Harvard Business Review

JUNE 8, 2018

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

MAY 29, 2017

And finally, writing a values statement is used as the start of an ongoing, transformational journey, not the conclusion of one. When these three conditions aren’t present, values can get hijacked and misused. Without accountability, values become a weapon to punish. Here’s how it happens: 1.

Bottom-up 10

Bottom-up Competitive Advantage Organization Workshop 10

Harvard Business Review

JULY 9, 2012

Hsieh and his team highlight the importance of "serendipitous connections" in enabling this effort to succeed, and are working hard to facilitate such encounters. I was just in Las Vegas spending time at the Downtown Project backed by Zappos CEO Tony Hsieh (who self-professes that Luck serves as a core factor in his success).

Net Present Value 15

Net Present Value Entrepreneur Strategic Fit Open-book 15

Harvard Business Review

NOVEMBER 9, 2012

In addition, there is often a knowing-doing gap between enterprise risk management teams and the business itself. Many leading companies are already moving in this direction, adding finance PhD's and actuaries to procurement and supply chain teams.

Supply Chain 8

Supply Chain Chief Procurement Officer Risk Management Management 8

Harvard Business Review

SEPTEMBER 27, 2012

Its new management team took over an organization that was bureaucratic, overstaffed, and bleeding cash. The team decided to adopt a simple-rules approach to the work ahead. Accordingly, the management team identified capital budgeting as a critical bottleneck keeping the company from achieving its objectives.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8

Harvard Business Review

NOVEMBER 19, 2015

This can be quantified by analyzing the extent to which the share prices of S&P 500 firms are driven by a firm’s present value of future growth options (PVGO) rather than cash flow from current operations. Our research shows that U.S. PayPal/eBay went even further by splitting the entire company.

Company 8

Company Succession Maturity Long-term 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. It’s the CMO’s job to make sure that metrics reflecting the health and value of the customer base –net present value, lifetime value, return on loyalty, cost per acquisition – get on the balance sheet.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

JUNE 18, 2015

In financial engineering, PE investors provide strong equity incentives to the management teams of their portfolio companies. For instance, despite the prominent role that discounted cash flow valuation methods play in academic finance courses, few PE investors use discounted cash flow or net present value techniques to evaluate investments.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

JANUARY 11, 2012

After exploration, there are lots of ways to plan, but at the very least a good plan details the target customer, crucial stakeholders, the essence of the idea, key economics, the commercialization path, proposed operations, the team, financial requirements, and the action plan. What are the assumptions in which you are least confident?

Company 15

Company Net Present Value How To Proposal 15

Harvard Business Review

DECEMBER 28, 2016

Reporting paralysis can occur when teams are so wrapped up in distributing data, ensuring data quality, or writing up insights that they forget the purpose of data. If a score improves, that number is heralded and CX teams use it as evidence of innovation and improvement by the team.

Attrition 9

Attrition Metrics Net Present Value KPI 9

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. She is a popular speaker and consults to senior leadership teams. Discovery-Driven Growth : A Breakthrough Process to Reduce Risk and Seize Opportunity by Rita McGrath.

Innovation 50

Innovation NPV Business Model Constraint 50