Harvard Business Review

DECEMBER 2, 2010

The other is a process called Opportunity Engineering (OE) that instills a different way to look at value. This is where Opportunity Engineering comes into play. The two together, NPV + OV, provide an inclusive but not inflated valuation. The third component of opportunity engineering is what we call Abandonment Value [AV].

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

MARCH 23, 2015

Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? If the numbers show a negative NPV, meaning that the proposed investment isn’t justified, they change the assumptions until the NPV turns up positive. Of course not.

Finance 8

Finance NPV CFO ROI 8

Harvard Business Review

OCTOBER 20, 2014

In the 1990s, Procter & Gamble’s Product Supply Organization kicked off a major Reliability Engineering program, much like the efficiency initiatives of companies such as Toyota. Combining these creates a P&L and a projection, which through a discounted cash flow analysis yields an NPV, which can be used to assess valuation.

Discounted Cash Flow 8

Discounted Cash Flow P&L NPV EBITDA 8

Harvard Business Review

JANUARY 21, 2016

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. The first key is to limit retrofit scope to a limited pool of pre-engineered core retrofit measures, measures that have been selected for their applicability to a large number of existing buildings.

NPV 8

NPV Energy Efficiency Technology 8

Harvard Business Review

MAY 1, 2017

Next time you're deciding about a big investment, NPV can help you make a more informed decision. 3M, for example, has long allowed engineers to devote 15% of their time to skunkworks projects, without supervisor approval.) Related Video. The Refresher: Net Present Value.

ROE 14

ROE Long-term GDP Six Sigma 14

Harvard Business Review

MAY 18, 2017

One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.) When Garvin pitched the article that became “How Google Sold Its Engineers on Management” (2013), I laughed — how could anyone intelligent doubt that management matters? Sound familiar?

Management 9

Management Balanced Scorecard NPV Article 9