The Idolbuster

JANUARY 17, 2013

Sabina” was a product manager working in lifescience industry who was part of a project that had to make that very choice. When the original product was scoped, it was designed to meet a set of unmet customer needs, and she created a healthy revenue forecast to justify the expense of development. A forecast is built on assumptions.

NPV 36

NPV Sample Project Metrics 36

Harvard Business Review

FEBRUARY 7, 2011

With political upheaval roiling the streets of Cairo, the first concern of top management in many multinationals is to get their employees and their families out of Egypt safely. Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation.

NPV 12

NPV Short-term Discount Politics 12

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. “Importantly, this will be a much simpler, much less complex company of leading brands that’s easier to manage and operate.” Should management refine and dig deeper into existing 80/20 KPIs?

Brand 8

Brand DCF IRR NPV 8

Strategy Driven

SEPTEMBER 9, 2011

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. Yet for the small handful of companies that have managed to drive growth consistently – even through tough times – the payoff is great.

Innovation 50

Innovation NPV Business Model Constraint 50