Harvard Business Review

JUNE 27, 2012

My colleagues and I at Bain & Company have been tracking this for forty years, and we have never seen companies losing their leadership positions as quickly as they are today. real revenue and profit growth and earning their cost of capital has steadily declined. A similar pattern hold for airlines. And for telecom.

Creativity 14

Creativity Long-term Kotter Cost of Capital 14

Harvard Business Review

NOVEMBER 20, 2013

To stimulate strategic thinking, answer this question honestly: When you look objectively at your assets, capability and market position is there any reason to believe you can create disproportionate value? Strategy is not a procedural exercise, but a way of thinking. Whatever the degree of change required at your company, make it.

Strategy 8

Strategy McKinsey Strategic Planning Cost of Capital 8

Harvard Business Review

OCTOBER 3, 2011

A CEO's job is about resource allocation with a goal of earning a return in excess of the opportunity cost of capital. The challenge is figuring out how to allocate human and financial capital to its best and highest use for the long term. Understanding Capital Markets. This requires difficult trade-offs.

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

MARCH 28, 2016

As a result, family equity can come at a very low cost of capital, where businesses can meet the annual needs of their shareholders without having to worry about paying back the principal. ” There is often a personal connection between the family and the communities in which it operates; reputations matter to families.

Long-term 8

Long-term Short-term Reputation Incentives 8

Harvard Business Review

FEBRUARY 7, 2017

New research, led by a team from McKinsey Global Institute in cooperation with FCLT Global , found that companies that operate with a true long-term mindset have consistently outperformed their industry peers since 2001 across almost every financial measure that matters. In this case its capital charge is $800 times 8%, or $64.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

MAY 25, 2018

Likewise, the airlines have demonstrated that well-constructed alliances can be a powerful way to build market position and capitalize on scale. These new organizations are likely to operate quite differently from traditional corporations. The new face of deal making will take a variety of forms.

Incubator 8

Incubator Insurance Cost of Capital Competitive Advantage 8

Harvard Business Review

SEPTEMBER 26, 2016

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.

Objective 8

Objective Cost of Capital Bottom-up Environment 8

Strategy Driven

SEPTEMBER 9, 2011

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. If it is positive, it’s thumbs up, if it’s negative, it’s thumbs down. Companies that will eventually be wrecked by others’ innovations are operating on autopilot.

Innovation 50

Innovation NPV Business Model Constraint 50