Harvard Business Review

FEBRUARY 26, 2018

Similarly, Microsoft paid $26 billion for loss-making LinkedIn in 2016, and Facebook paid $19 billion for WhatsApp in 2014 when it had no revenues or profits. This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement.

Balance Sheet 8

Balance Sheet Assets Revenue Accounts 8

Harvard Business Review

MARCH 30, 2017

Companies can be divided into two types , in terms of how they approach hiring and compensation: organizational oriented and market oriented. As my colleague Peter Cappelli recently argued , automation technologies are profitable, in part, because they are considered an asset on a firm’s balance sheet that can be depreciated.

Marketing 12

Marketing Balance Sheet Compensation Benefits 12

Harvard Business Review

MAY 28, 2018

By 2016, the rise of smart phones seemed to have made the company less relevant: Its revenues were at almost the same level they had been a full decade earlier. It also called for streamlining headquarters and cutting executive management’s compensation. The number of directors and officers would be reduced.

Balance Sheet 12

Balance Sheet Cash Flow Banking Fixed Costs 12

Harvard Business Review

MARCH 2, 2016

The strategy works, temporarily putting more cash on the positive side of the balance sheet. The speed and scale on which this is occurring helps us recognize that we are not in a cyclical downturn as corporations attempt to compensate for the disruptive impact of digital technology.

Assets 8

Assets Balance Sheet Operations A/B Testing 8