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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

We chose Brazil’s beef industry as the location of our case study , both for the size and complexity of the industry and for its impact on the planet. We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. of revenues).

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Why Is an App Worth as Much as a Small Oil Field?

Harvard Business Review

While on the surface, the dirty business of fossil fuels is nothing like Silicon Valley, many in the oil business have moved beyond the standard net present value (NPV) model for assessing the merit of investments. But Facebook has also bought itself time to figure out how to extract value from that audience.

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Only the CEO Can Make the Big Bets

Harvard Business Review

Listen up, CEOs: Only you can make the big bets about where your industry's hockey puck is going. In the late 1990s, we presented the Gretzky metaphor to a division of a large, global bank. And using net-present-value estimates for "beginning" ideas is nuts. It's being customer-reactive.

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

Marketing is in the midst of an ROI revolution. The arrival of advanced analytics and plentiful data have allowed marketers to demonstrate return on investment with a degree of precision that’s never been possible before. To date, however, the reality of marketing analytics has fallen short of the promise.

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Still Many Ways to Skin a Capital Cost

Harvard Business Review

When executives evaluate a potential investment, whether it's to build a new plant, enter a new market, or acquire a company, they weigh its cost against the future cash flows they expect will spring from it. To make sure they're comparing apples to apples, they discount those future cash flows to arrive at their net present value.

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What Xerox PARC Learned About Executing on Open Innovation

Harvard Business Review

However, we learned the difficult lesson that unless we could clearly articulate the maturity level and value proposition for a new technology within the context of our partners' other choices, there was little or no value in the technology — regardless of how much money we had invested in it. Net Present Value ).

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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

The private equity industry has grown markedly in the last 20 years and we know more than we used to about its effects on the economy. We also know that private equity funds have outperformed public equity markets over the last three decades , even after the fees they charge are accounted for.

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