article thumbnail

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Digital companies, in contrast, chase risky projects that have lottery-like payoffs. Risk is now considered a feature, not a bug.

Report 8
article thumbnail

How to Get People to Collaborate When You Don’t Control Their Salary

Harvard Business Review

My analyses show that “smart collaboration” — that is, collaboration targeted at the right opportunities — nearly always pays out, but only after people spend time developing the underlying relationships and processes. Many people and companies start the investment, but quit before seeing the returns.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

An Inside View of How LVMH Makes Luxury More Sustainable

Harvard Business Review

Belvedere Vodka, a brand with sales in 120 countries, has pursued many large-scale projects to reduce its CO2 footprint. Charles Gibb, Belvedere’s CEO, says it made a strategic choice to invest in this project, even though it had a longer payback period than normal. LVMH’s approach is somewhat unique.

article thumbnail

How to Better Manage Your Company’s Utility Bills

Harvard Business Review

In our experience, well-designed retrofits can deliver 20%-50% energy savings with fast payback periods. Wind and solar developers want your business. Contract for energy from off-site renewables. Why not agree to buy electricity from them?