Six Disciplines

MARCH 25, 2011

A decision is a commitment to action. Until a business returns a profit that is greater than its cost of capital, it does not create wealth -- it destroys it. And, "What do we do that makes your life more difficult?". No decision has, in fact, been made until carrying it out has become somebody's responsibility.

Drucker 136

Drucker Cost of Capital Definition Commitment 136

Harvard Business Review

SEPTEMBER 13, 2017

Nearly 450 companies around the world have committed to reducing or eliminating deforestation from their supply chains, including many in the beef industry. We set about investigating the financial costs and benefits of the uptake of sustainable and deforestation-free beef by ranchers, slaughterhouses, and retailers in Brazil.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

SEPTEMBER 4, 2017

The compounding and virtuous effects of increasing customer and employee advocacy more than offset the higher cost of wages. At the other end of the size spectrum, Walmart has committed to investing $2.7 Our careless treatment of time represents a shocking level of underinvestment in human capital.

Human Capital 15

Human Capital Kaizen Agility Energy 15

Harvard Business Review

APRIL 5, 2017

If a company has beat or missed its EPS targets by less than two cents , that means the company has nipped and tucked its quarterly results just enough to meet the target EPS number it committed to analysts. This measure has been validated by extensive academic research. A number of factors can confound any conclusions based on coarse data.

EPS 8

EPS Metrics Depreciation Short-term 8

Harvard Business Review

JULY 31, 2017

Based on our recent worldwide survey of 2,000 incumbent companies across all major industries and countries, we estimate that the average return on incumbent digital initiatives is below 10% — barely above the cost of capital. We clustered companies in two ways.

Strategy 8

Strategy ROI Technology Cost of Capital 8

Harvard Business Review

MARCH 31, 2015

While consumers are rightfully worried that their personal information may be compromised, shareholders and companies’ management have a wider set of concerns, including loss of intellectual property, operational disruption, decreased customer trust, tarnished brand, and loss of investor commitment.

Price 8

Price Long-term Banking Short-term 8

Harvard Business Review

MARCH 28, 2016

As a result, family equity can come at a very low cost of capital, where businesses can meet the annual needs of their shareholders without having to worry about paying back the principal. While less adept at delegating, they can more quickly and decisively commit the organization to action.

Long-term 8

Long-term Short-term Reputation Incentives 8