Remove Cost of Capital Remove Environment Remove Operations
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Should Companies Retain "Strategic" Cash?

Harvard Business Review

To enhance financial flexibility, companies have been retaining unprecedented amounts of cash on their balance sheets, calling it "strategic" cash to distinguish it from the "operating" cash that is needed to run the business. Arguments for Strategic Cash. It can: Save Taxes. How Should You Approach Strategic Cash?

Company 13
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The Case for Investing More in People

Harvard Business Review

In The Good Jobs Strategy , Zeynep Ton, a professor at the MIT Sloan School of Management, demonstrates how the best retail companies align their customer value proposition with their operations strategy and their approach to human capital. This includes more autonomy and agility as well as inspirational leadership.

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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. Stock markets might seem capricious, but in the long term, shareholder returns closely track operational performance. "We

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The Comprehensive Business Case for Sustainability

Harvard Business Review

This can disrupt a firm’s ability to operate on schedule and budget. Of the respondents, 72% said that climate change presents risks that could significantly impact their operations, revenue, or expenditures. ” Improving risk management.

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Why Europe's Carbon Woes Matter to the Whole World

Harvard Business Review

In fact, they''re operating at such a comparatively low level that as things stand now, many of them, including utilities, will be able to emit as much carbon as they want for the next decade without hitting their limits. The effects were immediate: Carbon credits crashed, dropping more than 35%.

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What If Companies Managed People as Carefully as They Manage Money?

Harvard Business Review

When Caesars Entertainment, a gaming company, reorganized operations in 2011, the senior team not only developed a database on the performance and the potential of the company’s top 2,000 managers but also analyzed the ability of the top 150 to take on new and different jobs. Invest human capital just like you invest financial capital.

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The False Premise of the Shareholder Value Debate

Harvard Business Review

The oil refinery illustrates the general point that the way you create an environment in which those operating it can make coherent decisions is to choose a variable to optimize and set minimums (and maximums if you wish) for all the other relevant variables. This works regardless of which variable you choose to maximize.