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A Refresher on Payback Method

Harvard Business Review

There are a variety of ways to calculate a return on investment (ROI) — net present value , internal rate of return , breakeven — but the simplest is payback period. What is payback period? ” The shorter the payback period, the better. ” This can lead to some deceiving calculations.

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An HBR Refresher on Breakeven Quantity

Harvard Business Review

I talked with Jill Avery, a senior lecturer at Harvard Business School and co-author of HBR’s Go To Market Tools , to better understand how to use this important calculation. “It’s a pretty universal tool. While the concept may be straightforward, the calculation and the assumptions underlying it are far from simple.

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

Harvard Business Review

Both these efforts help the payback period arrive sooner, making collaboration a smarter investment for the next wave of people. Use simple, off-the-shelf tools to make collaboration smoother. Likewise, your actions can make the benefits start to flow sooner. Here are steps to keep in mind: Pick your battles carefully.

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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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