Management
What is ROI and how is it calculated in project management?
Return on Investment (ROI) is a widely used measure of investment value in project management. It's calculated as the ratio of net income to total cost—specifically, (total income minus total cost) divided by total cost. This is typically expressed as a percentage by multiplying the fraction by 100. An ROI greater than 100% represents a positive return, indicating you get more out than you put in, while an ROI less than 100% represents a loss. Despite its popularity across business, public, and non-profit sectors, ROI has a key limitation: it doesn't account for the timing of costs and profits, which is especially important for long-term projects.
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Online PM Courses - Mike Clayton
00:06 - 03:33
Why do you believe we're seeing the rise of Indian-origin CEOs in global leadership positions?
According to Laxman Narasimhan, India builds resilience, flexibility, and problem-solving abilities in its people. These qualities are essential for CEOs who must find solutions even in imperfect situations. Indian leaders have demonstrated an ability to bring people together toward common goals, with humility that enables them to build strong teams. Indian-origin CEOs combine these leadership qualities with the opportunities provided by Western markets. Narasimhan points to pioneers like Indra Nooyi who broke barriers and became role models, demonstrating that one can be authentic while having massive impact. He also notes that beyond those in Western companies, we should recognize rising Indian and Asian companies with impressive leadership.
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CNBC-TV18
19:48 - 22:33
What are the five steps of strategic management?
The five essential steps of strategic management include: (1) Identifying Direction, where organizations establish clear vision and objectives; (2) Analyzing Resources, which involves assessing and allocating appropriate resources for specific tasks; (3) Framing Strategies, developing action plans to accomplish goals; (4) Implementing Strategies, which requires training employees and executing the planned approaches; and (5) Evaluating Effectiveness, the final review process that assesses performance and identifies individual efforts. These steps create a structured approach that helps businesses achieve their objectives through proper planning, resource allocation, and continuous evaluation.
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Business School 101
01:51 - 03:41
What are the key innovation processes for long-term business profitability?
Business strategies frame three essential innovation processes that drive long-term profitability. First, the new product development process and new capabilities development process provide the foundation. Business managers continually match new products with market opportunities to enhance revenue streams over time. The third critical process is new business development, where managers search out new markets, define and redefine business models, and manage product portfolios. This comprehensive approach helps businesses generate sustained profits rather than just short-term gains. Successful organizations are structured to regularly introduce innovations, including breakthrough products, ensuring ongoing competitive advantage and growth.
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Rutgers Business School - Newark & New Brunswick
05:46 - 06:17
Why is being self-funded important to a sustainable business?
Being self-funded means a business operates with money it has earned rather than money it's been given. Jason Fried explains that this creates a natural constraint that prevents waste and encourages efficiency. When companies have limited resources, they're more careful with spending, similar to rationing water on a hike rather than wastefully consuming when resources appear unlimited. Self-funded companies tend to maintain leaner structures with fewer management layers, which allows them to move faster and make better decisions. This approach emphasizes profitability over metrics like user growth or revenue that might obscure financial reality. For 37signals, profitability has been the primary focus for 24 years, ensuring they can sustainably remain in business regardless of market conditions.
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The Pudding Factory
25:51 - 28:24
What is scaling in business?
Scaling in business is where the inflow of talent matches the inflow of customers. When a company grows beyond two or three people, effective scaling becomes essential. It requires an exceptional conversion process for attracting talent to ensure the organization can support customer growth. This balance between talent acquisition and customer growth is fundamental to sustainable business expansion and operational effectiveness.
Watch clip answer (00:13m)
Alex Hormozi
02:47:00 - 02:47:13