Drawing from what makes the brand unique, we built an identity that embodies its narrative, beliefs, and aspiration to lead with purpose.

FORR ALL THEIR THEORETICAL attractivness as a way to value growth projects, real options have had a difficult time catching on with managers. CFOs tell us that real options overestimate the value of uncertain projects, encouraging companies to over invest in them. In the worst case, they grant excessively ambitious managers a license to gamble with shareholders' money. This reluctance stems at least in part from a suspicion that it's risky to apply valuation tools that have been developed for well-defined financial options to complex business projects.

The tools oblige managers to make many simplifying assumptions and therefore, the thinking goes, they cannot fully capture a proposal's multifaceted risks and opportunities. These concerns are legitimate, but we believe that abandoning real options as a valuation model is just as bad. Companies that rely on discounted cash flow analysis for valuing their projects fall inevitably into the trap of underestimating the value of their projects and consequently don't invest enough in uncertain but highly promising opportunities.