Harvard Business Review

SEPTEMBER 10, 2012

It tends to be short-term, uses familiar (traditional) metrics and development systems like Stage Gate. Incremental innovations can be managed at the operating levels where the people know the customers/consumers best and decisions can be made in a more consensus-driven way with input and agreement between all stakeholder functions.

Process 15

Process Innovation Stage-Gate Net Present Value 15

Harvard Business Review

SEPTEMBER 13, 2017

We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

JULY 1, 2016

Activist investors challenge management strategies. Investors and others ask why companies binge on buybacks while skimping on value-creating investment opportunities. Corporate governance is a system of checks and balances that a company designs to ensure that it faithfully serves its governing objective.

Short-term 9

Short-term Long-term Objective Incentives 9

Harvard Business Review

DECEMBER 2, 2010

Even Dell, famous for eschewing acquisitions in favor of organic growth, has thrown in the towel with its $5 billion acquisition of Perot Systems. Since the Three Horizons represent different levels of uncertainty, they need to be managed and valued differently. We call this the Opportunity Value (OV) of an asset.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

OCTOBER 3, 2011

This blog post is part of the HBR Online Forum The CEO's Role in Fixing the System. Most CEOs, as well as some of the other contributors to this forum, appear to have a false sense of what creating shareholder value means. Creating Shareholder Value. The objective is to build value and then let the price reflect that value.

Short-term 11

Short-term Long-term Price CEO 11

Harvard Business Review

APRIL 9, 2015

Your company is ready to make a big purchase — a fleet of cars, a piece of manufacturing equipment, a new computer system. Analyzing ROI isn’t always as simple as it sounds and there’s one mistake that many managers make: confusing cash and profit. Financial analysis Project management' Evaluate the investment.

ROI 8

ROI Analysis Rate of Return Net Present Value 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

DECEMBER 2, 2013

Recent studies of the efficiency and effectiveness rates of leading international NGOs and UN agencies have revealed the shortcomings of a system that, over the last half a century, has measured itself on process and not outcome. Take the example of child sponsorships, highly popular as a marketing tool for many NGOs.

Trends 8

Trends Development Net Present Value NGO 8

Harvard Business Review

APRIL 27, 2017

But I long for actions that go beyond admonitions to managers and boards to do better, that give both parties a better chance to stand up to capital markets players, like activist hedge funds, pressuring them to become too short-term focused. The Refresher: Net Present Value. Related Video. There is no difference whatsoever.

Hedge 9

Hedge Short-term Long-term NPV 9

Harvard Business Review

APRIL 2, 2014

Others, most notably money managers and former Fama students Cliff Asness and John Liew in an epic Institutional Investor article , have done a lot recent to clarify how Fama’s ideas and Shiller’s can at least co-exist peacefully. It seems like the clearest practical lessons from this academic work have been in asset management.

CAPM 8

CAPM Discount Price Finance 8

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. Yet for the small handful of companies that have managed to drive growth consistently – even through tough times – the payoff is great. How do they do it?

Innovation 50

Innovation NPV Business Model Constraint 50