Harvard Business Review

APRIL 19, 2011

a Boston-based innovation management collaborative. We often ask executives to tell us about their biggest innovation failures. The CEO and CFO responded with, "A failure to hit ROI and NPV targets." The head of R&D remembered it as a failure to properly market the innovation. Simple answers don't count.

NPV 16

NPV ROI CFO Consensus 16

Harvard Business Review

AUGUST 4, 2014

Declaring he’d cull up to 100 brands — many of which he’d acquired and developed — P&G CEO A.G. Instead of focusing on innovation, as he did during his first tour as CEO of the world’s largest consumer packaged goods firm, Lafley is now innovating on focus. . innovation.

Brand 8

Brand DCF IRR NPV 8

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

MAY 1, 2017

Next time you're deciding about a big investment, NPV can help you make a more informed decision. Others reward easy-to-measure improvements in existing processes over less-easily-quantified innovations. Companies that encourage innovation take steps to overcome these organizational obstacles. Related Video.

ROE 14

ROE Long-term GDP Six Sigma 14

Harvard Business Review

MAY 18, 2017

Kaplan’s balanced scorecard or Clayton Christensen’s disruptive innovation. One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.) That quality made him (arguably) the quintessential HBR author. Sound familiar?

Management 9

Management Balanced Scorecard NPV Article 9

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. Net present value [NPV] is a case in point. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital.

Innovation 50

Innovation NPV Business Model Constraint 50