Remove Innovation Remove Long-term Remove Net Present Value Remove Operations
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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Rail accounted for only 20% of long-haul shipments in Brazil, compared with 80% in most countries. Any proposal, the rules said, should: remove obstacles to growing revenues, minimize up-front expenditure, provide benefits immediately (rather than paying off in the long term), and. reuse existing resources.

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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

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 15
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Is Your Business Biased Against Innovation?

Strategy Driven

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. Japan, Infosys, and Sagentia in the UK.