Firms Must Align The Why and The How, Not Just The What
that “companies should serve not only their shareholders, but also deliver value to their customers, invest in employees, deal fairly with suppliers and support the communities in which they operate.”, “then none are.” Not surprisingly, since maximizing shareholder value is still entrenched in most firms’ processes, these firms have continued as before, that is, with maximizing shareholder value.
The reason is easy to understand. This is not only ethical. It is also very effective. People do best what they do in the service of delighting others. When they are able to work on something worthwhile with others who love doing the same thing, the group tends to get better. By working in short cycles, everyone can see the outcome of what is being done. When communications are interactive and everyone is open about what is going on, problems get solved. Innovation occurs.
There are various formulations of the same core idea. “Co-create value with customers” “love your customer as yourself” “Zero distance to customers.”
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