From maximizing shareholder value to delighting the customer
Abstract
Purpose
The paper was written with the intention of drawing attention to a fundamental dysfunction that is widespread in large organizations today – a myopic focus on maximizing shareholder value.
Design/methodology/approach
The paper identifies the source of the dysfunction, the reasons why it has spread, and explains the corrective measures required, namely, a shift in goal from maximizing shareholder value to delighting the customer.
Findings
The dysfunction is widespread and dangerously counterproductive to long‐term business success.
Research limitations/implications
Further quantification is needed, both of the business results over time of firms that have failed to make the shift and of those firms that have made the transition.
Practical implications
The paper proposes transformation of business practices throughout the world – the adoption of radical management and goals that produce stakeholder value.
Originality/value
The findings and implications of the paper, which draw on recent work by writers such as Roger Martin, will be controversial to many business executives and academics.
Keywords
Citation
Denning, S. (2012), "From maximizing shareholder value to delighting the customer", Strategy & Leadership, Vol. 40 No. 3, pp. 12-16. https://doi.org/10.1108/10878571211221167
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited