3 ms·
Value is the net present value of estimated future cash flows, discounted to the present with an appropriate estimated rate (risk free rate + estimated risk pre
by H8crilA 5y ago
Value is the net present value of estimated future cash flows, discounted to the present with an appropriate estimated rate (risk free rate + estimated risk premium). It is very hard to compute further out flows (benefits and losses) for most individual employee activities, thus the risk premium should be high, like really high. This results in making the value have short "duration". Ergo, don't be shy about bragging about short term value gains, for the value gains are usually sandcastles.
This is not civil engineering, most of the stuff me or you used 10 years ago has been rewritten and rebuilt, sometimes from scratch, sometimes several times.
Of course, exceptions exist, but remember that exceptions are exceptional - rare.
- deleted 5y ago[deleted]
- wombatmobile 5y agoYou make a promising start with some salient points, then jump prematurely to a conclusion without supplying a missing premise. By that I mean you entirely discount the value of long term value creation, dismissing it as "very hard to compute". Your analysis could yield significantly more value by pointing to ways that long term value propositions can be evaluated, sold, and balanced for risk. It's an easier sell than you might assume. Point to examples where it paid off - e.g. Roslyn Franklin's X-ray Crystallography --> Watson and Crick's DNA --> Genomic sequencing --> mRNA vaccines Microsoft's Windows development for 3 versions before conditions were right for the GUI to prevail on desktop computers. Brin and Page captured long term value from Page Rank by waiting to monetise their search business until it had established clear technical leadership by virtue of its reputation for satisfying users.
- shalmanese 5y agoThis makes sense for founders where you can capture some non-trivial percentage of long term value creation. GP's point was that, for employees, this effectively is never a thing so there's no point even worrying about it.
- deleted 5y ago[deleted]