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End the Religion of ROE

Harvard Business Review

corporation than "what's the ROE on that?" 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. So it's time to address our measurement system seriously at the firm level.

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A Refresher on Return on Assets and Return on Equity

Harvard Business Review

A service business may have expensive computer and IT systems. What is Return on Equity (ROE)? Unlike ROA, you want the ROE to be as high as possible, but there are limitations. ” How do companies use ROA and ROE? What mistakes do people make when using ROA and ROE? Retailers need a lot of inventory.”

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Don't Confuse Engagement with User Experience

Harvard Business Review

The Android operating system has been outselling Apple's iOS by nearly a 5:1 ratio. Put another way, Apple's UX metric seems to encourage ROE — Return on Engagement — where Android emphasizes ease-of-use and opportunity. Mobile designer Luke Wroblewski captures the conundrum perfectly: What explains.

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