Shift Index

The Shift Index Recession masking long-term competitive challenges The Center for the Edge has unveiled its most significant report to date: "The Shift Index" which suggests the current recession is masking long-term competitive challenges for U.S. businesses. Among the key findings, U.S. companies’ return on assets (ROA) have progressively dropped 75 percent from their 1965 level despite rising labor productivity. Even the highest-performing companies are struggling to maintain their ROA rates and increasingly losing market leadership positions. The index is the result of a nearly year-long effort applying a combination of established and original analytical approaches to four decades of data, some of it pre-existing and some created for the first time. More than a dozen data sources were engaged, four surveys were developed and deployed, and five proprietary methodologies were created to compile 26 metrics into three indices representing 15 industries. Deloitte’s Shift Index pushes beyond cyclical measurement and looks at the long-term rate of change and its impact on economic performance. The Shift Index is focused on three sets of main indicators: Foundations, which set the stage for major change Flows of resources, such as knowledge, which allows businesses to enhance productivity Impacts, which help gauge progress at an economy-wide level We invite you to learn more about the Shift Index and the implications for U.S. executives. Executive Summary Methodology Structure Implications for Executives

http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_tmt_ce_ShiftIndex_072109ecm.pdf