It summarises all financial indicators for a manager. It is the most useful financial indicator for management since it convinces your organisation’s internal and external investors that you are capable of delivering a profit on the resources that they entrust to you by selecting the right activities and by withdrawing from the worst.
HansPeter Kurtzmeyer who, since our meeting, has become a senior executive in a large Swiss multinational, has often based his approach on this indicator to grow the business units under his responsibility.