Harvard Business Review

OCTOBER 25, 2018

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

Industry 15

Industry Company GDP Bottom-up 15

Harvard Business Review

SEPTEMBER 4, 2017

In the decade between 2005 and 2015, labor productivity in the US as measured by GDP per labor hour was less than 1% for 7 of the 10 years, according to the OECD. We know that great ideas that drive breakthroughs in productivity come from human beings with the time, talent and energy to innovate. And wages are stagnant.

Human Capital 15

Human Capital Kaizen Agility Energy 15

Harvard Business Review

AUGUST 27, 2015

Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. GDP growth could hit nearly 5% in 2016.

ROIC 8

ROIC McKinsey GDP Company 8

Harvard Business Review

SEPTEMBER 13, 2017

The industry makes up approximately 6% of Brazil’s GDP. These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector. These and other benefits translate into better cost management, agricultural innovation, and increased land productivity and quality.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8