article thumbnail

How Corporate Values Get Hijacked and Misused

Harvard Business Review

When these three conditions aren’t present, values can get hijacked and misused. Without accountability, values become a weapon to punish. When a company has failed to genuinely embed its values throughout the organization, their default use is often as a way to shame and punish. Here’s how it happens: 1.

article thumbnail

How CMOs Can Get CFOs on Their Side

Harvard Business Review

In our work with clients across dozens of sectors over more than five years, we have found that the strongest CMO/CFO partnerships develop when both parties undertake five actions: 1. CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment.

CFO 8
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

A Blueprint for Digital Companies’ Financial Reporting

Harvard Business Review

A firm, therefore, must provide separate, detailed section on the progress of each of its future-oriented project, how it relates to the firm’s current operation, the aggregate resources committed to that project, and the likely launch dates of the project. The current rules mandate no disclosures on future-oriented projects.

Report 8
article thumbnail

What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies. On average, they commit meaningful resources to add value, although there is a great deal of variation in how they do so. Not all PE firms use the same strategy.

CAPM 8
article thumbnail

How to Choose the Ideas Your Company Should Invest In

Harvard Business Review

Note what isn't part of the decision: an idea's net present value or return on investment. Teams should certainly develop their best guesses about how the idea will make money, but leaders shouldn't place too much emphasis on financial metrics for early stage ideas. and quantitative (what do the numbers show?)

Company 14
article thumbnail

Is Your Business Biased Against Innovation?

Strategy Driven

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. Tools for each challenge are presented, backed by examples from companies – from small firms to global giants – that have successfully put these methods into practice.