article thumbnail

Even for Companies, the U.S. Is Split Between Haves and Have-Nots

Harvard Business Review

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.

ROIC 8
article thumbnail

Untangling Skill and Luck

Harvard Business Review

When we enjoy a good outcome due to luck, we are naturally inclined to chalk up our success to skill. For example, believers assert that a streak of successful shots in basketball occurs because a player who has made her most recent shot is more likely to make her next shot (she has a hot hand). The first reason is psychological.

Skills 15
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Five Common Strategy Mistakes

Harvard Business Review

Confusing marketing with strategy. But as important as it is to have insight into customers' needs, don't confuse marketing with strategy. What the marketing-only approach misses is that a robust strategy also requires a tailored value chain, a unique configuration of activities that best delivers that kind of value.

article thumbnail

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

Harvard Business Review

A veritable alphabet soup (ROA, RONA, ROIC, ROCE, IRR, MVA, APV, and the like) exists to measure our financial capital. In other words, they connected with people who could help them with customer issues, such as staff in finance, legal, pricing, or marketing. How can we manage human capital better? Measure it.

article thumbnail

Don’t Turn Your Sales Team Loose Without a Strategy

Harvard Business Review

When formulating a strategy, markets and segments are important categories to consider. But a market never buys anything. And, since they were spread out across a geographically diverse area, they represented a large enough market to support renewed profitable growth. Only customers buy. It did this in a few ways.