Harvard Business Review

SEPTEMBER 10, 2012

We are often asked whether the best way to structure for innovation is top-down or bottom-up. Bottom-up approaches work well for incremental (keeps you in the game) innovations. Breakthrough (changes the game) innovations, contrary to popular belief, need a top-down approach. They must also be willing to see value in absurdity.

Process 15

Process Innovation Stage-Gate Net Present Value 15

Harvard Business Review

SEPTEMBER 13, 2017

But we recognize that, in many businesses, resources are often allocated according to short-term, bottom-line pressures. Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

JANUARY 11, 2012

In The Innovator's Guide to Growth we suggested that companies should create one-page "Idea Resumes" that capture the essence of an idea on a single PowerPoint slide. If you don't have an innovation strategy , go and create one.). Note what isn't part of the decision: an idea's net present value or return on investment.

Company 14

Company Net Present Value How To Proposal 14

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 10

ROE Long-term GDP Six Sigma 10