Strategy Driven

JULY 13, 2011

We talked extensively in this book about how accounting profits or profit growth as a sole performance metric doesn’t lead to value creation. However, profits, ROIC, and revenue growth are backward looking. They don’t tell you how well the business is positioned for future growth and ROIC improvement.

ROIC 62

ROIC Balanced Scorecard Metrics McKinsey 62

Harvard Business Review

DECEMBER 19, 2011

During the current recession, overall consumer spending has declined or held flat, sales per square foot have not improved significantly, and retailers' return on invested capital (ROIC) has suffered dramatically. The most obvious victims of this shift so far are music, video, and book sellers.

ROIC 12

ROIC Retail Mass Marketing Price 12

Harvard Business Review

DECEMBER 15, 2015

The first component of a Deal Profile is figuring out how to define success. Second, Alphatech had to decide how to communicate value. Business results were outstanding: EBITDA more than doubled in the first year and ROIC increased almost 300%, with fewer sales people. Finally, there’s measuring results.

Strategy 8

Strategy Team Discount ROIC 8