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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?

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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

But much of the blame can be attributed to hospitals’ misaligned budgeting and incentive systems. These barriers, however, can be overcome by changing how hospitals acquire new technology and by providing incentives to units to use digital innovations to provide more effective and efficient care.

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How Marketers Can Avoid Big Data Blind Spots

Harvard Business Review

That estimate then needs to be tested and adjusted systematically based on the unique situation of the company using the experience and judgment of marketing and sales managers, as well as other internal data (e.g. customer surveys). Although this is not a perfect science, we think it’s better to be “roughly right” than “precisely wrong.”.

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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business Review

But I long for actions that go beyond admonitions to managers and boards to do better, that give both parties a better chance to stand up to capital markets players, like activist hedge funds, pressuring them to become too short-term focused. Critics of this idea argue that it would simply ensconce bad management. Related Video.

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Is Your Business Biased Against Innovation?

Strategy Driven

Net present value [NPV] is a case in point. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Yet for the small handful of companies that have managed to drive growth consistently – even through tough times – the payoff is great.