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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

operating rooms, recovery floors, emergency department), and ancillary departments (e.g., Consider, for example, a surgical patient who starts in the pre-operative area, then moves to the operating room, the post-anesthesia care unit, and the inpatient floor, with occasional side trips for imaging, testing, and physical therapy.

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When It Pays to Think Like a Finance Manager

Harvard Business Review

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. Here’s why.

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The Most Common Mistake People Make In Calculating ROI

Harvard Business Review

That statement records cash generated by a company’s operations and cash spent on those operations; cash spent on capital assets (and cash generated by the sale of capital assets); and cash received from, or paid to, lenders and shareholders. Income statements almost always include an allowance for depreciation of capital assets.

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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Any proposal, the rules said, should: remove obstacles to growing revenues, minimize up-front expenditure, provide benefits immediately (rather than paying off in the long term), and. Once they understood the rules and their underlying rationale, ALL's employees generated a series of innovative proposals based on what they had to work with.

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment. Marketing KPIs that don’t directly address shareholder value and the company’s objectives don’t tell the CMO or the CFO where marketing efforts are having the most impact.

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How to Choose the Ideas Your Company Should Invest In

Harvard Business Review

My last post described how Innosight follows a three-stage process to evaluate investment proposals from outside entrepreneurs. Note what isn't part of the decision: an idea's net present value or return on investment. But deciding how to invest in ideas at a corporation is a different beast.

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