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Debt and the Future of the U.S.

Harvard Business Review

Consider, for example, that the estimated net present value of obligations under the Social Security system is approximately $8 trillion. As the ratio of retired people receiving benefits to working people paying into the system increases, there will be an ever-increasing deficit confronting the government.

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

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.

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What Shareholder Value is Really About

Harvard Business Review

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. First, he or she needs to internalize the true meaning of creating shareholder value.

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Beware of Short-term Management, Not the Short-term Investor

Harvard Business Review

This blog post is part of the HBR Online Forum The CEO's Role in Fixing the System. The short-term investor does not reduce the firm's long-term competitiveness and value;short-term management does. A firm's long-term value should correspond to the present value of future expected cash flows.

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The Big Trends Changing Community Development

Harvard Business Review

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.

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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

That system was efficient, but the new management team decided that, at this moment in its history, the company needed adaptability more than efficiency. To prioritize projects, for instance, the ALL team could have forecast future cash flows for every potential investment and ranked all proposals on the basis of their net present value.

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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business Review

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.

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