Chapter 2
Beware the ROI Bogeyman and Other Monsters under the Bed
Issues Addressed in This Chapter
• ROI is not effective as a decision-making tool to improve strategy execution and organizational effectiveness.
• You can improve short-term cash flow (and ROI) if you stop investing in the organizational capability that provides your competitive advantage in the long run.
• Other common measurements are no better than ROI, confusing correlation with causation.
Key Questions
• Are we trying to improve short-term cash flow or long-term competitive advantage?
• Which strategic benefits cannot be easily linked to increased cash flow today?
Return on ...
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