I spent a sunny Saturday morning with several managers and doctors at the Atrius/Harvard Vanguard group. The topic of the morning was Return on Investment (ROI). We had a delightful morning discussing payback, net present value (NPV), and internal rate of return (IRR).
This group is an interesting one. The Atrius organization is not for profit. So one might ask why would a not for profit have the Business Literacy Institute train their managers and doctors on finance? The answer is a simple one. Not for profit is a bad term for any organization. The fact is a not for profit does not pay taxes on its income and has no private ownership. So when an organization makes a profit like Atrius makes a profit it can put it back into the organization to help more people and become stronger. If a not for profit stops making a profit eventually they will run out of money.
The ROI class went well. There is a lot interest in justifying critical investments in the medical industry. Along the way I learned that these doctors are pretty smart people and can run a financial calculator. After an hour of training we were good to go on the models.