Harvard Business Review

APRIL 16, 2012

Strategic cash also can be used to finance long-term reinvestment programs in the business—which is especially valuable to companies in capital-intensive industries (e.g., high technology or pharmaceutical) that are investing in projects with uncertain long-range payoffs. energy or telecom) or research-intensive industries (e.g.,

Company 14

Company Cost of Capital Finance Long-term 14

Harvard Business Review

JUNE 22, 2016

A new type of services company could transform global supply chains: Financial technology companies that act as intermediaries in facilitating transactions between a company and its suppliers. The use of FinTechs allows suppliers to access funding at the multinationals firm’s lower cost of capital.). Insight Center.

Supply Chain 11

Supply Chain Cost of Capital Transportation Finance 11

Harvard Business Review

SEPTEMBER 4, 2017

In research for our book, Time, Talent and Energy, my co-author Michael Mankins and I found that such investments do indeed pay off: The top-quartile companies in our study unlocked 40% more productive power in their workforce through better practices in time, talent and energy management. For knowledge workers, time is incredibly scarce.

Human Capital 15

Human Capital Kaizen Agility Energy 15

Harvard Business Review

APRIL 5, 2017

However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output. Many compensation plans reward managers for higher earnings and higher stock prices, as opposed to rewarding them for adding long-term value to the firm.

EPS 8

EPS Metrics Depreciation Short-term 8

Harvard Business Review

OCTOBER 15, 2013

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. Today most if not all industries are impacted by digitization—mobile technology, big data, and the like.

P&L 8

P&L Fixed Assets Charan Delegation 8

Harvard Business Review

DECEMBER 13, 2017

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.

Short-term 8

Short-term Decentralization Company Trends 8

Harvard Business Review

FEBRUARY 1, 2018

The cost of capital is at historic lows, averaging below 6% for most large U.S. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders.

Supply Chain 9

Supply Chain CEO Discount Retail 9