Harvard Business Review

FEBRUARY 7, 2011

Any system that combines skill and luck will revert to the mean over time. Take, for instance, a group of companies that currently have high returns on invested capital (ROIC). If you follow that group over time, you would see their ROICs revert back toward the cost of capital. Reversion to the mean. Paying for randomness.

Skills 15

Skills ROIC Sports Cost of Capital 15

Harvard Business Review

MAY 28, 2018

It would implement targets linked to shareholder value, including ROE and ROIC. It would enhance its governance structure, improving transparency in leadership appointment, adding more diversity to the board and installing a more effective system for evaluating executive management performance.

Company 8

Company ROIC CFO Restructuring 8

Harvard Business Review

DECEMBER 15, 2015

Sales calls now focused on defining success with the customer, including specific outcomes such as time to deploy applications and system up-time guarantees. 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