Remove Cost of Capital Remove Execution Remove ROIC Remove Strategy
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CEOs Don’t Care Enough About Capital Allocation

Harvard Business Review

Unless your company’s return on capital exceeds its cost of capital, no amount of revenue growth can create value. For the many firms whose cost of capital and return on capital are roughly equal, in fact, the only path to value creation is to increase return on capital.

CEO 8
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Untangling Skill and Luck

Harvard Business Review

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