Strategy Driven

SEPTEMBER 9, 2011

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. Consider leaving a comment!

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

SEPTEMBER 10, 2012

We are often asked whether the best way to structure for innovation is top-down or bottom-up. Bottom-up approaches work well for incremental (keeps you in the game) innovations. Breakthrough (changes the game) innovations, contrary to popular belief, need a top-down approach. They must also be willing to see value in absurdity.

Process 15

Process Innovation Stage-Gate Net Present Value 15

Harvard Business Review

NOVEMBER 7, 2011

This blog was written with Jay Terwilliger and Mark Sebell, managing partners at Creative Realities , a Boston-based innovation management collaborative. But did you ever see it as the central metaphor for what truly innovative organizations must do? And using net-present-value estimates for "beginning" ideas is nuts.

CEO 11

CEO Net Present Value Banking Metrics 11

Harvard Business Review

MAY 4, 2017

When Patrick Collison, CEO of electronic payments company Stripe, helped kick off our second-year strategy course at the Stanford Graduate School of Business this year, he observed that this has created one of the most profound differences in decision criteria between leaders in industrial-era and internet-era companies. So is Facebook.

Collison 9

Collison Net Present Value Company Short-term 9

Harvard Business Review

JUNE 8, 2018

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Furthermore, the operating managers cannot take their eyes off day-to-day operations to focus on innovation. Traditional companies therefore rely on two strategies.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

MAY 1, 2017

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. Others reward easy-to-measure improvements in existing processes over less-easily-quantified innovations. Related Video.

ROE 14

ROE Long-term GDP Six Sigma 14

Harvard Business Review

SEPTEMBER 27, 2012

Next, ALL's CEO assembled a cross-functional team to develop simple rules for prioritizing capital spending. Once they understood the rules and their underlying rationale, ALL's employees generated a series of innovative proposals based on what they had to work with. reuse existing resources. Adapting to local circumstances.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8