Harvard Business Review
JUNE 22, 2016
The use of FinTechs allows suppliers to access funding at the multinationals firm’s lower cost of capital.). They include new enterprises such as Orbian , Prime Revenue , C2FO , Taulia , and Ariba as well as new operations launched by traditional financial service firms such as Citi Group, HSBC, BNP Paribas, and Deutsche Bank.
Harvard Business Review
APRIL 16, 2015
Unless your company’s return on capital exceeds its cost of capital, no amount of revenue growth can create value. For the many firms whose cost of capital and return on capital are roughly equal, in fact, the only path to value creation is to increase return on capital.
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Harvard Business Review
OCTOBER 10, 2017
Another pervasive reason is that senior executives are trained as operators, not innovators. And there’s a fundamental conflict between innovation and optimizing an existing operation. To close the gap, we need to treat innovation differently than we do normal operations. Here are four things leaders can do.
Harvard Business Review
SEPTEMBER 4, 2017
.” There is a virtuous cycle between productivity and people: Higher levels of productivity allow society to reinvest in human capital (most obviously, though not exclusively, via higher wages), and smart investments result in higher labor productivity. Productivity in most developed economies has been anemic.
Harvard Business Review
OCTOBER 25, 2018
To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)
Harvard Business Review
JUNE 18, 2015
” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering. In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies.
Harvard Business Review
APRIL 26, 2017
Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window. This amounts to putting a toe in the water, while keeping current operations relatively separate and pristine.
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