Harvard Business Review

JULY 9, 2012

Many of the entrepreneurs and business builders we talked to also knew how to create Luck. The net present value and strategic fit of a given relationship or initial introduction in one's Lucky Network might be foggy at best, but unintended benefits often manifest for those who embrace relationships with openness.

Net Present Value 15

Net Present Value Entrepreneur Strategic Fit Open-book 15

Harvard Business Review

FEBRUARY 24, 2014

While on the surface, the dirty business of fossil fuels is nothing like Silicon Valley, many in the oil business have moved beyond the standard net present value (NPV) model for assessing the merit of investments. But Facebook has also bought itself time to figure out how to extract value from that audience.

NPV 8

NPV Net Present Value Industry Video 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. They believed managers needed a better way to come up with a number to represent their cost of capital, and that's what they were presenting.

CAPM 14

CAPM Cost Discounted Cash Flow Cost of Capital 14

Harvard Business Review

MAY 29, 2017

People are selected, evaluated, and trained on how to embody them. Second, the values drive self-honesty, and when the company fails to live up to them, leaders are the first to admit it. And finally, writing a values statement is used as the start of an ongoing, transformational journey, not the conclusion of one.

Bottom-up 10

Bottom-up Competitive Advantage Organization Workshop 10

Harvard Business Review

DECEMBER 2, 2010

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. We call this the Opportunity Value (OV) of an asset. Make sure you don't miss your next good deal by thinking too narrowly about how to value it!

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

OCTOBER 15, 2012

Companies knew how to engage a design firm, license IP, and form joint ventures, but few knew how to truly co-develop innovations with external partners, such as PARC. At that time it was hard for PARC to understand how much we needed to invest in a new technology before approaching partners to work together in commercialization.

Innovation 8

Innovation Execution Net Present Value Open-book 8

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? They figure out how much the new computer system and software will cost and they compare that with the cash flow generated through efficiencies (assuming they know how to analyze returns based on cash flow).

Finance 8

Finance NPV CFO ROI 8

Harvard Business Review

OCTOBER 3, 2011

The challenge is figuring out how to allocate human and financial capital to its best and highest use for the long term. Value creation, by means of maximizing long-term free cash flow, provides the appropriate approach to judge alternative strategies and subsequent performance. This requires difficult trade-offs.

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

FEBRUARY 7, 2011

Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation. The overall value of a foreign investment is equal to the NPV of the expected stream of profits for the life of the investment. If the owner of that subsidiary discounts profits in Egypt by 12.5

NPV 13

NPV Short-term Discount Politics 13

Harvard Business Review

AUGUST 21, 2015

. “Marketers need to understand how elastic , sensitive to fluctuations in price, or inelastic , largely ambivalent about price changes, their products are when contemplating how to set or change a price,” says Avery. Read refreshers on net present value , breakeven quantity , debt-to-equity ratio , and cost of capital.

Price 8

Price Debt to Equity Ratio Marketing Metrics 8

Harvard Business Review

JUNE 22, 2015

I talked with Jill Avery, a senior lecturer at Harvard Business School and co-author of HBR’s Go To Market Tools , to better understand how to use this important calculation. While the concept may be straightforward, the calculation and the assumptions underlying it are far from simple. What is breakeven quantity (BEQ)?

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

Harvard Business Review

JANUARY 11, 2012

My last post described how Innosight follows a three-stage process to evaluate investment proposals from outside entrepreneurs. But deciding how to invest in ideas at a corporation is a different beast. Note what isn't part of the decision: an idea's net present value or return on investment.

Company 15

Company Net Present Value How To Proposal 15

Harvard Business Review

DECEMBER 11, 2013

The world was suddenly considering how to connect to this hitherto isolated country and embracing a potential economic and political powerhouse. I made what I thought was a brilliant presentation to senior bureaucrats and technologists. Those were exciting times for the country. I told them my story.

Net Present Value 8

Net Present Value Analysis Politics Telecommunications 8

Harvard Business Review

APRIL 2, 2014

You know, the future value of money, the present value of money — money today is worth more than in the future because you can invest it and get interest. But it is a very basic rewrite of how to think about finance, and it has swept all before it in the academic world. It goes back to the 1970s.

CAPM 8

CAPM Discount Price Finance 8

Strategy Driven

SEPTEMBER 9, 2011

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. You will learn how to identify and prioritize your company’s full portfolio of opportunities – from new product lines to entirely new businesses.

Innovation 50

Innovation NPV Business Model Constraint 50