Remove Cost of Capital Remove Marketing Remove Operations Remove ROIC
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CEOs Don’t Care Enough About Capital Allocation

Harvard Business Review

” A quarter century later, not much seems to have changed: fewer than five out of the 100 CEOs on HBR’s 2014 list of best-performing CEOs even mention “return on capital” on their official biography — and none of those five lead companies listed in the Dow Jones Industrial Average (DJIA) or in the EuroStoxx50.

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

Harvard Business Review

But today’s great CEOs need to be equally great at managing human capital. How can we manage human capital better? A veritable alphabet soup (ROA, RONA, ROIC, ROCE, IRR, MVA, APV, and the like) exists to measure our financial capital. Invest human capital just like you invest financial capital.