Use a combination of three measures — revenue growth, economic profit, and free cash flow — to set business targets, track strategy execution, and evaluate management performance. These three measures capture virtually all the high-level financial information that is important for an operating unit. As long as internal management reporting processes are designed to report these measures accurately, they provide excellent feedback on whether the value creation expectations of a particular strategy are being met. Moreover, they are good indicators of which questions to ask and where to look for answers when performance is off track.
Content: Quotation
Authors: Greg Rotz, Ken Favaro
Source: strategy+business
Subjects: Corporate Governance, Finance, Management
Authors: Greg Rotz, Ken Favaro
Source: strategy+business
Subjects: Corporate Governance, Finance, Management
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