-
Gathering Green Data: Tools and Tips
Costing Digital ArticleIn my last post, I talked about the ways you can use green data — footprinting information on your products and services up and down the value chain — to create enormous value for your company. As they say, you can’t manage what you don’t measure. And those with the best information can cut costs, […] -
Managing as if Tomorrow Mattered
Finance and investing Magazine ArticleFew economic decisions are as difficult as those involving the choice between present and future consumption. Some people, unable to place much faith in the future, happily borrow to fund present pleasures; others, with longer time horizons, are wary of such “fly now, pay later” policies. They fear that the required payments, when viewed up […] -
Do You Know Your Cost of Capital?
Finance & Accounting Magazine ArticleThe Association for Financial Professionals surveyed its members about the assumptions built into the financial models they use to evaluate investment... -
New Framework for Corporate Debt Policy
Accounting Magazine ArticleFew, if any, articles on finance that have appeared in HBR have enjoyed the influence of the 1962 article reprinted here as a “Classic.” Gordon Donaldson’s analysis of how many companies haphazardly established their debt capacity, and his careful explanation of what he considered a better way, seemed to strike a chord among corporate administrative […] -
The Coronavirus Crisis Doesn't Have to Lead to Layoffs
Finance & Accounting Digital ArticleLeaders can approach this challenging time with flexibility, transparency, and compassion. -
Smarter Offshoring
Economics Magazine ArticleThe most popular offshore sites for service functions are overheating. Now is the time for companies to explore a world of opportunity beyond those hot spots and to base investment decisions not just on costs but also on talent, markets, strategic aims, and appetite for risk. -
Online Shopping Isn’t as Profitable as You Think
Costing Digital ArticleEven Jeff Bezos wants to open a physical store. -
Cutting the Cost of HIV
Finance and investing Magazine ArticleCompanies doing business in the developing world have to contend with the staggering human and financial costs of HIV infection—and most would agree that conventional approaches to controlling the epidemic aren’t working. In our experience in the labor-intensive mining industries of Russia, South Africa, and Botswana, we’ve seen infection rates among workers exceeding 90% in […] -
How Hewlett-Packard Gets Numbers It Can Trust
Accounting Magazine ArticleFive years ago, people at the Roseville Networks Division of Hewlett-Packard didn’t believe the numbers the accounting system produced. Now they do. When marketing, manufacturing, product design, and accounting sat down to discuss a product, we invariably argued about how to find a product’s “real” cost. Production, in particular, viewed accounting as a watchdog, not […] -
So You Think You Understand Revenues
Costing Magazine ArticleRevenue is one of the most misunderstood, mismanaged, and neglected measures in business. Consequently, many executives still rely on gut feel, rather than on hard data, to make revenue decisions—often destroying value in the process. We’ve seen this happen in the dozens of companies we’ve studied. Consider the short shrift revenue gets on accounting reports, […] -
Five Ways to Use (Green) Data to Make Money
Finance & Accounting Digital ArticleIf you put an energy meter inside a home and show people total usage in real time, a miraculous thing happens: they use about 10 percent less energy.... -
3 Lessons from Hyperinflationary Periods
Finance & Accounting Digital ArticleWhat today's businesses can learn about pricing strategies and consumer trust. -
Health Care Reforms That Work
Organizational Development Digital ArticleFive proven principles for reducing costs without compromising quality. -
A Case for Historical Costs
Costing Magazine ArticleDo we really need to switch to replacement-cost accounting to understand how companies have performed? -
The Failed Revolution in Health Care—The Role of Management
Finance and investing Magazine ArticleThe American health care industry is sick. Its huge fraction of our GNP—one out of every eight dollars—is double that of Japan and at least 50% higher than that of other developed countries. Because it is growing at rates 50% higher than the GNP, the industry’s cost hampers control of our disastrous trade deficit. Even […] -
Sharpening the Intangibles Edge
Financial analysis Magazine ArticleNeither markets nor managers accurately value investments in intangibles like R&D, studies show. The result: misallocated resources. The solution: read on. -
More Direct Reports Make Life Easier
Managing people Digital ArticleHow much control do managers really need? -
How Nintendo Delights Its Customers
Customer experience Digital ArticleSince the video game console industry began with the Atari 2600, every successive generation has been touted for its better graphics, faster processors, and increasingly complex controls. In 2005, when the latest generation of consoles was first announced, many assumed Sony’s Playstation 3, which had the boldest specs, would prevail, following on the monster success […] -
Delivering World-Class Health Care, Affordably
Innovation Magazine ArticleInnovative hospitals in India are pointing the way. -
The Competitive Dynamics of Network-Based Businesses
Costing Magazine ArticleDo you really know what your customers value in your network?
-
Destron Petroleum Services: Bidding for a Project
Finance & Accounting Case Study11.95View Details Destron Petroleum Services (DPS) was an oil drilling contractor that had just won a bid to provide a land drilling rig on a rental basis to a major oil... -
Kidder, Peabody & Co.: Creating Elusive Profits
Finance & Accounting Case Study11.95View Details On April 17, 1994, Kidder, Peabody & Co. announced a $350 million charge against earnings resulting from the discovery of false trading profits. That... -
Using ABC to Manage Customer Mix and Relationships
Finance & Accounting Case Study8.95View Details Describes applying activity-based costing to manage customer relationships. Links cost-to-serve to net margins earned with individual customers. -
Ball: EVA Driving the World's Leading Can Manufacturer (C)
Management Case Study5.00View Details Ball used Economic Value Added analysis to determine if it should open a new metal can manufacturing facility, which mandated closing two recently acquired... -
Plastiq
Innovation & Entrepreneurship Case Study11.95View Details The young CEO of a venture-backed startup needs to figure out his go to market strategy and the right profile for his first key sales hires. Should he... -
Octane Service Station
Finance & Accounting Case Study11.95View Details The owner of a gas station must prepare financial statements. -
Boston Children's Hospital: Measuring Patient Costs (V)
Finance & Accounting Case Study11.95View Details The case describes two pilot projects on applying activity-based costing to measuring the cost of treating patients. It presents process maps and financial... -
Hightrek Inc.
Finance & Accounting Case Study11.95View Details A small manufacturer of camping gear is considering a new product that would expand its market. The product is a portable "hoophouse" that would allow... -
Business Research Corp. (A)
Innovation & Entrepreneurship Case Study11.95View Details Contains a description of a decision confronting an entrepreneur: which of two investment proposals should he accept to fund the creation and marketing... -
Scarpe Italiane, S.p.A.
Finance & Accounting Case Study11.95View Details This is a case on ABC but with a tricky differential cost decision of the keep/discontinue variety embedded in it. Students need to work with manufacturing... -
FinePrint Company (Abridged)
Finance & Accounting Case Study11.95View Details John Johnson, owner of FinePrint Company, is presented with two opportunities to consider: (1) whether to accept a one-time special printing order and... -
Time-Driven Activity-Based Costing
Finance & Accounting Case Study8.95View Details Introduces the role for time-driven activity-based costing. Identifies the value from an accurate costing model, describes the difficulties of traditional... -
Wendy's Chili: A Costing Conundrum
Organizational Development Case Study11.95View Details This case poses the seemingly simple and straightforward question, "How much does it cost Wendy's to make a bowl of chili?" Because most of the meat used... -
Accounting for Frequent Fliers
Finance & Accounting Case Study11.95View Details Airline frequent flier programs offer members the opportunity to earn free flights by accumulating mileage. Accounting and reporting the obligations of... -
General Motors: Full-Size Truck Seat Supply Chain
Technology & Operations Case Study11.95View Details In July 2018, Amir Bell was heading the Operational Excellence (OpEx) team for the Light Duty Pickup Truck Seat Cost Reduction program at General Motors... -
Simmons Japan Ltd.
Finance & Accounting Case Study11.95View Details Concerns the first leveraged buyout to occur in Japan. Analytic tasks include a valuation of the company and an assessment of its debt capacity. Also... -
Petro Refinery LLC: Linear Programming Exercise - Tutorial Handout
Technology & Operations Case Study5.00View Details Petro Refinery LLC, a crude oil refinery, faces an issue common in many production and service industries: finding the optimal product mix or input mix.... -
Adventurous Computer Games, Inc. (Abridged)
Finance & Accounting Case Study11.95View Details A new company that manufactures computer games must begin to capitalize computer software development costs. Issues that must be addressed include the... -
Hintz-Kessels-Kohl A.G.
Finance & Accounting Case Study11.95View Details A truck manufacturer must decide whether to bid on the sale of 120 trucks to a private firm in Costa Rica. If a bid is submitted, a decision must be made... -
Activity-Based Costing and Capacity
Finance & Accounting Case Study8.95View Details Discusses the use of budgeted rather than historical data in an activity-based costing (ABC) model and argues for calculating rates using practical capacity,...
-
Gathering Green Data: Tools and Tips
Costing Digital ArticleIn my last post, I talked about the ways you can use green data — footprinting information on your products and services up and down the value chain — to create enormous value for your company. As they say, you can’t manage what you don’t measure. And those with the best information can cut costs, […] -
Destron Petroleum Services: Bidding for a Project
Finance & Accounting Case Study11.95View Details Destron Petroleum Services (DPS) was an oil drilling contractor that had just won a bid to provide a land drilling rig on a rental basis to a major oil... -
Managing as if Tomorrow Mattered
Finance and investing Magazine ArticleFew economic decisions are as difficult as those involving the choice between present and future consumption. Some people, unable to place much faith in the future, happily borrow to fund present pleasures; others, with longer time horizons, are wary of such “fly now, pay later” policies. They fear that the required payments, when viewed up […] -
Do You Know Your Cost of Capital?
Finance & Accounting Magazine ArticleThe Association for Financial Professionals surveyed its members about the assumptions built into the financial models they use to evaluate investment... -
New Framework for Corporate Debt Policy
Accounting Magazine ArticleFew, if any, articles on finance that have appeared in HBR have enjoyed the influence of the 1962 article reprinted here as a “Classic.” Gordon Donaldson’s analysis of how many companies haphazardly established their debt capacity, and his careful explanation of what he considered a better way, seemed to strike a chord among corporate administrative […] -
Kidder, Peabody & Co.: Creating Elusive Profits
Finance & Accounting Case Study11.95View Details On April 17, 1994, Kidder, Peabody & Co. announced a $350 million charge against earnings resulting from the discovery of false trading profits. That... -
The Coronavirus Crisis Doesn't Have to Lead to Layoffs
Finance & Accounting Digital ArticleLeaders can approach this challenging time with flexibility, transparency, and compassion. -
Using ABC to Manage Customer Mix and Relationships
Finance & Accounting Case Study8.95View Details Describes applying activity-based costing to manage customer relationships. Links cost-to-serve to net margins earned with individual customers. -
Ball: EVA Driving the World's Leading Can Manufacturer (C)
Management Case Study5.00View Details Ball used Economic Value Added analysis to determine if it should open a new metal can manufacturing facility, which mandated closing two recently acquired... -
Smarter Offshoring
Economics Magazine ArticleThe most popular offshore sites for service functions are overheating. Now is the time for companies to explore a world of opportunity beyond those hot spots and to base investment decisions not just on costs but also on talent, markets, strategic aims, and appetite for risk.