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Not All Metrics Are Created Equal

N2Growth Blog

The best managed companies measure all 5 categories (as well as various subsets) with their focus being on items 3 and 5. While analyzing these drivers will give you some basic operating information, they are also somewhat myopic.

Metrics 345
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Life In A High-Performing Company – An Insider View

Tanveer Naseer

Indeed, these organizations roughly double industry averages on five-year ROA, ROI and ROE. You’ll be part of a team Effective working relationships within and across teams are important for more than operating efficiency. From a total rewards standpoint, high performing companies offer their employees a lot. The Good News 1.

Company 264
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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

Equity cash flows, in turn, are a function of a company’s long-term return on equity (ROE), growth, and the value of shareholders’ equity on its books. If a company’s long-term ROE is anticipated to be the value created by improving pre-tax margins will exceed the value created by accelerating growth.

ROE 14
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A Refresher on Return on Assets and Return on Equity

Harvard Business Review

I talked with Joe Knight, author of the HBR TOOLS: Return on Investment and co-founder and owner of www.business-literacy.com , to learn more about these ratios and how managers can use them. This is called “denominator management” Not all “denominator management” is fraudulent, says Knight.

ROE 8
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Leading by Cause

Lead Change Blog

He opened the dialogue, saying he and his leadership team had put a lot of thought into where they want to take their bank, and the vision they committed to was to deliver top decile ROE, ROA and topline revenue growth: a quintessential example of focusing on effect, not cause. Logic tells us we can manage cause, but only measure effect.

P&L 220
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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. The numbers don't lie.

ROE 11
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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. There is no more powerful question in a U.S. Social media spending? Wellness checkups?

ROE 14