Harvard Business Review

APRIL 5, 2017

Repaying such profits to shareholders through share repurchases is better than misinvesting that cash to diversify into unrelated businesses in which management has no expertise or overinvesting in projects that may not return cost of capital. As I said earlier, measuring a company’s short-term orientation is incredibly tricky.

EPS 9

EPS Metrics Depreciation Short-term 9

Harvard Business Review

JUNE 27, 2012

Would shareholders of Kodak — which had some of the earliest digital photography technology — agree that its destruction made evolutionary sense, or would they echo Harvard Professor John Kotter's remark that it was the result of "complacency"? real revenue and profit growth and earning their cost of capital has steadily declined.

Creativity 15

Creativity Long-term Kotter Cost of Capital 15

Harvard Business Review

MAY 25, 2018

Companies are seeking to be quicker on their feet and more innovative. Best-in-class players, such as Intel (through technology partnerships) and Tyson (through new-product incubators), have developed the tools to incorporate many different flavors of deal making. Consider today’s trends in M&A.

Incubator 8

Incubator Insurance Cost of Capital Competitive Advantage 8

Harvard Business Review

APRIL 26, 2017

banks are going to survive the coming wave in financial technology (fintech), they’ll need to finally take digital transformation seriously. Small businesses are starting to demand banking services that have engaging web and mobile user experiences, on par with the technologies they use in their personal lives.

Banking 12

Banking Stage-Gate Credit Scoring Competitive Advantage 12

Harvard Business Review

AUGUST 27, 2015

Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. Consider what’s happening among corporations.

ROIC 8

ROIC McKinsey GDP Company 8

Harvard Business Review

OCTOBER 21, 2016

Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. Fostering innovation.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

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. This has drastically reduced the incentives for them to invest in or deploy clean-energy technologies or to modernize their energy-infrastructure assets.

Price 8

Price Energy Politics Marketing 8

Harvard Business Review

APRIL 2, 2014

That is, potentially amazing technology if you can only figure out how it works. Instead what he says is let’s have financial innovation that is actually helpful. The capital asset pricing model was supposed to allow companies to calculate their cost of capital in a consistent way. Lars is famous for that.

CAPM 8

CAPM Discount Price Finance 8

Harvard Business Review

MARCH 1, 2017

To wit, 45% of financial intermediaries , such as payment networks, stock exchanges, and money transfer services, suffer from economic crime every year; the number is 37% for the entire economy, and only 20% and 27% for the professional services and technology sectors, respectively. How technology is transforming transactions.

Finance 8

Finance IPO Banking Venture Capitalist 8