This document discusses return on investment (ROI) and how it is used by corporate headquarters to evaluate the profitability and performance of decentralized business segments or departments. ROI is defined as net operating income divided by average operating assets. It is a measure used to compare the returns of different investment centers and past performance, and help managers identify ways to increase ROI such as increasing sales, reducing expenses, and reducing assets. The balanced scorecard approach can help managers understand the company's strategy for increasing ROI.