Harvard Business Review

APRIL 5, 2017

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. What would better measures be?

EPS 8

EPS Metrics Depreciation Short-term 8

Harvard Business Review

SEPTEMBER 13, 2017

For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1% These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector. of revenues) and $13 million to $62 million (0.01% to 0.7% of revenues).

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

OCTOBER 10, 2017

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.

Innovation 8

Innovation P&L ROI Long-term 8

Harvard Business Review

OCTOBER 25, 2018

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

Industry 12

Industry Company GDP Bottom-up 12

Harvard Business Review

JULY 31, 2017

Based on our recent worldwide survey of 2,000 incumbent companies across all major industries and countries, we estimate that the average return on incumbent digital initiatives is below 10% — barely above the cost of capital. One example is P&G’s Oral-B toothbrush with Bluetooth-enabled digital guidance.

Strategy 8

Strategy ROI Technology Cost of Capital 8

Harvard Business Review

OCTOBER 21, 2016

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.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

APRIL 9, 2015

Income statements almost always include an allowance for depreciation of capital assets. That statement records cash generated by a company’s operations and cash spent on those operations; cash spent on capital assets (and cash generated by the sale of capital assets); and cash received from, or paid to, lenders and shareholders.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

JUNE 27, 2012

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 Only 9% of companies achieved even a modest level of sustained and profitable growth. Compete for the long term.

Creativity 14

Creativity Long-term Kotter Cost of Capital 14

Harvard Business Review

APRIL 26, 2017

Recent analysis by Bain and SAP found that only 7% of bank credit products could be handled digitally from end to end. Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window.

Banking 11

Banking Stage-Gate Credit Scoring Competitive Advantage 11

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. Value drivers include sales growth, operating profit margin, and investment requirements.)

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

NOVEMBER 25, 2013

Adding to the complexity is marketing’s increasing need to integrate with other functions in the organization to discover relevant insights from data, design products and offers, and then deliver them to the marketplace. But it’s no good speaking the same language as the CFO if marketing itself is a Tower of Babel.

CFO 8

CFO Short-term Long-term Benchmarking 8

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. Now, they snap a picture of a defective product, upload it to Facebook, and all of a sudden it’s gone viral.

Long-term 8

Long-term Short-term Reputation Incentives 8

Harvard Business Review

MAY 24, 2017

Based on our research , inspired employees are three times more productive than dissatisfied employees, but they are rare. Financial capital is abundant but carefully managed; human capital is scarce but not carefully managed. Invest human capital just like you invest financial capital. There you have it.

Human Capital 15

Human Capital Management Company ROCE 15

Harvard Business Review

MAY 25, 2018

So we can expect that, in addition to formal mergers and acquisitions, the M&A of the future will consist of a potpourri of joint ventures, minority investments, alliances and incubator-type investments—anything that helps keep the relevant people on board and productive—which sounds very similar to Rockefeller’s strategy.

Incubator 8

Incubator Insurance Cost of Capital Competitive Advantage 8

Harvard Business Review

DECEMBER 13, 2017

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.

Short-term 8

Short-term Decentralization Company Trends 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

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. You will learn how to identify and prioritize your company’s full portfolio of opportunities – from new product lines to entirely new businesses. Take a doctor’s office.

Innovation 50

Innovation NPV Business Model Constraint 50