Harvard Business Review

MAY 17, 2012

Companies spend countless hours tracking financials: assets, liabilities, revenue, expenses, and cash flow. Perhaps that's the result of customer metrics long being seen as "soft" numbers with little clear connection to "hard" numbers like revenue or cash flow. In short, it is their primary management system.

Cash Flow 15

Cash Flow Assets Metrics Reorganization 15

Harvard Business Review

JUNE 1, 2011

Putting down the key customer and financial metric goals and where you stand against them is key. What is a good client happiness metric? They also measure weekly financial metrics with the most critical ones being year-over-year sales growth comparables; time to positive cash flow in a new location; and sales per square feet.

Cash Flow 17

Cash Flow Metrics Assets Sales 17

Harvard Business Review

OCTOBER 9, 2012

But as Michael Lewis describes in Moneyball , the Oakland Athletics discovered that the metric the team's scouts used to choose players had nothing to do with whether those players would score runs. Leave aside, for the moment, which metrics you currently use or which ones Wall Street analysts or bankers say you should.

Banking 17

Banking Cash Flow Metrics Government 17

Harvard Business Review

MARCH 21, 2013

In the 1920s, while companies used return on equity to assess their performance, DuPont recognized that the single metric had its limits. Return on equity (net income divided by equity) results from multiplying three key operating ratios: Profitability (net income over sales). Operating efficiency (sales over assets).

Cash Flow 17

Cash Flow Assets Benchmarking Sales 17

Harvard Business Review

APRIL 5, 2017

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic.

Metrics 11

Metrics Cash Flow Revenue Compensation 11

Harvard Business Review

JULY 1, 2016

Countries that operate under common law, including the United States and the United Kingdom, lean in this direction. Countries that operate under civil law, including France, Germany, and Japan, tend to be in this camp. Properly understood, maximizing shareholder value means allocating resources so as to maximize long-term cash flow.

Cash Flow 13

Cash Flow Government Compensation Metrics 13

Harvard Business Review

DECEMBER 19, 2014

Take the example of Harvey Norman , an Australia-based household-goods retailer that operates under various brands and has stores in several countries. The company’s 2013 annual report contained the usual statements on income, changes in equity, and cash flows — standard stuff.

Cash Flow 14

Cash Flow Revenue Operations Retention 14

Harvard Business Review

JULY 25, 2012

Turning around GE or Yahoo may be prestigious and lucrative; at a minimum, big companies have the cash flow to ride out a turnaround. In the case of venture-funded companies, which have little operating experience and untested ideas, the bargain is both the idea and the people, with the latter more important than the former.

Cash Flow 15

Cash Flow Assets Metrics Recruitment 15

Harvard Business Review

SEPTEMBER 2, 2015

Fortunately, “all businesses run on a few key metrics,” Knight says. You need to understand the two or three that drive your organization’s profitability and cash flow.” ” When you discover which metrics are most important, zero in. “You don’t need to be looking at 10 to 20.

Cash Flow 14

Cash Flow Metrics Recruitment Education 14

Harvard Business Review

SEPTEMBER 27, 2011

When the staff conversation turns to operating margins, cash flow, inventory, or revenue, does the CHRO tune out? You should be able to expect your CHRO to offer solutions for improving any of your business metrics through employee alignment and engagement. Operating as efficiently as possible is a minimum expectation.

Cash Flow 15

Cash Flow Human Resources Metrics SaaS 15

Harvard Business Review

MAY 19, 2015

Wall Street began charging a “conglomerate discount,” saying that diverse operations were hard to analyze with confidence. True synergies across the diverse operations were often hard to see. 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

MARCH 31, 2017

“The decision-makers will want to see a simple model that shows revenue, costs, overhead, and cash flow,” he says. The most important concepts to grasp are “how to measure profitability, EBITDA, operating income, revenue, and operating expenses,” he says. ” Focus on key metrics.

Balance Sheet 15

Balance Sheet Metrics Revenue Cash Flow 15

Harvard Business Review

OCTOBER 13, 2011

If CEOs are going to operate for stakeholder value — rather than just for shareholder value — then their pay ought to be structured in a way that supports them doing so. are metrics like earnings per share, revenue growth, and cash flow — which happen to be the three most prevalent metrics used in U.S.

Cash Flow 11

Cash Flow Compensation Metrics Accounts 11

Harvard Business Review

JANUARY 11, 2016

Investors from hedge funds to insurance companies are operating in an environment of low yields, near-zero interest rates, and a glut of savings. The main challenge is that investors are very good at understanding a single asset with standalone cash flows — a toll road, for example, or a power plant, or an apartment building.

Cash Flow 14

Cash Flow Real Estate Assets Nonprofit 14

Harvard Business Review

FEBRUARY 7, 2017

New research, led by a team from McKinsey Global Institute in cooperation with FCLT Global , found that companies that operate with a true long-term mindset have consistently outperformed their industry peers since 2001 across almost every financial measure that matters. The differences were dramatic.

Manager 15

Manager Revenue Metrics Cash Flow 15

Harvard Business Review

MARCH 21, 2013

In the 1920s, while companies used return on equity to assess their performance, DuPont recognized that the single metric had its limits. Return on equity (net income divided by equity) results from multiplying three key operating ratios: Profitability (net income over sales). Operating efficiency (sales over assets).

Cash Flow 10

Cash Flow Assets Benchmarking Sales 10

Harvard Business Review

MARCH 31, 2015

While consumers are rightfully worried that their personal information may be compromised, shareholders and companies’ management have a wider set of concerns, including loss of intellectual property, operational disruption, decreased customer trust, tarnished brand, and loss of investor commitment.

Balance Sheet 13

Balance Sheet Cash Flow Banking Assets 13

Harvard Business Review

JANUARY 18, 2016

Airbnb is an example of a win-win quality improvement: landlords realize more cash flow from their assets, and customers gain both better choice and lower costs in their travel lodging options. Solutions should trend toward entertainment, education, and social networking, and they can be location specific.

Real Estate 14

Real Estate Cash Flow B2B ROI 14

Harvard Business Review

JUNE 8, 2018

However, many investors seem to have concluded that the most successful companies with tens of billions of dollars of valuation today could never have justified their valuation at the start of their operation based on discounted cash flow. Analysts increasingly rely on non-GAAP metrics.

Cash Flow 8

Cash Flow Metrics Revenue Assets 8

Harvard Business Review

JUNE 10, 2015

The basic point was that online advertising was too small, and that transaction sizes were too insignificant to be anything other than a step down for companies used to rich cash flows. But there is nothing inherently wrong with digital pennies, if you have the right business model.

Media 13

Media Advertising Balance Sheet Cash Flow 13

Chief Executive

MARCH 3, 2023

Yesterday’s core inventory metrics — inventory turnover (cost of goods ÷ average inventory) and inventory GMROI (gross margin ÷ inventory cost) — fail to provide the essential information that managers need to avoid the twin problems of missing critical potential profits while having to write off large tranches of costly inventory.

Metrics 98

Metrics Cash Flow ROI Revenue 98

Harvard Business Review

OCTOBER 21, 2016

This can disrupt a firm’s ability to operate on schedule and budget. Of the respondents, 72% said that climate change presents risks that could significantly impact their operations, revenue, or expenditures. ” Improving risk management.

Assets 15

Assets Operations Revenue Energy 15

Harvard Business Review

NOVEMBER 25, 2013

Creating transparency into its operations is the starting point for marketing to help CFOs understand where and how value is being gained or lost, which makes budgeting discussions much more productive. Focus on the metrics that matter. Although the metrics matter, what matters more is that the CMO and CFO agree on them.

Benchmarking 9

Benchmarking Metrics Advertising ROI 9

Harvard Business Review

AUGUST 3, 2018

The level and trend of a company’s top-line metric is an advance indicator of the success of its business model. Investors, therefore, look not just for reported revenues but for drivers behind the revenues, especially because digital companies’ operating activities often differ from their revenue-generating activities.

Variable Costs 8

Variable Costs Revenue Assets Cash Flow 8

Harvard Business Review

JULY 11, 2013

These divisions all generated consistent earnings and cash flows. Instead, the rating agencies downgraded Enron, the trading operations were forced out of business, $4 billion of debt was accelerated, and Enron was forced to file for bankruptcy. Enron owned the largest natural gas pipeline system in the U.S.,

Balance Sheet 8

Balance Sheet Assets Cash Flow Energy 8

BCW Institute

MAY 2, 2022

“How an Entrepreneurial Operating System Produces Greater Outcomes”. Intro: Does your organization have an operating system that links your vision down to your employees’ daily and weekly actions? And we’re going to be talking about phase two, which is in the realm of operating systems. May 2, 2022.

Operations 52

Operations Cash Flow Nonprofit Manager 52

Walk Me

AUGUST 18, 2022

Healthcare organizations have three budgeting processes: Operational budgeting, capital budgeting, and rolling forecasting. The healthcare manager can separate expenses into several categories, the first of which is operational budgeting. Operational Expenses. Capital Expenses. Policy changes such as Obamacare.

Manager 52

Manager Hospitality Insurance Operations 52

Harvard Business Review

AUGUST 12, 2014

Those people know how the internal business operates  how the pieces fit together  and that turns out to be very valuable knowledge and, more important, fairly difficult to replace. And remember, small firms do start up and die all the time  survival is a pretty good metric. Its not that creative people arent valuable!

Cash Flow 15

Cash Flow Advertising Metrics Accounts 15

Harvard Business Review

NOVEMBER 19, 2015

This can be quantified by analyzing the extent to which the share prices of S&P 500 firms are driven by a firm’s present value of future growth options (PVGO) rather than cash flow from current operations. This can start by creating exploratory metrics and incentives. (3M

Cash Flow 14

Cash Flow Reorganization Marketing Operations 14

Harvard Business Review

MARCH 31, 2016

It both funds day-to-day operations and generates profits for the future. The three-box framework has challenged us to redesign the planning process, which would allow us to brainstorm Box 2 and Box 3 nonlinear initiatives in addition to undertaking Box 1 operational excellence initiatives. To be sure, the present is vitally important.

Manager 15

Manager Cash Flow Operations Metrics 15

Harvard Business Review

OCTOBER 7, 2015

Despite metrics showing impressive overall company performance, the company’s capital deployment strategy was not maximizing shareholder dividends and/or buybacks. The activist in this case would convince senior management to issue debt and reallocate free cash towards a higher/special dividend and a significant share repurchase.

Balance Sheet 12

Balance Sheet Cash Flow Revenue Reorganization 12

Harvard Business Review

JUNE 4, 2014

But by this time, content owners like Time Warner and cable operators like Comcast have learned from the music and mobile phone industries and won’t cede sufficient control over content to enable Apple to disrupt the entire value chain. And Nielsen has no reason to cede control of it. When Innovation Is Strategy. An HBR Insight Center.

Assets 11

Assets Advertising Cash Flow Revenue 11

Chief Executive

JANUARY 31, 2023

Customer-engagement software provider RESTRAIN TEMPTATION AMID GROWTH George Deglin, CEO, OneSignal • San Mateo, California Even when the economy was extremely strong, we kept our eye on expenses and on how we ran our business operations. So we were aggressive in growth areas, but in a way that always kept an eye on business metrics.

Cash Flow 97

Cash Flow Software Travel ROI 97

High Scalability

NOVEMBER 25, 2019

It is 12 years old currently and cash flow positive. Coding is the easiest part of the lifecycle but its maintenance like deployment/operations/learning curve will be hard if you have too many technologies. What operating systems do you use? Apache is used in some old flows and will get deprecated over time.

Scaling 21

Scaling Engineering A/B Testing Manager 21

Chris LoCutro

NOVEMBER 12, 2024

Financial Closeout and Planning (00:09:10) Discover the key reports and metrics that guide my decision-making—P&L, budgets vs. actuals, and more. I also explain how to avoid common pitfalls, such as mismanaging surplus funds or underestimating seasonal cash flow needs. Cash flow statements is something that we spend.

Assets 59

Assets Revenue Cash Flow Balance Sheet 59

Harvard Business Review

DECEMBER 19, 2017

Likewise, what is the right set of metrics that company executives should use to manage their subscription businesses in order to hold themselves fully accountable to their stakeholders? The majority of the disclosures they provided at the time were standard top-down metrics (e.g., Case Study: Blue Apron.

Revenue 8

Revenue Retention Sales Sales 8