Executive summary

A ROIC driver tree decomposes return on invested capital into operating margin and capital turnover, then into the operational levers beneath, so value creation is traced to actions. This is the ROIC Driver Tree from the Stratenity Library, a governed consulting deliverable that is already built for you. It gives your team the full working method for ROIC driver tree, and it walks through everything from defining NOPAT and invested capital cleanly to working-capital drivers: inventory, receivables, payables days. Every asset ships with a worked client example, a clear RACI, defined KPIs, and governance you can defend, so your team adapts it to a live client engagement instead of starting from a blank page.

What is inside

What this asset covers

This is a preview of the full deliverable. Inside the Stratenity Library, this asset walks a consultant through the complete method, section by section, with a worked client example threaded throughout.

  • Why ROIC Is the Cleanest Test of Value Creation
  • ROIC vs the Cost of Capital: the Spread That Matters
  • Defining NOPAT and Invested Capital Cleanly
  • The Top Split: Operating Margin x Capital Turns
  • Decomposing the Margin Branch
  • Decomposing the Capital-Turns Branch
  • Working-Capital Drivers: Inventory, Receivables, Payables Days
  • Fixed-Capital Drivers: Store Capex, Utilisation, Lease-Adjusted Capital
  • Building the Full Driver Tree End to End
  • Benchmarking Each Node and Sizing the Prize
  • From Tree to Initiatives: Owning Each Driver
  • Linking ROIC Improvement to Value and the Equity Story
  • Common Pitfalls and the Deliverable Pack
How to use it

Review, download, and activate in 48 hours

Stratenity Library subscribers can review this asset in full, download it, and activate it into a governed, client-ready deliverable in 48 hours rather than weeks. Each asset ships with a worked client example, a clear RACI, defined KPIs, and governance you can defend.

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