Think of managing a company like running a mutual fund. A fund manager invests people’s money in stocks or bonds to grow it. A good manager who earns a 12 percent return is more successful in increasing investors’ money than one who earns just 8 percent.
In a company, it’s similar. You take the money from shareholders and invest it back into the business to make more money. To be a better manager, focus on how effectively you can turn that investment into profit. The better you are at making profits from the investments, the more successful you will be as a manager.