article thumbnail

10 Reasons Why Every Manager Should take a Finance Course

Great Leadership By Dan

We just finished a “ Finance and Accounting for the Non-Financial Manager ” program this week for a large client. The audience was mostly engineers – program and project managers, the ones in charge of designing and making complex stuff. You’ll be able to hold your own in management and board meetings.

Finance 246
article thumbnail

When It Pays to Think Like a Finance Manager

Harvard Business Review

Most finance managers in both large and small businesses encounter numerous proposals for capital investments and many of the people proposing these investments don’t have a clear picture of what the return will be. Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer?

Insiders

Sign Up for our Newsletter

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

article thumbnail

What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

What have been less explored are the specific actions taken by private equity (PE) fund managers. In a survey of 79 PE firms managing more than $750 billion in capital, we provide granular information on PE managers’ practices and how firms’ strategies relate to the characteristics of their founders.

CAPM 8
article thumbnail

Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

The other is a process called Opportunity Engineering (OE) that instills a different way to look at value. Since the Three Horizons represent different levels of uncertainty, they need to be managed and valued differently. This is where Opportunity Engineering comes into play. Alexander B.

NPV 14
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. So, investors, and therefore managers, might be adjusting their approach to risk accordingly. Investors are paying more attention to ideas and options than to earnings.

Report 8
article thumbnail

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.

article thumbnail

What Shareholder Value is Really About

Harvard Business Review

Creating Shareholder Value. Critics imply that managing for shareholder value is all about maximizing the short-term stock price. Companies that manage for shareholder value, the thinking goes, do whatever it takes to engineer an ever-higher market price. That is a profound misunderstanding. Communication.