In a meeting with the management team of a growing company, one figure kept coming up all the time and seemed to have got the maximum attention- growth in revenues. It seemed the leaders were determined to blast their way to a stage where they could think of an IPO. For this they were working towards increasing their sales as much as possible. It looked as if they wanted to show the world how much they had grown and just “how big” they were.
It soon became clear that in this one sided drive, they were not keeping sight of other vital measures- particularly in the long term- such as Return on Equity, Return on Capital Employed and profit per employee.