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

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

Skills ROIC Sports Cost of Capital 15

Harvard Business Review

DECEMBER 8, 2011

There is no systematic evidence that indicates that industry leaders are the most profitable or successful firms. 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. Mistake #5.

Strategy 15

Strategy Porter ROIC Competitive Advantage 15

Harvard Business Review

DECEMBER 15, 2015

The first component of a Deal Profile is figuring out how to define success. Sales calls now focused on defining success with the customer, including specific outcomes such as time to deploy applications and system up-time guarantees. For customers, the calls were reviews and reminders of agreed-upon success outcomes.

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. Historically, successful investment of financial capital can make someone’s career. But today’s great CEOs need to be equally great at managing human capital. How can we manage human capital better?

Human Capital 15

Human Capital Management Company ROCE 15