Harvard Business Review

MARCH 23, 2015

Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? If the numbers show a negative NPV, meaning that the proposed investment isn’t justified, they change the assumptions until the NPV turns up positive. Not long after, the board fired the CEO.

Finance 8

Finance NPV CFO ROI 8

Harvard Business Review

APRIL 19, 2011

The CEO and CFO responded with, "A failure to hit ROI and NPV targets." Clearly the company was painfully aware of these two failed projects. The problem came with the follow-up question, "Why did example A fail?". The head of R&D remembered it as a failure to properly market the innovation.

NPV 16

NPV ROI CFO Consensus 16

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

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.

Brand 8

Brand DCF IRR NPV 8

Harvard Business Review

SEPTEMBER 21, 2015

Gerard nodded toward the front of the room, where Dan Carlson, the CEO of HotelShield, stood at a podium, PowerPoint clicker at the ready. ” Negative NPV. “You can see that if you go three years out, the NPV is still negative on our investment. “Besides, Curt said we should check it out,” Gerard added.

Case Study 8

Case Study Travel Hotels NPV 8

Harvard Business Review

MAY 1, 2017

Next time you're deciding about a big investment, NPV can help you make a more informed decision. In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins. Related Video. The Refresher: Net Present Value.

ROE 14

ROE Long-term GDP Six Sigma 14

Harvard Business Review

MAY 18, 2017

One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.) But the article aimed higher, arguing that when corporate leaders invest with short-term results in mind, they put long-term performance at risk. Sound familiar?

Management 9

Management Balanced Scorecard NPV Article 9