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And change it did, because the new CEO had a vision that went beyond product, and costs, and overhead, and costs of capital. Tweet This Post Tagged as: Apple , Leadership , Steve Jobs { 2 comments… read them below or add one } JennyB August 30, 2010 at 6:12 pm Great post! It was about passion.
We may well be overcomplicating the language of leadership and business. Gabrielle Dolan: The Future of Leadership Conference, Bris, Sept 2015 After attending the Future of Leadership – Workplace Culture conference in Brisbane last week I have been reflecting on the content from some of the speakers.
Your company has assets to invest that typically demand a lower return that venture capital because they carry a lower cost of capital. Finally, consider risk diversification. Jeff Bezos, Amazon’s CEO, once said “if you have a one in ten chance of a 100-times payoff, you should take that bet every time.
Your company has assets to invest that typically demand a lower return that venture capital because they carry a lower cost of capital. Finally, consider risk diversification. Jeff Bezos, Amazon’s CEO, once said “if you have a one in ten chance of a 100-times payoff, you should take that bet every time.
My colleagues and I at Bain & Company have been tracking this for forty years, and we have never seen companies losing their leadership positions as quickly as they are today. real revenue and profit growth and earning their cost of capital has steadily declined. A similar pattern hold for airlines. And for telecom.
At many companies the total cash investment in acquisitions, R&D, and fixed assets has not earned back its cost of capital after adjusting for the time lag in realizing incremental benefits. Decision making Leadership' That outcome reflects the wrong allocation and/or ineffective execution.
This includes more autonomy and agility as well as inspirational leadership. This has not only resulted in less investment in human capital but has also delivered lower total shareholder returns despite a period in which the cost of capital (and thus the cost of investing for growth) has been extraordinarily low.
A CEO's job is about resource allocation with a goal of earning a return in excess of the opportunity cost of capital. The challenge is figuring out how to allocate human and financial capital to its best and highest use for the long term. This requires difficult trade-offs.
Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.
Leadership is not rank. Listening (the first competence of leadership) is not a skill, it is a discipline. Until a business returns a profit that is greater than its cost of capital, it does not create wealth -- it destroys it. There is only one valid definition of business purpose: to create a customer.
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. She is a popular speaker and consults to senior leadership teams. Net present value [NPV] is a case in point. To read Rita’s complete biography, click here.
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