Harvard Business Review

DECEMBER 13, 2017

Some argue that profits are stagnant because of short-termism—that decades of focusing on current profits over long-run innovativeness has resulted, now, in companies that are hollowed out. One trend that has contributed to short-termism and lower innovativeness is the increased prevalence of outside CEOs.

Short-term 8

Short-term Decentralization Company CEO 8

Harvard Business Review

OCTOBER 25, 2018

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

Industry 15

Industry Company GDP Bottom-up 15

Harvard Business Review

APRIL 26, 2017

Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window. ” Can banks out-compete the disruptors?

Banking 15

Banking Credit Scoring Stage-Gate Competitive Advantage 15

Harvard Business Review

MAY 14, 2013

Europe''s $100 billion carbon market, an innovative force in the powerful carbon-reduction approach known as cap and trade, has ceased to function the way it''s supposed to. Share prices for European utilities and industrial companies have fallen too, threatening a wave of credit downgrades and increasing companies'' cost of capital.

Price 11

Price Energy Politics Marketing 11

Harvard Business Review

MAY 25, 2018

Mr. Rockefeller’s business strategy was to vertically integrate every aspect of the oil business (exploration, development, logistics, marketing) to assure an ongoing competitive advantage. Companies are seeking to be quicker on their feet and more innovative. Consider today’s trends in M&A.

Incubator 8

Incubator Insurance Cost of Capital Competitive Advantage 8

Harvard Business Review

OCTOBER 21, 2016

Managing risks therefore requires making investment decisions today for longer-term capacity building and developing adaptive strategies. Fostering innovation. Investing in sustainability is not only a risk management tool; it can also drive innovation. billion in mining projects since 2010.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

APRIL 2, 2014

Campbell’s work has also made liberal use of the analytic tools developed by Hansen. Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. Instead what he says is let’s have financial innovation that is actually helpful. You’re going to have to take a worst reasonable case.

CAPM 10

CAPM Discount Price Finance 10

Harvard Business Review

MARCH 1, 2017

But the solution to this innovation logjam has emerged: blockchain. Blockchain was originally developed as the technology behind cryptocurrencies like Bitcoin. If the world of venture capital can change radically in one year, what else can we transform? Distributed Database. But the genie has been unleashed from the bottle.

Finance 8

Finance IPO Banking Venture Capitalist 8

Strategy Driven

SEPTEMBER 9, 2011

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Net present value [NPV] is a case in point.

Innovation 50

Innovation NPV Business Model Constraint 50