Sunday 6 October 2013

Shareholder value - "the dumbest idea in the world"

This Sunday's sparkenation.

The first time I made the statement below to a group of CEOs 20 years ago there were giggles and sniggers in the room

"Profit is not a reason for being in business, rather a result of being good at business."

I don't get derision any more.

The purpose of your business is the unique way you add value to all the stakeholders of your business including our planet and society. Shareholder value and profit are outcomes of the value you provide other stakeholders. They are never reasons for being, always results of being.

For the article that sparked this post please check out Steve Denning's article What Killed Michael Porter's Monitor Group? The One Force That Really Matters.

Be the difference you want to see in the world.

More sparkenations.

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