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Performance Measurement

Strategy Driven

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
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What If Companies Managed People as Carefully as They Manage Money?

Harvard Business Review

Finding, developing, and retaining this talent is hard — so much so that the business press refers to a “war” for talent. A veritable alphabet soup (ROA, RONA, ROIC, ROCE, IRR, MVA, APV, and the like) exists to measure our financial capital. Time, whether measured by hours in a day or days in a career, is finite.

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

While companies are required to share the same materials with all investors, they can emphasize the elements that will be most relevant to particular investor segments—highlighting stable cash flow for pension funds or payouts for growth-oriented investors, for example.