional team to develop simple rules for prioritizing capital spending. The cross-functional team that created ALL's rules included the head of each department as well as the CEO. Within three years, ALL's Brazilian rail operations had increased revenues by 50% and tripled EBITDA.

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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins. The Refresher: Net Present Value. In our experience, companies still focus more on cutting costs than on developing and executing new growth strategies. Related Video.

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