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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.

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

It also called for streamlining headquarters and cutting executive management’s compensation. It would implement targets linked to shareholder value, including ROE and ROIC. Heini Wehrle/BIA/Minden Pictures/Getty Images. Most companies see investor relations as a one-way street.