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A Refresher on Internal Rate of Return

Harvard Business Review

You’ve got a great idea for a new product that will increase revenue or a new system that will cut the company’s costs. There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. IRR doesn’t give you real dollars.

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Three Headwinds for Facebook's IPO

Harvard Business Review

I have used the social network for eight years and continue to be impressed with Mark Zuckerberg's focus on product and his vision for the internet. But equity investing and product use are very different things. Over the past couple of years, I've become close with a handful of web product managers.

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

Harvard Business Review

In retail, Lafley observed , the 80/20 rule usually applied: “Twenty per cent of the brands and products account for 80 per cent sales.” Identifying the 80/20 products and brands is the easy part. As devotees of Vilfredo Pareto and Richard Koch well know, 80/20 rules and ratios are relevant beyond retail.

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What If Companies Managed People as Carefully as They Manage Money?

Harvard Business Review

Based on our research , inspired employees are three times more productive than dissatisfied employees, but they are rare. A veritable alphabet soup (ROA, RONA, ROIC, ROCE, IRR, MVA, APV, and the like) exists to measure our financial capital. Energy, too, is difficult to come by. There you have it.

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Connecting To Happiness: A Single Model For Leadership Excellence

Terry Starbucker

The goal is a high IRR, and the resulting Cause is “ meaningfully increasing shareholder value”. happiness). This connection must be introduced with near-religious fervor, with the Cause becoming a mantra that is known by all, and relentlessly reinforced. The WMTH is the satisfaction of funding a successful company.

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