CoachStation

SEPTEMBER 16, 2015

Compare Michael Porter’s competitive advantage definition: “Competitive advantage, sustainable or not, exists when a company makes economic rents, that is, their earnings exceed their costs (including cost of capital).” Is change communication in your organisation more like the first example or the second?

Storytelling 146

Storytelling Competitive Advantage Conference Cost of Capital 146

Harvard Business Review

SEPTEMBER 4, 2017

This has not only resulted in less investment in human capital but has also delivered lower total shareholder returns despite a period in which the cost of capital (and thus the cost of investing for growth) has been extraordinarily low. It’s not money that’s in short supply; it’s good growth ideas.

Human Capital 15

Human Capital Kaizen Agility Energy 15

Harvard Business Review

OCTOBER 15, 2013

While the obvious decisions that CEOs need to get right involve strategy and competitive advantage, too many executives delegate away three critical decisions that they need to own: decisions about goals, resource allocation, and people. Goal setting : As a rule, CEOs don’t give enough attention to setting goals.

P&L 8

P&L Fixed Assets Charan Delegation 8

Harvard Business Review

JULY 25, 2017

Some companies establish a threshold for MROI that takes into account its risk tolerance and cost of capital, below which they are hesitant to make investments. For example, do you include just the cost of the media, or do you also include the investment of staff time to create the ad?

ROI 8

ROI Marketing Marketing Mix Short-term 8

Harvard Business Review

SEPTEMBER 13, 2017

But we recognize that, in many businesses, resources are often allocated according to short-term, bottom-line pressures. But the impact of the industry on Brazil’s natural resources — and global GHG emissions — has been intense. Brazil is the world’s biggest beef exporter, with 19.6% million and $16.5

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

NOVEMBER 20, 2013

Though both statements may sound extreme, they are the clear implication of new McKinsey research on how companies create value and allocate resources. The corporate minority that actively reallocate their resources do much better financially than those that don’t. And second, you aren’t doing much about it.

Strategy 8

Strategy McKinsey Strategic Planning Cost of Capital 8

Harvard Business Review

APRIL 5, 2017

Repaying such profits to shareholders through share repurchases is better than misinvesting that cash to diversify into unrelated businesses in which management has no expertise or overinvesting in projects that may not return cost of capital. As I said earlier, measuring a company’s short-term orientation is incredibly tricky.

EPS 8

EPS Metrics Depreciation Short-term 8