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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years.

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment. They should also agree and commit to regular meetings to assess progress on these KPIs. But it’s no good speaking the same language as the CFO if marketing itself is a Tower of Babel.

CFO 8
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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

For instance, despite the prominent role that discounted cash flow valuation methods play in academic finance courses, few PE investors use discounted cash flow or net present value techniques to evaluate investments. Rather, they rely on internal rates of return and multiples of invested capital.

CAPM 8
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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. If you follow this process, decisions get easier as the required resource commitments go up, because the team has gone out and created the data that is required to make a good decision. and quantitative (what do the numbers show?)

Company 15
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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. Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas.