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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

To do this, we combine two separate frameworks: the first is the Three Horizon strategic model developed by McKinsey. The higher level of uncertainty associated with H2 and H3 necessitates an updated valuation methodology that takes into account more than the net present value (NPV) of the target.

NPV 14
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Lafley’s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

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
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Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business Review

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.

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Old Buildings Are U.S. Cities’ Biggest Sustainability Challenge

Harvard Business Review

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. Innovation in Cities. Addressing energy use in existing large commercial buildings has proven notoriously difficult. Insight Center.

NPV 8
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Life's Long Cruise? Planning for a Second "Me" Career

Harvard Business Review

Even modest continued earnings dramatically change the NPV calculation. Most gloom and doom commentaries about future economic trends in developed nations are based on the assumption that people will choose to spend the last 30 years of their lives on a long cruise — consuming resources, while making no productive contribution.

Career 11
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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

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
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Reflecting on David Garvin’s Imprint on Management

Harvard Business Review

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. He didn’t produce one signature idea, like Robert S.