Strategy Driven

SEPTEMBER 9, 2011

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. Companies that will eventually be wrecked by others’ innovations are operating on autopilot. This is a perspective taken by my colleagues at consultancy Innosight. Take a doctor’s office.

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

SEPTEMBER 13, 2017

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. For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1% of revenues).

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

NOVEMBER 9, 2012

The same can be said for traditional supply chain risk management consultants and academics, who, after all, share a similar background. This lack of comfort with both the quantitative aspects of risk and the more sophisticated options available to operational executives is (in some industries literally) dangerous.

Supply Chain 8

Supply Chain Chief Procurement Officer Risk Management Management 8

Harvard Business Review

MARCH 31, 2017

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. ” Joe Knight, a partner and senior consultant at the Business Literacy Institute and the coauthor of Financial Intelligence , says that an absence of financial savvy is “career-limiting.”

Finance 8

Finance Skills EBITDA Net Present Value 8

Harvard Business Review

NOVEMBER 19, 2015

This can be quantified by analyzing the extent to which the share prices of S&P 500 firms are driven by a firm’s present value of future growth options (PVGO) rather than cash flow from current operations. Our research shows that U.S. Some firms manage to maintain this dual discipline as they grow.

Company 8

Company Succession Maturity Long-term 8