Harvard Business Review

NOVEMBER 6, 2013

Scotland’s NHS serves 5 million people with a fixed, tax-funded budget of around $18 billion. Working under a fixed-cost ceiling was, of course, difficult. A fixed budget forces you to invest in wellness. The Parliament would vote on an expenditure limit and the NHS had to live within that limit.

Health Care 8

Health Care Constraint Budgeting Quality 8

Harvard Business Review

APRIL 19, 2011

Budget cuts simply can't derail efforts to make our cities smarter. For many cities, their populations are growing at the same time that their budgets are shrinking. Meanwhile, declines in revenue and escalating fixed costs for things like public employee pensions and health care are crippling our cities budgets.

Short-term 14

Short-term Budgeting Health Care Long-term 14

Harvard Business Review

DECEMBER 10, 2012

They needed reasonable budgets with spending caps per movie and an honest appreciation of the overwhelming odds against producing a hit in Hollywood. Regardless, a financing component adds another fixed cost. Orion and other film studios needed level-headed projections about projects before jumping in with both feet.

Financial Leverage 15

Financial Leverage Film Finance Class 15

Harvard Business Review

DECEMBER 1, 2017

You have to consider salaries, marketing budget, office size, technology services, and on and on. So not only were the current fees too weak to support his fixed costs, but future clients were turned off by his apparently excessive tastes. By the time she opened Candlebar, it was 100% over budget.

Strategy 10

Strategy Budgeting Cost Price 10

Harvard Business Review

OCTOBER 29, 2015

This makes financial sense in industries with high fixed costs and low variable costs: larger sizes enable the company to charge higher prices that, even if they are just slightly larger, absorb a higher portion of fixed costs, while reducing packaging cost per volume and attracting value-minded consumers.

Fixed Costs 8

Fixed Costs Price Constraint Cost 8

Harvard Business Review

NOVEMBER 15, 2018

This results in “title bloat” (e.g., “CFOs” that don’t manage investments and negotiate payer or supply contracts but merely supervise revenue cycle activities, do budgeting, etc.). obstetrics, orthopedics, cardiac care) that could benefit from consolidation.

Cost 14

Cost System Management Franchising 14

Harvard Business Review

JUNE 22, 2015

To figure total costs you first multiply the unit quantity sold by the variable costs per unit, then you add the fixed costs. Like this: Note that Price per unit – Variable costs per unit is equal to the Contribution margin per unit. The fixed costs to advertise the flip flops are $2,000.

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

Harvard Business Review

OCTOBER 13, 2015

Since provider margins are razor thin and fixed costs are very high, small changes in incentives or market share should have a significant impact. Innovation in insurance products, such as value-based-insurance designs that reduce cost sharing for highly effective clinical services, can help address these concerns.

Health Care 8

Health Care Insurance Price Cost 8

Harvard Business Review

APRIL 6, 2016

The latest nuclear reactor designs, promising higher safety, longer operating life, and lower operating costs, cost up to $25 billion after factoring in the huge budget overruns. This all presents CEOs with a tough dilemma.

Co-Opetition 8

Co-Opetition Operations Cost Technology 8

Harvard Business Review

FEBRUARY 11, 2016

This arrangement is often complicated by inconsistent decision criteria: purchasing wants the lowest price and a fixed cost, whereas the business or operation wants the best resource, a good cultural fit, and enough flexibility in the contract to allow for changes in scope or strategy. Does the work have the right level of sponsorship?

Agility 8

Agility Organization Resources Fixed Costs 8

Strategy Driven

NOVEMBER 28, 2018

Stabilize Your Own Budget. Creating a personal budget is the first step everyone needs to take. To stabilize your budget so that you can have money to invest, you will need to: Go Through Your Spending Habits. By understanding where your money goes, you can work out what your actual monthly budget is. Minimize Your Life.

Strategy 57

Strategy Real Estate Budgeting Fixed Costs 57

Harvard Business Review

MAY 13, 2016

Imagine eliminating all of the redundancies in fixed costs. All of these organizations are tiny, with budgets ranging from a few hundred thousand dollars a year in our case on up to a little over $10 million in the case of Independent Sector and Guidestar and $16 million in the case of the Council on Foundations.

Budgeting 8

Budgeting NGO Diversity Fixed Costs 8

Harvard Business Review

JANUARY 5, 2017

Bigger marketing budgets may not pay off. The media’s bias toward big events stems from three features of its economics: Fixed costs. The cost of covering a golf tournament doesn’t depend on whether Tiger Woods plays. Fixed costs have always been central to the economics of media.

Media 15

Media Advertising Fixed Costs Content 15