Harvard Business Review

NOVEMBER 9, 2012

In an uncertain and volatile world, risk management — a previously unsexy subject for many managers who created annual updates or reviews of their company's risk management plans — is now a front-burner issue for many. Because the fact that value is not guaranteed in the future lessens value in the present.

Supply Chain 9

Supply Chain Chief Procurement Officer Risk Management Management 9

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. This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

NOVEMBER 25, 2013

This lack of an analytical approach has traditionally formed a barrier between marketing and finance. CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment. They’re going to make ads and do whatever it is they do. Ask for the CFO’s help.

CFO 8

CFO Short-term Long-term Benchmarking 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. The motivation behind it, as with many, many articles published over HBR's nearly 90-year history, was to take an effective practice developed in one corner of industry and spread it to managers everywhere.

CAPM 14

CAPM Cost Discounted Cash Flow Cost of Capital 14

Harvard Business Review

JUNE 28, 2016

Owners of small businesses can set their own hours, make their own management decisions, and take pride in the ownership of their work. The value of that carried interest, of course, depends on the performance of the business, its size, amount of debt used to finance the acquisition and the eventual pricing of a subsequent sale.

Consultative 8

Consultative CAGR EBITDA CEO 8

Harvard Business Review

FEBRUARY 24, 2011

Imagine if managements, boards, and investors adopted them: we could restart our economy, energize our business school curricula and create prosperity for our children and grandchildren. But why compare apples (book value) to oranges (share price and dividends)? In all but seven of these 45 years, Berkshire beat the S&P.

Letter 15

Letter P&L Net Present Value Insurance 15

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 14

ROE Long-term GDP Six Sigma 14