Strategy Driven

JULY 13, 2011

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.

ROIC 62

ROIC Balanced Scorecard Metrics McKinsey 62

Harvard Business Review

DECEMBER 8, 2011

I just finished a two-year project looking at Michael Porter's most important insights for managers. Moreover, when Porter defines strategy, he is really talking about what constitutes a good strategy — one that will result in a higher ROIC than the industry average. Mistake #5.

Strategy 15

Strategy Porter ROIC Competitive Advantage 15

Harvard Business Review

DECEMBER 15, 2015

As a result, false positives and negative-value prospects littered the sales funnel, and about 75% of margins came from just 25% of the deals—almost all of which were managed-services contracts versus one-off “project” installations. That’s also why a Deal Profile is a strategic issue as well as sales issue.

Strategy 8

Strategy Team Discount ROIC 8

Harvard Business Review

MAY 24, 2017

As a result of capital superabundancy, global quantitative easing and relatively low demand for investments in R&D and capital projects, the after-tax cost of borrowing for many companies is at or near inflation, making the real cost of borrowing close to zero. How can we manage human capital better? Measure it. Monitor it.

Human Capital 15

Human Capital Management Company ROCE 15