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Is Your Business Biased Against Innovation?

Strategy Driven

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Yet for the small handful of companies that have managed to drive growth consistently – even through tough times – the payoff is great. How do they do it?

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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

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.

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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 Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

What have been less explored are the specific actions taken by private equity (PE) fund managers. In a survey of 79 PE firms managing more than $750 billion in capital, we provide granular information on PE managers’ practices and how firms’ strategies relate to the characteristics of their founders.

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Why the 21st Century Will Belong to Family Businesses

Harvard Business Review

I was recently asked to give a talk about family businesses, and the conference organizer told me not to even mention the “three generation rule.” ” There is often a personal connection between the family and the communities in which it operates; reputations matter to families. ” He’s perfectly right.

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Untangling Skill and Luck

Harvard Business Review

We will define skill as "the ability to use one's knowledge effectively and readily in execution or performance" and luck as "events or circumstances that operate for or against an individual." Take, for instance, a group of companies that currently have high returns on invested capital (ROIC). The first is to define the terms.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

These require sophisticated, sustainability-based management. Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. This can disrupt a firm’s ability to operate on schedule and budget.