Kim Warren on Strategy

Strategy insights and living business models

Profitability or growth?

Much of what we know about strategy comes from research into why some firms are more profitable than others – but investors value growth in cash flows [see chapter 1 of Strategic Management Dynamics]. An article in McKinsey Quarterly ‘How to choose between growth and ROIC‘ [return on invested capital] confirms the importance of this issue and shows how investors benefit from growth, depending on companies’ profitability.

Strategy Dynamics Essentials

Strategy Dynamics Essentials book cover

Strategic Management Dynamics

Strategic Management Dynamics - cover image