Lafley’s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

“Importantly, this will be a much simpler, much less complex company of leading brands that’s easier to manage and operate.” ” Choosing to lead and manage in accord with that empirical insight has enormous organizational and operation repercussions. Should management refine and dig deeper into existing 80/20 KPIs? Declaring he’d cull up to 100 brands — many of which he’d acquired and developed — P&G CEO A.G.

DCF 12

Still Many Ways to Skin a Capital Cost

Harvard Business Review

For instance, if you had recently run a discounted cash flow, or DCF, valuation on the UK-based mobile phone giant Vodafone, you would have found that changing the discount rate from 12% to 11.6% — hardly a major change — would have increased the company's estimated value by 15%, or £13.4 They believed managers needed a better way to come up with a number to represent their cost of capital, and that's what they were presenting.

DCF 14