Remove Development Remove Finance Remove Innovation Remove Net Present Value
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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course.

Report 8
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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Next, ALL's CEO assembled a cross-functional team to develop simple rules for prioritizing capital spending. Once they understood the rules and their underlying rationale, ALL's employees generated a series of innovative proposals based on what they had to work with. reuse existing resources. Adapting to local circumstances.

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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

Today, the average cost of equity capital sits at close to half that: just 8% for the roughly 1600 companies comprising the Value Line Index. So, in real terms, debt financing is essentially free. In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins.

ROE 14