Harvard Business Review

MAY 28, 2018

Directly influenced by investor input, Nikon developed a restructuring plan that would carry a onetime cost of ¥48 billion ($460 million) but generate ¥20 billion ($190 million) in annual savings. It would implement targets linked to shareholder value, including ROE and ROIC. The response was disappointing.

Company 8

Company ROIC CFO Restructuring 8

Harvard Business Review

MARCH 7, 2013

Like Return on Invested Capital (ROIC), which reflects what a company earns, how much capital it needs to earn it and the ratio between the two, ROIT reveals what the company earns, how much it has to spend on its talent to earn it, and what the ratio is between the two.

ROIC 8

ROIC Airlines Chief Executive Officer Metrics 8

Harvard Business Review

DECEMBER 8, 2011

Moreover, when Porter defines strategy, he is really talking about what constitutes a good strategy — one that will result in a higher ROIC than the industry average. It's the positioning you choose that will result in achieving the goal; the actions are the path you take to realize the positioning. Mistake #5.

Strategy 15

Strategy Porter ROIC Competitive Advantage 15

Harvard Business Review

DECEMBER 15, 2015

Either directly in meetings or implicitly in their compensation plans, they basically tell their sales forces to “Go forth and multiply!” Business results were outstanding: EBITDA more than doubled in the first year and ROIC increased almost 300%, with fewer sales people. ” And that is exactly what happens.

Strategy 8

Strategy Team Discount ROIC 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. Teams of financial planning and analysis professionals measure actual and expected results for financial capital. Capital expenditure plans are subjected to detailed board reviews. Measure it. Monitor it.

Human Capital 15

Human Capital Management Company ROCE 15