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Innovation is a Lifestyle, Not a Bunch of Metrics

Innovation Excellence

Persistent growth, profit, ROI and NPV are the obvious measures, At least for the big stuff. Innovation activities simply for the sake of doing something without context and insight from the measure may be in fact very misleading.

NPV 99
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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

The 3 Horizons model breaks down strategy into three parts. The higher level of uncertainty associated with H2 and H3 necessitates an updated valuation methodology that takes into account more than the net present value (NPV) of the target. The two together, NPV + OV, provide an inclusive but not inflated valuation.

NPV 14
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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

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.

NPV 12
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Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business Review

When Patrick Collison, CEO of electronic payments company Stripe, helped kick off our second-year strategy course at the Stanford Graduate School of Business this year, he observed that this has created one of the most profound differences in decision criteria between leaders in industrial-era and internet-era companies.

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The Worst Failure of All Is Wasting a Failure

Harvard Business Review

The CEO and CFO responded with, "A failure to hit ROI and NPV targets." What part of the strategy, or the tactical execution, failed? Clearly the company was painfully aware of these two failed projects. The problem came with the follow-up question, "Why did example A fail?". If an innovation initiative failed, ask why.

NPV 15
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Why Is an App Worth as Much as a Small Oil Field?

Harvard Business Review

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. Mergers & Acquisitions Strategy Tech industry' So the big question is not is $19 billion too little or too much.

NPV 8
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Lafley’s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

Lafley’s bold pare is part of a strategy to dramatically improve P&G’s financial performance by doubling down on the roughly 80 brands that generate 95% of the company’s profits and 90% of its sales. Innovation Strategy' ” Does the leaner, meaner, and refocused Lafley 2.0 Lafley 2.0

Brand 8