November 1997

Columns

HPIn Competitiveness: Move the needle on the ROI meter

Return on investment (ROI) is a key meter of performance on executive management's “dashboard.” This is because ROI – sometimes called return on capital employed or return on assets ..

Lamb, R. G., Cost Control Systems, LLC

Return on investment (ROI) is a key meter of performance on executive management's “dashboard.” This is because ROI – sometimes called return on capital employed or return on assets – is used by stockholders and others to judge the firm's and employee's future. Their judgment will decide the firm's future and employee's job security. There is a simple message here. Your reliability and maintenance improvement programs had better move the needle on management's ROI meter. This has not happened. Instead, programs have improved reliability and maintenance performance, rather than maximi zed the firm's ROI. Executive management is not seeing significant needle moveme

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