Hospital Budget Systems Are Holding Back Innovation

Harvard Business

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. A hospital organized into these different unconnected units finds it difficult to adopt innovations that reduce costs across a patient’s complete cycle of care.

Nuclear Power is Clean, Safe, and Reliable… But Can It Be Competitive?

Strategy Driven

In an effort to improve the financial viability of the remaining nuclear fleet, industry executives launched the Delivering the Nuclear Promise initiative; challenging employees and vendors to identify innovative ways to improve efficiency, reduce costs, and raise revenues while maintaining operational safety and reliability. StrategyDriven experience reveals many of these cost reductions to be implementable within 180 days and to possess similar payback periods.

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How to Get People to Collaborate When You Don’t Control Their Salary

Harvard Business

The parallels with business are clear: Stars are a crucial but perhaps fragile source of innovation and competitive advantage. Both these efforts help the payback period arrive sooner, making collaboration a smarter investment for the next wave of people. Most of us assume that if we want to change people’s behavior, we need to change their incentives.

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Furthermore, the operating managers cannot take their eyes off day-to-day operations to focus on innovation. That VC arm is given relatively unconstrained financial capital to invest in innovation and disruptive ideas. Martin Konopka/EyeEm/Getty Images.

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An Inside View of How LVMH Makes Luxury More Sustainable

Harvard Business

Looking at LVMH’s efforts, I’ll highlight three areas where I see great impact and innovation: managing carbon and energy, building a connection with customers around brand purpose, and working closely with suppliers. Charles Gibb, Belvedere’s CEO, says it made a strategic choice to invest in this project, even though it had a longer payback period than normal. The most innovative part of LVMH’s carbon strategy is the use of an internal carbon fund.

How GE Stays Young

Harvard Business Review

You need to think like a portfolio manager, allocating resources both to innovate in your core and for the future. Knowing that today’s operations will almost always win the lion’s share of resources, you need to consciously create a protected class of innovative ideas to invest in, even if money is tight. People in finance at GE, typically focused on return on investment and payback periods, love FastWorks because they get a better throughput of ideas.

Obama Gave a Monumental Climate Change Speech, But It's Still Not Enough

Harvard Business Review

Still, if you''re dependent on coal-powered energy — or your value chain is — it''s time to rethink your energy strategy and reconsider the payback periods on clean energy investments. It''s not just innovation to avoid regulations — that''s old school. Yesterday, President Barack Obama gave what Al Gore called the "best presidential address on climate change ever."