Harvard Business Review

AUGUST 11, 2011

Management has made promises to senior executives about what a project will achieve, and fixed costs have built up because they looked prudent in comparison to planned revenues. It is strange that individuals will tend carefully to these plans, and then come to work and lack any such plan for their company's innovation investments.

Fixed Costs 15

Fixed Costs Travel Revenue Assets 15

Harvard Business Review

MAY 19, 2015

That gave it a steadier cash flow to cover the costs of its large fixed cost investments, but did not eliminate the unused capacity of plants dedicated to one kind of product. Headquarters provides accountability and perhaps better metrics than the divisional managers might otherwise have.

Cash Flow 15

Cash Flow Engineering Fixed Costs Sales 15

Harvard Business Review

MAY 9, 2013

Victors and Spoils (V&S), where John is CEO, for example, wanted to land the Harley Davidson account after the motorcycle maker split with its long-time agency. V&S ultimately presented 65 of the ideas to Richer and landed the account. MoFilm, Poptent, and Tongal, for example, focus on video production for television and web films.

Advertising 14

Advertising Variable Costs Media Fixed Costs 14

Harvard Business Review

OCTOBER 13, 2015

In order to accomplish this, proposals will largely focus on what is termed “wasteful spending” in health care, spending not associated with improved quality that, by some estimates , accounts for over one-fourth of total health care spending.

Insurance 15

Insurance Administration Reorganization Implementation 15

Harvard Business Review

OCTOBER 6, 2014

In the last three years, these two companies have rapidly gained share and now account for more than 8% of the market, while Tesco has lost more than 2% share, down to 28%. The hard discount format accounts for as much as 40% of the German market, and for some good reasons. And yet Germans, even those with Porsches, shopped at Aldi.

Reorganization 15

Reorganization Fixed Costs Transportation Sales 15

Harvard Business Review

FEBRUARY 6, 2018

While it is not clear exactly which set of routine services Amazon would tackle in health care, it likely will not hurt the company to be able to offer those services as part of a broader package of conveniences that a customer can access with a single Amazon account. Passive data capture. So where is the link to health care?

Hospitality 15

Hospitality Operations Insurance Fixed Costs 15

Harvard Business Review

APRIL 5, 2017

FCLT and McKinsey rely on readily available and machine-readable accounting data to measure myopia. 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. Creative accounting measures. Consider three examples.

Metrics 11

Metrics Cash Flow Revenue Compensation 11

Harvard Business Review

OCTOBER 27, 2016

A full-time job provided the steady income needed to support our traditional version of the American Dream: the highly leveraged, high-fixed-cost house; the cars; the latest consumer goods. If you had a full-time job, you won.

Insurance 14

Insurance Reorganization Fixed Costs Benefits 14

Harvard Business Review

AUGUST 8, 2014

So to cover his monthly fixed costs of student loan payments (on more than $100k in debt), rent, and health care he was driving for Uber. As a result he was now competing against much more experienced people for each new gig that came up, and he hadn’t had a lot of success since graduating.

Fixed Costs 14

Fixed Costs Project Management Education Accounts 14

Harvard Business Review

NOVEMBER 10, 2016

Think of the potential for this kind of orchestration of resources in healthcare where waste accounts for an estimated $750 billion annually. On any given day in America, 40% of hospital beds lie empty, their enormous fixed costs weighing heavily on the system. By all accounts, healthcare in the U.S.

Hospitality 12

Hospitality Administration Transportation Fixed Costs 12

Harvard Business Review

JULY 12, 2018

A second important deficiency arises from the fallacy that a cost-plus price is guaranteed to cover costs. Cost-plus prices provide no guarantee of covering costs or earning a profit. Value-based pricing , which explicitly accounts for these factors, is in vogue and is esteemed by many managers.

Fixed Costs 12

Fixed Costs Transportation Implementation Marketing 12

Harvard Business Review

DECEMBER 1, 2017

So not only were the current fees too weak to support his fixed costs, but future clients were turned off by his apparently excessive tastes. To address those cost overruns, Colin subleased some space, cancelled a redundant and very expensive trading service, and let one person go. What can you afford to lose?

Revenue 10

Revenue Fixed Costs Staffing Accounts 10

Harvard Business Review

NOVEMBER 15, 2018

Contracted services account for significant fractions of all hospitals’ operating expenses. In larger facilities, there is often an astonishing proliferation of special care units, ICUs, and quasi-ICUs that are expensive to staff and have high fixed cost profiles. They also do not represent sustainable, long-term change.

Hospitality 14

Hospitality Manager Nonprofit Staffing 14

Harvard Business Review

NOVEMBER 6, 2013

Today it accounts for nearly twice that — close to 18%. Working under a fixed-cost ceiling was, of course, difficult. The Affordable Care Act and the emergence of accountable care organizations (ACOs) provide an opportunity to rethink not just how U.S. Make Physicians Full Partners in Accountable Care Organizations.

Hospitality 8

Hospitality Insurance Fixed Costs Accounts 8

Harvard Business Review

DECEMBER 25, 2013

A visual way of depicting the plan — one that connects the starting point and the destination, and takes into account all the nuances of a business (more sales in fourth quarter, a spike in sales at month end and quarter end, etc.), Further, sales variation can get widened much more when it comes to financial variation because of fixed costs.

Fixed Costs 9

Fixed Costs Sales Sales Revenue 9

Harvard Business Review

NOVEMBER 18, 2013

The advantages that hospital systems can derive from scale fall into four groups: Classic economies of scale focus on lowering the cost per unit of care delivered (e.g., Economies of scope can allow hospital systems to leverage their scale to develop new revenue streams.

Hospitality 9

Hospitality Scaling Revenue Fixed Costs 9

Harvard Business Review

NOVEMBER 29, 2013

A fascinating business dynamic will unfold as health care providers in the United States shift from a reimbursement system that has historically paid for procedures performed to one that rewards population health — providing the total care of a community at a fixed cost and improving its members overall health.

Revenue 9

Revenue Nonprofit Operations Hospitality 9

Zenefits

JULY 31, 2022

Managing inflating costs can be difficult for companies, particularly with high fixed costs like infrastructure or manufacturing. Survival in an inflating economy requires businesses to find ways to keep costs down while still meeting customer demands. No account yet? Any of the above. Back to Vote. Remember Me.

Manager 52

Manager Onboarding Banking Process Improvement 52

Harvard Business Review

AUGUST 16, 2011

This is the essence of Groupon's declaration last week that it will remove the controversial accounting metric called Adjusted Consolidated Segment Operating Income (ACSOI) from its financial statements. ACSOI essentially measures Groupon's profits before subtracting its subscriber-acquisition costs and stock option-based compensation.

Fixed Costs 22

Fixed Costs Metrics Scaling Marketing 22

Harvard Business Review

FEBRUARY 22, 2011

Wired reported late last year, "The top 10 Web sites accounted for 31% of US page views in 2001, 40% in 2006, and 75% in 2010." Facebook alone accounted for one quarter of all Internet pages viewed and ads served. Adding a profile on Facebook has little to no impact on Facebook's operating costs. These are tech companies.

Advertising 16

Advertising Variable Costs Scaling Media 16

AIHR

NOVEMBER 12, 2024

Accountants, writers, graphic designers, private tutors, and photographers are some common examples of individuals who are often self-employed. Cost management: You must carefully weigh the costs of different employment types. For instance, full-time roles carry significant fixed costs, while part-time hires offer flexibility.

Insurance 98

Insurance Staffing Compensation Benefits 98

Harvard Business Review

JANUARY 5, 2017

The media’s bias toward big events stems from three features of its economics: Fixed costs. The cost of covering a golf tournament doesn’t depend on whether Tiger Woods plays. Fixed costs have always been central to the economics of media. But if he does, ratings — and revenue — double.

Media 15

Media Advertising Fixed Costs Marketing 15