Strategy Driven

JULY 13, 2011

Supplementing profits with ROIC and revenue growth is a step in the right direction to ensure that the profits a business earns are actually creating value, not simply over-consuming capital that another company could better deploy. However, profits, ROIC, and revenue growth are backward looking.

ROIC 62

ROIC Balanced Scorecard Metrics McKinsey 62

Harvard Business Review

MARCH 7, 2013

According to the annual returns from GS in 2011, this came in at just over $12 billion or 42 percent of net revenues. According to this measure, in the year ending 2011, each GS banker was handling roughly nineteen times the value of the corresponding figure of assets as a typical low cost airline employee ($27.7m to $1.4m).

ROIC 8

ROIC Airlines Chief Executive Officer Metrics 8

Harvard Business Review

MAY 24, 2017

A veritable alphabet soup (ROA, RONA, ROIC, ROCE, IRR, MVA, APV, and the like) exists to measure our financial capital. But today’s great CEOs need to be equally great at managing human capital. How can we manage human capital better? Measure it. As the adage goes, you can’t manage what you can’t measure.

Human Capital 15

Human Capital Management Company ROCE 15