Remove Innovation Remove NPV Remove Operations Remove Productivity
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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

The audience for such innovation wants to be receptive: A recent American Hospital Association (AHA) survey found that 75% of senior hospital executives endorsed the importance of digital innovation. Yet, despite their stated enthusiasm, hospitals have been notoriously slow to adopt digital innovations. health care system.

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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

Horizon 1 (H1) represents the current core operations of a company that produce the cash flow needed to sustain operations, to meet investor expectations, and to invest in future growth. The two together, NPV + OV, provide an inclusive but not inflated valuation. The 3 Horizons model breaks down strategy into three parts.

NPV 14
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Lafley’s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

Instead of focusing on innovation, as he did during his first tour as CEO of the world’s largest consumer packaged goods firm, Lafley is now innovating on focus. “Importantly, this will be a much simpler, much less complex company of leading brands that’s easier to manage and operate.” innovation.

Brand 8
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Old Buildings Are U.S. Cities’ Biggest Sustainability Challenge

Harvard Business Review

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. Innovation in Cities. Addressing energy use in existing large commercial buildings has proven notoriously difficult. Insight Center.

NPV 8
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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

Next time you're deciding about a big investment, NPV can help you make a more informed decision. Some focus their best people on finding ways to squeeze out more profitability from existing operations, rather than creating new businesses. Companies that encourage innovation take steps to overcome these organizational obstacles.

ROE 14
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Reflecting on David Garvin’s Imprint on Management

Harvard Business Review

Kaplan’s balanced scorecard or Clayton Christensen’s disruptive innovation. One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.) That quality made him (arguably) the quintessential HBR author.

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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. 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.