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

FEBRUARY 7, 2011

We will define skill as "the ability to use one's knowledge effectively and readily in execution or performance" and luck as "events or circumstances that operate for or against an individual." Take, for instance, a group of companies that currently have high returns on invested capital (ROIC). The first is to define the terms.

Skills 15

Skills ROIC Sports Cost of Capital 15

Harvard Business Review

APRIL 16, 2015

The results can be impressive: if your firm’s return on invested capital is 8% and you have an 8% cost of capital, a 1% improvement in ROIC will increase firm value by 19%. There are just two ways to increase ROIC: improve operating profit (by increasing revenues or cutting costs) or invest capital more wisely.

CEO 8

CEO ROIC Cost of Capital Merton 8

Harvard Business Review

MARCH 7, 2013

In what is now a famous interview with the UK's Sunday Times in 2009, Goldman Sachs chief executive officer, Lloyd Blankfein suggested he was simply a banker, " doing God's work ," even if that meant, at the same time, recognizing, "people are pissed off, mad, and bent out of shape," over bankers' actions.

ROIC 8

ROIC Airlines Chief Executive Officer Metrics 8

Harvard Business Review

MAY 28, 2018

It also called for streamlining headquarters and cutting executive management’s compensation. It would implement targets linked to shareholder value, including ROE and ROIC. Heini Wehrle/BIA/Minden Pictures/Getty Images. Most companies see investor relations as a one-way street.

Company 9

Company ROIC CFO Restructuring 9

Harvard Business Review

DECEMBER 15, 2015

In the past, sales reps sold to IT system administrators, but now they were conversing more with CFOs and other executives, which better positioned Alphatech to expand at accounts where it did land deals. Business results were outstanding: EBITDA more than doubled in the first year and ROIC increased almost 300%, with fewer sales people.

Strategy 8

Strategy Team Discount ROIC 8