Remove Cost of Capital Remove Examples Remove Innovation Remove Management
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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

A recent McKinsey report found that while 84% of corporate executives think innovation is key to achieving growth objectives, only 6% are satisfied with the innovation performance of their firm. Even if executives try to prioritize it, innovation often gets crowded out by more “urgent” short-term pressures.

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The Case for Investing More in People

Harvard Business Review

In research for our book, Time, Talent and Energy, my co-author Michael Mankins and I found that such investments do indeed pay off: The top-quartile companies in our study unlocked 40% more productive power in their workforce through better practices in time, talent and energy management. For knowledge workers, time is incredibly scarce.

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

Harvard Business Review

The cost of capital is at historic lows, averaging below 6% for most large U.S. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders.

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

These ranges were wide due to the relative size of the different players in the supply chain (for example, a company that has higher revenues will realize greater benefits than a smaller firm). These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector. of revenues).

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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output. I have worked on research that has found that a strong company culture is associated with lower levels of myopic decision making, better productivity, and innovation.

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The Basic Principles of Strategy Haven’t Changed in 30 Years

Harvard Business Review

“These ideas are more than 30 years old,” managers complain. The basic principles are: If you want to earn above the cost of capital (if you want to create value), you must get a higher return on your efforts than the average competitor. Another example comes from the restaurant industry.

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Should Companies Retain "Strategic" Cash?

Harvard Business Review

For example, a market downturn is a great time to repurchase stock or to introduce a new marketing campaign against weakened competitors. Strategic cash provides protection against downsides (such as disruptive technologies, economic recessions, and market turmoil) and also offers the opportunity to capture upsides.

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