Lean Six Sigma for Service

CHAPTER 4 Executing Corporate Strategy with Lean Six Sigma

"A good managerial record is more a function of which boat you get into rather than how effectively you row"¹

Warren Buffett

Over the last decade, more and more companies are accepting the principles illustrated by the Value Mountain (Figure 1.2, reprinted on the next page), a graph based on actual stock market data. The main lesson is that the principal driver of shareholder value is Return on Invested Capital (ROIC). (In the nonprofit sphere, the names change to capital generation and maximizing stakeholder benefits, but the process of achieving the goals is identical.)

Thinking about ROIC is probably most familiar to senior executives and P&L managers, but it is an area of knowledge ...