article thumbnail

Innovation is a Lifestyle, Not a Bunch of Metrics

Innovation Excellence

Persistent growth, profit, ROI and NPV are the obvious measures, At least for the big stuff. Innovation activities simply for the sake of doing something without context and insight from the measure may be in fact very misleading.

NPV 99
article thumbnail

What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business Review

Joe Bower and Lynn Paine “had me at hello” (to quote Jerry Maguire ) with their new HBR article, “ The Error at the Heart of Corporate Leadership.” Next time you're deciding about a big investment, NPV can help you make a more informed decision. Related Video. The Refresher: Net Present Value.

Hedge 12
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Reflecting on David Garvin’s Imprint on Management

Harvard Business Review

One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.) A follow-up article, coauthored with Amy Edmondson and Francesca Gino, delved more deeply into such issues as psychological safety, openness to new ideas, and leadership attention. Sound familiar?

article thumbnail

Is Your Business Biased Against Innovation?

Strategy Driven

Net present value [NPV] is a case in point. 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. One problem is that NPV calculations tend to compare today with some future state. To read Rita’s complete biography, click here.