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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years.

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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business Review

On June 25, 2018, Facebook lost market capitalization of more than $100 billion in just two hours of trading after it announced its quarterly performance, despite exceeding analysts’ earnings forecasts. This example illustrates that investors consider information beyond just earnings as value-relevant. What caused this slump?

Report 8
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Still Many Ways to Skin a Capital Cost

Harvard Business Review

When executives evaluate a potential investment, whether it's to build a new plant, enter a new market, or acquire a company, they weigh its cost against the future cash flows they expect will spring from it. To make sure they're comparing apples to apples, they discount those future cash flows to arrive at their net present value.

CAPM 13
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The Big Trends Changing Community Development

Harvard Business Review

First, there is a growing realization that the not-for-profit sector has, over the last 50 years, been neither as effective nor as efficient as required by either the communities they serve or the donors (from government, philanthropy, and the private sector) that fund their efforts. To a business person, think how absurd this would seem.

Trends 8
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Don’t Let Your Company Get Trapped by Success

Harvard Business Review

” Only few firms manage to be ambidextrous—most struggle to maintain a healthy balance between exploration and exploitation. And managers focused on immediate total shareholder returns may be delighted with high performance. Some firms manage to maintain this dual discipline as they grow. Our research shows that U.S.

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What Xerox PARC Learned About Executing on Open Innovation

Harvard Business Review

Applied to open innovation, it means framing conversations so decision-makers understand the future value ("the payoff"), how much investment is needed ("the exercise price"), and the associated risks of bringing an externally sourced technology or concept to market. Net Present Value ). You can invest iteratively.

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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Managers in these organizations translate corporate objectives into a few straightforward guidelines that help employees make on-the-spot decisions and adapt to constantly shifting environments, while keeping the big picture in mind. Its new management team took over an organization that was bureaucratic, overstaffed, and bleeding cash.