Harvard Business Review

OCTOBER 15, 2013

At many companies the total cash investment in acquisitions, R&D, and fixed assets has not earned back its cost of capital after adjusting for the time lag in realizing incremental benefits. That outcome reflects the wrong allocation and/or ineffective execution.

P&L 8

P&L Fixed Assets Charan Delegation 8

Harvard Business Review

FEBRUARY 2, 2012

Today, only 9% of businesses in the world have achieved even a modest level of sustained, profitable growth over the past decade on average (5.5%, earning cost of capital) and that is declining — even though virtually all the businesses aspire to something like this or more.

Competitive Advantage 15

Competitive Advantage Porter Goleman Emotional Intelligence 15

Harvard Business Review

SEPTEMBER 4, 2017

. “For most of the last half-century — 84 percent of the time since 1966 — average wages have grown more slowly than would be predicted based on productivity and inflation growth,” The New York Times reported. For too long, business objectives and management philosophies have focused on efficiency over productivity.

Human Capital 15

Human Capital Kaizen Agility Energy 15

Harvard Business Review

NOVEMBER 4, 2014

Divestment can theoretically address this market failure by limiting investment by the fossil fuel industry by depressing company valuations and thereby increasing the cost of capital. For many companies, most of the capital expenditures are financed from internal cash flows and bank financing.

Finance 8

Finance Cost of Capital Constraint Price 8

Harvard Business Review

NOVEMBER 4, 2014

Divestment can theoretically address this market failure by limiting investment by the fossil fuel industry by depressing company valuations and thereby increasing the cost of capital. For many companies, most of the capital expenditures are financed from internal cash flows and bank financing.

Finance 8

Finance Cost of Capital Constraint Price 8

Harvard Business Review

JUNE 27, 2012

It is this complexity, my colleague James Allen and I report in our new book Repeatability , that is the "silent killer of profitable growth," and the greatest inhibitor of adaptability. real revenue and profit growth and earning their cost of capital has steadily declined. Yet almost every business aspires to do this.

Creativity 14

Creativity Long-term Kotter Cost of Capital 14

Harvard Business Review

OCTOBER 10, 2017

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. For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. That’s quite a mismatch.

Innovation 8

Innovation P&L ROI Long-term 8

Harvard Business Review

OCTOBER 21, 2016

McKinsey reports that the value at stake from sustainability concerns can be as a high as 70% of earnings before interest, taxes, depreciation, and amortization. In the largest study on climate change data and corporations, 8,000 supplier companies (that sell to 75 multinationals) reported on their level of climate risk. Some 62.4%

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

JUNE 18, 2015

By reporting the results of a survey of private equity investing practices, our sample represents PE firms across a spectrum of investment strategies, size, industry specialization, and geographic focus. Rather, they rely on internal rates of return and multiples of invested capital.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

OCTOBER 11, 2013

With the company’s share price sinking and its cost of capital rising, those deals might have to be put on hold. for his part, said the company should launch an aggressive PR campaign, encouraging reporters to examine the company’s assumptions and forecasts in detail. Terranola had been moving forward with A.J.’s

Case Study 8

Case Study CFO Hedge PR 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

The data for this index was drawn from 615 nonfinance companies that had reported continuous results from 2001 to 2015 and whose market capitalization in that period had exceeded $5 billion in at least one year. (We 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

NOVEMBER 7, 2012

You start by using analysts' reports and other sources to gauge the consensus expectations for value drivers — sales growth, operating profit margins, cost of capital and other factors that determine cash flows.

Price 8

Price Analysis Cost of Capital Disruptive Innovation 8