Net Present Value

Imagine for a moment that you are the CEO of a major car company. It’s late September and you have the most interesting Board Meeting of the year – the one where you get to bless the future product line-up for the year ahead. That is, to decide which new car projects will get the green light.

You’ve got up today with a spring in your step and are, for once, actually looking forward to the meeting as your chauffeur-driven limo whisks you through the discreet side gate into your company’s HQ.

Fast-forward a few hours. The meeting’s going swimmingly. Your Chief Product Officer (or whatever high-falutin’ title you’ve given to the person that heads your Product Planning team) is behaving themselves and not acting the prima donna for a change. Your CTO is paying attention and not just doing his emails as he usually does. The CFO has actually cracked a bleak smile once or twice. Collectively, the Board has nixed a few obvious non-starters, and green-lighted a sensible major facelift of the cash-cow product that’s kept your company in the black for the last few years. Nobody’s had a tantrum or tried to stab anyone else in the back. Even the coffee seems half-decent this morning.