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The Case for Investing More in People

Harvard Business Review

We know that great ideas that drive breakthroughs in productivity come from human beings with the time, talent and energy to innovate. One step in reversing this trend is to start treating hours like dollars, with a real opportunity cost. Both Kaizen events and Agile sprints are investments in innovation and human capital productivity.

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What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Harvard Business Review

Our research and experience suggest that many executives underestimate the value of growth, specifically in today’s low-interest rate environment, and are thus missing out on a chance to make their businesses much more valuable than they are today. The cost of capital is at historic lows, averaging below 6% for most large U.S.

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Should Companies Retain "Strategic" Cash?

Harvard Business Review

This raises the question of whether retaining strategic cash makes economic sense and should be viewed as a legitimate corporate finance tool in today's environment. Arguments for Strategic Cash. Often citing the maxim that "cash is king", CFOs know that strategic cash can enhance shareholder value in various ways. It can: Save Taxes.

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Even for Companies, the U.S. Is Split Between Haves and Have-Nots

Harvard Business Review

Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. Consider what’s happening among corporations.

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When "Creative Destruction" Destroys More than It Creates

Harvard Business Review

When changes in the natural environment accelerate, so do the extinction rates of the Earth's creatures. real revenue and profit growth and earning their cost of capital has steadily declined. It happened to the dinosaurs and again to many species during the Ice Age. Yet almost every business aspires to do this.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

Fostering innovation. Investing in sustainability is not only a risk management tool; it can also drive innovation. Nike embedded sustainability into its innovation process and created the $1 billion-plus Flyknit line, which uses a specialized yarn system, requiring minimal labor and generating large profit margins.

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Why Europe's Carbon Woes Matter to the Whole World

Harvard Business Review

Europe''s $100 billion carbon market, an innovative force in the powerful carbon-reduction approach known as cap and trade, has ceased to function the way it''s supposed to. Share prices for European utilities and industrial companies have fallen too, threatening a wave of credit downgrades and increasing companies'' cost of capital.

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