article thumbnail

Moving on from ROI to ROE, a Return on Empathy

Strategy Driven

Those making this shift will gain a significant ROE – Return on Empathy. As a result significant business resources are wasted buy an over-reliance on market research that poses only rational questions but neglects to probe customers’ emotional reactions that lie hidden within their answers. Investing in Empathy.

ROE 50
article thumbnail

Japan Is Counting on Shareholder Activism to Improve Its Economy

Harvard Business Review

Abe has even met with one of the most prominent American activists, Dan Loeb , in a private albeit well-publicized encounter, suggesting he sees value in foreign involvement in Japanese markets. given that Japanese companies are global outliers in terms of excess cash, low ROEs , and limited domestic growth prospects ).

ROE 8
Insiders

Sign Up for our Newsletter

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

article thumbnail

How Companies Can Use Investors to Their Advantage

Harvard Business Review

He asked one former major investor for a reaction to the company’s prediction (accompanying poor quarterly results): “that the [current] market contraction will bottom out soon and our profits will improve.” It would implement targets linked to shareholder value, including ROE and ROIC.

article thumbnail

Idle Funds are the Devil's Playground

Harvard Business Review

Regarding the latter, we point to some well-documented and broadly perceived shifts in the geography, demography, and technology of global economic activity. vision of financial world order; as Time magazine reported, he was "bursting with hubris over its booming equity markets and its just-announced 5.6%

Banking 11
article thumbnail

End the Religion of ROE

Harvard Business Review

corporation than "what's the ROE on that?" Conversely, why market cigarettes? ROE justifies the means. To an extent not widely recognized, it was an equation in the first place that gave ROE the power to dominate not just investment decisions, but an entire business culture. There is no more powerful question in a U.S.

ROE 12