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

AUGUST 27, 2015

companies’ return on invested capital (ROIC), and compare it with economy-wide ROIC estimates constructed by Deloitte. Economywide ROIC has trended downward since the 1980s, falling from above 6% in the mid-1960s to 5% in 1980, then to 3% in 1990, and to only a bit more than 1% by 2010. An increasing number of U.S.

ROIC 8

ROIC McKinsey GDP Company 8

Harvard Business Review

DECEMBER 8, 2011

To establish a competitive advantage, a company must deliver its distinctive value through a distinctive value chain. Confusing competitive advantage with "what you're good at.". If you perform the same activities as everyone else, in the same ways, how can you expect to achieve better performance? Mistake #2. Mistake #5.

Strategy 15

Strategy Porter ROIC Competitive Advantage 15