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How Valuable Are Your Customers?

Harvard Business Review

Even if you don’t have to calculate CLV yourself (there are lots of tools that will do the math for you ), it’s important to understand the concept so you can decide whether to use it when making marketing and sales decisions. Now the question is how much do you spend marketing to your customers and how effective are your efforts?

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Beware of Short-term Management, Not the Short-term Investor

Harvard Business Review

Much has been made in recent years about the pernicious influence of short-term investors on corporate performance. The short-term investor does not reduce the firm's long-term competitiveness and value;short-term management does. Indirectly though, these short-term traders can destroy value.

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The Secrets to Building a Lucky Network

Harvard Business Review

A major customer may default, a promised source of funding may disappear, or the world's markets may sour — any of these can shift your trajectory in an instant. After all, if he were on a desert island without a capital market, the value of his skill goes nearly to zero. Then again, you may be lucky. So, Luck matters.

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Don’t Let Your Company Get Trapped by Success

Harvard Business Review

This can be quantified by analyzing the extent to which the share prices of S&P 500 firms are driven by a firm’s present value of future growth options (PVGO) rather than cash flow from current operations. Eventually the company is likely to be out of touch with changing market requirements.

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What Shareholder Value is Really About

Harvard Business Review

First, he or she needs to internalize the true meaning of creating shareholder value. Second, he or she needs to understand how capital markets work. Creating Shareholder Value. Critics imply that managing for shareholder value is all about maximizing the short-term stock price. Understanding Capital Markets.

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Which MBAs Make More: Consultants or Small-Business Owners?

Harvard Business Review

It includes other aspects such as: how much you enjoy your career, whether it provides fulfillment, how much flexibility you get and how much influence you have over what you do and when you do it. Compensation is, of course, more than money. That average is actually hard to nail down, however.

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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. The Refresher: Net Present Value. Related Video.

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