Harvard Business Review

FEBRUARY 7, 2011

In both places, we know the instability will worsen macroeconomic performance in the short term. If that is the case, and the faster growth generates higher profits for them over the long term, that might well compensate for any short-term losses from the disruption. Tunisia and Egypt are cases in point.

NPV 13

NPV Short-term Discount Politics 13

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. That ecosystem investment reinforces the value proposition and drives more developer adoption. Consider a business like Amazon Web Services.

Collison 10

Collison Net Present Value Company Short-term 10

Harvard Business Review

MAY 1, 2017

So, in real terms, debt financing is essentially free. Next time you're deciding about a big investment, NPV can help you make a more informed decision. Equity cash flows, in turn, are a function of a company’s long-term return on equity (ROE), growth, and the value of shareholders’ equity on its books.

ROE 14

ROE Long-term GDP Six Sigma 14

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. But the article aimed higher, arguing that when corporate leaders invest with short-term results in mind, they put long-term performance at risk.

Management 9

Management Balanced Scorecard NPV Article 9