Harvard Business Review

MARCH 31, 2017

If you’re not a numbers person, finance is daunting. But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. Stop avoiding finance because you’re afraid of numbers. Think of it this way, “Finance is the way businesses keep score.

Finance 8

Finance Skills EBITDA Net Present Value 8

Harvard Business Review

MARCH 23, 2015

If you want approval for a new project — purchasing new equipment or computer systems, applying for a patent, building a new store — chances are you need your company’s finance department on board. To get the green light, it helps to understand how finance people think. Finance & Accounting Tool.

Finance 8

Finance NPV CFO ROI 8

Harvard Business Review

MARCH 10, 2011

To make sure they're comparing apples to apples, they discount those future cash flows to arrive at their net present value. That's the finding of a new survey on how financial professionals determine their cost of capital, presented in a separate post on HBR.org today.

CAPM 13

CAPM Cost Discounted Cash Flow Cost of Capital 13

Harvard Business Review

MARCH 29, 2018

These barriers, however, can be overcome by changing how hospitals acquire new technology and by providing incentives to units to use digital innovations to provide more effective and efficient care. Barrier 1: Unaligned budgeting units. Hospitals are typically organized by clinical departments (e.g., pharmacy, radiology, pathology).

Budgeting 8

Budgeting System Innovation Payback Period 8

Harvard Business Review

SEPTEMBER 27, 2012

That system was efficient, but the new management team decided that, at this moment in its history, the company needed adaptability more than efficiency. The Brazilian railway authority had issued detailed investment guidelines that left local employees with little scope to exercise their creativity or judgment. Fostering coordination.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8

Harvard Business Review

MAY 1, 2017

Today, the average cost of equity capital sits at close to half that: just 8% for the roughly 1600 companies comprising the Value Line Index. So, in real terms, debt financing is essentially free. In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins.

ROE 12

ROE Long-term GDP Six Sigma 12