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Performance Measurement

Strategy Driven

Supplementing profits with ROIC and revenue growth is a step in the right direction to ensure that the profits a business earns are actually creating value, not simply over-consuming capital that another company could better deploy. 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. So while profits were rising and ROIC was high, market share was declining.

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How Companies Can Use Investors to Their Advantage

Harvard Business

When Bain & Company recently surveyed 51 top global executives about their investor relationship management practices, we learned that while most of them communicate at least monthly with investors and are segmenting their investor base for differentiated emphasis in communications, fewer than 6% of the companies involved have a formal structure in place to link investor relations with strategy and best utilize investor feedback. Heini Wehrle/BIA/Minden Pictures/Getty Images.