How Kimberly‐Clark Uses Real Options

During the past five years, Kimberly-Clark (K-C) has faced a familiar management challenge: How can senior managers bring the rigor and discipline used to make daily operating decisions to the uncertain and risky world of innovation? The challenge was particularly acute at K-C because the company is well known for its reliance on Return On Invested Capital (ROIC) and Discounted Cash Flow (DCF), both measures that are widely believed to lead to undervaluation of projects with risky upside potential. 2006 Morgan Stanley.