Harvard Business Review

DECEMBER 23, 2013

Overcoming “short-term-ism”. One major blind spot for marketers to be aware of is “short-term-ism” that most analytics engender. The reality is that the majority of marketing activities have both a short- and long-term impact on sales. One consumer food brand almost fell into this short-term trap.

Marketing 11

Marketing NPV Short-term Net Present Value 11

Harvard Business Review

MAY 4, 2017

How can you continuously defer short term profitability to grow your network effect? But as long as there is stickiness to be created, it’s a sensible strategy. Today, AWS is a much more valuable business for the company’s long-termism. The Refresher: Net Present Value. Risk losing short-term.

Collison 9

Collison Net Present Value Company Short-term 9

Harvard Business Review

FEBRUARY 7, 2011

In both places, we know the instability will worsen macroeconomic performance in the short term. If that is the case, and the faster growth generates higher profits for them over the long term, that might well compensate for any short-term losses from the disruption. Tunisia and Egypt are cases in point.

NPV 13

NPV Short-term Discount Politics 13

Harvard Business Review

MARCH 31, 2017

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. The Refresher: Net Present Value. Next time you're deciding about a big investment, NPV can help you make a more informed decision. How can you boost your financial acumen?

Finance 8

Finance Skills EBITDA Net Present Value 8

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 14

ROE Long-term GDP Six Sigma 14

Harvard Business Review

APRIL 27, 2017

” Laying out their data, they find that long-term oriented companies create more financial value and more jobs. I agree with their vision of a future in which more companies focus on the long term and become more productive for the world (their findings accord with my own work on the dangers of short-termism ).

Hedge 9

Hedge Short-term Long-term NPV 9

Strategy Driven

SEPTEMBER 9, 2011

Many conventional metrics we use to estimate value are based on faulty assumptions. 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. But they do it very consciously.

Innovation 50

Innovation NPV Business Model Constraint 50