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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

Despite a one-year payback period and a highly positive net present value (NPV) from this investment, the department will often reject the attractive opportunity. Consider the opportunity to raise spending in Year 1 by $100,000 to acquire technology that would decrease spending each year thereafter by $100,000.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Financial capital is assumed to be virtually unlimited, while certain types of human capital are in short supply.

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How to Get People to Collaborate When You Don’t Control Their Salary

Harvard Business Review

Only if you stick with the effort through a long enough time frame can you expect the returns to become positive. Both these efforts help the payback period arrive sooner, making collaboration a smarter investment for the next wave of people. Many people and companies start the investment, but quit before seeing the returns.

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An Inside View of How LVMH Makes Luxury More Sustainable

Harvard Business Review

Charles Gibb, Belvedere’s CEO, says it made a strategic choice to invest in this project, even though it had a longer payback period than normal. ” (Disclosure: I’m an unpaid advisor to Positive Luxury, the company behind the mark.) As a result, Belvedere’s greenhouse gas emissions have dropped by 40%.

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How to Better Manage Your Company’s Utility Bills

Harvard Business Review

In our experience, well-designed retrofits can deliver 20%-50% energy savings with fast payback periods. Second, major capital events such as renovations or retrofits, which companies typically undertake every few decades, provide the opportunity for even deeper savings given recent advancements in green construction.