Harvard Business Review

DECEMBER 2, 2010

To do this, we combine two separate frameworks: the first is the Three Horizon strategic model developed by McKinsey. Since the Three Horizons represent different levels of uncertainty, they need to be managed and valued differently. The two together, NPV + OV, provide an inclusive but not inflated valuation.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

AUGUST 4, 2014

Declaring he’d cull up to 100 brands — many of which he’d acquired and developed — P&G CEO A.G. Instead of focusing on innovation, as he did during his first tour as CEO of the world’s largest consumer packaged goods firm, Lafley is now innovating on focus. represent an innovation repudiation of Lafley 1.0?

Brand 8

Brand DCF IRR NPV 8

Harvard Business Review

MAY 4, 2017

For years, AWS has invested in driving developer and company adoption of its platform by driving down prices and introducing low cost features to make developer’s lives easier. This has led to high levels of AWS specific investment from innovators like CloudHealth Technologies, Qubole, Mapbox, and the like. So is Facebook.

Collison 9

Collison Net Present Value Company Short-term 9

Harvard Business Review

MAY 18, 2017

Garvin was a generalist more than a specialist, perhaps because he came of age at HBS during the 1980s, when the school’s primary focus was the development of skilled general managers. Kaplan’s balanced scorecard or Clayton Christensen’s disruptive innovation. Sound familiar?

Management 9

Management NPV Balanced Scorecard Article 9

Harvard Business Review

MAY 1, 2017

Next time you're deciding about a big investment, NPV can help you make a more informed decision. In our experience, companies still focus more on cutting costs than on developing and executing new growth strategies. Others reward easy-to-measure improvements in existing processes over less-easily-quantified innovations.

ROE 14

ROE Long-term GDP Six Sigma 14

Strategy Driven

SEPTEMBER 9, 2011

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Net present value [NPV] is a case in point. 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.

Innovation 50

Innovation NPV Business Model Constraint 50