Harvard Business Review

SEPTEMBER 13, 2017

We thus wanted to figure out a way to help executives quantify the financial benefits of reducing their firm’s greenhouse gas (GHG) emissions. We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. of revenues). million (0.01% to 0.6%

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

JUNE 8, 2018

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Some of these ideas contradict traditional financial thinking whereas others seem highly controversial or pessimistic.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

OCTOBER 16, 2013

Yet the decision to green-light a project is usually based solely on “expert opinions” — in other words, executives’ intuition supplemented by standard regression analysis. Most companies – including the movie studios in Hollywood – over-rely on basic tools like discounted cash flow and net present value.

Discounted Cash Flow 8

Discounted Cash Flow Net Present Value Comparison Tools 8

Harvard Business Review

JULY 1, 2016

As a result, there is no sound basis for stakeholders, including shareholders, to assess the performance of the company and its executives. In the absence of a singular governing objective, executives are free to decide as they see fit and to balance those interests however they think is right.

Short-term 8

Short-term Long-term Objective Incentives 8

Harvard Business Review

NOVEMBER 19, 2015

This requires applying different approaches to strategy and execution in different parts of their business, as well as constantly re-balancing exploitation (generating cash to support growth) and exploration (finding winning products and models). Adopt the right approach to strategy and execution in each part of the business.

Company 8

Company Succession Maturity Long-term 8

Harvard Business Review

MARCH 19, 2013

The Jesuit Constitutions didn't equip me to do present value calculations. Those who are spiritually inclined might also reflect on how God (or a higher power) was present in the people and challenges you encountered over the last few hours. Popes, Jesuits, and JP Morgan executives have lots on their plates each day.

Management 10

Management Self-aware Learning-by-Doing Fashion 10

Harvard Business Review

JANUARY 11, 2012

Note what isn't part of the decision: an idea's net present value or return on investment. The goal in executing tests is to maximize short-term learning , not profits.

Company 14

Company Net Present Value How To Proposal 14

Harvard Business Review

OCTOBER 3, 2011

Concepts like "societal value," "shared value," and "customer capitalism" are offered as desirable and more enlightened substitutes. CEOs who understand the principles of shareholder value and execute effectively will satisfy most, if not all, of the objectives of those who call for a new way of thinking. Communication.

Short-term 11

Short-term Long-term Price CEO 11

Harvard Business Review

NOVEMBER 9, 2012

Risk is an abstract concept and hence often an uncomfortable topic for executives who make their living in the all-too-physical world of procurement, manufacturing and logistics. A problem is that supply chain managers are rarely trained in quantitative risk concepts, either during the formal phase of their education or on the job.

Supply Chain 8

Supply Chain Chief Procurement Officer Risk Management Management 8

Harvard Business Review

MAY 1, 2017

In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins. The Refresher: Net Present Value. So if companies should value growth more than margins these days, why don’t they? Related Video.

ROE 10

ROE Long-term GDP Six Sigma 10

Harvard Business Review

SEPTEMBER 27, 2012

This helped ALL's executives do four things: achieve alignment, adapt to local circumstances, foster coordination across units, and make better decisions. Strategies often falter in execution because of insufficient coordination across the organization. The team decided to adopt a simple-rules approach to the work ahead.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8

Harvard Business Review

DECEMBER 28, 2016

While executing driver analyses enables change, it’s not actual change. Customer Lifetime Value : This is the net present value of all future customer revenues with account for attrition and your discount rate. ” Good driver analyses unlock the method for having the most change in the fewest possible moves.

Attrition 8

Attrition Metrics Net Present Value KPI 8

Harvard Business Review

MARCH 10, 2011

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

CAPM Cost Discounted Cash Flow Cost of Capital 13

Harvard Business Review

DECEMBER 2, 2010

The odds of a successful acquisition are long — something research has proven time and again — yet executives show no signs of losing interest in M&A. The higher level of uncertainty associated with H2 and H3 necessitates an updated valuation methodology that takes into account more than the net present value (NPV) of the target.

NPV 13

NPV Net Present Value Price Engineering 13

Harvard Business Review

MARCH 29, 2018

The audience for such innovation wants to be receptive: A recent American Hospital Association (AHA) survey found that 75% of senior hospital executives endorsed the importance of digital innovation. Each of the new companies offers the hope of transforming the performance of the U.S. health care system.

Budgeting 8

Budgeting System Innovation Payback Period 8

Harvard Business Review

MAY 29, 2017

And finally, writing a values statement is used as the start of an ongoing, transformational journey, not the conclusion of one. When these three conditions aren’t present, values can get hijacked and misused. Without accountability, values become a weapon to punish. Here’s how it happens: 1.

Bottom-up 8

Bottom-up Competitive Advantage Organization Workshop 8