Harvard Business Review

MARCH 31, 2017

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. After all, if you’re trying to sell a product or strategy, you need to be able to demonstrate that it is both practical and high margin. The Refresher: Net Present Value.

Finance 8

Finance Skills EBITDA Net Present Value 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. What if I suggested that the best place to look for answers could be the shale oil fields of North Dakota?

NPV 8

NPV Net Present Value Industry Video 8

Harvard Business Review

DECEMBER 2, 2010

Horizon 3 (H3) represents opportunities for future growth that may take the form of new products, services, capabilities, and perhaps extensions into non-adjacencies that show great promise but are highly uncertain. We call this the Opportunity Value (OV) of an asset. This is where Opportunity Engineering comes into play.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

AUGUST 21, 2015

Setting the right price for your product or service is hard. Most customers in most markets are sensitive to the price of a product or service, and the assumption is that more people will buy the product or service if it’s cheaper and less will buy it if it’s more expensive.

Price 8

Price Debt to Equity Ratio Marketing Metrics 8

Harvard Business Review

MARCH 29, 2018

While this might seem like a radical step for hospitals, it is exactly the transition that occurred 100 years ago in the business world in general when companies shifted from a departmental or functional structure to a decentralized, business-unit structure that that was more aligned with and accountable for its products, services, and customers.

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. But it’s no good speaking the same language as the CFO if marketing itself is a Tower of Babel. Bringing everyone into line is essential, but not necessarily easy or quick.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

OCTOBER 15, 2012

By encouraging innovators to define and demonstrate their concepts concretely, the options approach provides both parties in an open innovation partnership with enough information to assess value, determine additional product development requirements, and reach a mutually beneficial agreement, efficiently. Net Present Value ).

Innovation 8

Innovation Execution Net Present Value Open-book 8

Harvard Business Review

FEBRUARY 24, 2011

But why compare apples (book value) to oranges (share price and dividends)? Buffett explains that book value is the best proxy for "intrinsic value," the net present value of all estimated future cash flows. Consider that since 1965, Berkshire's book value grew 434,057% and the S&P index grew only 5,430%.

Letter 15

Letter P&L Net Present Value Insurance 15

Harvard Business Review

APRIL 9, 2015

You might also find that your accounts receivable (A/R) — what customers owe you for services rendered or products delivered — rises by $1 million. You can use one or more of four ROI calculation methods: payback, net present value , internal rate of return, and profitability index. Evaluate the investment.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

DECEMBER 2, 2013

Managers have embraced this kind of thinking not because they have taken a “be nice” pill, but rather because they see that truly effective community programs reduce community risk, and thereby increase the net present value of their assets in developing and fragile states.

Trends 8

Trends Development Net Present Value NGO 8

Harvard Business Review

JUNE 22, 2015

. “It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis. The fixed costs to advertise the flip flops are $2,000.

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

Harvard Business Review

FEBRUARY 7, 2011

Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation. The overall value of a foreign investment is equal to the NPV of the expected stream of profits for the life of the investment. If the owner of that subsidiary discounts profits in Egypt by 12.5

NPV 13

NPV Short-term Discount Politics 13

Harvard Business Review

MAY 1, 2017

In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins. The Refresher: Net Present Value. Bain recently completed research on workforce productivity. The best companies in our research are 40% more productive than the rest.

ROE 14

ROE Long-term GDP Six Sigma 14

Harvard Business Review

APRIL 27, 2017

I agree with their vision of a future in which more companies focus on the long term and become more productive for the world (their findings accord with my own work on the dangers of short-termism ). The Refresher: Net Present Value. Related Video.

Hedge 9

Hedge Short-term Long-term NPV 9

Harvard Business Review

DECEMBER 28, 2016

Customer Lifetime Value : This is the net present value of all future customer revenues with account for attrition and your discount rate. It’s either in a state of growth, peak productivity, or decline. Study the drivers and barriers of both to optimize here. Mistake #3: Moving slowly, without purpose.

Attrition 10

Attrition Metrics Net Present Value KPI 10

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. You will learn how to identify and prioritize your company’s full portfolio of opportunities – from new product lines to entirely new businesses. Take a doctor’s office.

Innovation 50

Innovation NPV Business Model Constraint 50