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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. Any proposal, the rules said, should: remove obstacles to growing revenues, minimize up-front expenditure, provide benefits immediately (rather than paying off in the long term), and. reuse existing resources.

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

In our work with clients across dozens of sectors over more than five years, we have found that the strongest CMO/CFO partnerships develop when both parties undertake five actions: 1. CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment.

CFO 8
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How to Choose the Ideas Your Company Should Invest In

Harvard Business Review

My last post described how Innosight follows a three-stage process to evaluate investment proposals from outside entrepreneurs. Note what isn't part of the decision: an idea's net present value or return on investment. But deciding how to invest in ideas at a corporation is a different beast.

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An Unexpected Lesson from Mandela: Why Context Matters

Harvard Business Review

These were engineers and network planners; surely, they understood economics and net present value analysis. They agreed that the Mandela proposal was nonsense. If South Africa was to develop, it could not afford to ignore the technocrats entirely. I told them my story. I re-did the analysis.