Caterpillar Inc., the world’s leading construction equipment manufacturer, delivered over 2.5x the cumulative total shareholder return of the S&P 500 over the last eight years. In this episode, Caterpillar CFO Andrew Bonfield discusses how value-based management enables their dominant financial performance. At the heart of Caterpillar’s strategy is a focus on “profitable growth,” guided by a measure they call operating profit after capital charge (OPACC). OPACC is an economic profit measure that allows Caterpillar to target operating improvements and strategically allocate resources across its complex portfolio, focusing on high-return opportunities while restructuring or exiting underperforming areas. For Caterpillar, growth and innovation are essential; a disciplined, fact-based approach helps them identify their very best investment and improvement prospects.