Harvard Business Review

MARCH 23, 2015

Most finance managers in both large and small businesses encounter numerous proposals for capital investments and many of the people proposing these investments don’t have a clear picture of what the return will be. But finance people like me are skeptical even when the proposals do project a return. Excerpted from.

Finance 8

Finance NPV CFO ROI 8

Harvard Business Review

MARCH 17, 2016

Any time you propose a capital expenditure, you can be sure senior leaders will want to know what the return on investment (ROI) is. There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. A Refresher on Net Present Value.

Rate of Return 8

Rate of Return IRR NPV Net Present Value 8

Harvard Business Review

APRIL 18, 2016

There are a variety of ways to calculate a return on investment (ROI) — net present value , internal rate of return , breakeven — but the simplest is payback period. A Refresher on Net Present Value. For that reason, net present value is often the preferred method.

Payback Period 8

Payback Period Net Present Value ROI Rate of Return 8

Harvard Business Review

SEPTEMBER 27, 2012

Managers in these organizations translate corporate objectives into a few straightforward guidelines that help employees make on-the-spot decisions and adapt to constantly shifting environments, while keeping the big picture in mind. Its new management team took over an organization that was bureaucratic, overstaffed, and bleeding cash.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8

Harvard Business Review

APRIL 9, 2015

Analyzing ROI isn’t always as simple as it sounds and there’s one mistake that many managers make: confusing cash and profit. Companies may have more than one hurdle rate depending on the risk involved in proposed investments. Financial analysis Project management' Evaluate the investment. This is the final step.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

MARCH 29, 2018

A second, more radical solution is to create budgets and authority for a service line or integrated practice unit (IPU) that manages a patient’s entire treatment for a high-volume medical condition. The IPU is an essential component of the value-based care model advocated by Harvard Business School’s Michael Porter.

Budgeting 8

Budgeting System Innovation Payback Period 8

Harvard Business Review

NOVEMBER 25, 2013

CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment. CMOs can use advanced analytics and judgment to manage the trade-off between short-term spending to boost sales and longer-term brand building to support the health of the company.

CFO 8

CFO Short-term Long-term Benchmarking 8