Harvard Business Review

APRIL 5, 2017

FCLT and McKinsey rely on readily available and machine-readable accounting data to measure myopia. McKinsey’s margin growth measure classified firms that report higher earnings growth than revenue growth as myopic. By spinning their accounting performance, they may postpone having to make hard strategic decisions.

Metrics 11

Metrics Cash Flow Revenue Compensation 11

Harvard Business Review

DECEMBER 1, 2017

Colin was sure his revenues would exceed costs within a year, but the large clients he expected never materialized. 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. This would have helped them avoid a cash crunch.

Revenue 12

Revenue Fixed Costs Staffing Accounts 12

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 16

Hospitality Operations Insurance Fixed Costs 16

Harvard Business Review

NOVEMBER 15, 2018

This was because their expenses grew faster than their revenues, despite cost-cutting initiatives. Cost reduction requires an honest and thorough reassessment of everything the health system does and ultimately, a change in the organization’s operating culture. A recent Navigant survey found that U.S.

Hospitality 14

Hospitality Manager Nonprofit Staffing 14

Harvard Business Review

JULY 12, 2018

Among pricing experts, cost-plus pricing is reviled for some legitimate reasons. For stand-alone projects in particular, cost-plus pricing discourages efficiency and cost containment. When lower costs are quoted, the company earns lower revenue and total profit. This notion can make managers falsely complacent.

Fixed Costs 12

Fixed Costs Transportation Implementation Marketing 12

Harvard Business Review

NOVEMBER 10, 2016

AirBnB, now used by 50,000 renters each night, is considered to be directly responsible for an estimated $450 million of lost hotel revenue each year. Think of the potential for this kind of orchestration of resources in healthcare where waste accounts for an estimated $750 billion annually. By all accounts, healthcare in the U.S.

Hospitality 12

Hospitality Administration Transportation Fixed Costs 12

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 6, 2013

Today it accounts for nearly twice that — close to 18%. Working under a fixed-cost ceiling was, of course, difficult. We had little or no revenue-raising ability, and we had to meet a clear, challenging, and publicly reported set of quality objectives. Make Physicians Full Partners in Accountable Care Organizations.

Hospitality 8

Hospitality Insurance Fixed Costs Accounts 8

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

When to offer it: If your company has fluctuating workloads or seasonal needs or has to reduce fixed labor costs. Commission-based employment This arrangement bases a worker’s compensation primarily on the sales or revenue they generate. Salary format: Derived from revenue generated minus expenses.

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. But if he does, ratings — and revenue — double. Fixed costs have always been central to the economics of media.

Media 15

Media Advertising Fixed Costs Marketing 15