Innovation Excellence

NOVEMBER 21, 2019

Far too many supposed innovation experts believe that measuring activities is critical to success. Persistent growth, profit, ROI and NPV are the obvious measures, Maybe not so much. At least for the big stuff.

NPV 99

NPV Innovation Metrics ROI 99

Harvard Business Review

DECEMBER 23, 2013

If you were looking for a theme song that captures marketing today, you could do worse than pick Queen’s anthem “Under Pressure.” Marketing is under pressure to show results, cut costs, and drive growth. Marketers should welcome it. In our experience, marketing can increase marketing ROI (MROI) by 15 – 20 percent.

Marketing 10

Marketing NPV Short-term Net Present Value 10

Harvard Business Review

APRIL 19, 2011

The CEO and CFO responded with, "A failure to hit ROI and NPV targets." The head of R&D remembered it as a failure to properly market the innovation. The Chief Marketing Officer recalled that sales and distribution did not achieve planned market presence. If an innovation initiative failed, ask why. Triage the failures.

NPV 15

NPV ROI CFO Consensus 15

Harvard Business Review

JANUARY 21, 2016

This is especially true in the commercial buildings market, specifically large commercial buildings, where well over 75 percent of existing buildings will still be in use in fifteen years’ time. Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them.

NPV 8

NPV Energy Efficiency Technology 8

Harvard Business Review

SEPTEMBER 21, 2015

Lotta Tindal, the chief marketing officer for the Dutch hospitality group Ervaring Hotels & Resorts, hadn’t wanted to come to the presentation, but Gerard Bakker, Ervaring’s CFO, had twisted her arm. But Lotta wasn’t yet ready to gamble a significant portion of her marketing budget on it. Dan continued.

Case Study 8

Case Study Travel Hotels NPV 8

Harvard Business Review

FEBRUARY 24, 2014

While on the surface, the dirty business of fossil fuels is nothing like Silicon Valley, many in the oil business have moved beyond the standard net present value (NPV) model for assessing the merit of investments. Consider the rapid progress Facebook has made on mobile, not only domestically, but in emerging markets.

NPV 8

NPV Net Present Value Industry Video 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. However, unlike a bond, common equity is not long-term/forever on predetermined, immutable terms.

Hedge 8

Hedge Short-term Long-term NPV 8